Maui Real Estate News

Maui is #1 !

2010-03-07T13:15:00.003-10:00

That's right ! Maui is #1 .... at least according to a Barrons article in the Wall Street Journal.

Maui, and specifically, the resort area of Wailea, is their # 1 pick to own a second home. I could agree with them more !

Aloha,
Peter

Developer Discounts on Maui

2009-11-24T08:17:00.004-10:00

Regardless of shape or size, developers who have brought new product to market in the last two years, have had to offer big incentives and further reduce prices to attract buyers. Examples of this can be seen at the Cottages and Villas at Kehalani in Wailuku, developed by Stanford Carr, or Moana Estates, and the Ke Alii Ocean Villa's by Towne Island Home, Ltd in Kihei, or the Cottages at Kulamalu in Pukalani, by DR Horton. Incentives inlcude free furniture packages, large closing cost credits, A/C installation, and if the unit is not quite complete, then upgrades to the finishes.

In some cases, the second or third phase has been suspended, like Houna Kai in Kaanapali, developed by Interwest.

When you add foreclosure and distress sales to this saturated market place, its easy to understand why developers have to offer these incentives lure buyers.

Thank you for reading my blog.

Aloha,
Peter Slate R(S)
Haiku Properties

4 Very important steps to remember when buying a home

2009-11-19T08:58:00.002-10:00

Four of the most important steps to remember when buying a home are:

1) Building inspection - absolutely always get a professional building inspector to examine the structure prior to closing the transaction. Its a good idea to accompany the inspector during the inspection, as you'll learn a lot about your new home !

2) Appraisal - even if you're not using a bank, ie paying cash, an appraisal is a good idea, as it will give you an unbiased third party value of the home.

3) Termite inspection - always have this done, no ifs, ands or buts !

4) Survey - don't leave it to chance that some tree, or wall, or driveway is part of the property. A survey will clarify all of the boundary lines, show any encroachments, and for a little extra, you can have the surveyor draw in the location of the house.

I hope you find all these tips helpful in your real estate acquisition.

Thanks you for reading my blog.

Aloha,
Peter Slate R(S)
Haiku Properties

More deals being done on Maui

2009-11-18T10:07:00.003-10:00

I'm pleased to report that the number of escrows on Maui is on the rise. Over the last year the number of escrows on Maui has been as low as 277, compared with 460 escrows today. The bulk of the escrows (98%) are spread out over single family, vacant land and condominiums. The rest are commercial. Single family homes has the best percentage of escrows with 210 escrows on 1112 listings (20.2%), next are condos with 178 escrows on 1573 listings (11.3%) with vacant land having 42 escrows on 610 listings (6.8%).

While this doesn't indicate a red hot market, it does show there is increasing interest in Maui real estate.

Thank you for reading my blog.

All the best,
Peter Slate R(S)
Haiku Properties

North Shore Maui holding its value

2009-11-11T12:38:00.004-10:00

The North Shore of Maui had a very respectable multi million dollar sale recently. 38 Nonohe Place, a 3990 sqft house on a little over half an acre, sold for $ 2.9 million earlier in November. The same house sold for $ 2.7 million at the top of the market in 2005. While the house had been upgraded since 2005, this sale shows that despite a terrible down turn in the economy, buyers are prepared to shell out for what they really want.

Thanks for reading my blog.

Aloha,
Peter

Senate extends $ 8000 first time home buyer tax credit

2009-11-03T20:27:00.006-10:00

Great news ! The $ 8000 first time home buyer tax credit extension has passed the senate and looks like it will be sent to the president for signatures soon. The proposed extension will extend through 30 April 2010.

Stay tuned !

Papali Wailea .... What a deal !

2009-10-20T08:12:00.005-10:00

Papali Wailea is a very upscale, brand new, single family community located at 3100 Wailea Alanui Drive, Wailea, Maui, Hawaii. Completed in 2008, Papali Wailea is well thought out and exceptionally well built. Only 24 single family homes are built on 10.4 acres to ensure low density. The complex has four, evenly spaced terraces which ensures that each home enjoys an incredible ocean view! The recreational area includes a large infinity edge pool, and a state of the art gym .... all of course, with large, expansive ocean views !

Papali Wailea hasn't escaped the softening of real estate prices. Starting at $ 3 700 000 at the out set, one could now own unit 19 for $ 2 595 000 ! ...... further making Papali Wailea a must see !

Thank you for reading my blog.

Aloha,

Peter Slate R(S)
Haiku Properties

Wailea / Makena real estate comps crushed

2009-02-11T08:01:00.003-10:00

Wailea and Makena real estate prices have suffered a major set back by the only real estate sale in the area during the month of January 09.

This beach front house on One Palauea, listed for $ 20 000 000, sold for $ 7 750 000 ! This sale will set the tone for other sales in the area, as appraisers will have to include it when appraising other transactions.

Stay tuned ..... this could get really exciting !

First time homebuyers win with FHA loans

2009-02-02T07:55:00.007-10:00

With housing prices continuing to fall, first time home buyers are in a great position. Not only can they take advantage of improving pricing, they can also take advantage of a Federal Housing Administration (FHA) program that allows for just a three and a half percent (3.5%) down payment, one loan, with the same interest rate as conforming, conventional loans ..... Incredible !

Add to that, first time home buyers can get that 3.5% down payment from their retirement accounts ..... penalty free !

Remember the three rules when buying real estate anywhere, any time listed in my previous blog, and take advantage of your real estate market today.

Good luck !

Wailea Makena, big houses, big discounts.

2009-01-30T08:09:00.007-10:00

The prices of coveted Wailea and Makena are under pressure ! Click on the links and follow the pricing necessary to get these properties sold .... incredible !

Top 3 Rules to Remember when buying a home - anywhere, any time.

2009-01-17T08:50:00.007-10:00

In todays soft housing market, how do you know you're getting a good deal ? Here are 3 simple rules to live by:

1)Does this house suite my needs, and does it meet all of my search criteria ? While location is very important, it's not everything. Having a house that meets all your goals is the # 1 Rule to Remember.

2)Understand the value. Appraisers assign value in two principal ways: sales comparisons (similar style homes sold in the same area), and replacement cost (what would it cost to buy the land and build that particular home on the land, minus the depreciation).

3)Are there any compensating factors ? This includes view, upgrades, yard, easy and affordable maintenance, shops and stores within short distances, manageable Home Onwers Association (HOA), and Association of Apartment Owners (AOAO) fees etc etc.

Thank you for reading my blog. I hope found it helpful.

I look forward to hearing from you.

Aloha,

Peter Slate R(S)
Haiku Properties
808 276 4017

Government seeks ways to reduce housing surplus in 2009 !

2008-12-27T19:17:00.002-10:00

With all the outrage at government over the loose handling of the Troubled Asset Relief Program (TARP) money, where after dispersing the first $ 290B to 19 different banks, mortgage rates went up ! More recently, the debacle of Government funding a request of $34B to save the "The Big 3" automakers left many on Main Street wondering. What about me?

After heavy persuasion from two huge lobbyist groups National Association of Realtors (NAR) and the National Association of Home Builders (NAHB), government knew it had to do something. Two weeks ago Government announced it would back stop through Freddie and Fannie, up to $600B in clean money. This resulted in mortgage rates dropping almost a full percentage point from 6.375 % to 5.5%, which in turn resulted in surge of refinance applications, but still only a small number of purchase applications. It was recently leaked that the Federal Reserve and Treasury Department are looking to offer 4.5 % mortgages for new and existing homes purchased. This leak has sparked a general optimism that Government hasn't forgotten about the guy in the street, and that direct action is underway. A couple other ideas being floated are a $ 7 500 tax credit for any house purchase, and trimming, or even axing altogether, the capital gains tax on housing for a period of time. Given that there are roughly 4.5 Million houses on the market in the US in general, the US Government is simply going to have to do something drastic to reduce the housing surplus ! We believe that if Government adopts all three of these steps, the housing market will soon bottom out, and stabilize.

As many have witnessed, the stock market has been difficult. Experienced investors and new-bees alike, many have taken their losses and gone into cash. Confidence is low. Given that there has been such tremendous hedge fund redemption, and that there is far more than normal cash sitting on the sidelines, that when Government brings into action a plan that Main Street can embrace, and confidence returns .... there will be a strong upward move.

If the Federal Reserve and the Treasury Dept are successful in implementing the plans mentioned above, then this will be the last opportunity for buyers to purchase homes at 70-75 cents on the dollar with great financing.

I want to thank you your support this year, and wish you a Merry Christmas, and a Happy New Year.

All the best,

Peter Slate R(S)
Haiku Properties

The Maui Real Estate Investor and a 1031 Exchange

2008-07-02T10:34:00.006-10:00

Many people have heard about a 1031 exchange, but aren't quite sure what it is, or how it works. I hope to shed some light on the subject. Important to note is that there is a tax exemption on the sale of your primary residence, and while a 1031 exchange can be applied to any property, it's most commonly applied to investment properties, where the owners tax burden is not protected by a primary residence status.

The basic principle of doing a 1031 exchange, forward or reverse, is to defer the taxes on the sale of the house that you own (relinquished property). In a forward 1031 exchange, the seller of a house transfers the proceeds from the sale of his house directly into an account with a 1031 exchange company. Note the proceeds are not realized by the seller, they go directly into an account at the exchange company. The seller then has 45 days to identify a new property (replacement property), and 180 days to close on it. The seller can identify upto three replacement properties, as not every escrow is successful, and the seller has the specified time in which to close on one of the identified properties. The seller can choose to identify more than 3 properties, but if he chooses to do so, the total value of the identified properties can not exceed two hundred percent of the sales price of the relinquished property. So, by doing the forward 1031 exchange, the seller defers the taxes due on the relinquished property, identifies a replacement property, and closes on it in a specified time period. A forward exchange will cost roughly $600.00.

In a reverse 1031 exchange, the owner of a property (relinquished property) can go about acquiring a new property (replacement property) before the the relinquished property is sold. In this case, the seller deeds the exchange company title to the relinquished property, which is held in a Limited Liability Company (LLC) at the exchange company. The owner goes about acquiring the replacement property in the regular fashion, with cash, or some cash and a mortgage, and can begin enjoying his new property. From the time the reverse exchange is established, the owner has 180 days to sell the relinquished property. When the relinquished property is sold, the proceeds from that sale are credited towards the acquisition of the replacement property, and the seller of the relinquished property is credited that amount. If for whatever reason, the relinquished property doesn't sell within the 180 days, the exchange company deeds the title back to the owner. In this case, the owner is not entitled to any refund of the roughly $ 4000.00 cost of setting up the reverse 1031 exchange.

If you have any questions about this post, please contact me by email: SA7@PeterSlate.com or by phone: 808 276 4017.

Thank you for reading my blog.

Aloha,

Peter Slate R(S)
Haiku Properties

Canadians are King

2008-05-20T08:36:00.004-10:00

The Vancouver Sun picked up on an article I wrote about Canadian arrivals on Maui, and since the article published, I've had a great response, with many inquiries into Maui Real Estate, especially ocean view condos.

Looking through the Canadian visitor arrivals for the first quarter of 2008, I arrived at the conclusion ..... Canadians are King ! The following figures are published by Hawaii's Department of Business Economic Development and Tourism (DBEDT). Below is a summary of Canadian visitors to Maui, and to the Hawaii Islands in general for the first quarter of 2008.

14 737 Canadian visitors arrived on Maui in January 08, up 38 % from the 10 654 Canadian arrivals in January 07. Canadian travel to the Hawaiian Islands for Jan. 08 was up 27%, with a daily average census of 20 500 visitors.

15 453 Canadian visitors arrived on Maui in February 08, up 68 % from the 9 156 Canadian arrivals in February 07. Canadian travel to the Hawaiian Islands for Feb. 08 was up 31%, with a daily average census of 21 168 visitors.

17 114 Canadian visitors arrived on Maui in March 08, up 23 % from the 13 862 Canadian arrivals in March 07. Canadian travel to the Hawaiian Islands for March. 08 was up 16%, with a daily average census of 18 877 visitors.

Thank you Canadians ! and thank you for reading my blog.

Aloha,

Peter Slate R(S)
Haiku Properties

Maluhia Country Ranches ..... Kahakuloa's Finest !

2008-04-03T18:09:00.017-10:00

Imagine your dream home on this spectacular view lot in a very upscale, gated community, Maluhia Country Ranches. This 2.954 acre lot offers incredible views of Haleakala, Maui's North Shore and Kahului Town. A 20 minute drive from Maluhia Country Ranches gets you to the airport and Kahului's town center. Private, secure and spacious, this Maluhia Country Ranches lot is being offered at $ 549 500. For more information, please contact Peter Slate R(S) Haiku Properties Tel- 808 276 4017.

Thank you and Aloha !

Kula, Keokea, and Ulupalakua .... Maui Real Estate's new high end market

2008-03-25T09:12:00.012-10:00

It's easy to understand why high net worth people gravitate towards resort areas such as Wailea and Kapalua. Given the manicured golf courses, and the presence of large, high end hotels to help secure the value of their investments, this clientele finds their comfort zone in these areas. However, with new development adding to the traffic congestion and living density, buyers are looking past the typical resort areas, and toward other options ..... and there's plenty to see !

Maui's Kula, Keokea and Ulupalakua areas are the exact opposite of your Wailea / Kapalua resort area, and until recently lacked the large scale marketing and awareness necessary to bring peoples attention to a particular area. Coming online shortly is a 1800 acre development in Lower Kula which will be heavily marketed and promoted by one of the biggest real estate brokerage firms in the world. Given the attention that will come with such a large scale development, and the promise of the long awaited highway that will connect Kula and Kihei with a 20 minute commute, I looked at some of the houses available on the Kula / Keokea market that would benefit from large scale marketing. The results were surprising! I found that what was once considered sleepy old "Upcountry" was, in fact, now, a very high end area, with very desirable Gentleman's estates ! Take for example this 4000 sqft, "Hamptons" style house on almost 4 acres in Keokea, or this incredible 5000 sqft plus house on 8.6 acres complete with pool and exquisite library built in Omaopio Ridge. The most recent Kula mansion on the market boasts over 7100 sqft of living area, a pool, a tennis court, a separate 958 sqft cottage, and every upgrade imaginable !

With all the marketing and roadways aimed at connecting Kula, Keokea and Ulupalakua with the high end resorts, it's my prediction that more and more high net worth people will begin to realize the true value of Maui's Upcountry Gentleman's estate. Click on this Kula, Keokea, Ulupalakua link to see a complete list of incredibly beautiful homes.

Should you have any questions, please leave a comment, or call me directly on 808 276 4017. Thank you for reading my blog.

Aloha !

Makena Property on Maui

2008-03-02T09:07:00.007-10:00

This incredible piece of Makena property is up for sale, but few understand its full potential.

With the current agricultural (Ag) zoning, and leaving the lot lines as they are, the property could be developed into five main houses and three 1000 sqft cottages. Total acquisition $ 26.5MM for the land, plus a $ 30MM (estimated) build out of all the house and cottages, totals $ 56.5MM. Total gross form the sale of the house and cottages would come in anywhere between $90 MM - 100MM (based on current comps), which allows significant profit margin. Expected permitting and build out to take 5-6 years to complete. With water meters and power available on all four lots, a buyer would be able to start planning right away. An SMA (Special Management Area) is required as part of the building permit condition.

To expand on the development possibilities: If the current Ag zoning were changed to match the Rural zoning called for in the General Plan, the owner would be able to subdivide the total property into fourteen, one acre lots, with the possibility to build a main house and a cottage on each lot. The down side being additional fire protection (water) would need to be brought to the property, a major SMA, and sub-division final approval, would need to be completed before any construction could start. With fourteen new lots, an affordable housing component would need to addressed. The upside being an even higher profit margin.

Another option would be four families who acquire this 4 lot, 14.15 acre, magical Makena property, each take a lot, and build their dream homes with ultimate privacy and space!

Click this Wailea Makena Real Estate link for a complete list of luxury properties in the Wailea / Makena area.

Thank you for reading my blog. If you have any questions, please leave a comment, or call me on 808 276 4017. I look forward to speaking with you soon.

Aloha !

Real Estate Agents Fiduciary Responsibilites Questioned

2008-01-22T22:39:00.000-10:00

2008 started with stock markets plummeting around the world. This distracted many people from the ongoing credit crises, and brought about fear and a panic sell off, which resulted in huge losses over only a few days trading.

In the Campaign debates there is much reference to what can be done to keep homeowners in their homes, and who is most likely to achieve it. As many homeowners, feeling poor from the loss of equity in their homes, and the loss of asset value in the stock market, sit and watch all this going on around them, they have begun to ponder: how did I get here ?

With home prices falling in almost all parts of the country over the last eighteen months, in some places double digit declines, here comes the the next question: Was my realtor negligent, or did he/she fail in their fiduciary responsibilities when representing the value, or the future value of a home ? If so, what can I do about it ?

Well, articles like these are seen more frequently, and if there is ever a conviction, then realtors, watch out, and be very careful of what you say !

Stay tuned ......

Reale Estate sentiment in 2008 ...

2008-01-13T21:19:00.000-10:00

There has been so much attention given to the sub-prime mortgage mess, crumbling lenders, falling real estate prices, and rapidly increasing foreclosure, its no surprise that buyer sentiment is dazed ..... confused, and buyers are possibly more than a little freaked out! I've heard seasoned real estate agents say the next cycle won't start until 2009. I disagree.

The Countrywide bomb exploded last week, with Bank of America diving on top of it just before it was too late. In the same way JPMorgan will come to the rescue of Washington Mutual, the time has come for the big banks to bail out those in need. Federal regulators are not going to stop these mergers, as there is simply too much at stake. There is no longer any need to speculate on the extent of the Sub-prime mess ... it went all the way to the top ! with Countrywide having to merge with Bank of America to stay afloat ! How much damage was there along the way ? 218 banks and lending institutions (50 000 jobs) have gone out of business in the last 15 months !! Yeah, I'd say there was some damage.

Looking forward, the Bush Administration is discussing a stimulus package, Federal Reserve Chairman, Mr. Bernanke, has assured the Nation (and the World) that the Federal Reserve will do whatever is necessary to maintain liquidity in the banking system, and the Feds are on the verge of dropping interest rates again. Fantastic ! The stock market is all over the map, which is another indicator that real estate may come back into favor sooner rather than later.

My disagreement with above mentioned realtor's is that the there is now consolidation in banking, investment groups have already taken their write-downs, and while prices will remain soft for some time, there is more incentive for buyers to put pen to paper. You gota remember, opportunity is constant.

Time will tell, stay tuned.

Real Estate up in 09 ?

2008-01-13T21:07:00.000-10:00

With articles like this one suggesting real estate prices won't recover nor will buyer sentiment change until 2009 .....I disagree.

Maui and Canadians .......

2007-12-12T22:09:00.000-10:00

Changing tracks a little, I did some research into visitor arrivals. Looking through The Department of Business, Economic Development and Tourism (DBEDT) figures, it's the Canadians who are bring the most Christmas cheer to Hawaii, and Maui in particular. According to DBEDT figures, Canadian arrivals are up 10% in Oct 2007 for the State, at 18 797 people, compared with 17 089 Canadian arrivals in Oct. 2006. There is a 14.8 % increase in Canadian arrivals (4 657) on Maui for Oct 07 vs Oct 06. The Oct. 07 DBEDT numbers show they are vacationing longer, and spending more money during their stay. With the Canadian dollar is off its high of 91 Canadian cents to the US dollar, and is now $1.01 to the US dollar, we have seen Canadians showing more and more interest in Maui real estate, and not only in the Kihei / Wailea condo market.

The influx of Canadians, lower interest rates, referenced by the Feds 1/4 point rate cut announced earlier today, plus volatility in the stock market, are all factors in setting the stage for a real estate come back on Maui. After months watching Maui real estate prices deteriorate, or in some cases remain flat, we believe prices will firm, with buyers realizing the bottom is near. Most significantly, is the increase in buyers ready to put pen to paper, and make an offer.

We want to thank you for support, and wish you a Merry Christmas, and a Happy New Year.

Ordinance Closes Makena

2007-12-04T17:13:00.000-10:00

As reported in the Maui Times, the discovery of unexploded ordnance in the Ahihi-Kinau Natural Area Reserve last week led state officials to close the road to the reserve on the southern flank of Haleakala.

The road will remain closed until the area is cleared by an Army explosives-disposal team, said Deborah Ward, spokeswoman for the state Department of Land and Natural Resources.

Members of that team were busy Monday removing an unexploded bomb on Oahu, she said. It was not known when the disposal team would be able to fly to Maui to handle the ordnance found late Friday in the reserve's aa lava fields by the U.S. Army Corps of Engineers.

Ward did not have details on the type or size of the four objects found at Ahihi-Kinau, but she said officials were concerned enough about the discovery to close the area, at least temporarily, out of concern for public safety.

Mortgage Woes include Wells Fargo

2007-11-27T22:12:00.000-10:00

Wells Fargo, known for its tighter guidelines and conservative practices, is not exempt from the mortgage dilemma which continues to unfold day after day. Wells Fargo, the fifth largest U.S. bank, said it will recognise $ 1.4 billion in loses for the fourth quarter. Despite this fourth quarter loss, Wells Fargo is getting off lightly compared with some of its peers like Countrywide and Washington Mutual, which has suffered tens of billions of loss over the last year. To give you some perspective, Wells Fargo originated roughly $ 2 trillion since 2001, recording incredible profits during that time.
For the complete story, click on the link provided.

http://biz.yahoo.com/ap/071128/wells_fargo_charge.html

Maui Builders of Affordable Housing Fees Waived

2007-11-14T15:33:00.000-10:00

The Land Use Committee has paved the way for builders of affordable housing to save thousands of dollars in county fees. For the full story, click on this link.

http://www.mauinews.com/story.aspx?id=35987

Maui Real Estate Sales Activity October 2007

2007-11-14T15:02:00.000-10:00

Aloha,

Thanks for your comments and feedback.

Instead of analyzing the October sales figures, I've attached a link to the Real Estate Association of Maui's sales summary:

http://www.mauiboard.com/complete_stats.mv

Particularly interesting are the sales figures from 2002 and 2003, which show the total number of sales month to month, and year to year, dating back to Jan. 2002. By looking at these figures, you'll see there were many more sales, month to month, andyear to year in 2003, 2004 and 2005 than in 2006 and 2007. I've often wondered about the mental tug of war between buyers and sellers, and now I get to see the transition in action. Considering the large number of new developments that have come on line in the last three years, combined with the growing number of people listing their properties, its no surprise Maui's real estate market is anxious. Listed in Maui County, today, any buyer has the choice of 1086 homes, 1333 condos and 519 pieces of vacant land. There are 153 homes (14 %) in escrow, 116 condos (9 %) in escrow and 50 pieces of land (9.7%). These escrow numbers are sobering, no question.

More rate cuts are expected when the Fed meets on 11 December. Should this happen, it will total three rate cuts in four months. Sound familiar ? Remember April of 2002 ? Given that real estate movement lags rate cuts anywhere between three to six months, we anticipate buyers to return soon (Dec/ Jan) based on the half point September rate cut. Interestingly enough, I recently spoke with a Canadian couple this weekend who bought on Maui a year ago. They wanted to know the current state of market. After a short explanation, the wife, head in hands, said "Oh s...t, now is the time we should have bought!" With a weak dollar, "very motivated" sellers, and excessive inventory on the market, foreign money could very well turn this market this winter. Now is the time to do your due diligence and position yourself to buy. Looking forward the next six months, we could see one of the great buying opportunities for years to come.

Please note, if you'd like to opt out of this letter, simply reply to this mail telling me so.

Thank you,

John Papazian R(B) Peter Slate R(S)

Haiku Properties Haiku Properties

808 878 6800 808 276 4017