Ko Olina and Waikiki both present the possibilities and potential of the resort lifestyle. You live where the rest of the world plays. Great beaches, recreation choices you can’t get elsewhere on Oahu and a feeling of being outside the routine daily life. With all of that said, the truth is that these 2 Oahu neighborhoods are very different experiences.

It all begins with their histories. That starts on common ground, both Waikiki and Ko Olina being places of pleasure and retreat for the ali’i for some time, up until the final years of the Kingdom. At that moment, their paths diverged.

It is then, in the late 1880’s that businessman James Campbell, purchased almost all of what we know today as Ewa Oahu, extending all the way to Ko Olina. As locals know, this huge area would soon become a massive plantation, but even the Campbell family recognized a good thing when they saw it. They built an estate for themselves right where the ali’i once played.

Outside of the use of the district as an R & R Center during World War II, Ko Olina would remain quiet for almost 100 years, outside of some farming and one wealthy family’s private domain.

WAIKIKI – ALMOST A CENTURY IN THE WORLD’S LIMELIGHT

Waikiki Condos & Hotels

Waikiki, meanwhile, continued to be a playground, turning from one primarily for the ruling class and wealthy locals into an international destination with the advent of jet travel. That ongoing, almost never-ending popularity growth, meant that development was not just inevitable, but continual. It is these two roads to the present day that make them each so unique from each other.

The best description of modern Waikiki is that of an urban tropical resort. Residences, like the visitor accommodations, are almost exclusively within high-rise structures that line the avenues. Condominiums in Waikiki are almost the only residential option. Houses are a rare sighting inside this neighborhood, and they’re only becoming rarer.

The range of condos, however, is a big one. A dip into the current market will almost certainly bring up small studios in 1950’s era walk-ups to some of the latest luxury condos with names like Trump and Ritz-Carlton.

Trump Tower Waikiki Highlighted

While a single family home may be off the table, just about every other option in your life is not. Some of the most famous and photographed beaches are in easy walking distance for almost every resident.

On your way there the chances are you’ll pass by many alluring dining possibilities as well as shopping that will satisfy almost anyone, with an emphasis on designer stores where browsing is raised to an art form. If those aren’t enough, the big, and only growing bigger, Ala Moana Center is within strolling distance, or a short drive at most, too.

Along with Waikiki’s beaches and the fitness/recreation center that Kapiolani Park provides, Waikiki is the Center Stage for all of Hawaii. Most of the major parades and festivals happen here, from the Aloha Festival (& Parade) to holiday celebrations, ethnic festivals and the yearly commemoration of locals love affair with one particular food – Spam Jam.

Buying Waikiki real estate is a ticket into the party space of the Islands, with all the activity and excitement that goes with it. Who doesn’t love that? Good question.

KO OLINA – PLANNED EVERY STEP OF THE WAY

Four Seasons & Aulani Hotel

To answer that we have to return to Ko Olina where we left it, a mix of untouched and agricultural. The closing of the plantation in the 1980’s resulted in these lands being put on the market. Like much of the available real estate in Oahu at this time, it was bought by Japanese developers who saw the potential for both the leisure and residential sectors. A return to its recreational roots.

Out of the already exceptional coastline they managed to carve the famous lagoons before the Japan economy collapsed and brought their involvement to an end. Though they didn’t ultimately see the project through, other hands did.

These lands being more or less untouched, they were able to plan out and then create a resort-neighborhood as never before in Hawaii. Hotels here are more spread out, with appreciable separation between them, unheard of back in Honolulu. That space applies to the entire area, so, outside of the resort towers, the skies are open and the sight lines excellent.

You also have choices in Ko Olina real estate, with varieties of both condominiums and single family homes. The residential communities – Kai Lani, Ko Olina Kai Golf Estates, Coconut Plantation, Ko Olina Fairways and the Ko Olina Hillside Villas – are made up of houses and townhomes as well as low-rise condos that fit right in here. All of them are collected in an island in the middle of an ocean made up of the Ko Olina Golf Club’s green fairways. If a more elevated vantage point is your style, the Ko Olina Beach Villas have two towers.

Ko Olina Beach Villas

As you have already figured out, this is the suburban style resort, a place where your neighbors wave to you as they head out on their golf cart to dinner at a restaurant. Where green spaces are everywhere around you.

Things happen more slowly here, and at a lower volume. Yes, the traffic can be a little busy at times, but nothing compared to Waikiki’s packed roads. You won’t be woken up by revelers coming home from a big night out at 3AM. There are no big street festivals either, for better or worse, though the hotels do hold activities often.

While there is some shopping and dining in this district, a drive to Kapolei will be required for many things, such as groceries. It’s just part of being away from things, removed from the accelerating pace of life that has now reached even the Ewa Plain just outside your borders.

Ko Olina is not finished. Not by a long shot. Further hotels are planned as well as luxury condominiums that are already building up demand. This will change the landscape, but not the flavor or feel of the place. It might be a little busier, but it will also offer more for you to enjoy & explore as well.

This is the alternative to Waikiki, a different experience entirely. It’s for those who want a Hawaii that’s closer to the Turtle Bay feeling, but without that degree of isolation. A few minutes east in your car gets you to almost anything you’d ever need.

Turtle Bay Resort

A HOME IN KO OLINA OR WAIKIKI?
This is not a value judgement on real estate in either Ko Olina or Waikiki, nor is it a contest. It’s a matter of tastes, lifestyle desires and where you fit best. One is the fast moving, towering showpiece of today’s Pacific. The other an exclusive beachside sanctuary with some of the most luxurious names making up your neighborhood. It’s two sides of the same Hawaiian coin, each promising something different, but equally wonderful.

The post Ko Olina vs Waikiki: Slow Suburban vs Fast Urban Resort appeared first on Honolulu HI 5 Blog.

– Waikiki Condo – Remodel Journal 

As some of you know, I have been an advocate for building wealth with rental properties since the early 1990s. Recently I purchase another rental property at the Ilikai, one of my favorite condotel building in Waikiki. The unit was in original condition and needed a complete remodel.

Living room with original shoji door

It has been several years since I did my last complete remodel. This journal outlines the weekly progress including before and after pictures.

Living room / bedroom with original closet

Bathroom before

Kitchen with green oven

This is a typical 1-bedroom Ilikai layout with 500 sq ft interior area and a nice ocean facing 120 sq ft lanai. The original layout has a shoji sliding door separating the bedroom from the living room. The bedroom has a large closet that takes up some of the bedroom space. The small kitchen is separated from the living room and feels boxed-in. There is a large window AC unit that prevents one side of the lanai glass sliding door from opening all the way. A bathroom closet takes up space that makes the bathroom seem tight. Everything is outdated and needs to be replaced, top to bottom.

The purpose of the remodel is to create a friendly modern space that could generate maximum vacation rental income. Remodel decisions were based on the following criteria:

1.)    Maximum visitor enjoyment

Happy visitors make repeat visitors. The remodel needs to be geared towards what is most practical for visitors. There are over 1,000 Ilikai 1-bedroom units all with the same 500 sq ft space. Most of these units either have a King bed or 2 full beds. My goal is to remove the bedroom closet and enlarge the bedroom space to fit two Queen beds, plus a pull-out couch. I am not aware of any other Ilikai 1-bedroom that has two Queen beds and plus Queen pull-out couch. The heavy duty steel bedframes have 13” high clearance for hiding / storing suitcases below.

Since visitors will most likely be staying for shorter term vacations, closet and kitchen cabinet space is secondary. To be able to fit two Queen beds I will need to remove the original shoji door. The original design was hardly offering any privacy and unnecessarily compartmentalized the space. The condo needs to look happy, friendly, bright, open and inviting. A ceiling fan and a split AC unit will need to be installed to keep everybody cool.

A large 4K TCL Roku TV will be flat mounted against the wall. A wifi modem will provide free high speed internet. The kitchen will be opened to connect with the living room. A large counter top will function as eat-in dining table.

2.)    Low maintenance & high durability

What is durable enough for a car showroom is good enough for a vacation rental. Porcelain tiles are almost indestructible, better than ceramic tile, natural stone, wood floors, laminate, cork, vinyl, carpet, or any other floor I can think of. Easy to clean and maintain, there are many attractive color choices available today. The new countertop will be Quartz, heat resistant not brittle and does not stain easily. The bathroom will have a simple shower curtain that can easily be replaced over time. Visitors are not likely to squeegee a nice shower glass enclosure. An elongated but compact one piece Kohler Santa Rosa toilet with standard Kohler parts will mitigate future plumbing repair bills.

3.)    Energy efficiency & cost effectiveness

Energy efficient 3” LED recessed lights with dimmers will be installed in kitchen, hallway and bath.  All appliances are Energy Star rated. A large 52” ceiling fan and energy efficient split AC will minimize cooling expenses. Bright colors, cabinets and countertops plus an open layout will minimize the need to turn the lights on during the day. The toilet will be an efficient 1.2 gallons low flush design. I’m considering my favorite seamstress to modify the existing blackout curtains, the only condo component that appears to be fairly new and recyclable.

Let’s get started:

T minus 3 weeks: (2/6/2017)

I’m counting weeks backwards (T minus 3 weeks) until construction starts. The purchase recorded, the tenant moved out and I finally got the keys. Immediately I replaced both door locks with a keypad entry door lock and deadbolt lock for easy contractor access as well as for future visitors. After scouring hundreds of photos of other remodeled Ilikai 1bedroom listings posted online I formed a picture of what design, material and color selection I like.

I measured all walls, kitchen, bath, ceilings, doors, closets and did a preliminary drawing how I envisioned the final layout. The dropped ceilings in kitchen and bath are hiding plumbing, sprinkler and concrete columns. Removing the closet and opening the kitchen would allow me to also modify where the dropped ceiling ends. There are three sprinkler heads that I would like to relocate for a cleaner look.

Selecting a contractor:

Quality of workmanship, availability to get the job completed quickly, price and communication skills rank high on the list to consider when selecting the right contractor.

I received three contractor recommendations with extensive Ilikai remodel experience by asking the general manager and my favorite Ilikai property manager. Contractor #1 had a strong foreign accent that made it very difficult for me to communicate. Contractor #2 seemed experienced but when asked if sprinkler heads could be relocated I received a negative response. He does not touch sprinkler heads.

Contractor #3 responded to the same question: “Yes, could be done but cost some extra money.”

The decision was made. There is something comforting in working with a contractor that can relocate sprinkler heads and has demolished and rebuilt over 100 Ilikai 1-bedroom condos over the last decade.

T minus 2 weeks: (2/13/2017)

Selecting materials:

I spent hours visiting local material suppliers Home Depot, Lowes, Golden Cabinets, Selective Stone, Daltile and Ferguson Plumbing.  I narrowed material selection for porcelain tile flooring, acoustical underlayment (required for condo hard surface flooring), kitchen cabinets and colors, Quartz countertops, backsplash, one piece toilet, ceiling fan, faucets and LED dimmer switches.

I also ordered refrigerator, slide-in stove and microwave hood to be delivered in about 5 weeks, probably too ambitious of a time frame. A box with 3” recessed LED lighting kits and my favorite dimmable 6.5W, GU10 LED bulbs arrived from Amazon. Now waiting over the weekend on the contractor’s written proposal seems like an eternity. –  I’m ready for the demolition phase.

T minus 1 week: (2/20/2017)

Contractor proposal signed. I have specific ideas on material selection and will be doing most the shopping. The proposal is mostly for labor, with few exceptions such as split AC, mortar and carpentry items.

Full renovation application with plans, contractor proof of insurance and underlayment sound insulation spec sheet was submitted for AOAO approval. It pays to work with a contractor that has completed many units in the buildings and knows what is needed to get the application approved.

I revisited all local stores to check again materials and prices. Home Depot had a discontinued 12×24 porcelain tile that was just reduced to an unbelievable low $1.73 per tile. That is 86.5 cents per sqft. I placed my floor tile order with HD delivery date yet to be determined.

I also purchased shower tile inserts, ceiling fan, faucets, bath vanity light, towel racks and hooks. Waiting for AOAO approval to start demolition.

Start of construction – Week #1: (2/27/2017)

AOAO approval received Monday. Made 1^st payment to contractor and discussed two design changes: 1.) Include lanai tiling with the same porcelain tiles for an extended consistent look, and, 2.) add a small custom built closet in bedroom area for maximum use of space. Purchased Laticrete sound insulation flooring underlayment and bought additional porcelain floor tiles for lanai, shower floor tiles and Kohler Santa Rosa toilet. Home Depot only delivers curbside on two shrink-wrapped pallets. It took me hours to move all tile boxes up the service elevator. This is heavy stuff and back breaking work. Ordered kitchen sink, floating wall cabinet, TV wall mount, towel rack, towel bars, bathroom faucet from Amazon with eta next week. Demolition started Friday week #1.

Week 2 – demolition – kitchen, flooring and closets removed

Week #2: (3/6/2017)

Wednesday the unit shows razed. Furniture, shoji door and frame, bedroom closet, wall paper, large wall mirror, flooring, kitchen wall, kitchen and bath cabinets, shower stall, bath closet, vanity, all gone.

Week 2 – demolition – living room wall mirror removed

Week 2 – demolition – bath vanity, mirror and flooring removed

Week 2 – shower tile removed

Large Amazon boxes arrived today: Zuhne 23” kitchen sink, floating wall cabinet, TV wall mount, 2x recessed outlets / cable ports to hide wires for TV wall mount and floating cabinet. More Amazon boxes: bath faucet, vanity light, towel racks, paper holder, etc.

I bought a framed mirror from Ross for the bathroom. Not the exact size I was hoping for, but it will do. I ordered 2x Queen Olee steel slat bedframes. These have 13” clearance for suitcase storage. No need for bulky box springs. I have ideas for the headboards but want to wait until I see the frames first. There will be two recessed LED lights above the headboards and I visualize a certain look. Still shopping around for 12” memory foam mattress and beddings.

I picked up some plastic wire channel and Romex from Home Depot for the ceiling fan installation. There are straight groves in the ceiling between the concrete slabs (this is 1960’s construction, before post-tension concrete). I want to run the ceiling fan wire in one of the straight concrete grooves before smooth-texture finishing the ceiling. The electrician will eventually make the final connection in a junction box behind the wall. Will need to drill concrete for anchoring the ceiling fan base plate and also haul another 7 porcelain tile boxes up the service elevator this weekend. The same flooring material inside and out on the lanai will make the space look bigger and create a seamless indoor outdoor connection.  Marking recessed light can locations in kitchen and bath.

I ordered ceiling curtain tracks for the living room and a ceiling mounted shower curtain track. Once I see the curtain tracks the seamstress will modify my black-out curtains to correct size.

Week 2 – condo is busted but the view is still great

Week #3: (3/13/2017)

Rescheduled HD appliance delivery to week #9. Clearly we are not ready for that. Several more boxes arrived at my house, including curtain tracks and special Queen bed frames  with 13” clearance for additional suitcase storage underneath. I measured and marked locations for new electrical outlets, switches, floating TV cabinet and wall mount TV.

Contractor dropped of some electrical conduits and drywall framing material. Not much else, waiting for water shut-down next week.

Week #4: (3/20/2017)

Electrician relocated and installed brand new electrical panel. Tuesday three sprinkler heads were moved. Looks great. Ceiling and soffit are being rebuilt around the new sprinkler head locations and AC location. Thursday was water shut-down and all plumbing valves were replaced. Shower stall plumbing rough-in started and kitchen plumbing has been relocated to match the new sink location.

AC rough-in and conduit has been installed.  Electrical conduit to new recessed ceiling lights, electrical switches and outlets are being installed. Good progress compared to last week.

Week #5: (3/27/2017)

Monday was Prince Kuhio Day, a State Holiday, no work allowed at the Ilikai. During this short work week more electrical work, e.g. electrical panel, conduits, switches and plug locations were finalized. Recessed light locations were cut into ceilings with all conduit work completed. Electricity was restored to new electrical panel.

Week 5 – some new framing, relocated sprinkler heads and electrical work

More framing and drywall work with mudding. Paint color selection completed, ready for painting next week.

Week 5 – kitchen plumbing

A month ago I mapped out kitchen layout and confirmed with Golden Cabinets that my cabinet selection is readily availability. Since new drywall is installed and measurements are now final, I went to order my cabinets today 3/31 to find out several cabinets are out of stock until 4/25, that is 4 weeks from today! Bummer. This will delay kitchen installation by more than 3 weeks! Lesson learned. When material is available, secure it. Don’t take current availability for granted.

Week 5 – AC soffit framing

Ordered and paid MSI Arctic White Quartz stone countertops from Selective Stone. These won’t be needed until cabinets are installed, but good to have them secured.

Week #6: (4/3/2017)

Week 6 – accent wall mudding and new AC soffit

Week 6 – new shower stall green board

‘Green board’ drywall installation in shower stall completed. Concrete grooves in ceiling mudded and sanded. Small new closet upper framing completed. All mudding done and painted with Kilz primer. That’s all. Looking better already but progress is way too slow for me.

Shopping for queen size mattresses and a pull-out couch this week.

Week #7: (4/10/2017)

Picked up bathroom cabinet. Kitchen cabinets won’t be ready until 4/25. More drywall work in the bathroom. Ceiling spayed with orange peel texture. Painting in living room and kitchen about completed, including living room accent wall. Electrical panel completed and labeled. All recessed lights and dimmer switches installed. We finally have lights working, including in the bathroom. Flooring acoustical underlayment installed. Old window AC unit removed. Will need to install a new glass panel in the lanai window panel where AC was located. That’s all.

Week 7 – new paint

Week #8: (4/17/2017)

Old toilet removed.

Tile floor installation in living room, bath room and lanai 90% completed with grout. Looking better.  New bathroom cabinet installed.

Week 8 – new tile floor installation with acoustical underlayment

Week 8 – painted accent wall below AC soffit, – new tile floor

Waiting on kitchen cabinets.  ETA was adjusted to 4/28 instead of 4/25. Living room ceiling should get one more final coat. Fridge, stove and microwave appliance delivery was Friday 4/21, but no kitchen cabinets yet.

Week 8 – appliances delivered

Week #9: (4/24/2017)

This is a work in progress, check back later.

To be continued later this week..

We love to hear from you. Let us know your thoughts. Feel free to ‘Share’, ‘Like’ and ‘Comment’ below.

~ Mahalo & Aloha

The post Waikiki Condo – Remodel Journal appeared first on Honolulu HI 5 Blog.

Oahu is much more than Honolulu and that applies to real estate as well. It makes sense that the economic and political center of not only the Island, but the entire State looms large in every aspect of life here. That dominance overlooks the fact that there are a number of luxury neighborhoods outside that city’s limits, each with their own charms and natural marvels that put their residences at the apex of Oahu homes.

We’ve assembled 7 that make up the Most Expensive Neighborhoods Outside of Honolulu. Based on the number of listings that have sold for more than $2M over the last 5 years, they all bring more to the closing than a large house. Much more. Spread out across the entire Island they make up an elite and enticing collection. Learn what makes them so alluring to buyers who line up for a chance to call these Oahu neighborhoods homes.

BEACHSIDE, KAILUA
41 homes sold for over $2M in the last 5 years.

Beachside Kailua

Residents in Beachside are probably among the few Kailua locals who don’t mind the tourists and outsider crowds flocking to Kailua & Lanikai Beaches. While the neighborhoods beside that famous duo must contend with growing traffic and less space on their sands, Beachside sits just up the coast, off the radar of the daily throngs.

Stretching up the entire way from Kailua Beach Park’s northern end to the end of the Oneawa Channel near Kaneohe Marine Corp Base, the majority of the community is made up by the makai side of Kalaheo Avenue. The homes in Beachside run off of that main thoroughfare along a series of short roads that kiss the beach at their end, providing widescreen views of the Mokes, wondrous Kailua Bay and the Pacific rolling its way to you waiting on the shore.

Though the beaches are public, these mainly luxury homes are protected by the high profile sands south of them, meaning these stunning sands have fewer visitors, yet have a beauty on shore and off that matches their better known neighbors. If there is one place one wants to live in the extremely hot market of Kailua, Beachside is it.

You still will find classic beach cottages, smaller, yet exquisite vintage Kailua homes as well as larger Kamaaina residences that show the wealth and yet restraint of that class. These structures are nothing less than soothing time machines to a more serene, more elegant era in Hawaii.

The still substantial presence of those homes here is clear from the fact that vast majority of those $2M+ sales come from listings built in the 1950s – 1970’s.

The attraction of these lands has also resulted in newer luxury houses, built especially since the Millenium that vary in style, but have all the comforts expected in a neighborhood where listings inevitably reach into the 7 figures. The greatest comfort, though, is just being here, in oceanfront Beachside.

KAIMALINO
8 homes sold for over $2M in the last 5 years.

Kaimalino Homes

Kaimalino picks up where Beachside ends, on the other side of the Oneawa Channel where it heads out into the ocean. Though the first lots were built on in the 1950’s, you’ll find that Kaimalino homes are newer and, on average, larger than Beachside.

That applies to not only the interior dimensions, but also the property sizes as well. This greater room on the property and the expectations of more modern residences means that you’ll find a high percentage of swimming pools and lounge/entertaining areas, features difficult to fit in the more crowded lots elsewhere in Kailua.

Those on the eastern shoreline, as well as along the coast where the channel enters the ocean, benefit immensely from their extension out from the mainland of Kailua. From these luxury homes you have an outlook down to Lanakai as well as the privilege of the awesome sweep of the Pacific playing all around you.

The oceanfront is rockier up here and the sands not so plentiful, but, combined with the relatively out of the way location of Kaimalino, those rocks act as an effective repellant for outside visitors. Rarely will you find more than a few scattered figures on ‘your’ stretch of Kailua’s shore.

Those seeking something of more recent vintage, with greater separation from the more hectic atmosphere Kailua is experiencing, will be very pleased with the luxury homes of Kaimalino.

KAWAILOA, NORTH SHORE
8 homes sold for over $2M in the last 5 years.

Kawailoa, North Shore

Living on the North Shore is a dream for many, not just on Oahu, but around the world. If more knew about the homes in Kawailoa, that number would be even larger. Just 2 miles from Haleiwa Town Center, walking distance to the shopping and dining center of this coastline, yet far enough that you’re firmly in rural territory, with open, green lands surrounding you. The makai side is pretty good, too.

This is prime Pro Surf territory, stretching between Haleiwa and Waimea, with Chun’s Reef falling inside your borders. Approximately ½ of Kaiwaloa homes occupy oceanfront lots that gaze right out at these breaks, with much of the other ½ still retaining views of the towering swells that amaze the most jaded beachcomber.

Kawailoa is a longstanding community from the days when living here meant almost complete isolation from the rest of Oahu. That history still lives here, evident by the fact that 4 of the 8 $2M+ houses were built in the 1940s or 50’s, although all were remodeled extensively in more recent years.

The late 20th Century and particularly the Post-Millennium years have seen an upsurge of new building here, especially on the lots closer to the beach. A general rule of thumb is that the interiors get larger as you near the waterline, those recent additions being built to more modern tastes for roomier insides.

Generally this is the apex of luxury North Shore real estate, and for good reason. Properties that line the ocean on some of the most world-renowned surf; Large, often opulent residences; Scarcity of properties, not just on the market, but overall. Fully immersed in the Country that makes this coastline special, you’re still just down the way from entertainment, shopping and excellent dining. It’s like having your cake and eating it, too.

LANIKAI
45 homes sold for over $2M in the last 5 years.

Lanikai

A survey of homes in Oahu will easily show that Lanikai holds the title of the premier Windward community. Its exclusivity rests on both natural and man-made factors, the best known being Lanikai Beach that causes weekend traffic jams that have become notorious.

It’s a testament to the magnetism of this oceanside playground that it maintains such power even with Kailua Beach literally next door. It might be the head-on view of the Mokes, the exceptional clearness of its blue waters or the greater emphasis on relaxation, rather than recreation. Regardless, it is the foundation of the value of these lots.

Not just because of their nearness to these sands, but also that the rise of the lands moving away from them opens this coastline and the waters off of it to houses set back from it. When one can’t live on ocean scenery so stunningly beautiful, having a view of it brings rich rewards, too.

The entire neighborhood is a large cul-de-sac, with one road in that splits as it enters, running all the way to the geographically enforced end against a ridge and circling back to take you out again. It is this layout that creates the lines of cars at times, but also emphasizes the limited real estate not just available, but possible.

Lanikai homes that have sold at or over our $2M mark have an extensive varieties of pedigrees. A number of them come from the 1920s to 40’s, large Kamaaina homes that often include guest/maid’s quarters. It’s clear that this neighborhood has had residents of means for the entire modern era of the Islands. Now you can live as elegantly as they did, with undoubtedly remodeled and modernized alterations for our 21st Century inhabitants’ requirements.

As with other sectors of real estate in Oahu, the last 2 decades have seen some substantial residences erected that have brought something of Beverly Hills to the landscape in their greater sizes and high-profile style.

Still, this is the ultimate beachside community on the Island, self-contained, roads busy with sun lovers making their way to and from the ocean and not one store or tour company in sight. When you live here, you gain not just a beach, but a complete lifestyle that pays you back on a daily basis.

MOKULEIA
8 homes sold for over $2M in the last 5 years.

Mokuleia

Mokuleia is one of Oahu’s most attractive neighborhoods, but has managed to fly under the radar. That is surely at least in part to the fact that it is about as far off the beaten track as you can get. It is a healthy, substantial community, but its location on the very western limits of the North Shore places it at a virtual dead end, with no resorts, shopping options or anything else that might attract anyone who didn’t live there.

That isolation is a point in favor for many here, creating a sense of both gratitude and relief that their home remains untouched from the onslaught of development and tourism that has altered so much of Oahu – and will probably remain so.

Sands stretch down the entire coastline here, creating a long beach perfect for walks and the waters are calmer than the areas to the east. The beaches in Mokuleia are marvelous for soaking in the rays, wading in the waters or just drinking in the Pacific Ocean’s displays of awe-inspiring power.

It is not surprising that almost all of the 8 Mokuleia homes that put this community on our list are on Crozier Drive or Loop, those names bringing immediate recognition to in-the-know Oahu real estate professionals. Running right along the shore, they indicate not just an enviable piece of oceanfront property, but a luxury home to match it.

What isn’t expected is that some of them date from the 1930’s or 40’s, beautiful Hawaii homes that show just how early the appeal of this neighborhood arose. More recent structures have joined them since, but still preserving the flavor of this out of the way, yet unique North Shore collection of houses that few may know of, but those who do are rabid fans.

SUNSET
30 homes sold for over $2M in the last 5 years.

Sunset

The Sunset area of Oahu’s North Shore needs little introduction. With the Banzai Pipeline break right off it, it’s a place that permeates the dreams of wave lovers worldwide. It’s an obvious, but definite, selling point to watch those fluid mountains rising and falling from an easy chair on your lanai. It’s a spectacle that unfailingly amazes, no matter how much you see them. Sunset real estate is more than even that, however.

This is the thick of the North Shore, in all its wild and natural beauty from the green mountains climbing to the clouds on down to the turbulent ocean. The flourishing of nature is reflected in the beach that runs for miles, right in front of the Sunset homes. It is a uniquely deep beach for Hawaii, measured from the land to the waterline, that matches the size of the swells nicely. These lots are also unique for something else.

Sunset is notable for the fact that many lots have 2 or even 3 homes on them, reminders of the family bonds that were always, and still are, strong in Hawaii. To accommodate that, it should be clear that the property dimensions are often quite large, bringing substantial land in the bargain. Sometimes as much as an acre. It’s part of the North Shore tradition of self-reliance and privacy that is still important in the local culture today.

Along with those vintage Hawaii homes, large luxury homes stand on many of the lots and make up the other ½ or so of the sales included in our survey here. Few, if any, go beyond a discreet 2 stories, the focus always being the show outside. It’s a different life up here, filled with the treasures that the Islands bestow only so richly in a place such as this.

WAIMANALO
9 homes sold for over $2M in the last 5 years.
The spotlight has gotten brighter on Waimanalo recently with its year 2015 topping of the Best Beach in the US list. The excellence of the shoreline here has never been a secret to locals, who have always rated it as among the very best on Oahu. Even so, this community has never succumbed to the commercialization or development that has penetrated even resistant Kailua just up the way.

The presence of the Hawaiian Homelands has been important to that preservation and will probably be a solid bulwark against changes in this small town from ever happening.

The two main areas of the community are comprised of the southern area, with the green walls of the mountains standing close in, requiring you to raise your head dramatically to see the sky over them. The other is the section closer to Kailua, where both sides of the road open up, the mauka side most of all.

Driving on Kalanianaole Hwy is a tour through small town Oahu as it once was, with small diners and grocery stores scattered along the way, locals strolling down the side of the road and nothing standing beyond a 2nd story to be seen. It’s an old photograph of Hawaii come to life.

What you will miss on your way are the luxury Waimanalo homes that line the ocean in both sides of the town. In contrast to the rest of the community, these $2M+ houses are the definition of wealthy residences, with huge interiors, striking architecture, soaring ceilings and the latest in comfort and technology.

The masterpiece of the Pacific’s flowing shades seems to have been taken as a challenge by the owners to craft something equally engrossing on their beachfront lots.

Of course, nothing could ever compare with the tranquil life and unspoiled sands that cover this community. However, some of these homes have taken a solid crack at it.

OAHU LUXURY REAL ESTATE – WHAT YOU’RE REALLY BUYING
A couple of million, or more, of Oahu real estate doesn’t guarantee a huge, modern mansion. As we’ve seen, in places like Sunset, it buys you a property with two average sized homes, for example. What you can rely on is that it is the key to a piece of land that puts you in the midst of one of Nature’s miracles, the splendor of Hawaii’s natural wonders.

That’s important to remember. With enough money you can always build an amazing house. No amount of money will replicate the pleasures of watching the North Shore waves, the sight of the Mokes greeting you from across the water or the feeling that it’s just you and the sunset, saying Aloha to each other on another day in Paradise. It just isn’t possible.

The post Oahu’s 7 Most Expensive Single-Family Home Neighborhoods (ex Honolulu) appeared first on Honolulu HI 5 Blog.

This is a step by step guide to finding, purchasing and remodeling your dream Kailua fixer upper.

Kailua is a beach community on the Windward side of Oahu which has become wildly popular with tourists and locals alike. The sandy beaches and lovely shops have drawn more and more visitors to this one of a kind neighborhood and have brought with it a number of changes. The old single wall constructed beach cottages are being replaced by new construction and extensive remodels. The idea of living the Aloha Lifestyle in a beach bungalow in Kailua has become the dream for many people from all over the globe. The following guide highlights the most important steps in this process.

Step 1: Finding and securing the right property
This is obviously the most important of all steps and is a lot more complex than going on line and searching the Kailua open house listings. Most so called fixer uppers in Kailua are subject to multiple offers and bidding wars. Chances are that by the time the first open house is scheduled two scenarios will take place:

Scenario A: The seller already has an accepted offer and is just looking for back up. This happens a lot and has to do with the very active and ‘Akamai’ community of real estate professionals that specialize in the Kailua/Lanikai neighborhood. For non-Hawaiians the word ‘Akamai’ is a way of describing resourcefulness, intelligence and tact. I love all my fellow agents in Kailua and respect them. We all may work for different companies, but there is mutual respect and cooperation. So what that means is a lot of agents will find out about properties right before they come on the market and will try to put their buyers in the best possible position. So what does a savvy buyer have to do to get themselves into such a position? First and foremost the buyer must have absolute trust in his agent and be ready to act quickly.

The home presented here is a perfect example of a proactive and trusting buyer. Scott and Cheri have been my clients for years and we developed a great rapport to a point where they trusted my judgement 100%. I guided them through transactions before and knew their desire of living close to the sandy beaches of Kailua and enjoying the lifestyle. So even though they just had moved into their dream home on the ocean on the West Side, I knew when I saw this property that they had to get it. Through personal connections I heard of the home being listed in a few days and contacted the agent asking him for an early showing. This by the way happens all the time, not only in Kailua, so there is an amount of luck and persistence involved that all diligent and professional agents have. I called my clients and told them to meet me that day and we went to see it.  Needless to say they immediately saw that it was their diamond in the rough and we wrote an offer on the spot. There was no hesitation or questions, we just offered full price with as smooth of an offer possible. Once escrow was opened we really went to work. More about that later… Now to the other scenario

Just before we move on…. here is a picture of the property when we first saw it!

Scenario B: The seller is not accepting any offers until the first open house and then will give prospective buyers a deadline to submit offers. This scenario has become very popular especially for lower priced homes in Kailua. It benefits both buyer and seller, because it will encourage all buyers to make their best offer without getting into a bidding war. The seller then with the expert advice from their agent will have multiple offers to choose from and will accept the one that works the best and also will have at least one back –up. There are many factors that determine what the best offer is. In dealing with a situation like this on the buy side I will always research the property extensively to determine the value and then come up with the right price and terms. A lot of buyers come to me and tell me they will offer lower than asking with all cash. That does not work in a hot market like the Kailua. Cash or financing, money is money to the seller. An offer with ample cash down and pre-approved financing can be just as attractive to a seller as all cash.

The buyer has only one opportunity to make this offer the best it can be and that means it has to be written with strong back up on cash verification, loan approval and a personal letter introducing the prospective buyer. Sellers that have multiple offers to choose from like to feel a personal connection to the new owners… Again that is all part of what a good agent will help you with. One other thing: don’t bug the seller’s agent too much, they have way too much going on, just write a killer offer!!!!

The above two scenarios require commitment by agent and buyer and with the right preparation and positive attitude will result in making it happen, not only in Kailua!

Step 2: Laying out a plan of action

Congratulations you are now the proud owner of a fixer upper!

This is when reality hits you and the real work begins.  Scott and Cheri bought a home in disrepair with two long term renters on it. It was termite infested, had old plumbing and outdated electric wiring. Mind you they still paid a small fortune for it and now had a new mortgage to deal with.

So what did they do? After cracking open a bottle of champagne and enjoying their first of many Kailua beach sunsets, they had to make the first major decision to even move forward.

Is this home worth saving or does it make more sense to tear it down and start new construction?

Here are some points to consider when making this big decision:

Option A: Tearing down a fixer upper and starting brand-new gives the owners the maximum freedom in creating the home that suits their needs. All the old issues and problems can be erased and the new home can be up to date in all aspects of design and finishes. Another advantage is that the estimated cost for building the home is a lot more accurate and a lot of times will be less expensive than a complete remodel. The reason of course is that when you start fresh with the proper architectural drawings and a detailed scope of work list there will be less surprises and dreaded change orders.

The big drawback is the carry cost for the project. For the entire time of demolition and the construction, the property will not have any use to the owner. This carry cost can be very substantial and projects tend to always run behind schedule. Being on an island in the middle of the Pacific makes it sometimes very challenging to source all the materials locally and will most certainly cause unforeseen delays in shipping from the mainland or countries such as Bali or Thailand.

Option B: Work with the existing structure and do an extensive remodel. This option is not going to give the buyers the same freedom of design, but it enables more unique aspects of the existing structure to be saved. Especially with ocean front properties the remodel is the way to go since setback rules have changed over the years in regards to proximity to the water. That means once you tear down the old home you will have to apply for a new shoreline survey and are risking not to be allowed building as closely to the water as the original home was. On top of that the timeframe for a building permit that requires a shoreline survey is up to a year!

A remodel allows for flexibility with construction and can be done in phases so part of the old home can be lived in to save on rent. For example you may just add an additional story to an existing garage and live in the main home while it is being built. After completing that phase you move into the addition and remodel the rest of the home. Being on site during construction is definitely a sacrifice when it comes to privacy and comfort, but it is the best way to stay on top of the project and in itself will help save money by making sure the work is done properly.

My clients Scott and Cheri decided to save the structure and go the remodeling route. This allowed them to keep the renters for another year and work on all the planning and purchasing that is involved.  They also were committed to live on property while they went through the remodeling process. It saved them from paying for two homes during the transition. Keeping the renters gave them cash flow to service the new mortgage and time to put all the right pieces into place before delving into the remodel. On top of that they established a great relationship with the tenants giving them ample time to look for alternative places to rent. By treating the tenants with respect, not jacking up their rent and maintaining the home so it still was in livable condition Scott and Cheri set the tone for a positive relationship with the property and the neighbors. Their property had two long term rental units on the first floor and a main living area on the second. So for the first year they kept the tenants and moved into the main part of the home themselves. This gave them a head start on the extensive landscaping and a good sense of how Kailua Beachside living fit in with their lifestyle. A year after closing on their fixer upper Scott and Cheri were ready to start construction. The tenants had moved out and all the necessary steps were put in place.

 Step 3: Finding the right team for the job
Whether it’s new construction or a remodel, both require the services of an architect and a contractor. The architect and the contractor will determine the design and the budget.

When choosing an architect to work with there are three main aspects:

Design and vision: look at portfolio and existing homes they designed, interview the architect and see how they respond to your vision.

Expertise, reputation and licensing: Hire a licensed architect with a good reputation.

Cost: It ranges depending on size and quality level of project. The fees basically depend on scope of project and time spent.

To get a permit you need to apply at the Department of Planning & Permitting in person or you can apply online right here. Typically the contractor will handle the permitting process and you may want to confirm how connected the contractor is, as that may impact permit turnaround time.  Depending on the scope of the project, permits required may include architectural, electrical, mechanical (example: ducted A/C), structural, lighting, audio visual, landscaping type permits. 

The design process ranges in time based on the complexity of the project and the longer it takes the higher the cost will be. After the design process is completed and the construction documents are created they are ready to be sent out to bid to multiple contractors.

This is the most important decision in the whole process and should be done very thoroughly. You definitely can begin your research way ahead of time as soon as you go into escrow. Same goes for the design process. A good way to get started is to drive around Kailua and look at newly built homes. If you find one you like, just see if it still has the sign of the contractor in the front and then give them a call. If you’re a little bolder you can actually knock on the door and see if you can speak to the owner. That way you get first hand testimony which is the best information you can have. People are normally very friendly and love to talk about their new home, especially if they have someone complementing them on how beautiful it is. Referrals from friends or people in the business such as architects or interior designers are a great resource too. You definitely want to have the contractor show you some the homes they have completed and possibly get to talk to the owners.  Call up the Better Business Bureau to see if they are registered and do research online.

Again I recommend getting at least three bids from three different contractors. Make sure to compare Apples to Apples when you look at bids, meaning all bids contain the same scope of work and materials. The more detailed the contract is the better it is.

Step 4: The Construction Contract
Each contractor will have a slightly different template but the key pieces are going to always be the same.

 Article 1       Contract Sum

Here is an example:
Contractor X proposes the sum of $500,000 (including the Hawaii GE Tax) to complete the project. This Agreement is valid for a period of 30 days after which time the contractor reserves the right to submit a revised estimate.

The Contract Sum represents the cost for all the work agreed upon in the contract excluding Change Orders and Allowances. So it is not a realistic final budget. To be on the safe side most people I talk to in the business recommend adding 25% to the original Contract Sum.

Article 2         Scope of Work
This will in detail list all the work items the contractor agrees to complete based on the architectural plans and specs that were provided for the bid. This list can be very extensive and it is very important to go over it line by line. You may come across some items that you want to take care of yourself to save on cost. If so you remove or revise the items and have an updated contract sent to you.

This Scope of Work article will also list exclusions that are not part of the contractor’s responsibilities. In Scott and Cheri’s case they purchased all the appliances and electrical fixtures on their own so that was excluded. The cost for the construction permit and other municipality fees are also excluded in most contracts.

Permit process: This can be very time consuming and frustrating and needs to be discussed with the architect. The architect is responsible to explaining the different options which include expedited and conventional permitting. Hiring a permit expeditor is money well spent and needs to be discussed with the architect.

Article 3      Time of Completion
The contractor agrees to a start date and a completion date. Some contracts may have provisions for liquidated damages for going over the forecasted date, some will specifically state that there are no such provisions.

Article 4     Progress Payments
Here is an example:
Progress payments are made to protect the Owner to ensure that work is being performed as expected, and to protect the Contractor to ensure that payments are being made. Owner shall pay the Contract sum based on the following payment schedule:

Progress payments are due within (3) days of achieving milestone. Contractor reserves the right to stop work upon non-payment.

Overdue payments shall bear interest at a rate of 1.5 % a month until paid.

Article 5         Additional Work Order Authorization
This article refers to any alteration or deviation from the original drawings, specs or scope resulting in additional labor and or material cost. These are the so called Change Orders that can add up very quickly and make the project way more costly than initially budgeted. It is very important to have an agreement of how to handle these change orders.   They can either be charged as a lump sum or as a cost plus fee method. In either case both the contractor and the owner have to agree in writing on every change order. This is very important to pay attention to so the cost does not spiral out of control. Should there be a dispute later after the work has been performed there is a record.

Article 6          Allowances
Allowances are portions of the budget where the exact cost is unknown and can only be determined during construction. It basically accounts for the unknown materials that have not yet been selected.  Kitchen appliances are a great example. Let’s say you go from GE, Samsung or LG to the next level which is Jen Air or Kitchen Aid to the highest level of Sub Zero, Wolf and Gaggenau. There of course is a big price difference and per contract the owner is responsible for that additional cost.

Article 7    General Terms
Make sure there is a warranty clause in the general terms and read it carefully.

The contract also has to include a Contractor’s Liability Insurance Clause and a Comprehensive General Liability with at least one million Dollars coverage.

The final portion of the contract has to include the Hawaii Revised Statutes Addendum

Here are some helpful cost saving tips to keep the project close to budget:

Make sure to be as specific as possible in the initial scope of work agreement. For example in Scott and Cheri’s project they specifically stated they wanted 6 inch baseboards and not the standard 4 inches. When the contractor installed the wrong ones they had the contract to save them the additional cost for changing it.

If you know you want a built in sound system make sure to have the necessary work specified to have it ready for installation.

Any materials you can source and order yourself will save you money. Per contract there is a usual mark up of 15% that the contractor/builder charges for any materials they order.

Purchasing countertops, flooring, fixtures and even windows can add up to a huge amount of savings. This of course will have to be agreed upon in the initial contract.

Also make sure you have a good relationship with the project manager. This will result in saving time and money.

Step 5: The actual Construction
Finally you are getting started and if everything goes as planned there should be ample communication between you and the contractor and /or the construction manager. Every project will have its unique challenges and most likely there will be unforeseen issues during construction. Therefore it is very important to be as detailed as possible in the contract when it comes to change orders and allowances.

Courtesy inspections will happen throughout the build process and include electrical, plumbing and final inspection. Make sure to ask your contractor to communicate to you about these inspections and stay informed. Upon completion of construction the building permit will be closed out.

If you’re still have a great relationship with your contractor and the subs then congratulate yourself for a job well done! Time to have a second bottle or more of bubbly and enjoy the Aloha Lifestyle!
Here are pictures of Scott and Cheri’s private retreat on Kailua Beach!

Please feel free to contact me with any questions or even just to share your experiences with Kailua fixer uppers!
Aloha, Marcel

The post Find, Purchase & Remodel Your Dream Kailua Fixer Upper appeared first on Honolulu HI 5 Blog.

One debate that commonly arises for Oahu home shoppers is choosing between Hawaii Kai and Kailua. They sit at comparable distances from Downtown Honolulu, where most make their way each weekday morning and have their own waterfront real estate possibilities to offer. It can be difficult to come down on a favorite between the two, especially if you assume that they aren’t all that different. Maybe we can help. As usual it all starts at the beginning.

By that we mean the roots of the two communities, which happened in very different times and under very different circumstances. Let’s begin with the older of the two, Kailua, which traces its origins back to a Native Hawaiian community at least 1,500 years ago and occupied ever since.

The modern form of the town started to take its shape in the 1940’s when the Castle family turned much of its huge landholdings on the Windward Side from ranching to real estate. Most of the neighborhoods there today were sold in individual lots, the new owners erecting homes over time.

This was a community that grew, in many ways, organically. Kailua homes are a hugely varied collection of layouts, sizes and ages. A Mid-Century ranch house sitting next to a New England influenced two story design next to a classic Plantation style home. It’s clear that this community came from an older Hawaii. Less uniform, more individual.

KAILUA – SOME CHANGES, BUT THE SPIRIT REMAINS

Kailua Beachside Homes

That continues today, with large mansions being built in areas like Lanikai and Beachside especially, rising up on lots in the piping hot Kailua oceanfront real estate market. Homes on or near the Pacific in this town have the privilege of proximity to an incredible multi-hued blue sea lapping up to a beach that runs for miles up the coast, the much loved Mokes looking back just off shore. For some that’s a daily treat to indulge in from their living room.

Home shopping is an adventure here, with new listings inevitably producing an unexpected surprise, something different to offer that you need to see for yourself.

One of the most surprising for longtime Kailuans are the new condo communities, notably the partially completed Ka Malanai that sits right on Kailua Road in the center of town. Never has a condo property ever been so prominently located, a sea change for this community.

What you can count on, wherever your home here, is an experience that has made Windward Oahu famous. Low-rise skyline, an easy-going attitude that prevails and a gratitude for the beauty of each new day. It’s a distinct mix of the local culture with a little hippy thrown in.

That culture extends to the shopping where you’ll find Whole Foods, numerous local craft and clothing shops, a vast range of restaurants to cover every taste and even an actual bookstore.

Target has arrived here, though not without some resistance, but its popularity is plain to see. Still, it’s the only thing resembling a big box store within the city limits. Windward Mall in Kaneohe is the place to go to see a movie or do large scale shopping, with its two floors and 110 stores that include Macy’s and Sears.

Though there are a few bars here and there in Kailua, this is a town that gets pretty quiet after 9PM or so, any noise coming from friends barbecuing at each other’s houses. The big attraction here are the Daytime activities.

WHERE THE ACTION IS IN KAILUA

Lanikai Beach

That means the active outdoors. It all starts with Kailua & Lanikai Beaches, where the sunbathing is excellent and the sands o-so-soft. Kailua Beach especially is the place for getting out on the water. Kayaking, paddle boarding, surfing, snorkeling – if it’s fun and can be done on the ocean, chances are you can do it there.

Kailua Beach Park

It’s also a place where people walk and bike to get around, a conspicuous part of the active lifestyle, as well as eco-conscious concerns, that typifies the people who live here.

We leave this seaside town, preferably in an electric vehicle, to visit another settlement beside the ocean that sits around Makapu’u Point on the south side of Oahu.

HAWAII KAI – REAL ESTATE VISION MADE REAL
To understand Hawaii Kai, it’s essential to know that that it is a Planned Community. Unlike Kailua, very little was on these lands previous to the 1960’s development due to the 1946 tsunami wiping out the few farmers that were here.

Henry Kaiser famously came in and dramatically altered the landscape, creating the marina that anchors the entire area, along with planning the entire layout of this place. Most of what is here was contained in the original plans.

Hawaii Kai Waterfront Homes

The concept took traditional waterfront living and raised it to another level. A large number of Hawaii Kai homes sit directly on the marina’s edge, most with their own docks floating beside the end of the owner’s back yard. The water isn’t something to drive to or even walk to. It’s an integral part of your waking hours, a companion and comforting presence that’s always there.

The marina front residences, as well as those further back, include both single family homes as well as condos, especially townhomes in the makai section. Due to the planned development, there are models here, so you know the general dimensions and layout you’re dealing with in a listing.

That doesn’t mean a limited range, however. There are many different condo communities right on the marina alone, that each offer their own unique variations, such as Moorings, Kuapa Isle, Marina Palms, Villa Marina and Mawaena Kai to name only a few.

Moorings in Hawaii Kai

In addition to the marina, many homes sit back in the cooler areas of the valley, popular for generally being more affordable and away from the busyness of Kalanianaole Hwy.

Hawaii Kai also has maintained the low-rise profile across the vast majority of the community, but there are some high-rise condos on the sides of the valley as well as the back. They provide deeper options without intruding on the sight lines.

DEEP SHOPPING & DINING IN HAWAII KAI
What is clear here is that while the plans reduced some of the variety of homes you’d have in Kailua, it did make for a more open environment on the street level than Kailua, with more space between homes, wider streets and more open grassy areas around.

Where it gets more dense is in the shopping choices, with the large Koko Marina Shopping Center standing out. However, it fits right in this community being outdoors and leaning toward local stores and specialty shops, rather than chains, along with many restaurants as well. It’s also unique for having a dock so locals can sail over and enjoy some R & R.

2 other smaller shopping centers provide the more typical outlets that have any and all essentials, such as Safeway, Long’s and even a Costco. Much of your needs can be taken care of without leaving your neighborhood.

Although you live in an oceanfront area, it is a little different. There are no real beaches in Hawaii Kai, the coastline being rocky in many places. That doesn’t mean water sports are out. Not at all. Along with sailing this is a major outrigger paddling center as well as kayaking, parasailing and paddle boarding. There’s even a couple of popular surf spots off of Portlock.

A quick drive east will get you to the world famous snorkeling at Hanauma Bay and a little beyond that is Sandy Beach, a well known place to enjoy the sands, but beware of some very powerful waters.

It should also be clear that Hawaii Kai is not the tourist destination that Kailua has become and will almost certainly never be so. It is purely a local neighborhood through and through. Another aspect to understand is that it has probably reached the end of its build out.

Developments on the ridges above have come in recent years, but the residents in the marina and valley areas have made it clear that further additions are not welcome. Outside of a purely rental condominium that opened in 2016, new additions to Hawaii Kai real estate have been very quiet.

Koko Kai Oceanfront Homes

HAWAII KAI OR KAILUA – WHAT DO YOU THINK?
There isn’t a better choice between these 2 Oahu neighborhoods, just a ‘better for you’. The differences in lifestyle and the daily experience are shaded enough between them that by now you’ll find yourself imagining living one more than the other.

Kailua and Hawaii Kai are a contrast of the Hawaii, one a little more messy due to its unguided growth, but unmistakably vibrant and magnetic in its personality. The other is a jewel, formed from once abandoned lands, into an open and more orderly community.

Of course, a single article shouldn’t make the entire decision for you, but we hope to have given you an informative weather vane, pointing you in what’s most like the right direction. Oahu real estate is about more than the home, it’s the entire world that surrounds your home and how you fit in it. Is it the right fit for you?

The post Hawaii Kai or Kailua: Which Offers The Better Lifestyle? appeared first on Honolulu HI 5 Blog.

Honolulu today is a city of condominiums and it will remain that way probably forever. It’s a place where real estate is a premium, almost a luxury, so high is the demand, so that form of housing is the best solution. The question is how did we get here? And where are the current trends leading?

The answers lie in a very short period of time, just under 7 decades, though you’ll see that most of the transformation of this once quiet town into a modern urban skyline was accomplished in just 2. Where New York had skyscrapers in the early 1900s, our city had none until the 1960’s. It’s a history that makes sense of today.

Follow along and you’ll understand exactly why Honolulu real estate is facing the immense challenges that affect every one who calls it home, or would like to someday. You’ll also see why the future has much to be excited about as well.

1950 – 1959
Number of Condos Sold in Last 5 Years That Were Built in 1950s: 623.

The 1950’s are the key moment when Hawaii, and especially Honolulu, swelled in size, turning from an isolated, if well known, small and sleepy city to a place under siege from an unending stream of new residents. In addition to its easier access to Mainlanders through better and more available travel options, that also created jobs and business opportunities in a booming tourist trade.

Often forgotten is the fact that locals from the Neighbor Islands were coming over as well. Mechanizing and other factors had downsized some of the plantations’ labor needs there. With few other employments possible on their Island, Honolulu’s growing economy was very attractive.

These factors sent Honolulu real estate upward as never before, bringing high-rise condos to the landscape for the first time.

The Gold Coast – Oceanfront Condos in Diamond Head

Like today, a prominent part of this new build-up was aimed at the higher levels of the market. It is during these years that several of the Gold Coast condominiums went up, providentially at a time that allowed them to be located so near the ocean.

Colony Surf

The Tahitienne, Tropic Seas and the Diamond Head Ambassador are just a few examples, along with the Colony Surf that stands guard over, and on, Kaimana Beach.

Other areas of Diamond Head grew upward at this time as well, such as much of the Pualei Circle buildings that sit just across the street from Kapiolani Park. These residences, such as the Diamond Head Surf and Hale Pua Lei, were smaller both in height and width, a more affordable option in this neighborhood.

Waikiki next door was experiencing its first elevation, with a mix of low-rises, such as the still charming walk ups on the Ala Moana end that are clustered together, with names like the Marina Gardens and the Hawaiiana Gardens. Higher structures were going up as well in the resort district like the Kalia & Rosalei.

None could be said to be higher end or luxury condos, clearly meant for for the local working or middle class. This trend would not continue as the neighborhood side of Waikiki began to shrink more and more with the spectacular growth of tourism and its demands.

The areas closer to Downtown were also prime sites of condo development, to house the many who then, as now, were employed there. Makiki, Punchbowl and Kalihi-Palama got the attention of developers. The Kalihi Gardens and Kokea Gardens in Kapalama both date from this time, while Makiki saw even more additions, like 1510 Liholiho and Punahou Terrace on Makiki Street.

A couple of things that should be acknowledged is that despite the unprecedented changes, the single family home was still the primary residence for residents here at the end of the 1950’s. The housing need was an issue, no doubt, but had not reached the levels it would in the succeeding years.

Another notable fact is that none of the residential buildings that went up in this era were taller than the Aloha Tower. High-rise condos were here, but in still small numbers. They hadn’t scaled the heights they would shortly.

1960 – 1969
Number of Condos Sold in Last 5 Years That Were Built in 1960s: 3,489.

The 1960s began deceptively quiet, one writer in a 1963 issue of Paradise of the Pacific (now Honolulu Magazine) commenting that the building boom seemed to have ended in Honolulu. How wrong he was.

Despite that pronouncement, condos in Honolulu were going up from the very start of the decade. The Gold Coast saw more of its shoreline filled in, including the Castle Surf, Coral Strand and Sans Souci in the first 2 years alone.

Sans Souci

Pualei Circle began to complete its empty puzzle pieces, following a thematic trend in new buildings named Diamond Head Gardens, Diamond Head Terrace, Diamond Head Plaza and the straightforward Diamond Head at Pualei Circle, all completed before the end of 1965.

This was also the key moment when the bohemian section above Kuhio Ave, infamously called The Jungle, began to see its aging homes give way to the man-made forest we know today. The preceding decade’s residential development in this district had primarily been around the edges of the central part of Waikiki and in just a few spots where it did penetrate. After 1967, the wall was fully breached and no going back.

Waikiki

The Fairway Manor, Governor Cleghorn, Marina Towers are just a few that went up at this time in that area. Elsewhere, other big changes were happening, like the Waikiki Shore on Kalia Rd, the only Waikiki condo today that’s right on the beach.

Waikiki Shore

Two other areas of Honolulu took shape in this era as well. Hawaii Kai had sprung up from barren land out east with its special low-rise townhome condos that proved extremely popular. Koko Isle, Moorings, Colony Marina and the Marina Palms took their places on the waterfront carved by Henry Kaiser.

Back in town, another piece of land had become home to Ala Moana Center in 1959, setting in motion development all around it. 1350 Ala Moana emerged next door to the mall, forerunners of the Kakaako forming right now.

1350 Ala Moana

 Kaheka saw an especially large build up, condos being erected all around today’s Don Quijote. This was mirrored in the once quiet and removed Punchbowl-Makiki neighborhoods, the face of their avenues changed forever.

The towers went all the way to the very sides of Punchbowl, the Royal Vista standing against it before the decade closed. Wilder Avenue was the site of many new buildings as well, like 1001 Wilder and 999 Wilder.

No part of Metro Honolulu was untouched in these years. It’s no accident that the joke about the construction crane being the Hawaii State Bird was first heard in the latter part of the 1960s. This decade would end far differently than that writer in 1963 predicted – and there was no end in sight.

1970 – 1979
Number of Condos Sold in Last 5 Years That Were Built in 1970s: 6,947.

1970, and the following 9 years after it, were a continuation of the condo development that had recently picked up steam. Only now it truly hit full speed. This was the time when condos replaced single family homes in Honolulu, as the main form of residence.

Waikiki was unrecognizable by the end of this time, the once plentiful houses between the Ala Wai and Kuhio Avenue disappeared almost completely. Now high-rises occupied almost every lot, reflecting the hotel towers that were now dominating the makai side of Kuhio to satisfy a visitor demand that couldn’t seem to be satisfied.

The view from across the Ala Wai was now a Great Wall of multi-story condominiums, almost unbroken from Kapahulu Avenue to the cul-de-sac that ends against Ala Moana Blvd crossing the canal.

Not only was The Jungle gone, the same process was happening on the west side, where Discovery Bay, the Wailana and the Waipuna were erected, along with many more. In the 10 years from 1965 to 1975, Waikiki went through a transformation that was unparalleled, matched only by today’s Kakaako and possibly one other contemporary neighborhood.

That contemporary was Hawaii Kai, of course, but it was being created out of whole cloth, lacking the destructive phase Waikikians, and other locals, went through, watching something so intertwined in their lives wiped away.

Kuapa Isle

The still forming district was now filling in more fully. Kuapa Isle, Kaimala Marina and the Gateway Peninsula all had their first residents before the mid-point of the decade had been reached.

Those 1 or 2 story townhome style units were joined for the first time by the towering structures of the Mauna Luan and Naniwa Gardens, which bucked the initial Hawaii Kai trend, but still somehow fit right in.

Naniwa Gardens

The other extremity of Honolulu, the Salt Lake area, was undergoing its own urbanization now. The line of high-rises along that strip rose up. Built to feed the housing demand from not only locals, but the growing military presence during the Vietnam War, developers created a small residential cityscape that has proved popular for its location near the bases and the highway.

Every part of Honolulu saw some form of condominium living newly added to them in these 10 years, with Makiki, Kalihi especially getting attention and even Nuuanu having newly constructed properties.

THE MOST IMPORTANT DECADES IN HONOLULU’S DEVELOPMENTThis will put the scale of the change that occurred in perspective. The span between 1960 to 1980 accounts for almost ½ of Honolulu’s the condo inventory we have today That percentage will decrease with Kakaako’s emergence, but those 20 years will still be the lion’s share of the pie for some time.

Yet it was the latter decade that was the dominant partner in that alteration. For much of the 1970s, developers added 12,000 new homes in Hawaii every year. Most of that on Oahu, contained in condominiums. That pace is still a record today, no other decade coming even close.

1980-1989
Number of Condos Sold in Last 5 Years That Were Built in 1980s: 866.

The 1980s saw a slowdown finally, the result of a few different factors. Being an Island there are only so many places to build, for one.

Another is that, even with a housing crisis, resistance had been building for some time as locals felt more and more of their way of life slipping away under all of the development. It was during this time that areas like the North Shore and Kailua began to organize efforts to keep the build-up from reaching their borders.

In one case, Kaiser Development was given the go ahead by the City Council to build condos at Sandy Beach. The outcry was immediate and, after a long grassroots battle that put the project on a public ballot vote, locals voted No in a landslide. Things were different now.

A distinct ramping down did take place in Honolulu, but not a complete halt by any means. Waikiki remained at the forefront as before, the standout property being the unmistakable Liliuokalani Gardens. Still, after the 1970’s, this was primarily a spotty effort, building on the few lots that became available or were still empty, which weren’t many.

So, though you had condominiums in Waikiki newly added in the old Jungle section, the Hobron section to the west and elsewhere, it was more of a filling in now. Completing a job that was almost done.

Salt Lake grew sharply now, expanding to the mauka areas of Salt Lake Blvd to the long stretches of Likini and Ala Ilima Streets. Names like Franklin Towers, Horizon View Tower and Plaza Landmark all sold their first units in the 80’s.

Despite the general reduction in the number of construction cranes, one area of town saw a definite rise in new condos. The Makiki-Punchbowl district tallied up a number of condos to their collection. The Punahou Palms, Piikoi Atrium and 1015 Wilder come back to this time, among others. The location near Downtown, but out of the main traffic areas proved popular to condo buyers, the high rises even providing ocean views in some cases.

Meanwhile, over 20 years later, new Hawaii Kai waterfront townhomes were still being added in the form of Mawaena Kai, a testament to just how big the marina is there. They also unveiled the 16 floor Commodore as well, increasing the inventory, but parking it out of the way on the side of the valley.

Mawaena Kai

The decade closed with some very significant individual alterations to the town, but nothing on the sweeping scale of the last 2 timespans. This was the time of feverish buying and investment in real estate by Japanese investors. So much so that the economies of Japan and Hawaii became strongly linked.

The 1980’s ultimately showed that it just wasn’t possible to do as large a scale of residential development in Honolulu as before. Land opportunities had run out. It was also more difficult to jump the legal and regulatory hurdles when officials felt under pressure to slow things down. Even bigger problems, though, were just ahead.

1990 – 1999
Number of Condos Sold in Last 5 Years That Were Built in 1990s: 477.

In December of 1989 the Nikkei 225 stock index, similar to the Dow Jones in the US, hit its peak. It’s the delirious top of a bubble that bursts in the following year, bringing down Japan’s economy with it.

This devastatingly reverberated through Hawaii, taking us down to 51st in the nation’s economies according to a 1992 US News & World Report study, beneath every other state and the District of Columbia. With a crippled economy, new construction came to an abrupt stop.

Where development did happen on Oahu, it was now on the West Side, where huge tracts of land were now available with the plantations dying out. Few were against building homes there and the government was even actively promoting it.

Hawaiki Tower

Back in Honolulu, not everything was quiet. In Kakaako, condo development was fairly busy, including the Hawaiki Tower  and Nauru Tower. The two are virtual blueprints for the new Kakaako taking shape today, with their very modern, very luxurious features and widescreen ocean views.

Nauru Tower

Other projects, secure in their financing, went on, the best example being the Hawaii Kai project. The Kalele Kai and Lalea at Hawaii Kai communities opened on schedule in these harder times.

Kalele Kai

Where the consequences of the Japan bubble were most visible was in Waikiki. During the boom years this was an obvious place for investors to put their money. With the money pouring in, a group of Japanese backers built the Waikiki Landmark, only to have to abandon it on the edge of completion when the crash wiped them out. It was a looming reminder of the over exuberance of the times as it sat empty for some time.

This was not a good decade to be putting up a condominium in Honolulu. Those who could ride it out were rewarded in the coming rebound, but many couldn’t make it there. The fall was just too long and too hard. By 1999, fortunately, things were starting to turn around and solid ground was finally in sight.

2000 – 2009
Number of Condos Sold in Last 5 Years That Were Built in 2000 to 2009: 861.

Things did come back with the change of the Millennium and it brought a distinct shift to the Honolulu condo market. With the more affordable market being fed by Ewa Beach, Honolulu saw a greater focus on the higher, even luxury, level.

This was very apparent in the once dormant Waikiki neighborhood. The 1st decade of the 2000s saw the proud announcement of coming residences that had amenities, features and services that never had come before with your mortgage here.

The Allure, The Watermark and Trump Tower all offered degrees of front desk services, sculpted interiors and exteriors and often stunning views. Buyers at these levels now expected more for their money and were prepared to pay for it. The builders were happy to oblige.

The Watermark

Kakaako, which already had a couple of these types of properties, now went all in. The greater spaces available there allowed these condominiums to have tennis courts, large pools and expansive recreation decks. Although they pre-dated the current Kakaako project, it’s clear they were intended to inhabit the same environment and criteria in many ways. Anyone familiar with the Hokua or Koolani will agree.

Hokua

Where Kakaako was just getting started, Hawaii Kai was drawing to a close. At least 5 more communities threw open their doors before the end of 2009, but that was just about it. The project was finally completed and, like their predecessors elsewhere in Honolulu, the residents are not receptive to anything further.

2010 – 2017 & Beyond
In our present time, it’s obvious that one neighborhood is center stage for real estate in Honolulu. Kakaako’s planned community will hold onto that status for some time to come as it will take years to complete it, but there’s much to see and a lot known already.

The developers, Howard Hughes and the Bishop Estate, have made it clear that they are constructing an extremely modern, yet culturally and environmentally Hawaiian district. Urban, pedestrian friendly, filled with green spaces, parks and community spaces. It will also have properties that reach the heights of luxury living and maybe even surpass it.

Waiea has already opened, with its fishnet-in-flight patterned glass wall standing out on the exterior. Inside residents have catered dining rooms, concierge services, fine décor and views on the Pacific that no artwork can rival. Anaha is close to completion just across the street, it’s jenga-like structure confirming that Kakaako will be a collection of exquisite architecture to revel in for residents.

Waiea

Plans and simulations for others, such as The Cylinder at Gateway Towers, are out there as well, creating the excitement for this place that is truly something different and unique. Not just in Hawaii, but anywhere.

This revitalization has extended to its neighboring areas, with new high-rise construction going on at the same time. Kapiolani Blvd has recently seen Symphony come up and now you can even live in Ala Moana Shopping Center in One Ala Moana or Park Lane. The lifestyle possibilities in a Honolulu condo have exploded and there’s more to come.

Park Lane Ala Moana

This same elevation has found room in Waikiki, with the Ritz-Carlton Residences now valet parking the cars of its residents on their way to their very nice homes. Planning is underway for a new condo-hotel building on the site of King’s Village, with another to rise up where Kyo-Ya Restaurant sits shuttered right now. Both aimed at the higher end of the market, of course.

WHERE CONDOS IN HONOLULU ARE HEADED
It is true that Kakaako will have affordable homes as well as mid-level market condos in the mix, but the die is cast, it seems, for the city’s future construction. More and more upscale properties will dominate Honolulu’s condo development, not only due to the fact that they are practically guaranteed to sell, but also the cost of land and construction here almost requires that price point to make a healthy profit.

Not every property will be towers of $1M+ units. It is clear, however, that the days of plain high-rises with few, if any, amenities that typified much of the 20th Century building boom are gone in Honolulu. They will still exist, but the scale has tipped to a higher-grade of home and that’s the way it will remain.

The post History of Honolulu’s Condo Developments: 1950’s to Present (2017) appeared first on Honolulu HI 5 Blog.

If you are interested in this home, please contact Kristian (808) 372-6184 or kristian@honoluluhi5.com.

2819 Coconut Ave is a home in Diamond Head, arguably the most exclusive and sought after neighborhood for any homes in Honolulu. This home is located in a very quiet and private “niche” section of Diamond Head – oceanside of Diamond head Road and adjacent to the prestigious Gold Coast. In this part of Diamond Head most lots are smaller in the 3,000sf to 5,000sf range, but 2819 Coconut Ave sits on a 7,200sf flat lot. Several pristine white sandy beaches are located nearby, including Kainalu Beach 2 lots away and ~1/3 of a mile away Outrigger Canoe Club Beach and Kaimana Beach.

The home was beautifully remodeled year 2003 and has been divided in to 2 quarters: The downstairs, 2 Beds / 1 Bath, has its own separate entrance and a generous size yard, excellent for gatherings and bbq’s. Upstairs, 2 Beds/ 2 Bath, boasts dramatic Diamond Head views and has a tropical lush yard, which lights up a multitude of palm tree varieties, all created with an eye towards intimacy & privacy.

The home offers many living options: Lease 1st floor and enjoy upstairs (current setup), lease both floors or revert back to single-family living. There is truly nothing like this.

Here are a few pictures from the home.

2nd Floor Living Room

2nd Floor Balcony

2nd Floor Full Kitchen

2nd Floor Diamond Head View

Backyard

2nd Floor Master Bedroom

2nd Floor Guest Bedroom

2nd Floor Guest Bathroom

Side Yard

Backyard Evening Time

The post Diamond Head Home for Sale: 2819 Coconut Ave, Honolulu, HI 96815 appeared first on Honolulu HI 5 Blog.

‘Buy before Sell’ vs ‘Sell before Buy’ – Best strategy for a sideways move in Honolulu’s real estate market –

“Can we buy a home subject to the sale of our existing home?”  That’s what I get asked often from clients that already own a home and have the need to move into their next home.

Let’s say you do not have  a.) enough cash, or  b.) financial strength to comfortably qualify and carry both mortgages at the same time. Than this is for you!

We will compare strategies and conclude with the best strategy to successfully complete this sideways move in Honolulu’s real estate market.

Strategy #1:  ‘Buy before Sell’ – Not so good

“We just want to look at homes, when we see what we like then we want to make an offer, subject to the sale of our existing home.” 

It is a common popular myth that this approach is going to work. Unfortunately it is flawed for the following reasons:

A.) we don’t have a buyer yet for your current home.   B.) We don’t even have your home on the market, and, C.) we have not prepared your current home for maximum salability.  Also, D.) most sellers would not want you tying up their property and then wait around until you get your home sold.  – That’s not going to happen.

The very few sellers that actually might be patient enough and consider your purchase contract subject to the sale of your current home usually have two requirements:  1.) they want top dollar, and 2.)  a ’72-hour kick-out clause’. That is a provision in the Purchase Contract that ‘allows the seller to continue marketing their home and generate better offers’. The seller could sell the property to another buyer after 72 hours of receiving a better offer if you are unable to remove your home sale contingency in time.

You can see, the ‘Buy before Sell’ strategy puts you in a weak negotiation position on the buy side. It also puts you in a weak negotiating position on the sell side, because of the time pressure to have to sell your home quickly.    – This is like pushing on a string.  Not so good.

Moving done the right way

Here is a far better approach to do this type of sideways move:

Strategy #2:  ‘Sell before Buy’ – The better approach

I know what you are thinking. You don’t want to be out on the street without a home if you sell before you buy. That’s why we structure both, sell and buy transactions carefully as follows:

Step #1.)  Prepare your current home to market and sell at top dollar

a.) Uncluttering and cleaning,

b.) Completing all needed cost effective repairs,

c.) Completing cosmetic upgrades that will make your home look the very best.

We are aiming for mass curb appeal combined with maximum marketing exposure to attract a large number of qualified buyers to get the highest possible price for your home that the market could bear. 

Btw, it is ok to look at possible replacement homes and get inspired. Just remember, any homes you might see today could long be sold by the time you are ready to strike and make your strong offer. That’s is ok. Our current focus is to get top dollar for your current home.

Step #2.)  Once we have identified the right buyer willing to pay your desired sales price we will add two important special terms to the Purchase Contract.

1.)    “The contract to sell your current home is contingent on an accepted purchase contract on a suitable replacement property within 7 days of the acceptance of the sales contract for your current home.”

2.)    “You reserve the right to occupy your current home for up to 3 days beyond the closing date”.  This way you can move on the closing date into your new home and still have a couple days for cleaning, carpet shampooing etc.  Otherwise you would have to move out before the closing date and stay at a hotel for a night with your belongings in a moving truck before you get the keys to your new home on the closing date.

We have negotiated these terms successfully many times and most buyers will be patient enough with a short 7-day contingency period and are also agreeable to let you stay for up to 3 short days to accommodate your move.

Step #3.)  Once we have an accepted sales contract with both important provisions on your existing home, we will then aggressively explore all options for a suitable replacement home. Hawaii is a relatively small market. Within just a couple of days we should be able to see all available suitable replacement homes and identify which ones to make an offer on. Hopefully we will have an accepted purchase contract on your top choice for a replacement home within 7 days.

Here are a few scenarios that can happen in the order of desirability:

1.)    Best case scenario: We enter into an accepted purchase contract on your replacement home and add the following important special term: “This Purchase Contract is contingent on the simultaneous recordation of the sale of your current home.”  Because your current home is already in escrow and scheduled to record soon, you have the strongest negotiation position. You look golden to the seller and the seller would be delighted to accept your offer. There should be no ‘kick-out clause’ in this scenario.

2.)    If we identified a good replacement property but did not enter into an accepted purchase contract within the 7-day contingency time period, we could possibly negotiate an additional few days extension with the buyer of your current home.

3.)    In case we could not secure a suitable replacement property within the contingency time period, you or the buyer may cancel the purchase contract and you get to keep your current home. Nothing is lost, you still got your home. You may continue marketing your home until you succeed the next time.

4.)    One more option: You may remove the contingency to be in escrow on a replacement property and opt to sell your home regardless we could not secure your replacement home. This option is short of ideal because it only solves the first part of the dual goal. You sold your home for top dollar. But we have not eliminated the need for you to move twice without yet securing a suitable replacement home. Eventually when we do secure a replacement home, you will already have sold your existing home and you can proceed with maximum financial firepower and negotiation strength.

— The ‘Sell before Buy’ strategy represents the right approach for most situations. It offers far more benefits compared to the ‘Buy before Sell’ strategy. It puts you in a much stronger negotiation position on both the sell and buy side.

It is important to have these provisions written correctly into each respective contract for your maximum benefit, to match timing and mitigate the risk of being without a home.

Happy clients

Summary conclusion:

See what we accomplished using the right ‘Sell before Buy’ strategy with properly structuring the respective contracts:

1.) We obtained the highest possible sales price for your current home.

2.) We successfully increased your purchasing power and got you into the strongest negotiation position on the buy side increasing your chances on getting the best deal to buy your replacement home.

3.) We maintained all options, including the option to keep your current home if we could not secure the right property at an acceptable price and terms.

4.) We eliminated the need for you to move twice.

How about that for the tip of the day?

We have done a lot of these simultaneous back-to-back ‘Sell and Buy’ transactions and we are happy to help. Reach out when you are ready to move forward.

We like to hear from you. “Like”, “Share” and “Comment” below.

~ Mahalo & Aloha

The post ‘Buy Before Sell’ vs ‘Sell Before Buy’ – Best Strategy For A Sideways Move In Real Estate appeared first on Honolulu HI 5 Blog.

New Hawaii Property Tax Rates 2017 – 2018

– We saw it coming, City Council just adjusted Hawaii’s new property tax rates for fiscal year July 1^st 2017 through June 30^th 2018.

The big change for Honolulu County / Island of Oahu is the now two tiered Residential Rate ‘A’:

$4.50 per $1,000 (0.45%) of the net taxable value for Oahu Residential A property up to $1Mill.

$9.00 per $1,000 (0.9%) of the net taxable value for Oahu Residential A property above $1Mill.

 Oahu’s property tax rate Residential ‘A’ applies to the following properties:

–        Condominium units without Home Exemption.

–        Residential lots zoned R-3.5, R-5, R-7.5, R-10, R-20, with either one or two single family homes, without Home Exemption.

–        Residential vacant lots zoned R-3.5, R-5, R-7.5, R-10 and R-20.

How will this affect you:

The two tiered rate Residential A works as follows:

– If you own residential property on Oahu other than your principal residence (No Home Exemption – either a 2^nd home or a rental property) with a tax assessed value up to $1Mill, your property tax rate  increased to $4.50 from $3.50 effective 7/1/2017.

-If you own residential property on Oahu other than your principal residence (No Home Exemption – either a 2^nd home or a rental property) with a tax assessed value above $1Mill and up to $1.166Mill, your blended property tax rate will range between $4.50 and $6.00 effective 7/1/2017, no increase from $6.00 before.

-If you own residential property on Oahu other than your principal residence (No Home Exemption – either a 2^nd home or a rental property) with a tax assessed value above $1.166Mill, your blended property tax rate  will range between $6.00 and $9.00 effective 7/1/2017, an increase from $6.00 before.

-A sample residential condominium without Home Exemption and a net assessed value of $2Mill will be taxed $13,500 / y ($4.5K on the 1^st $1Mill + $9K on the additional value above $1Mill) effective 7/1/2017, and increase from $12,000 / y before.

Tax bills will be mailed to property owners on July 20, 2017 and payment is due by August 20, 2017.

What can you do about it:

If you are eligible, check here:  claim your Home Exemption by September 30, 2017 and get your property tax rate reduced to $3.50 per $1,000 (0.35%) starting July 1^st 2018.

Note:  There are no changes for Kauai County property tax rates, but incremental property tax rate increases take effect 7/1/2017 for Maui and Hawaii County and are all highlighted below:

New Hawaii Property Tax Rate Schedule 2017 – 2018

Let us know your thoughts. We like to hear from you. ‘Like’, ‘Share’ and ‘Comment’ below.

~ Mahalo & Aloha

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Oahu Real Estate Market Outlook – June 2017  –

Courtesy of the Honolulu Board of Realtors, local economist Paul Brewbaker with TZ Economics recently shared his view regarding the general US economy as well as his outlook for the local Hawaii economy and the Hawaii real estate market.

Paul’s presentations are always insightful. Check here for last year’s summary: Oahu Real Estate Market Outlook – June 2016, and compare with today’s report.

We greatly appreciate Paul’s presentations and pay particularly close attention to his current Oahu Real Estate market outlook. Following are some subjective takeaway bullet point notes from this year’s presentation during the 6/14/2017 HBR regional meeting in Honolulu.

All graphs courtesy Paul Brewbaker – TZ Economics:

1.) US and Hawaii economy:

• This is the 8th anniversary of the beginning of the current economic expansion. 8 years also represents the average length of all expansions.
• Current US GDP growth is 2.1%. Hawaii GDP growth has been around 1.6% for the last couple of years.
• Job recovery started in 2010. By 2015-2016 Hawaii payroll numbers have fully recovered and continue to grow. Slow job growth most likely will continue, but has been decelerating lately.

Pic #1 Payroll Employment

• Hawaii unemployment rate is dipping down to a very low 2.5% – 3%, still no sign of bottoming yet.

Pic #2 Seasonal Adjusted Hawaii Unemployment Rate

• Honolulu Core CPI inflation rate is currently 2.3%, and has been hovering around a steady 2% since 2008.

Pic #3 Honolulu Core CPI

2.) Oahu Real Estate:

• No roller coaster this time. Modest sustainable steady pace of sales growth is expected to continue until something unforeseen happens.

Pic #4 Sales Volume – Sustainable Steady Growth (not steep like 1997 to 2005)

• Since 2010 (last 7 years) single family home price appreciation and condo price appreciation have both been consistent and steady at about 4% and 3.9% respectively. That represents a steady continuation of the long-term price appreciation trend, without the wild swings seen during past cycles.

Pic #5 Oahu Single Family Home Price Appreciation

Pic #6 Oahu Condo Price Appreciation

• Compare steady price appreciation rate during the last 5 years (mid 2012 to mid 2017) versus steep price appreciation rate during the 5 years prior to last recession (2003 to 2008).
• Condos have been outperforming (!) single family homes since 2012.

Pic #7 Steady Appreciation last 5 years (mid 2012 to 2017) vs Steep Appreciation (2003 to 2008)

• Since mid 2012 (last 5 years) Oahu real estate appreciation has been remarkably consistent and steady at 4.3% for single family homes and 4.9% for condos.
• The more affordable price range for condos represents the low hanging fruit. Limited condo supply with higher demand translates into increased appreciation lately compared to single family homes.

Pic #8 Recent Oahu Price Appreciation (Last 5 years since mid 2012) 4.3% Homes, and 4.9% Condos

• 4% appreciation (pic #5 & #6) minus 2% inflation (pic #3) means we have about 2% real annualized inflation adjusted housing appreciation, currently converging to long term trend since the 1970s.
• This sustainable steady growth could continue throughout this decade.

Pic #9 Inflation Adjusted Honolulu Housing Appreciation Converging to Long Term Trend 2%

• ‘Months of Inventory’ has been remarkably low and stable at 2.7 months since 2013.

Pic #10 Remaining Months of Inventory

• The ‘Sklarz Curve’ (named after Mike Sklarz) shows the average appreciation and depreciation rate in relation to Months of Inventory. A steady balanced market was long considered a market with about 6 Months of Inventory.
• Fewer days on market –> faster absorption with lower Months of Inventory.
• Historically between 1996 and 2011 a very low 2.7 Months of Inventory would have translated into steep appreciation rates of 10%+.
• Since late 2012 we have seen Months of Inventory consistently hovering around 3, well below the 6 Months of Inventory long regarded as the stable midpoint between a Buyer’s and Seller’s market. Yet appreciation has been only modest around 4.5%. This new dynamic is shown in the yellow box.
• 2.7 Months of Inventory has not been lighting up sales prices as it has done before.

Pic #11 Sklarz Curve – New Market Dynamic since 2012 (yellow box) 4.5% Appreciation in spite of low Months of Inventory

3.) Housing Affordability:

• Hawaii was never cheap, current mortgage debt to income ratio is 33.4% on Oahu. Not super high for the last 7 years and counting. Steady since 2010, no bubble here.
• Affordability is not a crisis. Home prices and nominal income both have been rising together at 4%.

Pic #12 Oahu Mortgage Debt to Income Ratio – Median Family Income at Median Single Family Home Prices

• Shortage of affordable homes is the problem. – Reality:  Affordability today is about as good as it ever has been, but housing supply is constrained.
• Construction spending median growth is 1.6% converging to the trend 2.2%. 1.6% construction spending growth is lagging behind 2% inflation rate.

Pic #13 Real Construction Spending Cycle – No Bubble Here

Buyer profile for Oahu resale units has been 78.5% local between 2008 and 2015:

1. Hawaii 78.5%
2. Other State 7.7%
3. California 6.1%
4. Japan 5%
5. Canada 1.2%
6. Other country 1%
7. Korea 0.25%
8. China 0.2%

• Be mindful of the self-destructive elements of this cycle if only expensive luxury units and not enough affordable housing units are being built.
• E.g. affordable project 801 South St (completed 2015) was priced for regular working people. 96% have not sold and won’t sell. They are holding on because it is their home.
• We need more affordable projects like 801 South St to sustain Honolulu’s real estate market.
• Howard Hughes started developing 4 years ago in up-and-coming Kakaako with a focus on new luxury condos catering to affluent buyers. In the next years new development needs to be catering to regular working people to ensure a continuation of sustainable growth.

4.) Interest Rates and Fed policy:

• http://www.FederalReserve.gov shows the dot plot chart expectation increasing the fed funds rate to 2.97% by 2020.
• Fed funds rate is now at 1-1.25%. One more increase expected later this year to 1.375%. Three more increases expected next year 2018 to 2.1%.
• Gradual removal of policy accommodation remains appropriate. – All good.

5.) Conclusion and Outlook:

• Goldilocks – steady sustainable growth conditions continue..

We love to hear from you. Share some Aloha. ‘Like’, ‘Share’ and ‘Comment’ below.

~Mahalo & Aloha

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Kailua beachfront, and near-beach, neighborhoods are always toward the top for Windward Oahu home shoppers. That category is a good place to start, but a smart real estate buyer looking here needs to know more.

There are a collection of these communities that provide such prized lots, each with their own feel and selling points that are their own. We’ll take you on a tour of each, revealing just how far you have to walk to the Pacific on a sunny Hawaii morning, and what makes them stand out. When we’re done you’re going to be ahead of the Kailua beachfront real estate game and that’s a good place to be.

LANIKAI

Lanikai

There’s obviously something VERY attractive about Lanikai. So much so that it has had a very notorious issue with illegal parking and traffic on holidays and most weekends. Locals can’t stay away and they always know the best places to go. This is one of them, no question.

It’s difficult to say exactly what it is about Lanikai Beach that inspires such devotion. Yes, the sand is luxuriously soft, the water crystal clear and the Mokulua Islands that sit off this coastline add something so visually satisfying, you wonder if the Hawaii Tourism Authority had them added to crown the scene.

Whatever it is, Oahu residents feel it unmistakably. For Lanikai home owners, this attraction is part of their experience daily. From anywhere in the neighborhood, you can stroll to the sands within 10 to 15 minutes at most. Some can just step off their backyard or lanai.

You buy a house in Lanikai because it is its own special beachside community, separate from the rest of Kailua, yet fully part of it. Within these streets you have something of an old-fashioned, yet exclusive, beach resort feel. The mostly luxury homes are on quiet streets, outside of the beach traffic, and the lifestyle focuses on one thing – the ocean.

With the hillside slant to the place, houses that sit more mauka can still have views of the water and the Mokes to drink in from their private retreats.

When the sun sets, the people of Lanikai watch the Pacific and listen to its lullaby, with little noise besides an occasional passing car or the sound of contented friends making their way back from the beach. As they say, ‘This is the Life.’

BEACHSIDE

Kailua Beachside

Beachside is the other bookend to Kailua Beach Park, taking up the roughly northern side of that area, almost the entire way to Kaneohe Marine Corps Base. It can justly boast that its residents have a mere block or two between them and the cooling feel of the water lapping at their feet.

Beachside homes are easy to map out, since they take up everything makai of N Kalaheo Ave, ending where it crosses the Oneawa Channel. Along with the residences on that side of N Kalaheo, the neighborhood consists of a series of short streets that run perpendicular to that main road, each ending close to, or at the coastline.

From classic Plantation homes to vintage beach cottages to large luxury homes, you’ll find them all on these individual avenues. All coexist peacefully and picturesquely due to a general unspoken agreement that structures fit in with the Kailua and Windward lifestyle. That means the conspicuous Beverly Hills style mansions are a No-No.

The same celebrated sands and peerless views of Kailua Beach Park lie off the backdoors of these homes, with one distinct advantage. While everyone is down there, your beach is sparsely populated, free of vendors and no traffic to deal with – and if you have to walk 5 minutes to get there, it’s because you forgot something and had to go back to get it.

Each one of the brief, makai-bound avenues that make up Beachside are their own quiet, little neighborhood. It’s like a personal driveway that’s a private ramp onto one of the best collections of sand on Earth.

KAIMALINO
The one settled piece of land between Beachside and Kaneohe MCBH is the neighborhood of Kaimalino. It collects the home above the Oneawa Channel as it curves to join the ocean and makai of Mokapu Rd.

These very large and luxurious homes in Kaimalino take up the northernmost part of this coast, but are separated from the rest by the Channel. The beach here is still sandy, but smaller than the stretches below the channel barrier, and sometimes it’s even rocky. Not the best place for wading, but it makes up in other ways.

It’s almost peninsula-like extension beyond the rest of the coastline gives many of the homes along the Channel wide open views that way that even Beachside homes cannot match. The gulf between Kaimalino and Beachside, combined with the vibrant green of the untouched lands above, cushions and insulates you from the tourist throngs and anything else that can intrude on a beautiful Windward day.

Those farthest back, beside Mokapu Rd will need about 15 minutes to make it down to the oceanside, but, again, that’s the outer reaches. Stretch out on the beaches here and you literally just might have it to yourself. Just you and what’s possibly the best vantage point in Kailua.

KAWAILOA

Kawailoa Kailua

If we say that Beachside and Lanikai are the bookends to Kailua Beach Park, then the Kawailoa neighborhood is the book. Beginning at Kahapawai Market, it takes in all the makai housing, bordered further down by the marshland and Lanikai Elementary, its last bit being Kaneapu Place, which sits on the right just before you curve around into Lanikai.

Kept from the beach park by the distance of a block, at most, the longest part of your journey to the swells will most likely be the park itself. Living in a home in Kawailoa is like being inside the best club in town, watching the rest of the world trying to get inside. Lines of cars go slowly by, looking for a space, while you walk breezily to the beach everybody wants to be on.

Unique among the most makai Kailua beach neighborhoods, you’ll find not one, but two townhome communities, along with nice single family homes that mostly date from the 80’s onward. There’s a nice mix of original houses as well, though, with the Plantation style dominating those.

It’s a busier community, since you’re never too far from the high activity of the beach park, but would you really want to be any farther away?

KALAMA TRACT
With Kalama Tract we take a step back into the Near Beach Kailua neighborhoods. It begins on the mauka side of Kalaheo Avenue, extending back toward town just one or two blocks. It’s other sides are bound by Kuulei Rd and then Kainalu Elementary School on Kaneohe MCBH side.

Once across N Kalaheo Ave, the only thing between you and the beach is the shallow Beachside neighborhood. Set your watch and you’ll probably be wading into the surf in 10 minutes or less from your home in Kalama Tract.

This part of Kailua is known for larger properties, both in lots and the residences themselves. Best of all, you will find Old Kamaaina homes that have the dimensions and features that show they were built by a moneyed segment of that class. New, large mansions are present as well, so more modern tastes are provided for, too. This was, and remains, an upscale area.

True, it will take a little longer to get to the sands than Beachside, but chances are you’ll be compensated with a larger space to call your own. That’s nothing to sniff at.

KUULEI TRACT
Kuulei Tract is another area that is just on the other side of Kalaheo Ave, this time beginning right at Kailua Ave, with Kailua District Park and Kuulei Ave making up its other borders. Not very large, it is known for being a place that has preserved Mid-Century Windward Oahu.

Being smaller, you’d assume that the ocean is a simple stroll away – and you’d be right. Kailua Ave side residents can easily walk right past unmissable Kalapawai Market to the far, and quieter, side of Kailua Beach Park. Those toward the other end can do this as well, with a little more time tacked on, or use access through Beachside.

Most of the homes date from the 1950s to 70’s, when Kailua was almost purely a local town, with little of the visitor industry making it over here. The large, but single story, Kuulei Tract houses reflect the genteel lifestyle that thrived here more freely in those times.

As much of the town fights to keep that feel in the face of modern changes, Kuulei Tract seems to have figured out a winning strategy within their slice of it.

KAILUA ESTATES
Another that has kept Old Kailua alive is Kailua Estates. This is the only one of the profiled communities that links Kailua’s coastal area to its town center. It stands across from the beach park site on Kalaheo Ave between Kailua Ave and the canal coming out from Enchanted Lake. The mauka side borders the edge of that neighborhood.

For this town that’s a substantial stretch. In real terms, it plays out to a maximum of 1 mile from the farthest addresses to the sands. The walk is pure pleasure if you do have to make it, down Kailua Ave’s green lawns, swaying palm trees and a feel of excitement building the closer you get to the swells.

The homes in Kailua Estates are pure pleasure as well. Large floor plans inside numerous houses that come from the 1940s and 50s, true to the elegance and unhurried lifestyle of the times. They come with distinctly larger lots that bestow large yards and play areas difficult to find elsewhere.

For those who love the beach life, but want a home and natural space they can tend to and indulge in, Kailua Estates is a hands down winner.

COUNTRY CLUB KNOLL
Easily the smallest of all, this neighborhood is bounded on 3 sides by Mid Pacific Country Club and wetlands, the 4th taken up by Kawailoa. The lay of the land is a distinct incline, the houses higher up getting incredible views of the ocean and Kailua Beach Park in the bargain.

Being almost across the street from those sands in at least one area, the residents have a greater insulation from the busyness of the oceanfront, but can still be in the midst of it in minutes that never reach a 2nd digit.

Though not as large as Kailua Estates, the lots here give Country Club Knoll homes comfortable room between neighbors. The houses themselves are a mixture of the Mid-Century ranch houses with more recent constructions that tend to stick to the single floor guidelines. That’s one reason for the to-die-for views many have here.

This pocket of Kailua isn’t a marquee name, like Beachside, but that’s due more to its size and the fact that few ever sell once they buy in here. Can you blame them?

TIME FOR A KAILUA BEACHFRONT REAL ESTATE SEARCH
The beauty of the Kailua beachfront and near-beach communities is that they all have wonderfully easy access to the coastline that lives up to the hype. This is in-demand real estate, but why would it be otherwise? The proximity of the beach, matched by the charm, grace and comfort of these homes and their lifestyle is a bewitching mixture. Few can resist it, not even you.

The post Kailua’s Beachfront & Near Beachfront Neighborhoods appeared first on Honolulu HI 5 Blog.

7 Residential Real Estate Investment Strategies –

Here are 7 real estate investment strategies to help build your real estate portfolio. These strategies could work anywhere in your local US real estate market. I personally have applied these strategies repeatedly with great success over the years (except strategy #2). Careful execution could yield amazing results.

Strategy #1: Buy a fixer home as an owner occupant, move in and use sweat equity to improve the home value

Two key benefits:
a.) As an owner occupant (vs as an investor) you get access to the lowest interest rate loans available. Make sure the needed repairs are merely cosmetic and don’t comprise your ability to get financing.
b.) Using sweat equity gives you the biggest bang for your buck. You have maximum control over how you make the most cost-effective improvements and maximize your future rental cash flow and or sales price.

Every opportunity comes with responsibilities and sacrifices:
You will need to put up with substandard living conditions when occupying your own construction zone. This could be a real test for you and your spouse. Consider remodeling your home in phases and live in the section that is currently not under construction.

Value adding with cost effective improvements is also called ‘Force Equity’. After the remodel is completed, determine the following:
a.) Could the newly renovated property rent for sufficiently more money than your current monthly property expenses (net cash flow)?
b.) Do you have sufficient cash down payment for your next home purchase as an owner occupant?
If both answers are ‘yes’, get pre-approved with your favorite mortgage lender for your next purchase.

Learn from it, fine tune the process and repeat.

Strategy #2: Buy your home as an owner occupant and find roommate tenants to cover your mortgage

Living with roommates might cramp your style and is not for everyone. But consider rent paying roommates as a smart way to: a.) build equity, plus b.) save for your next cash down payment to do it all over again.
Btw, your lender will not be able to use potential rental income for your loan qualification calculations, unless your home has a legal 2nd kitchen. Even with a legal 2nd kitchen your lender will require an actual executed rental agreement to verify rental income.

Strategy #3: Buy your next home again as an owner occupant and turn your current home into a rental property

Your lender might require you to justify your next loan application again as an owner occupant. You might say your current home ‘is not big enough’, ‘is not close enough to work’, or some other reason. You may apply subsequently again and again for as many owner occupant loans as you are truthfully intending to occupy for at least the first year or so, regardless if you eventually will turn them into rentals.
If you are willing and able to move often you could end up with many rentals that have the original favorable owner occupant financing in place.

Anaha – Honolulu Luxury Condo with cantilevered glass lap pool

Saving up another cash down payment for the next purchase can be a steep hurdle, especially in high property value markets such as Honolulu.
If you are short with cash for your next purchase but have improved your home as discussed above, you may be able to: a.) ‘refinance your existing mortgage with a Cash-Out’, or b.) take out a ‘Home Equity Line Of Credit (HELOC)’. Both options require enough equity built up in your principal home and you must have a sufficiently strong ‘income to debt ratio’.

– Be careful, overleveraging comes with significant risk! You will need to be able to pay it all back. Especially a HELOC often has an initial temporary low teaser rate adjusting soon to a higher rate! You need to grow your portfolio in a gradual way with enough cash flow and reserves, able and prepared for possible vacancies and repairs.
If finding the next cash down payment, and or the income to debt ratio is insufficient, consider this strategy:

Strategy #4: Sell your principal residence after 2 years living in it, and trade up

Tremendous Real Estate Tax Benefits are available when owning real estate. Regardless if you turned your principal home into a rental or not, you may sell your home without paying capital gains tax up to $250K gains for single tax filer, and up to $500K gains for married couple joint filer. (IRC sec #121, Taxpayer Relieve Act 1997).

You must have occupied your home for 2 years during the last 5 years. It does not matter if you turned your home into a rental after you occupying for 2 years. You may claim this capital gains tax exemption every time you sell your principal home, but limited to once every two years.

Waiea – Honolulu Luxury Condo

Strategy #5: Buy the ‘early bird special’ in the next new condo project

Aeo – New Kakaako Condo

New Honolulu condo projects, e.g. the upcoming Aalii project take 2+ years to build. Developers will need to have 50% binding reservation agreements to secure their construction loan. That means developers are most motivated to sell the 1st half of the building to be able to start construction.
Secure a brand new condo and lock in today’s price during the early offering before construction starts.
By the time the condo is completed a couple years later the market may have moved upwards, if the current real estate market outlook is correct. You might have built-in equity by the time you get your keys for your brand spanking new home.

Strategy #6: Trade up your under-performing rentals into better cash flowing rentals

Buy the early bird special in a brand new condo project (strategy #5) as your new future rental, and use a 1031 tax deferred exchange to divest yourself of your old underperforming rentals.
If done correctly, this is how you benefit:
a.) You are securing your next new rental property at early bird special pricing.
b.) You are trading up the quality of your real estate portfolio, reducing property maintenance with new construction.
c.) You are increasing the cash flow, and the appreciation potential.
d.) You are increasing the size of your portfolio, gain additional tax deductions, e.g. depreciation and interest deductions when you leverage with new financing into more real estate.
e.) You are selling your old tired rentals and defer capital gains taxes.

Aeo & Anaha – New Kakaako Condos

Making the short <180-day 1031 exchange time frame work with the 2-year long construction time frame requires a few extra steps:
• Add a 1031 exchange addendum to the new condo developer’s contract.
• Use personal funds as temporary escrow deposit when signing the new condo developer’s contract.
• Within 180 days of the completion of the new condo you sell your existing rental, and you file an amendment to the new condo developer’s contract authorizing escrow to return your original personal funds in exchange for the proceeds from your sold 1031 exchange property.

Strategy #7: Sell your rentals and buy your future dream home

This final strategy helps simplify life in divesting yourself from your rentals with tax deferral, if that is what you desire.
My general rule of thumb for selling real estate is:
‘Never sell’, unless:
1.) The property is not performing well.
2.) I absolutely need the money, ..this might be for an incredibly lucrative new opportunity.
3.) There is a significant adverse shift in the market place.

At the time you meet your maker, your heirs will inherit your properties at the step-up basis eliminating capital gains taxes.

However, you may also eliminate capital gains taxes by selling your rentals by way of a 1031 exchange and buy yourself a fabulous dream property that you temporarily rent out for at least a year to satisfy the 1031 exchange ‘investment property’ requirement. After the tenant moves out a year later, you turn the property into your new dream home principal residence.
Then you sell your existing principal residence tax deferred up to the $250K / $500K limits under IRC sec #121.
Spend the proceeds as you see fit. Life is great, you planned it well.

Koolina Resort Pool

Also check our other post: Wealth Creation with Real Estate.
-Every opportunity comes with certain risks attached, but whoever acts on the opportunity tends to reap great rewards. Always check with your favorite qualified tax professional and financial planner if these strategies are a good fit for you.

Let us know your thoughts. We love to hear from you.  Reciprocate Aloha: ‘Share’, ‘Like’ and ‘Comment’ below.
~ Mahalo & Aloha

The post 7 Residential Real Estate Investment Strategies appeared first on Honolulu HI 5 Blog.

This is a stunning new 3 bedroom penthouse listing in One Ala Moana, tastefully designed by Indigo Republic Hawaii.

If you’re looking for value in the luxury condo market this highly upgraded and spacious penthouse at the exclusive One Ala Moana is it. With a living room that has sweeping views off Magic Island and Ala Moana Beach as well as mountain and city views, there is plenty of space for entertaining. There are three beautifully appointed bedrooms and three full baths that make this a perfect full time residence or a spacious second home away from home. Just in case there is business to attend while being away from your office this residence has a custom home office.

Other unique upgrades include custom white walls, top of the line Sonos A/V system, motorized solar shades, custom lighting and fans. For extra storage there is a large air conditioned private storage room on the seventh floor included with the residence. Parking is side by side on the preferred 5^th floor with direct elevator access to the residence floor. The amenities and the location of this exclusive tower are fantastic and so are the service and privacy.

Please contact Marcel Chan for more information: (808) 392-1501 / marcel@honoluluhi5.com.

Living Room

Kitchen

Kitchen and Dining Area

Master Bedroom

Master Bathroom

Guest Bedroom

Kids Bedroom?

The post New Listing: One Ala Moana Penthouse #2000 appeared first on Honolulu HI 5 Blog.

– Honolulu City Council recently adopted Ordinance 17-013 to include condominium units in the residential use dedication program. A condominium unit with multiple legally permitted uses will automatically be classified based on the units highest and best use, unless approved for residential use, after the owner files by September 1st the following form:  Petition To Dedicate Certain Property For Residential Use (5 Year Dedication) 

What is unique with the new rule?

If the City approves your petition, the new dedication will be reflected on your October 1st assessment notice and remains valid for 5 years. The new dedication can not be changed during the 5 years and is subject to restrictions and penalties. It will automatically renew for the next 5 years, except: If the property sells, the dedication continues until the completion of the most recent 5-year dedication period and automatically cancels at that time.
The new owner may apply by September 1st for the City’s approval to continue the dedication. Otherwise, the dedication will automatically be cancelled by the director at the end of the 5th year.

This ‘Residential Use Dedication’ replaces the previously used ‘Declaration Regarding Condominium Use’, now considered invalid.

Also, a Home Exemption will no longer automatically qualify a property for a classification as Residential.

Go figure and be in the know!

How does it affect me?

1.)    If you own a Honolulu condotel, e.g. the Ilikai, Ilikai Marina, Waikiki Shore, Luana Waikiki, or Trump Tower Waikiki, etc. and, for the next 5 years (!) you do not plan on renting your unit as a short-term vacation unit for less than 30-days per tenant, than you may apply for the residential dedication and claim the lower property tax rate.

2.)    If you use the unit for short term vacation renting while the 5-year residential dedication is in place, you will be subject to penalty and back taxes including the tax year prior to when the violation occurred.

Click here to download the Petition form and file by September 1^st.

Click here to read the Ordinance.

Here is a copy of the City letter mailed to about 8,000 Honolulu property owners on 7/7/2017:

Other news from the Honolulu Real Property Tax Division here:  https://www.realpropertyhonolulu.com/whats-new/

Always check with your favorite qualified professional legal council before making big decisions.

Let us know your thoughts. We love to hear from you. Reciprocate Aloha!  ‘Like’, ‘Share’, and ‘Comment’ below.

~ Mahalo & Aloha

The post New Rules And Filing Deadline To Dedicate Your Condotel For Residential Use appeared first on Honolulu HI 5 Blog.

Two excellent places to spend time with friends and family. 

As a longtime member of the Kailua Racquet Club and frequent visitor to social events at Mid Pacific Country Club I have to admit I’m a bit biased. I love both clubs and I highly recommend anyone new to Kailua to spend some time there and see how easy it is to mingle and make new friends for young and old alike.

The Kailua Racquet Club
Location: 629 Oneawa Street, Kailua, HI 96734

The entrance to the club is a through a small private lane off Oneawa Street between Olomana St. and Punaa St.

Kailua Raquet Club Entrance

There is plenty parking right by the courts and the facility is very open and friendly. You have the clubhouse to the left of the main gate and the men’s and women’s lockers right by the pool. The clubhouse has a meeting room and lounge and self-serve area were members can purchase cold beverages and essentials like tennis balls, grips etc. This is all by the honor system, so members just sign in for whatever purchase they make and it will be billed together with their monthly dues.

Most members will gather on the outdoor lanai by Camille’s at KRC especially on Friday nights for dinner and for breakfast and lunch on weekends. Tuesday night is Taco Tuesday at Camille’s. The restaurant does not accept cash, so in order to dine there you will have to be a member or be invited by one. The atmosphere is very casual and friendly and on any given Friday there will be a large number of friends and family out enjoying dinner with a club member. A perfect way to get to know the club and experience Camille’s award winning cuisine are the annual Kailua Men’s Night Doubles ( end of July, beginning of August)  and Women’s & Mixed Night Doubles  ( beginning of November).  These two prestigious tournaments feature the best players in the State vying for bragging rights and prize money. They are free of charge and open to the public and during the tournament the restaurant and bar are open to everyone. All you need to do is go to the script booth and you’re set for food and drinks.

Kailua Racquet Club Pool

The Club has 9 user friendly courts with water fountains and plenty shaded areas for those hard fought battles in the middle of the day. If you rather play at night there are 5 lighted courts that are available until 10 pm.

Kailua Racquet Club Tennis Court

All levels of players are welcome and there are plenty opportunities to join a league or casual doubles session. The way the courts are shared is very fair and based on a simple sign up system that limits court time should there be other players on the waiting list for a court. The busiest times are late afternoons, especially Fridays before dinner at Camille’s. There is nothing more rewarding than having an ice cold beer from the bar after playing a hard fought match…

Kailua Racquet Club Bar

KRC also is home to the Bruce Nagel Tennis Academy which offers a variety of group classes and individual sessions with seasoned tennis professionals. The XR10S classes (think: Exercise and Tennis)   are the best way to get back into shape, hit a lot of balls and meet other members. They offer classes for all different types of skill level and are very reasonably priced. Best of all you they are open to non-members too. The Children’s Classes in the summer months are also very popular and open to members and non-members alike.

Joining the club is very easy and the membership is quite reasonable compared to the clubs in town. There even are short term memberships available that make it really easy to experience all that the club has to offer.

For all the details just visit the official KRC website at www.kailuaracquetclub.com.

Overall I can highly recommend the Racquet Club to anyone new to Kailua who is looking for a place to gather, have fun and make new friends in this awesome community.

Mid Pacific Country Club
Location: 266 Kaelepulu Drive, Kailua, HI 96734

This sprawling Golf and Country Club is located in Lanikai, one of the most desired beach communities in the world. Despite the exclusive address and having one of the finest golf courses in Hawaii, the Mid Pacific Country Club is warm, welcoming and family oriented with a variety of amenities. When it comes to golf, this club offers expert instruction with PGA professionals, a very well stocked pro shop with expert service and tournaments for all levels of play.

Mid Pacific Country Club

The Club house is home to a full service restaurant serving lunch and dinner Tuesday through Sunday and breakfast on Saturday/Sunday.  The views from the dining room terrace are amazing and paired with live music (on weekends) make this a perfect setting to entertain friends and family in style.

Mid Pacific Country Club Dining Room

Mid Pacific Country Club offers a social membership that includes dining privileges and a whole lot more. There is a gym on Club premises that has state of the art Star Trac equipment with a variety of classes for fitness minded members. There is Yoga, Tai Chi, Core Fitness and more.

The pool is also very popular with adults and kids alike and should you get hungry there is food and drink service available.

Mid Pacific Country Club Pool

There are also a variety of Clubs within the Club for activities such as hiking or playing Bridge. Hula lessons are complimentary and members can always count on special events throughout the year. The social membership is very reasonable and also includes one round of golf per month at the guest rate.  If you’re interested in Membership, contact Tracy Wong (808-262-8161 ext. 219) or email membership@mpcchi.org.

For all the details please go to www.mpcchi.org

The Kailua Racquet Club and the Mid Pacific Country Club are both excellent ways to be part of this awesome community and I personally have a number of friends that belong to both of them. Some people say that tennis and golf don’t mix well, but in Kailua these two clubs complement each other exceptionally well!

The post Kailua Leisure Lifestyle: Kailua Racquet Club and Mid Pacific Country Club appeared first on Honolulu HI 5 Blog.

Not too long ago, Ewa Beach was the last place you’d ever expect golf course communities to spring up. The Ewa Plain had been famously converted from what was arid terrain into prime agricultural land in the late 19th Century by James Campbell through his unprecedented discovery of water sources deep in the ground. That led to a growing population, almost completely made up of a working class community that centered around the plantations.

The demise of those farms, starting in the late 80’s, created the vast majority of Ewa Beach real estate we have now. Still, this was an area whose primary selling point initially, and still is for much of it, was greater affordability.

The west side of Oahu was a pressure valve to relieve the escalating demand of the many who could not afford the prices of homes in Honolulu. That doesn’t sound like a place you’d expect golf courses to spring up, let alone residential projects centering on them. Yet they were there in the planning from the start.

As you’ll see, some of these neighborhoods surrounding the links are firmly middle class, rather than the typically more upscale residences you’d expect. It’s all part of the unexpected that has become a distinguishing feature of Ewa Beach real estate. You’ll see what we mean as we stop by the golf course communities of this growing city and find there’s something very different happening there – and that’s a very good thing.

Arbors

Arbors

Arbors was among the initial neighborhoods of the Post-Plantation era, built in 1991 along the Coral Creek Golf Course. It’s strictly townhomes here, standing out as one of just 2 of these communities in Ewa Gentry that are gated.

The interiors are very attractive, comprising 2BRs of 1,009 to 1,196 sq ft or 3BRs with 1,526. The open, loft feel of the layouts keep the air circulating on hotter days as well as brightening the spaces for a lighter mood to these Ewa Beach homes.

With many of the residences coming with 2 car garages and a large courtyard in the bargain, these feel like single family homes, one definite reason for their consistent popularity, even as they’ve become relatively older in comparison to the rest of the area.

Ewa Gentry Cypress Point

Cypress Pointe

Those looking to take a step upward will want to look over Cypress Point’s homes. These single family homes bordering the Hawaii Prince Golf Course are clearly intended for those who want some extra room inside to enjoy.

All 3 of its models have space for active families within them – the single floor Carmel (2513 sq ft, 3BR & Den/3BA and the 2 level Santa Cruz (3,623 sq ft, 4BR & Den/4.5BA) and Monterey (3,530 sq ft, 4BR & Den/4.5BA) layouts all have floor plans that dwarfs the average Oahu home.

The huge walk-in closets and gourmet kitchens and high ceilings are among the touches that set them apart as providing for the owner with a more indulgent lifestyle. The separate guest or maid quarters that are found in the larger homes underline fully that these are grander residences, if you missed the 7 figure prices these all go for, when they are available.

Cypress Point is something closer to the picture one has of a traditional golf course neighborhood, the homes meant to match the luxurious green of the grounds they sit along.

Ewa Gentry Haleakea
Though not as big as Cypress Point’s, the 3 choices of homes in Helakea are still roomy; Haiku (2,135 sq ft, 4BR/3BA), Pupukea (2,332 sq ft, 4BR/3BA) and Waiahea (2,170 sq ft, 4BR/2.5BA), each 2 story. They’re also forward looking, billed at their opening in 2011 as the 1st project in Hawaii to include 1KW photovoltaic panels and 24.5 SEER AC systems across the board.

Hugging the Hawaii Prince Golf Course, you can enjoy the scenery from covered lanais that are on both front and back of every house. Inside you can also relax in your soaking tub, separate from the shower, under 9 foot ceilings covering most spaces. It’s all part of the community’s love of Island living and the Island itself.

Ewa Gen Kula Lei
Kula Lei is another earlier entry of the Ewa Beach real estate expansion, the lots filling in between 1996 and 1999. The project won Division 3 of the Parade of Homes in 1998, the sole winner in Ewa that year.

These are homes for large or multi-generational households, the 5 models running from 3 to 5 bedrooms over 2 floors and 1092 sq ft on up to 1562 sq ft, though the living area is expandable for those who need more.

With 2 car garages and fenced backyards, this is a place for families to live and play, something greatly needed on Oahu. That’s certainly a prime reason why they remain solid sellers even as new neighborhoods are added nearby. You can’t argue with success.

Ewa Gen Sun Terra South

Sun Terra South

Built in the 1999, Sun Terra South reaps the pleasures from being surrounded on 3 sides by the Coral Creek Golf Course, meaning more homes get the views here and that there’s a solid buffer between you and outside noise.

The 3 and 4 bedroom models span from 1368 sq ft to over 2000 in some cases, but all offering front and back yards along with at least a short driveway leading up to your 2 car garage. In certain cases, 2 Master Bedrooms are inside, too.

This neighborhood seems to have had more remodeling done than most, so you’ll find individual variations in size and layouts. One of them might be the exact right match for you.

Ewa Villages
Ewa Villages modern birth truly accelerated just before the millennium and continues today. Much of the district is contained in sub-neighborhoods that are more or less within Ewa Villages Golf Course, sometimes with green fairways on all 4 sides. Best known of these are the Lokahi on the Greens subdivision that enjoy the emerald spans that make up their views.

With 3 to 5 bedrooms, in single and dual level layouts, across these Ewa Villages homes you can fit larger family units in here and the dominant architectural style, known as ‘Modern Plantation’ ties them firmly to the Ewa Beach home style tradition. That general blueprint extends to the in-process Ho’onani neighborhood here, with its 7 models that all take up 2 stories.

The newest addition in this area, they round off an already attractive community that has sold quickly with every new release.

Hoakalei Ka-Makana
Ka Makana was the first built Hoakalei neighborhood, taking up the northernmost section of the district. Divided into 2 model categories, Koa Lifestyle (4BR, 2545 to 2612 sq ft) and Koa Premier (3 to 5BR, 2123-3552 sq ft), all but the smallest Koa Premier style have 2 stories to them.

Hoakalai

The American style architecture is mixed with European touches that make them as visually arresting, yet welcoming. In addition to the grand main lagoon of the resort, residents also have their own neighborhood recreation center, with a pool and tennis courts that rival those you’d find at an upscale hotel.

The immediate, rapturous reception of these new-era Ewa Beach homes proved that Hoakalei was not just off to a good start, it would be a winner in the long run, too.

Hoakalei-Kipuka
This gated community was the Grand Champion Award winner in the 2014 Parade of Homes, so you know these are well designed homes. Your options come in either the Garden Series (all 4BR, 1656-1719 sq ft) models, which mostly look out on greenways, or the Golf Series (4BRs, 2030-2234 sq ft) that line the course that is on every side of the neighborhood. You can enjoy that view from your master bedroom’s covered lanai whenever you like.

Some layouts contain first floor guest suites, so kupuna have a safe place of their own to live. Plus they’re all designed to let in plenty of natural light, which can make a home feel wonderfully embracing.

The recreation area exclusive to Kipuka includes its own pool and spa facilities as well as a play area for the keiki to enjoy themselves. It’s like having a resort of your own, within a resort.

Hoakalei Kuapapa
Kuapapa residents have the viewing opportunities of the green stretches and water features of Hoakalei Golf Course or the untouched preserve that gave the neighborhood its name. The greatest variety of houses in Hoakalei are here, with 5 Series that have 2 to 5 different models in each.

The range of styles encompasses the seaside cottages of the Loulou series to the grand homes of Koa Premier, with New England and Southern schools appearing in between. You’re assured of 1634 to 3552 sq ft of interior to enjoy and roughly 4000 to 7000 sq ft lots within the gates of the community.

In addition to their own recreation center, this is the closest residential area to the coastline, making them even more attractive. The resort lifestyle has reached the homes of Ewa Beach.

Huelani

Huelani

Dating from the early 2000s, Huelani was intended as a more leisure oriented community, with much of its residences sitting against the southern section of Coral Creek Golf Course. That focus is the reason for the extensive recreation center with its large pool, with cabanas, a full fitness center and a spa, with vistas of the fairways for all to enjoy.

All 3models of this gated neighborhood take the names of famous links. There’s St. Andrews (1,705 sq ft, 3BR/2.5 BA), Turnberry (1,616 sq ft, 3BR/2.5 BA) and Pinehurst (1,934 sq ft, 3BR/2BA), all offering features like extensive walk-in closets, large bathtubs to lay back in and 2-car garages.

For those seeking something more to do close to home, but not ready for the full resort lifestyle, this is an excellent place to put your welcome mat out.

Ocean Pointe

Ocean Pointe

Found on the eastern side of Hoakalei Golf Course, Ocean Pointe extends the original Ewa Beach on its former northwest limits. The neighborhood includes both single family homes as well as a few townhome communities that have a personality and features of their own.

The majority of the residents have perk of being within walking distance of the beach and most townhomes have a recreation center with pool inside their own little enclave. Our main concern is the Town Homes at Fairways Edge community that stand on the lands next to the course.

Every unit takes up 2 floors, with lanais on both, wrapping around on some to maximize the vistas. Inside are always 3 bedrooms over 8 floor plans of 1005 to 1196 sq ft, while outsides are characterized by fenced yard areas and patios for socializing or relaxing. They’re the perfect solution for anyone who likes the idea of a single family home, but maybe not the upkeep or the higher pricing.

Westloch Estates
One of the neighborhoods that introduced the change in Ewa Beach real estate, these single family homes welcomed their first owners in 1990, with more built in spurts for years after. Taking up the mauka side of Westloch Golf Course, they have 3 to 5+ bedrooms within them. Generally, buyers can expect approximately 1500 sq ft at the lower end, the larger houses becoming quite large.

The most distinctive feature of all is the neighborhood’s arrangement. Westloch Estates is structured so that the bulk of the lots are on a cul-de-sac, bringing privacy and noise-limitation benefits to the maximum number of residents.

The quality of the residences, the cul-de-sac factor, along with the possibility of a front row seat on the links have combined to keep Westloch Estates at the top of many shoppers’ lists.

Westloch Fairway

Westloch Fairway

Westloch Fairway homes are a little newer than Estates’, coming up mainly between 1993-1994. Taking up the lands on the south of Westloch Golf Course, this Ewa Beach neighborhood has both single family homes and townhomes, broadening the selection of real estate.

The most common layouts of houses are 3 to 4 bedroom, in both single and dual levels, that take up from a little over 1400 sq ft to almost 2000. Lot sizes tend to be larger than the Estates, creating greater breathing room between neighbors, which is a definite selling point.

Another difference that’s immediately noticeable is that the cul-de-sac orientation was not used in Fairways. That restores a fluidity to the streets, making getting around easier, something that makes a late start to the commute less stressful.

This is a different animal to its counterpart across the course, giving you a real choice in what you want from your home between the two and there’s nothing wrong with that.

Ewa Beach Real Estate – Something Different Around Every Corner
Ewa Beach homes still tend to have a monolithic image to most outside, but that does not resemble the reality at all. The golf course communities alone should convince you of that by now. From the full resort lifestyle of Hoakalei to the leisure orientation of Huelani to the more typical home experience of Ocean Pointe, you get the full menu to choose from, with more on the way. You’re sure to find something just right for you.

The post Ewa Beach Golf Course Communities appeared first on Honolulu HI 5 Blog.

GET & TAT in Hawaii – The Easiest Way To File & Pay –

Regardless where you live, if you collect income from rental properties located in the State of Hawaii you need to file and pay:
General Excise Tax (GET) on all rents, and Transient Accommodation Tax (TAT) on rents from rental terms less than 180 days per tenant.

If you receive income from a Waikiki condo, or Oahu condo with rental terms less than 180 days per tenant you will need to pay both:
1.) 4.5% GET on the GE Taxable Income (Gross Rent plus GET & TAT, before any expenses), and
2.) 9.25% TAT on the TA Taxable Income (GE Taxable Gross Rent, minus 4.5% GET).

How often and when do I have to file and pay:

Both, GET (form G-45) and TAT (form TA-1) are due by the 20th of the month following the end of filing period.
You will also need to file the Annual Return & Reconciliation for GET (form G-49), and TAT (form T-2) by April 20th of the following year.
Filing frequency depends on how much tax you expect to be paying for the full year:

GET & TAT – Hawaii Tax Filing Frequency

How to calculate your GET & TAT on Hawaii Rental Income:

GET is 4.5% on Oahu (4% on neighbor islands) on all gross rental income, that is before deducting any expenses, even the expense of GET & TAT you might have collected!
TAT is 9.25% on all gross transient accommodation rental income (shorter than 180 days per tenant), Gross transient accommodation rental income is gross GET income minus 4.5% GET you might have collected.

Example:
Gross rent from Transient Accommodation Rentals: $34,616.94
Gross rent from Other Rentals: $6,350.00
GE – Taxable income: $40,966.94 ($34,616.94 + $6,350.00) x 4.5% = $1,843.51 GET due
TA – Taxable income: $33,059.18 x 9.25% = $3,057.97 TAT due

GET & TAT – Hawaii Tax Calculation Example

The easiest way to file & pay in less than 5 minutes:

Last year the Hawaii State Department of Taxation made filing and paying simple with easy online access. There really is no excuse not to file and pay. Fines are stiff and there is no statute of limitation if you ever get audited. Play by the rules, file and pay on time and mitigate financial nightmares.
The State of Hawaii’s site is called Hawaii Tax Online:  https://hitax.hawaii.gov
Our short tutorials walk you through each step how to pay online in less than 5 minutes without writing checks, licking stamps or envelopes.

Part 1:  GET

• Register your business and sign up for your GET license.
• Set up your online account.
• File and pay your GE tax in less than 5 minutes.

Part 2:  TAT

• File and pay your TA tax in less than 5 minutes.

Disclaimer: This post and the tutorials were put together as a free service to help you efficiently file and pay online GET & TAT on your Hawaii rental income.  -We are not tax professionals or CPAs. Always check with your favorite qualified tax professional or contact the Hawaii State Department of Taxation at 808-587-4242.

Let us know what you think. We love to hear from you. Reciprocate Aloha! -‘Like’, ‘Share’, and ‘Comment’ below.
~ Mahalo & Aloha

The post GET & TAT In Hawaii – The Easiest Way To File & Pay appeared first on Honolulu HI 5 Blog.

Divorce is never an easy undertaking and can be especially stressful when jointly owned property is involved. Unfortunately I speak from experience as I myself have gone through it. I’m definitely not alone as almost half of every marriage in the United States ends up in divorce. These stats are brutal, and do not even convey the emotional and financial toll involved.

My best piece of advice is: “Don’t get divorced and try work it out with your spouse. “ It will save you a lot of stress and pain…

Of course it takes two willing parties and more often than not the marriage cannot be saved.

So my second best piece of advice is: Make every effort to get through the divorce as amicable as possible. It will save both parties a lot of money and grief.

No divorce is the same and there is obviously no one size fits all approach. Apart from child custody and alimony the other big issue is the family home.

Hawaii is a no fault divorce state and the division of property is equitable no matter who is at fault or what spouse wants the divorce. If the divorcing parties cannot agree on how to divide their property the decision is made by family Court within the Judgement of Divorce. Most commonly the jointly owned home is the biggest asset and the one needing the most consideration.  So it is of great benefit to both spouses to come to an agreement as soon as possible during the divorce proceedings.

When it comes to the family home more often than not, there is no other alternative than selling it, especially in Hawaii, where property values are some of the highest in the nation. For most married couples the monthly mortgage payment is a big burden on the family budget and in the event of a divorce no one partner will have the financial means to take over the whole mortgage payment, let alone buy out the other and give them their fair share of the equity.

Here is a real life example (the couple’s names were changed to protect their privacy):

Jane and John Doe own their family home in Kailua – Kuulei Tract, a very desirable neighborhood near Kailua Beach. They bought it for $1,000.000 in 2005 and then refinanced a couple of times to make improvements to the pool and to add an extra bedroom above the garage. The mortgage on the home is $950,000 and the monthly payment comes out to $5,300/month.  They both have good jobs so the mortgage payment is within their budget.  Let’s assume the best case scenario in which the soon to be exes are working together to make the divorce uncontested and as amicable as possible.

Jane Doe loves her home and wants to keep it. For that to happen she first needs John to cooperate.

This is of course only the first step and it does not get much easier after that, especially in the hot Oahu real estate market.

The home now is worth a lot more money than when John and Jane purchased it in 2005. Comparable homes now are selling for up to $2 million. So there is a lot of equity in the home that belongs to both Jane and John. In order to determine the market value of the home these are the two most popular choices:

A professional appraisal:  This is the most in depth and detailed way to determine the current market value of a property and appraisals carry a cost that easily is $500 or more. It is definitely the way to go if cost in not a consideration. The fact that both parties are willing to pay for an appraisal makes it a lot more likely they will accept the outcome and abide by it.

A Comparative Market Analysis (CMA): This is a service performed by licensed real estate agents and since the same data of comparable sales is used as with a professional appraisal it is in most cases a very reliable alternative. Any agent will gladly provide this service for free, since this may lead to a future listing.

Jane and John do not want to pay for an appraisal since they already have a good idea of how much they can sell their home for. They looked at comps in their area and then agreed to ask a trusted realtor for a CMA. The realtor they asked was not a family friend or anyone close to either of the two. For this CMA to be accepted by both Jane and John they had to go with a realtor they both did not know personally. They got a list of names from their divorce mediator and after a bit of research on each of them agreed on a particular one that recently had sold a home in their neighborhood. The CMA looks at comparable sales in the area and adds or deducts value based on factors such as size of home and lot, number of bedrooms, view, frontage and condition of home, just to name a few. It is an extensive report and definitely a good indicator of value.

The CMA found that Jane and John’s Kuulei Tract home had a market value of $1,850,000 which meant it went up by a whopping $850,000 in just 11 years! So the shared equity in the home is $850,000 which means that Jane has to pay half of that to John in order to buy him out.

So not only will Jane inherit the old debt from their joint mortgage of $950,000 but also now has to find and extra $425,000 to pay out John. The Closing Cost Estimate below shows how this can be done through a so called Cash-Out Refinance loan.

The most important numbers to look at are ‘cash needed to close’ and ‘monthly payment’.  The above scenario shows that Jane has to cover close to $7,000 a month to make her wish of keeping the family home a reality. That does not include utilities and the monthly bill to the pool man, just to mention a few. Jane looks at her income and how much money she would have to come up with every month in addition to the $7,000 in mortgage payments and immediately knows she cannot afford to buy out John.

Jane is devastated and tells John that she cannot afford to keep the home. John already knew that this was going to happen and he then suggests another scenario to Jane that does not involve the immediate sale of the home and will keep Jane in the home.

This scenario by the way carries risk and should only be entered into with the help of a divorce attorney who will draft the documents for both parties to sign.

John’s offer to Jane is the following: Jane and John will keep the home and mortgage in both their name, but Jane will live in the home and agrees to pay the full mortgage payment of $5,300/month. John gets to keep half of the annual mortgage interest tax deduction and tenancy to the home will switch to Joint Tenancy. They also agree in writing that the house will be put on the market should she be late on her mortgage payments and that the home will be put up for sale once the youngest of their children reaches the age of 18. Jane is relived and thankful for having such a nice and understanding ex. She can afford the monthly payments and agrees to the terms that John asked for.  John on his part is also happy with the arrangement, since it gives his kids a better chance to cope with the divorce and since Kailua is such a hot market the property will just get more valuable over time.  

There are quite a few variations to the above scenario and they all have one thing in common: They only work when both parties work well together and are in agreement. So most likely this will only work in an uncontested divorce.

Silly question to Jane and John: ‘if you guys can get along so well with making the divorce so smooth and amicable why don’t you try to work on your marriage?’

In my 16 years working as a real estate professional I have dealt with a lot of divorce related issues and I think I’ve seen and heard it all from restraining orders to refusal to sign final closing docs to flat out scorched earth war. So when my marriage came to its unfortunate demise I knew it was the very best to just be as amicable and accommodating as possible. Luckily my ex felt the same way and we got to settle all our issues with that attitude in mind.

More likely than not the only realistic option for both parties is to sell. Paying the whole mortgage alone is most often too difficult, so the above solution does not work for a lot of couples, even if they are working things out in a friendly, respectful manner…

Selling your home during a divorce is added trauma and stress, especially when kids are involved. Leaving the family home and not having mom and dad together anymore is quite a double whammy for any child, young or old. Remember, they did not choose you. They are the collateral damage in this and need to be treated with love, compassion and patience.

Finding the right realtor to help in such a touchy situation is crucial. The worst mistake divorcing couples make is to hire a family friend to take the listing. This will open up a whole set of new problems, most of them not relating to the real estate per se but to potential conflict of friendship and loyalty that the realtor may or may not have to one of the parties involved. There are over 4000 real estate professionals in Hawaii, so it should be pretty easy to pick one that both parties do not have any type of relationship with. A suggestion would be to jointly interview three realtors and then agree on the one that takes the listing. Remember, selling a home involves quite a bit of paperwork and both parties need to sign off on contracts, escrow documents etc. So both soon to be exes will again have to communicate and work together.

Ironically good communication and working well together is also a great way to staying married, which brings me to back to the beginning of this article:

‘Don’t get divorced and try work it out with your spouse’

Having gone through the whole process of divorce just a few years ago, I cannot emphasize enough how important it is to have trusted friends and family there for support. Another very important aspect is the professional support system of counselors, attorneys and financial advisors. There are numerous resources available on line and I highly recommend doing research and getting recommendations from friends and family.   

Tom Digrazia is a personal friend of mine and I highly recommend his services – http://www.divorcesource.com/HI/pages/digrazia.html. He is an expert peacemaker and mediator and has authored many books on this topic. His law practice specializes in mediation between divorcing couples in order to bring about what he calls an ‘Educated Divorce’ that will be uncontested and won’t cost a fortune.

Please also feel free to contact me with any questions or comments marcel@honoluluhi5.com.

The post How to Handle Your Family Home When Going Through a Divorce appeared first on Honolulu HI 5 Blog.

If you are considering moving to Hawaii or want to know how to move to Hawaii, then this is a must read guide, covering a range of topics, including islands to consider, reasons to move / not to move to Hawaii, cost of living in Hawaii, jobs in Hawaii, moving to Hawaii with pets & more, including several links to some awesome resources around the web.

Let’s start with a look at your island options.

There are people living on 6 islands in Hawaii, but only 4 of them have a population greater than 10,000 and we will focus on those 4 islands.

The 4 Main Islands

Moving to Oahu – ‘The Gathering Place’

Kapiolani Park & Waikiki in Distance

Population: 992,605.
Unemployment: 2.5%.
The 3rd largest island and home to the State’s capital, Honolulu, which has the feel of a large US mainland city, but with more of a charm and aloha touch.
Read about Oahu on TripAdvisor.

Moving to Hawaii – ‘The Big Island’

Pololu Valley, Kohala, Big Island

Population (2016): 198,449
Unemployment: 3.2%.
The largest island and twice as big as all other islands combined. Vast distances to get anywhere, amazing nature and the most diverse geography of all the islands. The Kona coast (west) is hot and dry and popular among tourists. Hilo side (east) is wet and much less tourists.
Read about The Big Island on TripAdvisor.

Moving to Maui – ‘The Valley Isle’

Maui Coastline

Population (2016): 165,386.
Unemployment: 3.2%.
The 2nd largest island. Beautiful and diverse geography from cool upcountry Kula to hot & dry Waimea in southwest packed with hotels and tourists.
Read about Maui on TripAdvisor.

Moving to Kauai – ‘The Garden Isle’

Opaekaa Falls, Kauai

Population (2016): 72,029
Unemployment: 3.3%.
The 4th largest island. Beautiful lush green throughout island with a small town feel almost anywhere you go.
Read about Kauai on TripAdvisor.

Note:
1) Population is based on July 2016 data from the US Census Bureau as you can see here (includes lots of other awesome data).
2) Unemployment is based on February 2017 data from the Department of Labor and Industrial Relations.

Cost of Moving To & Living in Hawaii

How Expensive is Hawaii?
Hawaii is considered the most expensive of all 50 US states to live in, as you can see right here. Please also check out this cool tool from CNN, where you can use a calculator to get estimates on the salary you will need to make in Honolulu, relative to a salary on various mainland cities, to keep the same standard of living.

Please take the above data with a pinch of salt. We have a lot of incredible beaches and nature that you can enjoy for free, whereas most places on the mainland would  probably require you to spent $$$ to have same amount of fun! So, if you are into the great outdoors Hawaii may not be that expensive for you, but if you are more into fine dining and fancy clothing, then total cost of living in Hawaii will probably seem astronomical!

A few interesting statistics about Hawaii (2015 data), which we pulled from here:
Per capita personal income in Hawaii = $48,288 (0.4% higher than the US average),
Unemployment Rate = 3.6% (1.7% lower than the US average),
Median owner cost with a mortgage = $2,248,
Median rent = $1,500.

Talking of housing and income levels, let’s take a look at cost of housing and job opportunities in Hawaii,

What Does Housing Cost in Hawaii?

Waikiki Condos & Hotels

Purchasing
January – April 2017 the median sales price for a single-family home on Oahu was $749,000 and $400,000 for a condominium. However, property taxes are lower than any other state for owner-occupants. Check out this post, where we compared Honolulu’s property taxes to taxes in 10 major mainland cities.

By the way, you can follow the median real estate price levels on Oahu under the “Trends & Statistics” section towards the bottom of our homepage.

Renting
If you are looking for a rental, please check out Craigslist. You can sort by island and housing type (ex: ‘apts/housing for rent’ or ‘rooms & shares’). It gives you a good idea as to what you can get for your money.
Please be wary of scams – Craigslist is known to have had a number of scam related issues, yet it appears to remain the most widely used site for rental properties.

Finding a Job in Hawaii

Large Sectors
Hawaii is big on tourism – really big! – especially on Oahu with the tourist mecca neighborhood of Waikiki (in Honolulu city), attracting a whopping 5,000,000 visitors per year! With tourism comes a need for a wide range of jobs in retail, sales, hotels, restaurants etc, which means a wide variety of jobs, but especially jobs demanding strong interpersonal skills. Other large job sectors include construction, medical, legal & IT.

Process Finding a Job
Most employers will not take a job seeker serious who hasn’t already made the move to Hawaii. Too many stories following the script “I’m just about to book a ticket and should be in Hawaii within a month” and it just never materializes. This doesn’t mean you can’t give it a shot – finding a job before making the move – it just means you may face an uphill battle, so be prepared. We actually encourage you to connect with employers and employment agencies before you make the move to Hawaii. Educate yourself on our job market and get a sense as to how easily you may fit in and find a job.  

2 leading job boards
Indeed Hawaii Jobs
Craigslist Hawaii Jobs

3 Established Staffing Agencies:
Staffing Solutions of Hawaii
Altres
Bishop & Co

PS! Don’t limit your search – above website ideas are just meant as a starting point.

OK, if you are comfortable with housing costs and the possible job opportunities, then read on and we will review costs of moving to Hawaii and how you would make the move.

How Much Does it Cost Moving to Hawaii?
It really depends! Are you shipping stuff, planning to stay in a nice 1BR condo in Waikiki and live in restaurants for a few months? OK, probably not since you asked this question, but you will need:

1. A flight ticket. Check out Expedia for some flight ideas. 
2. A place to stay when you arrive. If you are on a budget consider renting a room. Craigslist has a lot of listings here.
3. Before making the move, find out if any friends or future roommates may have a Costco membership or how they deal with grocery shopping and get some estimates on monthly cost of living.
4. When you have estimated costs for point 1-3 add them together, double that figure and add $500. That gives you a 2 month living budget, without any income, plus a $500 additional cushion.

We don’t recommend moving to Hawaii with anything less than a minimum 2 month living budget. Also consider an additional financial cushion depending on how easily you think you will be able to find a job.

Some people consider moving to Hawaii without money and sure, if you have enough $ to purchase a flight ticket you can make it to islands, but with the risk of not being able to find a job immediately we can’t recommend moving to Hawaii without some savings.

How to Move to Hawaii
We will assume you are a US citizen, which means you are free to travel to Hawaii without a visa. For foreigners interested in moving to Hawaii, you probably need an attorney to advise on possibilities. Check out this list of attorneys from Yelp and maybe that can be a starting point for you.

Each individual’s situation is unique, but if you don’t have a specific plan consider this:
1) Save up enough money to live at least 2 months without income. That is 2 months worth of savings after you arrive in Hawaii and taking into account cost of housing, food and other living expenses.

2) Focus searching for a job on Oahu (mainly Honolulu) as that is by far the biggest job market in the Islands. It may be tempting to look for jobs on the outer islands (Maui, Kauai, Big Island), but with a much smaller inventory of jobs you may increase your risk of not finding a job, unless you have a unique skillset / knowledge more suited for one of the outer islands (maybe you have a wealth of knowledge on Maui and well suited to be a tour guide on Maui).

3) Search for a flight. Try out Expedia, Cheapflights or Kayak.

4) April – May and Oct – November tend to be the slowest seasons (least tourists) and you may get a better deal on a flight.

5) If you can avoid it, don’t ship furniture or any other belongings to Hawaii that doesn’t fit in your suitcase, as shipping is super expensive! Maybe you can sell some items and safe a few extra $.

Moving to Hawaii with Pets

If you are moving to Hawaii with dogs, cats or other animals please visit this Animal Quarantine Page, where you can learn all about what you need to do to prepare your pet for the move to Hawaii. There is a direct release program (no quarantine needed upon arrival), which takes a few months of preparation with rabies shots etc. Planning on moving to Hawaii next month with  a pet – that is a no go, if you expect your pet to be released from quarantine upon arrival.

Moving a Car to Hawaii

Financially, it may not make sense to move your car to Hawaii, but if you love your car so much, check out these auto shipping websites to learn about the costs, process & more:
Pasha Hawaii FAQ,
Matson Auto Shipping Rates,
Honolulu County Vehicle Fees & Tax Calculator.

…and a few more good points (before you make that move to Hawaii):

Lanikai Beach

1. Honolulu, with just short of 400,000 inhabitants, is by far the closest you will get to the feel of any major city on the mainland and therefore the easiest place to fit in. No other city is the State of Hawaii is even close to 100,000 inhabitants (several are near the 50,000 level).
2. Get a State ID once you arrive and you can take advantage Kamaaina rate, which is discounted prices for local Hawaii residents at  some shops, restaurants, hotels etc.
3. Everything is just a bit more relaxed and casual in Hawaii. Did you arrange to meet your new friend 2pm at Coffee Bean & Tea Leaf, but he didn’t show up before 2.30pm and when he finally arrived you were greeted with a smile and “how’z it?” Welcome to island time (and style)! You may find it rude at first, but you will over time get used it, go nuts or leave the islands.
4. Don’t complain and don’t be too direct (straight to the point). People in Hawaii likes a friendly touch and anything negative should be wrapped with a nice layer of warmth, otherwise you may be perceived as rude and arrogant.
5. Island Fever – feeling stuck on a rock with nowhere to go. It hits some people, even those who enjoy life in the islands.
6. Things tend to deteriorate quicker, due to salt in the air and the higher level of humidity.
7. TheBus – Oahu’s Bus system – is rather efficient and not that expensive, as you can see here.
8. If you are not into any outdoor activities such as surfing, hiking, running, biking etc you may well sometimes feel you don’t quite belong in Hawaii.
9. Check out this neat map from cnn that shows cost of gasoline across all 50 states February 2016. Hawaii was the most expensive state at $2.63 / gallon and Oklahoma the cheapest at $1.39 / gallon, but keep in mind distances are short – we don’t consume a whole lot of gasoline.
10. Hawaii’s beaches are stunning, free to use and none of them are private – not even the beaches in front of luxury residences and hotels. Check out our post on the Best Beaches on Oahu.
11. Most of Hawaii’s stunning nature is free to explore (hikes, parks etc). Check out these 14 pictures of Hawaii’s Natural Wonders from the Travel Channel.
12. Most places in Hawaii has idyllic weather all year round. Check out these cool weather maps we created, that show summer days and rainy days of various cities in Hawaii vs more than 1,100 mainland cities.
13. Distances are relatively short (except on The Big Island) and you can reach almost any place in a short amount of time. For instance, it is just a 1 hour (31 miles) from Honolulu in the southern part of Oahu to the charming surf town of Haleiwa on the North Shore and that is quite a distance for people on Oahu (we are spoiled).
14. We don’t need fuel to stay warm in Hawaii (well, at least for 99% of residences in Hawaii) and have no need for winter clothing. A pair of shorts, flip-flops, t-shirt and a long-sleeve shirt and you should be good to go and start your new life in Hawaii.
15. Hawaii has a happy, relaxed easy-going culture and you will find people with good energy no matter where you go. Life is good!
16. Getting a drink or light bite to eat by a beach somewhere in Hawaii – maybe the Royal Hawaiian Hotel’s Mai Tai Bar located on Waikiki’s beautiful white sandy beach – is just awesome and it is even more awesome 6pm – 8pm when they have live Hawaiian music.
17. Traffic is bad and Honolulu is ranked number 8 on a recent list from Business Insider of US cities with the worst traffic.
18. We have a tropical climate and that means lots of bugs and they love visiting your home; cockroaches, ants etc. Keeping your place clean will help, but don’t expect to live anywhere without facing a (flying) cockroach at some point! Yes, cockroaches do fly!

There are pros and cons moving to Hawaii, just like moving anywhere in the world. At the end of day, whether you will embrace and fall in love with Hawaii, its culture, nature and people depends entirely on your character and your attitude.

By the way, If you have read this far, you are probably pretty determined to make the move. So good luck moving to “Paradise” – may an exciting new chapter of your life be about to begin!

PS! Would love to hear from you in the the comments section below.

The post Moving to Hawaii Guide: Tips, Advice & More appeared first on Honolulu HI 5 Blog.

Anaha – a new luxury condo in Honolulu – will soon be the 2nd condo towering in Ward Village, scheduled for completion October 2017. Waiea – an ultra-luxury condo – was the 1st project completed – November 2016 – in Ward Village.

Just a few developer units remain unsold in Anaha as of writing and they range in price from $2.866M – $14M. For resale units click here.

The following is a list of several photos of Anaha’s lobby, units and the amenities deck, taken August 14, 2017. Anaha isn’t completed yet, which means no furniture in any photos and some parts of the project is still work in progress, which is reflected in some of the photos.

THE LOBBY – August 14, 2017 Photos

Lobby Ceiling Lights

Front Desk

Lobby

THE UNITS

Penthouse Level Unit with Stunning Ocean Views

37th Floor Penthouse B Ocean View

37th Floor Penthouse B Master Bathtub View

37th Floor Penthouse A Ocean View

Penthouse Level Kitchen

37th Floor Penthouse A Bathtub View

32A Ocean views

32A Kitchen August 14, 2017

32A View from Kitchen

31B Ocean Views

THE AMENITIES DECK – August 14, 2017 Photos

Tennis Court

Cabana for Barberque

Beach Volley Court

Random Photo from the Amenity Deck

Kids Play Ground

Kids Slide

Pool is in the Distance

Cantilevered Pool (you can see from street level)

Pool

Hot Tub & Pool

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