You too can own a piece of paradise! Here are a few ways:
Have a property in Florida, California or Nevada that you’re considering selling? Why not take advantage of the IRS tax code “1031” to purchase a piece of paradise as part of the exchange. There are excellent opportunities whether you are seeking a multi-million dollar beach front home or a condo hotel a.k.a. “condotel” for less than $100,000.
If you are looking for a deal why not consider the 200 single family short sale homes ranging from as low as $100,000 to $1,967,000.
In the market for a Waikiki 4,286 s.f. Penthouse that boasts a spacious lanai/balcony with ocean and mountain views. Well it’s a short sale listed at $2,900,000.
Coldwell Banker Pacific Properties handles the largest number of REO, Bank Owned properties in the state of Hawaii.
Tune in to this blog for a list of upcoming properties
Rosemary Smith, RA
Saturday, September 12, 2009
Friday, September 11, 2009
Luxury Market – A Glimpse of the Light at the End of the Tunnel
The Shock felt around the world on September 15th, 2008 shook our Luxury Market to it’s core as Lehman Brothers collapsed and the stock market tumbled. October 2008 was said to be the worst month in the stock market in 21 years. Massive amounts of money was lost on paper which resulted in the affluent buyers leaving the luxury market. Luxury home sales on the island dropped by 62.5% in one month and remained at that level through November also.
Fast forward to August 2009. The stock market is on it’s way up again as it saw it’s 5th consecutive day of gains climbing over 9,500 and the press is reporting the country is now out of recession. In the luxury real estate market the dust has settled and offers are beginning to fly in. During the first 10 days of September we have already seen 5 accepted offers on listings over $2,500,000 which is equal to the entire month of August. It may be due to the fact that inventory has dropped to only 191 active listings priced above $2,500,000 which is the lowest active count since January 2008 and prices have dropped by 12.1%. This may be the light at the end of the tunnel. The question I have is “How long is the tunnel?”
-Mandy Berner, RA
Fast forward to August 2009. The stock market is on it’s way up again as it saw it’s 5th consecutive day of gains climbing over 9,500 and the press is reporting the country is now out of recession. In the luxury real estate market the dust has settled and offers are beginning to fly in. During the first 10 days of September we have already seen 5 accepted offers on listings over $2,500,000 which is equal to the entire month of August. It may be due to the fact that inventory has dropped to only 191 active listings priced above $2,500,000 which is the lowest active count since January 2008 and prices have dropped by 12.1%. This may be the light at the end of the tunnel. The question I have is “How long is the tunnel?”
-Mandy Berner, RA
Thursday, September 10, 2009
Financing News!
Hawaii Has Extremely High Loan Limits
Do you ever get wonder what are the loan limits for each program? Every state has different loan limits. For example, California conforming loan limit is $417,000 while Hawaii is $625,500.
Hawaii has one of the highest loan limits among other states.
Below are a few of the popular loan program limits:
Conforming - $625,500
Jumbo Conforming - $793,750
Jumbo - $1 million
FHA - $625,500
FHA Jumbo - $793,750
VA - $625,500
VA Jumbo - $793,750
The interest rate on each loan limit and program will vary. Keep in mind that while these loan limits are available, the restrictions and guidelines for each one will vary and may change at any time. With lending guidelines tighten; always check with a reliable loan officer to help guide you through your mortgage financing.
-Linda Le
Do you ever get wonder what are the loan limits for each program? Every state has different loan limits. For example, California conforming loan limit is $417,000 while Hawaii is $625,500.
Hawaii has one of the highest loan limits among other states.
Below are a few of the popular loan program limits:
Conforming - $625,500
Jumbo Conforming - $793,750
Jumbo - $1 million
FHA - $625,500
FHA Jumbo - $793,750
VA - $625,500
VA Jumbo - $793,750
The interest rate on each loan limit and program will vary. Keep in mind that while these loan limits are available, the restrictions and guidelines for each one will vary and may change at any time. With lending guidelines tighten; always check with a reliable loan officer to help guide you through your mortgage financing.
-Linda Le
Wednesday, September 9, 2009
Time is Running out on the Stimulus Credit!
First Time Home Buyers can put up to $8,000 in their pocket if they act soon.
According to the US Government, you are a first time home buyer if you have not purchased a home in the past three years. You must buy this home to live in yourself, as an owner occupant. In addition, once you purchase this home, the Government is offering, as part of the Stimulus Program, up to $8,000 as a Tax Credit. If, for example, you paid $3,000 in taxes, you will receive a check for $5,000. If you paid no taxes at all, you will receive $8,000.
Now is the time to buy, but the deadline is fast approaching. You must have your property closed by December 1, 2009. It is taking approximately 60 days from offer to closing. You have until (approximately) September 30 to make a decision on which property to purchase, and to get your offer accepted….
In addition to the $8,000 tax credit, another Stimulus plan is the 100% financing of a home loan, in which 80% of your home loan would be financed at a relatively low rate of interest (5% for example), and 20% of your home loan would be financed at a higher rate (9% for example). This 100% financing is available to people with credit scores of 720 or higher. In order to find out your credit score, you can go online to check it free.
Both of these Stimulus plans are available now, and the $8,000 tax credit won’t be around for that much longer. Act now! See a real estate agent today.
-Tiare Dutcher, RA
According to the US Government, you are a first time home buyer if you have not purchased a home in the past three years. You must buy this home to live in yourself, as an owner occupant. In addition, once you purchase this home, the Government is offering, as part of the Stimulus Program, up to $8,000 as a Tax Credit. If, for example, you paid $3,000 in taxes, you will receive a check for $5,000. If you paid no taxes at all, you will receive $8,000.
Now is the time to buy, but the deadline is fast approaching. You must have your property closed by December 1, 2009. It is taking approximately 60 days from offer to closing. You have until (approximately) September 30 to make a decision on which property to purchase, and to get your offer accepted….
In addition to the $8,000 tax credit, another Stimulus plan is the 100% financing of a home loan, in which 80% of your home loan would be financed at a relatively low rate of interest (5% for example), and 20% of your home loan would be financed at a higher rate (9% for example). This 100% financing is available to people with credit scores of 720 or higher. In order to find out your credit score, you can go online to check it free.
Both of these Stimulus plans are available now, and the $8,000 tax credit won’t be around for that much longer. Act now! See a real estate agent today.
-Tiare Dutcher, RA
Tuesday, September 8, 2009
3 Ways To Identify A Best Buy Property
There are three ways to determine if a property is a best buy:
1.) Property that yields a positive cash flow with minimal down payment typical for the area.
2.) Property asking price is substantially below like kind homes that have sold within the last six months.
3.) Property that is a quality structure and highly sought after in neighborhoods where the inventory for sale is relatively nonexistent and are selling at or below market value.
This week we will address item number one where the focus is on properties that yield a positive cash flow with a minimal down payment. Positive cash flow is defined as a property where the monthly expenses are less than the monthly income. Generally expenses are fees, (like utilities and maintenance), plus, taxes, insurance, mortgage principle and interest. The income is generally considered rents. As a result positive cash flow is monthly income minus expenses where the rents are notably higher than monthly cost associated with sustaining the property. It is important to note that mortgage payments will vary depending on down payment, loan principal, interest rate and term of the loan. In an area like Waikiki, it is considered a good buy if positive cash flow is generated with a down payment of less than 35%. Here are this week’s best buy properties.
$295,000, Fee Simple 1 Bed/Bath, Seaside Towers #907, 435 Seaside Ave
Listing Courtesy of Coldwell Banker Pacific Properties, Betty Saleh, RA
$258,000, Leasehold Fee Available, 1 Bed/1 Bath, Waikiki Banyan #2407
Listing Courtesy of Coldwell Banker Pacific Properties, Liza Erickson, R.
$525,000, Fee Simple, 3 Bed/1 Bath, 47-125A Okana Rd, Kaneohe, 63,946 sqft of land
Listing Courtesy of Coldwell Banker Pacific Properties, Teri Lynn Sato, RA
-Abron Toure, RA
1.) Property that yields a positive cash flow with minimal down payment typical for the area.
2.) Property asking price is substantially below like kind homes that have sold within the last six months.
3.) Property that is a quality structure and highly sought after in neighborhoods where the inventory for sale is relatively nonexistent and are selling at or below market value.
This week we will address item number one where the focus is on properties that yield a positive cash flow with a minimal down payment. Positive cash flow is defined as a property where the monthly expenses are less than the monthly income. Generally expenses are fees, (like utilities and maintenance), plus, taxes, insurance, mortgage principle and interest. The income is generally considered rents. As a result positive cash flow is monthly income minus expenses where the rents are notably higher than monthly cost associated with sustaining the property. It is important to note that mortgage payments will vary depending on down payment, loan principal, interest rate and term of the loan. In an area like Waikiki, it is considered a good buy if positive cash flow is generated with a down payment of less than 35%. Here are this week’s best buy properties.
$295,000, Fee Simple 1 Bed/Bath, Seaside Towers #907, 435 Seaside Ave
Listing Courtesy of Coldwell Banker Pacific Properties, Betty Saleh, RA
$258,000, Leasehold Fee Available, 1 Bed/1 Bath, Waikiki Banyan #2407
Listing Courtesy of Coldwell Banker Pacific Properties, Liza Erickson, R.
$525,000, Fee Simple, 3 Bed/1 Bath, 47-125A Okana Rd, Kaneohe, 63,946 sqft of land
Listing Courtesy of Coldwell Banker Pacific Properties, Teri Lynn Sato, RA
-Abron Toure, RA
Monday, September 7, 2009
Hawaii Real Estate Market At A Glance
Stabilizing Sales May Signal A Buying Opportunity
The Honolulu Board of Realtor's August Statistical Report has been released and the market continues to stablize which may signal the bottom of the market.
The report shows that there were 8 fewer single family home sales than last year( 247 vs 255) and 4 more condo sales as compared to prior year( 351 in 2009 vs 345 in 2008). Thus, no significant change in total unit sales vs prior year.
Median Sales Prices were below prior year for both single family homes and condos. $566,000 for single family homes as compared to $635,000 during the same month in 2008 while condos dropped by $38,000 from $290,000 to $328,000.
Since we are seeing a leveling of unit sales and prices continue to drop this may indicate that we are approaching the bottom of market and the end of Stage 4 of the Real Estate Cycle. Here is a breakdown on the 4 Stages.
Stage 1 - Unit Sales Flat, Prices Flat or Down
Stage 2 - Unit Sales Up, Prices Up
Stage 3 - Unit Sales Down, Prices Up
Stage 4 - Unit Sales Down, Prices Flat or Down
Stages 4 and 1 represent the best time for Buyers to purchase real estate since home values will be on the bottom of the median price curve and buyers can reap the rewards when prices go up again.
The average days on market for August was 48 days for single family homes and 51 days for condos. This represents a balanced market for both Buyers and Sellers.
There were 6.5 months of remaining inventory for single family homes and 6 months remaining for condos. 6 months of remaining inventory also represents a balanced market to Buyer's and Sellers.
Take advantage of opportunities in this balanced market, by hiring a knowledgable, experienced Realtor with specific neighborhood and market knowledge to assist you in identifying these opportunities.
- Dwight Ellis, Realtor Associate
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