In past blogs I’ve discussed the value in today’s luxury market in Hawaii and the quality of architecture and design found in Hawaii’s luxury real estate market. But good values and quality can be found all over around the world. It’s the lifestyle that attracts the wealthy to Hawaii. With well over 30 Beach Parks, the island of Oahu is surrounded by some of the cleanest, whitest sand beaches in the world as well as exceptionally warm, clear, blue water. Along with a temperate climate year round Oahu is the perfect place to enjoy paddle boarding, surfing, kayaking, or outrigger canoeing. With as much beach frontage as Oahu offers it’s easy to find quiet secluded beaches. Oahu is also privileged enough to be the home of Lanikai Beach which is annually ranked as one of the best beaches in the world.
Oahu also boasts some of the best golfing in the world with almost 40 golf courses across the island, with 4 private courses and 22 semi-private courses. There are also approximately 10 Country Clubs on the island of Oahu providing the perfect atmosphere for that business lunch or cold drink after a round of golf.
It’s no secret that Oahu also offers some of the finest dining, from George Mavrothalassitis to Sam Choy, Alan Wong, and a host of others to world renowned shopping in Waikiki and Ala Moana Mall.
With the perfect weather, access to almost any activity, and good food, Honolulu is ranked in the top 3 healthiest cities in the U.S. by SELF Magazine, AARP Magazine, and Men’s Fitness Magazine.
Oahu offers luxury properties in all areas of the island so you’re sure to find the perfect luxury property that easily allows for the perfect luxury lifestyle.
Call Mandy Berner, RA 808-286-5845
Friday, November 6, 2009
Wednesday, November 4, 2009
Still Waiting to Buy?
First Time Home Buyers: If you haven’t already purchased your home, for one of these reasons…
you needed to improve your credit,
you just couldn’t find that home,
you needed to save a little more money for your closing costs
you may in luck, as far as the $8,000 first time home buyer credit goes…. The deadline of December 1 may be extended to April 30, 2010. Hopefully, we will find out sometime this week.
AND for those of you who aren’t first time home buyers, you may also be in luck with a tax credit of $6,500. The criteria if the bill is passed is as follows:
Did you purchase your home more than 5 years ago?
Are you living in that home?
Do you want to buy a more expensive home now?
Stay tuned for more information on the always exciting what’s-going-on-in-the-world-of-real-estate-news…. Or call Tiare Dutcher at 808-753-5327.
you needed to improve your credit,
you just couldn’t find that home,
you needed to save a little more money for your closing costs
you may in luck, as far as the $8,000 first time home buyer credit goes…. The deadline of December 1 may be extended to April 30, 2010. Hopefully, we will find out sometime this week.
AND for those of you who aren’t first time home buyers, you may also be in luck with a tax credit of $6,500. The criteria if the bill is passed is as follows:
Did you purchase your home more than 5 years ago?
Are you living in that home?
Do you want to buy a more expensive home now?
Stay tuned for more information on the always exciting what’s-going-on-in-the-world-of-real-estate-news…. Or call Tiare Dutcher at 808-753-5327.
Monday, November 2, 2009
Where will rates go?
Here is some timely mortgage info that may be of interest regarding the Treasury Auctions and the possible lack of demand for long term securities in the future having a negative impact on low interest rates.
Also, an interesting explanation of how Rate Locks work for Alan Zukerkorn of Hawaii Mortgage Co, Inc.
Subject: Newsletter for the Week Ending 10/30/09
Mortgage Market News for the week ending October 30, 2009Distributed to over 12,000 Hawaii Subscribers Every Friday
Compliments of Alan Zukerkorn Hawaii Mortgage Company Inc.
PHONE:(808) 988-6622
FAX:(808) 988-7722
www.hawaiimortgage.net
alan@hawaiimortgage.net
Events This Week:
GDP Increased
Inflation Steady
New Home Sales Down
Manufacturing Rose
Events Next Week:
Mon 11/2 ISM Manuf Pending Sales
Wed 11/4 Fed Meeting Treasury Announce ISM Services
Thur 11/5 Productivity
Fri 11/6 Employment
Record Auctions Produce Mixed Results
While daily volatility was high this week, mortgage rates ended just slightly lower than last week. The primary factors influencing mortgage rates were offsetting. The economic growth data released this week was stronger than expected, but inflation remained low. While the first two Treasury auctions produced impressive results, the final one was relatively weak.
Demand was extremely strong for this week's 2-yr and 5-yr Treasury auctions, but it slacked off considerably for the 7-yr securities. When demand is low, higher yields are required to attract investors. I n addition, the Treasury is interested in shifting its issuance toward a greater percentage of longer-term securities relative to shorter-term securities to lock in currently low rates. For mortgage markets, though, a move in this direction would add to the supply of competing investments. The Fed is already in the process of winding down its purchases of mortgage-backed securities, removing demand from the market. Higher supply of long-term investments and lower demand would pressure mortgage rates higher.
Government influence on mortgage markets has been substantial. It has pushed mortgage rates to historically low levels and has made credit available where it might not be otherwise. Two important programs, the first-time homebuyer tax credit and the extended conforming loan limits, were set to expire soon. Fortunately, both programs received strong support from lawmakers this week and are likely to be extended.
Rate Lock 101
For the consumer, the interest rate for one’s loan is generally the single most important part of the loan scenario. At some point in the process, your rate must be locked in for a set period of time. This time period is known as the “Rate Lock Commitment Period”. A rate can be locked for as little as 7 days, and in some cases as long as 120 days. Once a consumer accepts a desired rate at a certain cost (points or no points), their interest rate is then locked for a specific number of days.
What is a rate lock? This question seems redundant after the simple explanation above, but I will try and make it very clear. A rate lock is a commitment for and between the lender AND borrower. Every time I talk to a consumer about locking in their rate I always get asked the same question: “Will the lender lower my rate during the rate lock period if rates drop?” I always reply with a smile and ask the question “Should the lender raise your rate during the rate lock period if rates rise?” A rate lock commitment is not a one way street. Most consumers incorrectly assume that a rate lock commitment is a lock against rates getting any higher than the rate committed to. It is not!
When a consumer has their loan rate locked, it sets off a chain of events. The lender makes a commitment to the investor that will eventually own your loan (the secondary market, i.e. Fannie Mae or Freddie Mac) - committing themselves to deliver a loan that meets underwriting guidelines in a specific period of time at a specific interest. In other words, your rate lock is connected from you all the way to Fannie and Freddie. If the lender fails to deliver the loan to the secondary Market on time, they get penalized a percentage of the loan amount. That is why if your loan does not close within your rate lock period, the lender will charge you an extension fee to cover the cost of late delivery to the investor.
Next week I will dive deeper into the issues of bogus rate locks, who should pay for a lock extension if one is needed, and what happened to the “free float down”.
Also Notable:
Continuing Jobless Claims fell to 5.8 million, the lowest level since March
The September Core PCE inflation index rose at a tame 1.3% annual rate
The Chicago PMI manufacturing index rose to the highest level in one year
The Fed purchased $18 billion in agency MBS during the week ending 10/28
Average 30 yr fixed rate:
Last week:
+0.01%
This week:
-0.05%
Stocks (weekly):
Dow:
9,800
-200
NASDAQ:
2,060
-100
Week Ahead
The biggest economic event next week will be the Fed meeting on Wednesday. While no change in rates is expected, the Fed may indicate future changes in monetary policy. The important Employment report will come out on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Early estimates are for a loss of about 165K jobs in October. In addition, the ISM Manufacturing index and Pending Home Sales will come out on Monday. ISM Services will be released on Wednesday. Productivity, Construction Spending, and Factory Orders will round out the busy schedule. The Treasury will announce the size of upcoming auctions on Wednesday as well.
All material Copyright © Hawaii Mortgage Company, Inc. & Ress No. 1, LTD and may not be reproduced without permission.
Also, an interesting explanation of how Rate Locks work for Alan Zukerkorn of Hawaii Mortgage Co, Inc.
Subject: Newsletter for the Week Ending 10/30/09
Mortgage Market News for the week ending October 30, 2009Distributed to over 12,000 Hawaii Subscribers Every Friday
Compliments of Alan Zukerkorn Hawaii Mortgage Company Inc.
PHONE:(808) 988-6622
FAX:(808) 988-7722
www.hawaiimortgage.net
alan@hawaiimortgage.net
Events This Week:
GDP Increased
Inflation Steady
New Home Sales Down
Manufacturing Rose
Events Next Week:
Mon 11/2 ISM Manuf Pending Sales
Wed 11/4 Fed Meeting Treasury Announce ISM Services
Thur 11/5 Productivity
Fri 11/6 Employment
Record Auctions Produce Mixed Results
While daily volatility was high this week, mortgage rates ended just slightly lower than last week. The primary factors influencing mortgage rates were offsetting. The economic growth data released this week was stronger than expected, but inflation remained low. While the first two Treasury auctions produced impressive results, the final one was relatively weak.
Demand was extremely strong for this week's 2-yr and 5-yr Treasury auctions, but it slacked off considerably for the 7-yr securities. When demand is low, higher yields are required to attract investors. I n addition, the Treasury is interested in shifting its issuance toward a greater percentage of longer-term securities relative to shorter-term securities to lock in currently low rates. For mortgage markets, though, a move in this direction would add to the supply of competing investments. The Fed is already in the process of winding down its purchases of mortgage-backed securities, removing demand from the market. Higher supply of long-term investments and lower demand would pressure mortgage rates higher.
Government influence on mortgage markets has been substantial. It has pushed mortgage rates to historically low levels and has made credit available where it might not be otherwise. Two important programs, the first-time homebuyer tax credit and the extended conforming loan limits, were set to expire soon. Fortunately, both programs received strong support from lawmakers this week and are likely to be extended.
Rate Lock 101
For the consumer, the interest rate for one’s loan is generally the single most important part of the loan scenario. At some point in the process, your rate must be locked in for a set period of time. This time period is known as the “Rate Lock Commitment Period”. A rate can be locked for as little as 7 days, and in some cases as long as 120 days. Once a consumer accepts a desired rate at a certain cost (points or no points), their interest rate is then locked for a specific number of days.
What is a rate lock? This question seems redundant after the simple explanation above, but I will try and make it very clear. A rate lock is a commitment for and between the lender AND borrower. Every time I talk to a consumer about locking in their rate I always get asked the same question: “Will the lender lower my rate during the rate lock period if rates drop?” I always reply with a smile and ask the question “Should the lender raise your rate during the rate lock period if rates rise?” A rate lock commitment is not a one way street. Most consumers incorrectly assume that a rate lock commitment is a lock against rates getting any higher than the rate committed to. It is not!
When a consumer has their loan rate locked, it sets off a chain of events. The lender makes a commitment to the investor that will eventually own your loan (the secondary market, i.e. Fannie Mae or Freddie Mac) - committing themselves to deliver a loan that meets underwriting guidelines in a specific period of time at a specific interest. In other words, your rate lock is connected from you all the way to Fannie and Freddie. If the lender fails to deliver the loan to the secondary Market on time, they get penalized a percentage of the loan amount. That is why if your loan does not close within your rate lock period, the lender will charge you an extension fee to cover the cost of late delivery to the investor.
Next week I will dive deeper into the issues of bogus rate locks, who should pay for a lock extension if one is needed, and what happened to the “free float down”.
Also Notable:
Continuing Jobless Claims fell to 5.8 million, the lowest level since March
The September Core PCE inflation index rose at a tame 1.3% annual rate
The Chicago PMI manufacturing index rose to the highest level in one year
The Fed purchased $18 billion in agency MBS during the week ending 10/28
Average 30 yr fixed rate:
Last week:
+0.01%
This week:
-0.05%
Stocks (weekly):
Dow:
9,800
-200
NASDAQ:
2,060
-100
Week Ahead
The biggest economic event next week will be the Fed meeting on Wednesday. While no change in rates is expected, the Fed may indicate future changes in monetary policy. The important Employment report will come out on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Early estimates are for a loss of about 165K jobs in October. In addition, the ISM Manufacturing index and Pending Home Sales will come out on Monday. ISM Services will be released on Wednesday. Productivity, Construction Spending, and Factory Orders will round out the busy schedule. The Treasury will announce the size of upcoming auctions on Wednesday as well.
All material Copyright © Hawaii Mortgage Company, Inc. & Ress No. 1, LTD and may not be reproduced without permission.
Thursday, October 29, 2009
Buying Your First Home
First Time Home Buyers: Here are a few more things to think about before you start to buy a home….
You’ve checked your credit. You’ve found a loan company you are comfortable with, and you know how much loan you qualify for. You’ve found a great agent to work with you.
What area do you want to live in? Do you want a house or a condo? Can you afford a house this first time, or will you need to buy a condo at first, then a house in a few years? How many bedrooms do you need? How many can you afford? Can you afford as much condo or house now as you want, or will you need something smaller at first, then bigger in a few years?
These are a few questions that your agent will need to know, so that he or she can find that property that is right for you. You can help your agent look for those properties by going online and looking at different sites like www.coldwellbankerpacific.com or www.hicentral.com.
I can help you find that home you are looking for. Just call Tiare Dutcher at 808-753-5327.
You’ve checked your credit. You’ve found a loan company you are comfortable with, and you know how much loan you qualify for. You’ve found a great agent to work with you.
What area do you want to live in? Do you want a house or a condo? Can you afford a house this first time, or will you need to buy a condo at first, then a house in a few years? How many bedrooms do you need? How many can you afford? Can you afford as much condo or house now as you want, or will you need something smaller at first, then bigger in a few years?
These are a few questions that your agent will need to know, so that he or she can find that property that is right for you. You can help your agent look for those properties by going online and looking at different sites like www.coldwellbankerpacific.com or www.hicentral.com.
I can help you find that home you are looking for. Just call Tiare Dutcher at 808-753-5327.
Tuesday, October 27, 2009
Real Estate Agents Finding you a Best Buy!
In previous blog spots we have discussed the three different ways to identify “Best Buys”.
1.) Investors who purchase a property with 30 to 40% down and the monthly rent minus all expenses yields a positive cash flow. The larger the positive cash flow the better.
2.) Then there are those properties of equal value and quality where the list price is significantly below the sales price for most recently sold of like kind.
3.) We also discussed those properties in highly sought after areas where inventory is scares or availability is rare; and when a property becomes available it is price aggressively to sell.
Now we want to propose another condition for “Best Buy”, this has to do with the skill of the real estate agent. There are cases where the experience and knowledge of the real estate agent can turn what is not an obvious best buy into a great buy. It is the ability of the agent to negotiate and filter accurate information to resolve complicated issues that can prove invaluable to the client turning what would be an unattractive buy because of problems at first glance seeming very difficult to solve into winners. The cases that come to mind are:
1.) Zoning Issues
2.) Foreclosures
3.) Short Sales
4.) Fixer Uppers
If you are a seller or a buyer where any of the four above may apply please do not hesitate to call 503 475 6872, Abron Toure. Let me show you how these issues can be turned into a win-win for buyer or seller.
1.) Investors who purchase a property with 30 to 40% down and the monthly rent minus all expenses yields a positive cash flow. The larger the positive cash flow the better.
2.) Then there are those properties of equal value and quality where the list price is significantly below the sales price for most recently sold of like kind.
3.) We also discussed those properties in highly sought after areas where inventory is scares or availability is rare; and when a property becomes available it is price aggressively to sell.
Now we want to propose another condition for “Best Buy”, this has to do with the skill of the real estate agent. There are cases where the experience and knowledge of the real estate agent can turn what is not an obvious best buy into a great buy. It is the ability of the agent to negotiate and filter accurate information to resolve complicated issues that can prove invaluable to the client turning what would be an unattractive buy because of problems at first glance seeming very difficult to solve into winners. The cases that come to mind are:
1.) Zoning Issues
2.) Foreclosures
3.) Short Sales
4.) Fixer Uppers
If you are a seller or a buyer where any of the four above may apply please do not hesitate to call 503 475 6872, Abron Toure. Let me show you how these issues can be turned into a win-win for buyer or seller.
Monday, October 26, 2009
Why Is This Still a Good Time to Buy Real Estate?
Even though it may be too late to take advantage of the First Time Home Buyer $8000 Tax Credit Program, if you aren't already in escrow, it's still a very good time to buy for other reasons.
1. Property prices are the lowest they've been since the peak of the market in 2007. Inventory levels dropped to 1998 levels early in 2009, but they've begun to improve to levels in 2000. This has caused prices to slow down in the rate of decrease. While prices are still decreasing, it's at a much lower rate than previously.
As an example, single family home median prices year to date are down 16.2% vs prior year. However, in Sept, they were down only 8%. Condo prices are down 10.8% year to date, but in September, they were down only 7.7%. This would indicate that there isn't a significant advantage to getting a much lower price by waiting.
2. Interest rates are still under 5%. This may not last much longer since the Fed is planning a slowdown in the level of purchasing mortgage backed securities (MBS) until the program ends early next year. These purchases have been artificially keeping interest rates down. Interest rates will begin to rise once this program begins cutting back and eventually end.
3. With the artificially low interest rates, buyers experience increased PURCHASING POWER. This will decrease when interest rates begin to rise.
4. FHA loans are still available with as little as 3.5% down. Down payments have the flexibility of being provided by other than the Buyer's resources. (ie, the use of gifted funds, etc.) Current discussions are in progress about increasing the minimum down payment for this program.
5. The eventual appreciation in value and the advantage of interest deductions on taxes are other POSITIVE factors that make this still a good time for purchasing real estate.
For assistance in finding your new home, contact Dwight Ellis at 808 351-1507 for a free HOME BUYER consultation!
1. Property prices are the lowest they've been since the peak of the market in 2007. Inventory levels dropped to 1998 levels early in 2009, but they've begun to improve to levels in 2000. This has caused prices to slow down in the rate of decrease. While prices are still decreasing, it's at a much lower rate than previously.
As an example, single family home median prices year to date are down 16.2% vs prior year. However, in Sept, they were down only 8%. Condo prices are down 10.8% year to date, but in September, they were down only 7.7%. This would indicate that there isn't a significant advantage to getting a much lower price by waiting.
2. Interest rates are still under 5%. This may not last much longer since the Fed is planning a slowdown in the level of purchasing mortgage backed securities (MBS) until the program ends early next year. These purchases have been artificially keeping interest rates down. Interest rates will begin to rise once this program begins cutting back and eventually end.
3. With the artificially low interest rates, buyers experience increased PURCHASING POWER. This will decrease when interest rates begin to rise.
4. FHA loans are still available with as little as 3.5% down. Down payments have the flexibility of being provided by other than the Buyer's resources. (ie, the use of gifted funds, etc.) Current discussions are in progress about increasing the minimum down payment for this program.
5. The eventual appreciation in value and the advantage of interest deductions on taxes are other POSITIVE factors that make this still a good time for purchasing real estate.
For assistance in finding your new home, contact Dwight Ellis at 808 351-1507 for a free HOME BUYER consultation!
Friday, October 23, 2009
TRUMP INTERNATIONAL TOWER & HOTEL
The first ultra-luxury hotel-condominium property to be built in Waikiki in 25 years is scheduled to be open November 1st, 2009. The Trump International Tower & Hotel Waikiki Beach Walk offers it all. Located in the recently redeveloped Beach Walk area of Waikiki this luxurious condominium offers convenience to the best shops, restaurants, and entertainment as well as some of the best views on the island. But what makes this property special and truly luxurious is the lifestyle that it offers. Trump Tower offers everything from 24 hour concierge, 24 hour in-room dining, to valet parking, full service spa, contemporary fitness center and more.
Trump Tower offers studios, 1 bedrooms, 1 bedrooms + dens, 2 bedrooms, 2 bedroom + dens, & 3 bedrooms $551,000 to $4,900,000. The units range from 350 sq. ft. to 3,000 sq. ft. and prices range from The units themselves offer beautifully refined interior designs of natural stone, hand-crafted millwork, and top of the line stainless steel appliances.
In November 2006, 462 units were pre-sold in one day for a total of $700 million, possibly the fastest real estate sale in history. If you missed out in 2006, call Mandy now for your opportunity to own in the world renowned Trump Tower in Waikiki… Mandy Berner, RA 808-286-5845.
Trump Tower offers studios, 1 bedrooms, 1 bedrooms + dens, 2 bedrooms, 2 bedroom + dens, & 3 bedrooms $551,000 to $4,900,000. The units range from 350 sq. ft. to 3,000 sq. ft. and prices range from The units themselves offer beautifully refined interior designs of natural stone, hand-crafted millwork, and top of the line stainless steel appliances.
In November 2006, 462 units were pre-sold in one day for a total of $700 million, possibly the fastest real estate sale in history. If you missed out in 2006, call Mandy now for your opportunity to own in the world renowned Trump Tower in Waikiki… Mandy Berner, RA 808-286-5845.
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