Real Estate
Profiting from Hawaii Luxury Real Estate: 10 Rules to Live By
Nov 1st
It is not simple to invest into any real estate, especially the real estate options that are offered in Hawaii. With that being said, the person will find that if they take the time to invest into the luxury real estate market in Hawaii, that they can walk away with making a lot of money for themselves, and it is definitely worth the work that the person will have to put into it in order to make it work. With that being said, there are some rules that will help the person in their venture to profit from the real estate that they invest in Hawaii.
1. Make offers
This is important, and you are going to want to make an offer on a home that you are not even sure that is something that you want. If the deal is great, then you are going to want to kick yourself later if you don’t even make an offer.
2. Make Money
The person should not count on increase in the property value to make money on their investment. Therefore, buy a property that is selling for low to make the most money on the investment.
3. Network
The more people that you know means that you will have more people that are looking for those deals for you, thus they can be the one way to find the best deals that are out there. Be sure that you maintain the network though.
4. Consider Partnerships
If you do not have the money, the knowledge or the time to devote, then find someone that you can trust to partner with you and help you make those difficult business decisions.
5. Plan
You will want to make sure that you have a vision statement written and then you will want to follow this so that you are always kept on track. This way you are not distracted from your main goal of investing in property.
6. This is your business
With that being said, devote time each and every day to this and make sure that you are keeping records of what you are doing each day so that you can justify that this is a business for you.
7. Use Professionals
Hire professionals that can help you in making decisions and navigating the market in the best way that is possible. It does cost you, but you will save more money in the long run.
8. Add Value
Once you purchase this home be sure that you are adding value to the home, through renovations and so forth to make it worth the money that you can make.
9. Put yourself in the buyers or tenants shoes
This way you can find out much better what you need to do to the property to make it work and you will have a better idea of what the tenant is wanting when looking for a home to invest in.
10. Always learn
The real estate market is one that the person will never have a full grip on the knowledge that they need in order to make this venture work for them. Therefore, they are going to have to make sure that they are always open to new ideas and techniques that are out there to help them make more money.
Hawaii Real Estate
Oct 21st
- Image via Wikipedia
The Hawaii real estate market, which has always been associated with expensive houses and luxurious residences, has recently shown greater appeal to wealthy sellers, both domestically and among Asian buyers. According to an October 18, 2010 report from Pacific Business News, “The recent auction of several luxury properties on Kauai’s North Shore is part of a growing trend to market high-end Hawaii homes that fetch multimillion dollar prices. The most high-profile sale was the $8.72 million sale of a home owned by entertainer Cher at the Four Seasons Hualalai Resort on the Big Island via Concierge Auctions. But at least five homes at Hualalai and at the neighboring private club Kukio have also sold at auction for prices ranging from $3.7 million to $5.1 million. The latest sale by Koa Properties and Concierge Auctions included a property known as the Villa at Secret Beach, a 3,104-square-foot home on four acres near the Kilauea Lighthouse on the North Shore of Kauai. The auctioneers didn’t disclose the price, but the property was previously on the market for $9.8 million. The seller, Michele Hughes of The Michele Hughes Co., says auctions are a preferred method these days for savvy sellers of high-end real estate.”
Despite a continued weakness among Hawaii homes for sale at large, Asian buyers of luxury real estate are beginning to show an encouraging interest in the luxury sector of the market. According to a September 23, 2010 report from the New York Times, “While sales of Hawaii’s luxury residential real estate are still down almost 60 percent from their peak in 2005, strong interest from Asian buyers eager to capitalize on value has begun to buoy the market. The recovering economy in Asia, favorable exchange rates and the realization that Hawaii’s luxury real estate prices are finally rising from last year’s low have renewed attention from potential buyers in Japan and South Korea and piqued interest in China , said Patricia Choi, president and broker in charge of Choi International, an agency in Honolulu… And, while home values still are about 8 percent less than their peak in 2005, they are slowly rising, she said. After Hawaii’s real estate bubble burst in the early 1990s, Asian buyers became less dominant, said Jeffrey Fox, another broker and owner at Kahala Associates. At that time, Asian buyers represented almost 90 percent of the state’s luxury market, but they dropped to about 11 percent last year, Mr. Fox said.”
Newport Beach Real Estate
Oct 21st
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The Newport Beach real estate market, a generally expensive portion of the larger Orange County housing market, saw signs of strength and recovery in the most recent tracking period. Foreclosure sales declined, while the median price was the highest in the country. According to a September 30, 2010 report from the OC Metro, “Orange County foreclosure sales fell 27 percent in the second quarter from the same time last year, though transactions rose about 3 percent from the first quarter, according to figures released by Irvine-based RealtyTrac. A total of 3,524 properties in some stage of foreclosure – default, scheduled for auction or bank-owned – sold to third parties in the period. That number accounts for 31.5 percent of all residential sales in the county, down from about 43 percent in the second quarter of last year. The number also declined from 38 percent in the first quarter, according to the report…In Orange County, the average selling price for a foreclosed home was $420,336 – it’s a 22 percent discount, according to RealtyTrac. Meanwhile, 1,189 REO sales – transactions that occur while a property is actively bank owned – took place in the county in the second quarter. The number is down a whopping 57 percent from the same time last year, though it rose 2.5 percent from the first quarter.”
Newport Beach homes for sale were the most expensive in the country, according to Coldwell Banker and a second report from the OC Metro published on September 22, 2010. This article, written by Kristen Schott, noted that “Newport Beach takes the top spot among the 10 most expensive housing markets in America, with an average listing price of $1.8 million for a four-bedroom, two-bathroom property, according to a study conducted by New Jersey-based Coldwell Banker Real Estate. The most affordable housing market in the U.S. is Detroit, Mich., with an average listing price of $68,000. That equates to a $1.7 million difference between Newport Beach and Detroit, according to the Home Listing Report, which measured more than 18,000 four-bedroom, two-bathroom properties in nearly 300 markets across the U.S. The average listing price among homes surveyed is $353,000.”
The Auburn real estate market
Oct 15th
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The Auburn real estate market, part of the larger Sacramento area housing market, saw a series of problems related to foreclosure in recent months. As more and more distressed Auburn homes for sale and properties are brought to foreclosure auctions, the number of individuals affected – including renters – continues to rise. A September 14, 2010 article from the Sacramento Business Journal written by Michael Shaw noted that “Foreclosures in Sacramento County were sharply higher in August, though they did not top the peak reached in March, housing data company ForeclosureRadar said Tuesday. A total of 997 homes went back to lenders during the month, while another 198 were sold to a third party. The recent high was in March, with 1,035 homes going back to lenders and 277 sold to a third party. Before August, foreclosures had been trending down in the region. The county’s inventory of foreclosed homes that have not been resold reached more than 6,000 homes. In Placer County, 184 homes went back to lenders in August, the same total as July. The county also peaked in March with 215 homes going back to banks at foreclosure sales.”
Thousands of renters in the Auburn housing market have been evicted as a result of impending foreclosures or short sales, according to a September 23, 2010 report from KCRA News. The article noted that “
A San Francisco-based tenants’ rights group held a special meeting for renters facing foreclosure Thursday night at the Sacramento Housing Alliance. Tenants Together said last year more than 200,000 renters were affected by foreclosure. Of those 200,000, Tenants Together said, in Sacramento, the foreclosure crisis forced nearly 14,000 renters out of their homes, in Placer County nearly 2,000 and in San Joaquin County just over 8,000. In fact, it’s not illegal for homeowners to rent out a home even after it goes into default. Tenants Together said that scenario is happening with increasing frequency forcing renters to move. “It’s a huge number. It’s a shocking number,” said Giti Dadlani, an organizer for Tenants Together. Derek Dunbar, a Sacramento resident, had only been renting his home three months before he found out it was in default.”
The Almaden Valley real estate market
Oct 13th
- Image by donjd2 via Flickr
The Almaden Valley real estate market, a predominately residential region found in the midst of the Santa Clara County, Silicon Valley, and Bay Area housing markets, saw continued depression in terms of units sold but a slight uptick in median price during the August tracking period. A September 17, 2010 report from the San Jose Mercury News said that “If your idea of good news is that even though the sky’s falling, it’s not falling as quickly as it was a month earlier, you’ll be pleased by the latest home-sales numbers for the Bay Area. A survey released Thursday shows that while sales dropped in August to an 18-year low, they fell less sharply than they did in July. Prices rose year over year, although the report showed they dipped month-to-month. August sales of resale single-family homes in Santa Clara County fell about 12 percent from 1,203 to 1,058, which looked a lot better than the June-to-July swoon of more than 24 percent, according to MDA DataQuick of San Diego. San Mateo County fared even better in August, with sales actually climbing 2.8 percent from 465 to 478. Median prices moved up in both counties from a year earlier — 6.8 percent in Santa Clara from $515,000 to $550,000, and nearly 16 percent in San Mateo from $585,000 to $676,000. Overall, the Bay Area showed nearly an 11 percent drop in sales and a 9.3 percent rise in the median price from August 2009.”
A parallel report by the San Jose/Silicon Valley Business Journal regarding Almaden Valley and other Silicon Valley homes for sale painted a similar picture for the local market, finding that “Silicon Valley home sales in August were down 8.70 percent from the same month last year and down 8.42 percent from July, according to a report Friday from the Santa Clara County Association of Realtors. In all, 1,196 homes sold and closed in the county during the month, but the Realtors’ group said a slowdown in demand in the past three months has not reversed a 2010 trend where monthly average sales prices for Santa Clara County was consistently higher than the same month in 2009. The average sales price in August was $690,642 for Santa Clara County single family homes, townhouses and condos. Although this was a 2.79 percent decrease compared to July, it was up 11.87 percent from a year ago.”
The Santa Cruz real estate market
Oct 1st
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The Santa Cruz real estate market is quite far off from its peak before the recession, but has remained relatively stable in the past year. Although sales declined in the most recent tracking period, the median price of a Santa Cruz home for sale increased by ten thousand dollars between August 2009 and August 2010. According to a September 14, 2010 report from the Santa Cruz Sentinel, “More than 90 agents with Bailey Properties showed up Tuesday morning to hear real estate guru Carole Rodoni explain why buyers are reluctant and what to do about it. “We have an economy where nobody knows where it’s going,” said Rodoni, who speaks every quarter to agents at Bailey, one of the largest local real estate companies. Just look at Santa Cruz County‘s home-buying statistics for August.
The median price was $510,000, little changed from $500,000 a year ago, according to Gary Gangnes, who tracks the numbers, but down from three years ago when it hit $770,000. Listings have grown and interest rates are at historic lows, but buyers are not biting. There were 152 single-family home sales, little changed from 154 a year ago. Homes under $500,000 made up 46 percent of sales, with those selling for more than a $1 million comprising 8 percent. About 1,200 homes in the county are in foreclosure, compared to less than 1,000 a year ago. Most of them end up either in a short sale or owned by a bank, which puts more downward pressure on prices. Even million-dollar homes have been lost to foreclosure.”
Local analysts also noted that the number of homes sold were near the record low for the Santa Cruz County real estate market. Compared to the all-time low of one hundred forty three homes sold in July 2007, realtors in Santa Cruz County sold one hundred and forty five homes in July 2010 and one hundred and seventy five single family homes in June of 2010. The decline from June to July could be interpreted as the result of the expiration of the federal housing tax credit, which temporarily inflated sales figures for a few months.
The San Jose real estate market
Sep 30th
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The San Jose real estate market, found in the midst of the Santa Clara and Bay Area housing markets, saw extreme weakness in the area of home sales even as the number of foreclosures brought to auction decreased from previous levels. According to a September 16, 2010 report from the Silicon Valley/San Jose Business Journal, “Bay Area home sales fell less sharply last month than in July but still dropped to an 18-year low, according to a report Thursday. San Diego-based MDA DataQuick reported that a total of 6,698 new and resale houses and condos closed escrow in the nine-county Bay Area last month, down 1.1 percent from 6,773 in July and down 10.9 percent from 7,518 in August 2009. In Santa Clara County 1,556 homes sold in August, down 10.40 percent from the same month last year. Their median price was $480,250, up 6.50 percent over a year ago…Last month’s Bay Area sales were the lowest for any August since 1992, when 6,688 homes sold, and were 31.3 percent lower than the average August sales of 9,743 since 1988, when DataQuick’s statistics begin. August sales have ranged from a low of 6,688 in 1992 to a high of 13,940 in 2004.
Last month the median paid for all new and resale houses and condos combined in the Bay Area was $385,000, down 4.2 percent from $402,000 in July but up 6.9 percent from $360,000 in August 2009. Government-insured FHA loans, a popular choice among first-time buyers, accounted for 24.2 percent of all home purchase loans in August, up from 23.3 percent in July but down slightly from 24.8 percent in August 2009.”
However, fewer distressed San Jose homes for sale were foreclosures in the month of August, suggesting either a flood of foreclosures or, hopefully, a more controlled stream of distressed sales. A September 17, 2010 piece from the San Jose Mercury News stated that “Thousands of homes in Santa Clara and San Mateo counties remain stuck in the foreclosure process as lenders continue to offer relatively few foreclosed homes for sale, according to a report released Tuesday. Prepared by ForeclosureRadar, a Discovery Bay real estate research company, the August report suggests that the banks are either swamped or they’re controlling foreclosure sales to avoid flooding the market, experts said.”
The Sacramento housing market
Sep 29th
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The Sacramento housing market has been slow to recover, posting minimal gains in median price since the end of the recession. Exactly how long those gains will endure past the expiration of the federal housing tax credit is unclear. According to a September 22, 2010 report from the Sacramento Business Journal, “Sacramento-area home prices dropped last month compared to a year ago, as the four-county region remains one of the most sluggish markets for a recovery in the state. The region’s median home price — meaning half the homes sold for more, the other half for less — dipped 2.8 percent to $186,750, compared to August 2009. Home sales have plummeted 11.3 percent from a year ago, largely because home-buying incentives stopped, according to a California Association of Realtors report released Wednesday.
There is some long-term gain with home prices in the region, but it’s modest compared to other markets in the Golden State. The four-county region’s current price is 11.6 percent higher than the trough price of $167,340 in April 2009, the third-worst performance in the state — and 18 percentage points lower than the current price-to-trough price recovery statewide, according to the association. And the region’s current home price remains 53 percent lower than the peak of $394,450 in August 2005, though only slightly worse than the peak of the market-to-current price statewide.”
The number of Sacramento homes for sale that were actually purchased also fell in the month of August, indicating a continued uncertainty in the Sacramento real estate market. A September 16, 2010 report also from the Sacramento Business Journal stated that “Sacramento home sales remained largely steady in August, although the median sales price in the region has begun to slide downward again, according to a report issued Thursday from housing information firm MDA DataQuick of La Jolla. A total of 2,871 homes of all types, include resale, condos and new homes, were sold in August. That’s down by 136 sales (4.7 percent) from August of last year but about 400 sales higher (14 percent) than July. The median price fell in all four counties in the metro area.”
Big Island Real Estate Market Update
Sep 10th
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The Big Island, which is Hawaii County, is also officially known simply as the island of Hawaii. The island is the largest of all the Hawaiian islands — larger even than all of the other islands combined, at more than 4,000 square miles — and has a population of around 180,000. Like other Hawaiian islands, Big Island homes for sale have struggled in the most recent years as the market in the U.S. for real estate crashed around the time the financial crisis began, set off by an untold number of subprime mortgages. As these mortgages saw their rates reset, almost always to higher rates, many found themselves suddenly unable to refinance at lower rates and unable to make the increased payments, leaving them out in the cold. When these things happened, the number foreclosures on the Big Island, as well as across Hawaii, rose to levels rarely seen before.
The Hawaii County or Big Island real estate market has mostly leveled off as of late, but some spikes in prices can still be seen as things jump around trying to settle down and get back to a sense of normalcy. The number of homes sold, which had been steadily rising in every quarter since the beginning of 2009, actually saw its first decline since then in the most recent quarter, the second, of 2010, with about 1,000 homes sold, down from the previous quarter, when there were around 1,700.
The median price for home sales in Hawaii County saw a small peak in size at the end of 2009, but then in the beginning of this year it fell again. In the second quarter of 2010, the median price was around $250,000, which was up ever so slightly from the first quarter but down from the fourth quarter of last year, when the figure was around $280,000.
Sacramento real estate market
Sep 9th
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The Sacramento real estate market is currently in a steady and prospering state with little but positive change since 2009. Foreclosures and short sales have recently risen to account for 35 to 40 percent of the current housing inventory. Additionally, there are more sellers than buyers on the market at this time, which makes this a great opportunity for getting the best deal possible on a home in Sacramento. The average price on homes for sale in this area is currently around $350,000, with most houses selling in the $350,000 to $400,000 range. This indicates very little change since the previous year; however, with most sellers quickly receiving multiple offers on their homes, selling prices have tended to be roughly between 90 and 95 percent of the asking price. The average time for houses to be on the market in Sacramento has been approximately 30 to 60 days.
Repeat buyers and investors are now dominating the Sacramento real estate market over first time buyers for the first time in nearly three years. This surge of repeat buyers is mainly for use as rentals and is due to the low prices of real estate properties in the area. Furthermore, with a high inventory of houses for sale and very competitive interest rates, there has never been a better time to purchase real estate in and around the Sacramento area, which has always been considered as a housing hotspot. Many of the homes found in this area are extremely unique and have character that cannot be found anywhere else. Especially properties located around Sacramento’s downtown have become quite valuable recently because of the steadily increasing demands for them. Numerous investors as well as large businesses making corporate relocations can account for this high demand of real estate around the downtown area. In addition, the city of Sacramento has made plans to revitalize various regions of the city, including Downtown. Because of this, the property value of different locations can fluctuate significantly in this area, but nevertheless, one can feel very secure about making an investment in this currently expanding district.
Sacramento is presently exhibiting a buyer’s market with all signs pointing towards a growing stability that may even turn into a full recovery. Foreclosures increased just over 20% since the last year, while defaults fell nearly a whopping 40% from 2009. Additionally, real estate vacancy rates are currently down all over Sacramento, even as tight as just 11.7% in the Downtown area. As a result, the Sacramento real estate market is doing well, and as home prices begin to inch up over the coming months this is the perfect time for buying property in Sacramento.
