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January, 2010 - Newsletter for the Maui Market
Aloha & welcome to 2010! Here is your eNewsletter for the Maui Market from Jim Foster
Hot Buys for January, 2010 - Kaanapali Royal G201 $825,000 (totally remodeled) 1,534 square feet concrete air conditioned; Kahana Reef 1 bedroom on ocean, 611 square feet concrete building $439,000; Kahana Sunset 2 bedroom unit 952 square feet $795,000; Kapalua Golf Villas 2 bedroom unit 1,440 square feet $550,000; (FS); Mahana right on the beach, studio 456 square feet $515,000, 1 bedroom unit 820 square feet $855,000, 2 bedroom unit (total remodel) $1,945,000; Maui Eldorado with private cabana on Kaanapali Beach, studio $249,000 (LH); Maui Kaanapali Villas on Kaanapali Beach 1 bedroom unit with 920 square feet $475,000; Pohailani studio direct oceanfront with 363 square feet $310,000; Puna Point 1 bedroom with 678 square feet $998,000.
For a complete list of REOs and Short Sales in West Maui or the entire island send email request to Jim@JamesBFoster.com
Residential Short Sales - 1) 164 Hui Rd F $609,900; 2) 33 Kahana Ridge Drive $725,000; 2) 1057 Front St $750,000; 3) 296 Kahana Ridge Pl $895,000; 4) 30 Kui Place $899,000; 5) 1406 Front St $995,000; 6) 300 Alii Way $1,395,000; 7) 163 Eke Pl $1,495,000 8) 9595 Punakea Loop $1,749,000; 9) 136 Hakui Loop $1,950,000; 10) 1350 Front St (ocean front ) $3,500,000.
Residential REO - 1) 5 Iris Place Kahana Ridge $665,800
Land Short Sales - 1) Lanikea Subdivision - 12,081 SF Lot, $405,000, 12,062 SF Lot $495,000 and 21,780SF Lot $540,000; Summit Lot 12,863 SF $570,000 and Kaanapali Golf Estates Lot 11,282 SF $749,000
Land REO - 1) Summit Subdivision - 11,892 SF Lot $395,000; 2) Lanikea Subdivision - 12,628 SF Lot $399,000; 3) Lanikea Subdivision - 40,816 SF Lot $850,000; 4) Pinnacle Subdivision 20,247 SF $695,000; 5) Kapalua area with almost 11 acres of mainly useable land with spectacular sunset, ocean, Molokai and mountain views Sellers have completed substantial steps toward obtaining entitlements for a 10 lot subdivision $3,000,000.
Condo Short Sales - 1) Kahana Reef 1 Bd $395,000 2) Kaanpali Royal 2 Bd 1,534 SF $675,000; Kapalua Bay Villas 1 Bd 2 Bth $$825,000;
Condo REO - 1) Whaler Studio $449,000
You can now search on my web site www.JamesBFoster.com the Short Sales & REOs on Maui in the MLS. Email me and I will email you back the instructions on how do to do the search. There are a substantial number of Short Sales and REO properties for sale in the Maui Realtors Association Multiple Listing Service (MLS) and the number is increasing and if you would like to have a list or are interested in these types of properties send an email to Jim@JamesBFoster.com
New IDX Search Features - on www.JamesBFoster.com Search properties and you can search for Short Sales, REOs, by location and other categories. If you would like directions on how to use email me Jim@JamesBFoster.com and I will email instructions.
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Make sure you check out the Useful Internet Sites and Real Estate Tips at the end of this newsletter.
Don't forget! We provide a free Automatic E-mail Notification Service that goes out to recipients whenever a new listing becomes available for a particular condominium complex. Each of these notifications includes a link to view the details of the brand new listing in the MLS. We DO NOT SHARE YOUR EMAIL ADDRESS or your contact information with anyone. To subscribe to our Automatic E-mail Notification Service, please send Won an email at Won@JamesBFoster.com with your first and last name, your email address, and the condominium property you wish to be notified of.
Maui Real Estate – The market has not bottomed out yet but we are getting close Prices are continuing to be impacted by short sales and REOs coming on the market. This is impacting property that is listed but we also see escrows that are being cancelled and appraisals coming in lower than what units are in escrow for.
Shadow Inventory estimates real estate owned by banks and mortgage companies, as a result of foreclosures and other actions, as well as real estate that is at least 90 days delinquent. As of September, 2009, the latest figures available, First America CoreLogic estimated in the US Market, there was a 1.7 million units pending supply of residential housing inventory, up from 1.1 million a year earlier. At current sales rates, the pending supply is 3.3 months, up from 2.4 months a year ago. So, ‘real' inventory is diminishing, but the Shadow Inventory (in yellow) keeps the overall supply higher than usually reported. A similar situation exists in Hawaii and on Maui as the REO and Short Sale listings continue to increase it is impacting the seller’s ability to market a property quickly and also the appraised value necessary to obtain loans.
In Hawaii for condotel loans there were two lenders, First Hawaiian Bank and Bank of Hawaii. Bank of Hawaii withdrew from that market in the last month and this makes it more difficult to sell condominiums in complexes indentified and classified as condotels.
To view the 2007 & 2008 and 2009 Jan through Nov Year End Statistics go to http://www.jamesbfoster.com/condosales.php and click on Maui MLS Statistics 2007, 2008 and the month ending November, 2009.
The West Maui real estate market continues to favor Buyers with Sellers willing to negotiate their prices. We are either at the bottom or will be in the next three to six months. Once the bottom is achieved prices will likely remain at that level for six to nine months before changing direction. Buyers in the market currently, for the most part, are looking for deals or the lowest prices. We are seeing improvement in the number of showings and increased bookings for vacation rental. The current inventory of West Maui condominiums for sale is now at 608 (at 1/4/10) and on the same month in 2009 it was 741 and this is an improvement with inventory going down. Properties are requiring more time to sell such as five to six months and Buyers have a much larger inventory of properties for sale to choose from. If you’re curious about current trends in Maui real estate and where the market is headed, the answer is - it depends on Location - it depends on if it is condominium or single-family residential - it depends on whether you look at volume, average or median prices. In the current Maui real estate market, the for sale inventory continues to increase and prices are typically flat or have decreased.
Condominiums for Sale
2007 - In the West Maui real estate market, at the beginning of January, 2007 there were 410 condominiums listed for sale with the total value of $372,238,031.00; February, 2007 - 431 condos with the total value of $393,681,669.00; March, 2007 - 458 condos with the total value of $420,941,268.00; April, 2007 - 479 condos with the total value of $429,708,159.00; May, 2007 - 472 condos with the total value of $424,095,260.00; June, 2007 - 455 condos with the total value of $415,187,129.00; July, 2007 - 475 condos with the total value of $432,797,008.00; August, 2007 - 469 condos with the total value of $420,479,301.00; September, 2007 - 474 condos with the total value of $430,914,408.00; October, 2007 - 471 condos with the total value of $423,631,002.00; November, 2007 - 466 condos with the total value of $416,008,907.00; and December, 2007 - 485 condos with the total value of $421,080,117.00. The average number of condominiums for sale on West Maui for 2007 was 462 and the average total value was $416,730,118.25.
2008 - At the beginning of January, 2008 there were 511 condominiums listed for sale with the total value of $445,656,447.00; February, 2008 there were 559 condos with the total value of $500,946,603.00; March, 2008 - 595 condos with the total value of $529,779,322.00; April, 2008 - 647 condos with the total value of $606,635,687.00; May, 2008 - 634 condos with the total value of $583,391,821.00; June, 2008 - 644 condos with the total value of $590,736,279.00; July, 2008 - 680 condos with the total value of $662,919,268.00; August, 2008 - 703 condos with the total value of $693,069,348.00; September, 2008 - 693 condos with the total value of $654,411,079.00; October, 2008 - 673 condos with the total value of $620,032,454.00; November, 2008 - 715 condos with the total value of $652,379,032.00; and December, 2008 - 729 condos with the total value of $660,335,998.00. The average number of condominiums for sale on West Maui for 2008 was 648 and the average total value was $604,191,111.50.
2009 - At the beginning of January, 2009 there were 742 condominiums listed for sale with the total value of $693,143,047.00; February, 2009 there were 757 Condos with the total value of $709,234,346; March, 2009 there were 787 Condos with the total value of $681,864,289; April, 2009 there were 805 Condos with the total value of $693,368,793; May, 2009 there were 717 Condos with the total value of $629,812,465; June, 2009 there were 691 Condos with the total value of $591,075,527; July, 2009 there were 692 Condos with the total value of $588,385,017; August, 2009 there were 682 Condos with the total value of $575,359,815; September, 2009 there were 662 Condos with the total value of $540,291,317; in October, 2009 there were 662 Condos with the total value of $527,367,912; in November, 2009 there were 636 Condos with the total value of $486,410,609; and in December, 2009 there are 629 Condos with the total value of $495,645,642. The average number of condominiums for sale on West Maui for 2009 is 705 and the average total value is $600,996,564.92.
2010 - On January 4, 2009 there are 608 condominiums listed for sale with the total value of $511,345,892.
The condominium for sale inventory since July, 2005 has been as low as 165 and was up to 805 in April, 2009 with the currently inventory of 608 on December 4, 2009.
Condominium Sales
2006 - The total condominium sales on West Maui during the month of January, 2006 there were 42 sales and the total value was $28,574,643.00; February, 2006, there were 48 sales with total value of $32,995,078.00; March, 2006 - 40 sales with total value of $32,199,584.00; April, 2006 - 43 sales with total value of $41,898,525.00; May, 2006 - 51 sales with total value of $39,644,886.00; June, 2006 - 40 sales with total value of $32,533,500.00; July, 2006 - 30 sales with total value of $26,212,000.00; August, 2006 - 28 sales with total value of $31,885,500.00; September, 2006 - 30 sales with total value of $24,770,000.00; October, 2006 - 29 sales with total value of $23,359,299.00; November, 2006 - 22 sales with total value of $13,414,600.00; and December, 2006 there were 30 sales with total value of $23,169,999.00. For 2006, the monthly average sales were 36 sales per month with the average sales value of $29,221,467.83 per month.
2007 - The total condominium sales for West Maui during the month of January, 2007 there were 37 sales and the total value was $33,091,000.00; February, 2007 there were 26 sales with total value of $16,330,000.00; March, 2007 - 32 sales with total value of $24,121,000.00; April, 2007 - 27 sales with total value of $16,766,000.00; May, 2007 - 28 sales with total value of $30,774,929.00; June, 2007 - 28 sales with total value of $18,917,000.00; July, 2007 - 21 sales with total value of $13,314,200.00; August, 2007 - 32 sales with total value of $33,258,999.00; September, 2007 - 23 sales with total value of $24,701,900.00; October, 2007 - 42 sales with total value of $28,159,900.00, however this included a packaged sale of 19 units at Aina Nalu in Lahaina; November, 2007 - 15 sales with total value of $15,930,000.00; and December, 2007 there were 13 sales with total value of $13,335,500.00. For 2007, the Month of December saw the lowest number of sales in 2007. The monthly average sales were 27 sales per month with the average sales value of $22,391,702.33 per month.
2008 - The total condominium sales for West Maui during the month of January, 2008 there were 20 sales and the total value was $16,184,800.00; February, 2008 there were 20 sales and the total value was $14,414,584.00; March, 2008 - 26 sales and the total value was $20,079,000.00; April 2008 - 28 sales and the total value was $20,488,500.00; May 2008 - 22 sales and the total value was $20,055,000; June 2008 - 14 sales and the total value was $11,957,000; July 2008 - 10 sales and the total value was $6,955,999; August 2008 - 13 sales and the total value was $8,055,000; September 2008 - 12 sales and the total value was $6,707,122; October 2008 - 12 sales and the total value was $8,042,500; November 2008 - 10 sales and the total value was $8,444,000; and December 2008 there were 6 sales and the total value was $6,265,000. For 2008, the average monthly sales were 16 sales per month with the average sales value of $12,304,042.08 per month.
Condominium Sales in 2009 - The total condominium sales for West Maui during the month of January, 2009 there were 76 sales and the total value was $95,573,286.00; February, 2009 there were 54 sales and the total value was $68,795,841.00; March, 2009 there were 37 sales and the total value was $32,979,595.00; April, 2009 there were 23 sales and the total value was $13,142,872.00; May, 2009 there were 11 sales and the total value was $8,879,500.00; June, 2009 there were 18 sales and the total value was $12,530,000.00; July, 2009 there were 28 sales and the total value was $30,196,900.00; August, 2009 there were 25 sales and the total value was $17,891,397.00; September, 2009 there were 14 sales and the total value was $5,684,550.00; October, 2009 there were 23 sales and the total value was $14,202,856.00; and November, 2009 there were 19 sales and the total value was $9,850,550.00; and December, 2009 there were 35 sales and the total value was $39,598,000.00. For 2009, the average monthly sales were 30 sales per month with the average sales value of $29,110,445.58 per month.
We have gone in to the Maui MLS database and pulled information for 2000 through 2008. In 2000 - 654 condominium units sold in the West Maui area for a total value of $209,064,010; in 2001 - 605 condominium units sold for a total value of $271,681,337; in 2002 - 730 condominiums sold for a total value of $240,178,915; in 2003 - 737 condominiums sold for a total value of $319,748,466; In 2004 - 700 condominiums sold for a total value of $375,033,467; in 2005 - 682 condominiums for a total value of $408,582,315; in 2006 - 435 condominiums for a total value of $351,782,614; in 2007 - 327 condominiums for a total value of $271,290,428; in 2008, - 193 condominium units sold for a total value of $147,648,505; and in 2009, - 363 condominium units sold in the West Maui area for a total sales value of $349,325,347.00.
If you would like to view the most current sales statistics for Maui or West Maui Condominiums, you can go to my web site www.JamesBFoster.com and click on Condo Sales in the upper left corner of the home page or go to www.JamesBFoster.com/condosales.php
Mortgage Rates as of January 1, 2010 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 5.125% 30yr fixed 1.625pts (5.354 APR) 5.250% 30yr fixed .500pts (5.378 APR) 5..375% 30yr fixed -0- pts (5.458 APR) Stated Income - No longer available: Interest Only To $625,500: 6.125% 30 yr fixed (10/20)1.500pts (6.035 APR) Interest Only to $1M: 6.000% 30 yr fixed(10/20) 1.000pt (6.079 APR) Condotels 6.500% 30 yr fixed 1.00pts (6.687APR) (Points include origination fee)
Mortgage Rates for week of December 1, 2009 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 4.500% 30yr fixed 1.875pts (4.743 APR) 4.750% 30yr fixed 1.000 pts (4.918 APR) 5.000% 30yr fixed -0- pts (5.081 APR) Stated Income - No longer available: Interest Only To $625,500: 5.375% 30 yr fixed (10/20)1.000pts (5.530 APR) Interest Only to $1M: 5.500% 30 yr fixed(10/20) 1.000pt (5.589 APR) Condotels 5.875% 30 yr fixed 1.500 pts (6.079 APR) (Points include origination fee)
Mortgage Rates for week of November 1, 2009 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 4.750% 30yr fixed 1.625pts (4.974 APR) 5.000% 30yr fixed .50 pts (5.126 APR) 5.250% 30yr fixed -0- pts (5.332 APR) Stated Income - No longer available: Interest Only To $625,500: 5.500% 30 yr fixed (10/20)1.50 pts (5.698 APR) Interest Only to $1M: 5.750% 30 yr fixed(10/20) 1.500 pt (5.898 APR) Condotels 6.000% 30 yr fixed 2.125 pts (6.291 APR) (Points include origination fee)
Mortgage Rates for week of October 1, 2009 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 4.750% 30yr fixed 1.625pts (4.974 APR) 5.000% 30yr fixed .50 pts (5.126 APR) 5.250% 30yr fixed -0- pts (5.332 APR) Stated Income - No longer available: Interest Only To $625,500: 5.500% 30 yr fixed (10/20)1.50 pts (5.698 APR) Interest Only to $1M: 5.625% 30 yr fixed(10/20) 1.625 pt (5.766 APR) Condotels 6.000% 30 yr fixed 1.875 pts (6.186 APR) (Points include origination fee)
Some recent and past news about what is going on in Maui & Hawaii
Weather - As I am writing this newsletter today, January 3, 2010, it is about 81 degrees and partly cloudy and a beautiful Maui day and the temperature over the next three to four days are expected to be in the 81 to 83 degree range . Evenings are cooler, making sleeping very comfortable with the windows open. Maui weather is as near to perfection as you can get.
Medical Facilities on Maui - The new organization that is proceeding with Dr. Ron Kwon’s dream of a new hospital in Kihei is www.MalulaniFoundation.org To stay informed of what is transpiring with future approvals for either the Kihei or West Maui hospital, you can send me an email and request to be added to the newsletter list to my email at Jim@JameBFoster.com The Malulani Foundation, a non-profit 501(C)3, received approval from the IRS in a letter dated December 28, 2009 and is exempt from Federal Income Tax and is now qualified to receive tax deductible bequests, devises, transfers or gifts under section 2055, 2106 or 2522 of the IRC.
Wind Farm Expansion Maui - First Wind is an independent North American wind energy company focused exclusively on the development, ownership and operation of wind energy projects. Working in partnership with communities, such as Maui, First Wind provides revenue to states and towns from wind farms. www.firstwind.com First Wind has discovered that lower slopes provide a good place to catch wind for its windmill expansion and is proposing to expand the Kaheawa Pastures wind farm to a ridge below the existing farm, rather than parallel it to the west. The turbines have been on the island for a year, awaiting permitting to allow another 21 megawatts of wind power to be added to the power grid. Kaheawa Wind Power I, in operation above Maalaea since 2006, is rated at 30 megawatts. If a purchase power agreement with Maui Electric Co. and state permits can be obtained on First Wind's proposed schedule, construction would start in the third quarter of 2010 and power generation would begin in the second quarter of 2011. First Wind is proposing to incorporate a battery electricity storage system into its power generation. Some federal money is being invested in these enhancement techniques for both Kaheawa farms.
Maui Land & Pineapple Future Viability In Doubt - A report filed recently with the Securities and Exchange Commission auditors found the company's future jeopardized by its financial losses, weak cash reserves, an inability to meet certain financial obligations and an overall balance sheet that shows the company's liabilities exceeding its assets by more than $60 million. ML&P is counting on being able to sell some of its real estate in order to meet its financial obligations and raise cash, but in a down real estate market that plan's success is uncertain. Maui Land & Pineapple Chief Financial Officer John Durkin said Tuesday the company had already made "a lot of progress" toward financial stability by restructuring its operations, and that its proposed new equity offering would provide an infusion of cash. The next six months will be interesting to watch ML&Ps progress towards viability.
Outrigger takes over Kapalua Villas management - Outrigger Enterprises Group assumed management of The Kapalua Villas today and will be marketing about 200 of the 500 luxury condominiums overlooking the ocean at Kapalua Resort. The Villas now employs about 70 people and could add another 30 to 40 jobs here in Kapalua. The other five properties managed by Outrigger on Maui are all preceded by the Outrigger name, but The Kapalua Villas has an established brand and will retain its name for that reason. The other five are Outrigger Palms at Wailea, Outrigger Napili Shores, Outrigger El Dorado, Outrigger Royal Kahana and Outrigger Aina Nalu. At Kapalua there are three different associations of apartment owners and three different advisory committees and the difficulty in coordinating maintenance in a mixture of properties spread out over several hillsides. The three subdivisions are the Kapalua Golf Villas, The Ridge At Kapalua and Kapalua Bay villas. The new general manager will be TJ Oesterling.
A Modest Turnaround for 2010 forecast by U of H economists - A forecast of a modest turnaround in the new year in the first quarter and then reassess. While visitor arrival data and hotel occupancy rates are down, there are signals that Hawaii is "very likely past the bottom of the tourism downturn," the economists said in their quarterly report. The pulse is going to show up more on Oahu, because a strong yen and recovery in Japan should boost Japanese tourism, heavily skewed to Waikiki. Arrivals from the Mainland, where Maui's visitor industry prospers or swoons, are projected to be up 3 percent in 2010 and 3 percent in 2011. That would not bring the totals close to 2007 levels. County employment rolls have not been touched, but falling real property values leading to reduced real property tax collections are expected to put pressure on county councils in next year's budget deliberations. "Risks abound," concludes UHERO, including the possibility that the apparent recovery worldwide could come to a halt.
Updates on Widening of Honoapiilani Highway project - A new Web site has been set up to provide residents, visitors and commuters with information about the Honoapiilani Highway widening project, general contractor Goodfellow Bros. Inc. has announced. The site can be found at www.buildgbi.com/buildhonoapiilani. The $18 million project will widen Honoapiilani Highway between Lahainaluna and Aholo roads to a four-lane divided highway with a curbed median, sidewalks on one side and paved shoulders on both sides. Construction work is from 7 a.m. to 3:30 p.m. weekdays, except holidays. Two-way traffic continues in the construction area, although it is routed around work areas. Construction began in October. Work is expected to be completed in about a year.
Department of Planning Permit Process - The Planning Department has quietly been working to streamline and update the county's out-of-date code into a new era of "smart-growth" and "mixed-use" planning. For who knows how long, residents, businesses and developers have complained that getting any county permit has become a daunting, expensive and slow process. The scope of what actually can be built in the various zoning districts hasn't kept up with the times, said Planning Department Director Jeff Hunt. County Council members who are all involved in this massive undertaking aren't throwing out Chapter 19 of the Maui County Code, Hunt said. However, some major reforms will likely come to County Council members soon, such as easy-to-understand tables, digitized maps, online applications and the elimination of archaic terminology. Jeff Hunt believes his department can create a compromise to bring vacation rentals back to the commercial districts in places like country towns, such as Makawao and Pukalani. Years ago, the short-term rental units were removed from those areas essentially to move them all to the hotel districts on the west and south sides of the island, Hunt said. Last year, the County Council and Planning Department reformed the bed-and-breakfast ordinance that allows operators to rent out their home or an ohana on site. The council is expected to take up vacation rental reform sometime after it completes the General Plan update process next year. With the help of improved methods, the time it takes to get an administrative Planning Department approval has gone from six months to 12 business days, Hunt said. However, that probably has more to do with the slow pace of the economy, he said. But when the economy does pick up, and that will happen soon here, Maui County will be ready, Hunt said.
B&B system is taking off; 33 permits gain backing - After Maui County’s new bed-and-breakfast permitting system became effective twelve months ago, the Planning Department approved more than twice as many permits as it did in the previous eleven years. The planning director now has authority to approve B&B permit applications outside of the hotel/resort districts, except on agricultural land. Property owners can either rent out their own home or an ohana unit on the property as a B&B, as long as they live on-site, rent out no more than six rooms and provide breakfast in the morning.
The new law also sets a cap of 400 for the total number of B&Bs allowed on the Valley Isle. The County Council still is expected to revamp the TVR ordinance in the coming year. But that might take a while, since elected officials must first complete the annual budget this spring and also wrap up the long-awaited 2030 General Plan before amending the TVR ordinance. Links to the 17-page amended B&B ordinance as well as the 22-page bed-and-breakfast application can be found online at www.co.maui.hi.us/index.aspx?NID=1206
Hawaii Ranked As Second Happiest State - People in sunny, outdoorsy states - Louisiana, Hawaii, Florida - say they're the happiest. Rounding out the happy five were Hawaii, Florida, Tennessee and Arizona. At the other end of the scale, last in happiness is New York state. The researchers did not expect that states like New York and California, which ranked 46th, would do so badly in the happiness ranking. Many people thought these states would be marvelous places to live in. The problem is that if too many individuals think that way, they move into those states, and the resulting congestion and house prices make it a non-fulfilling prophecy.
SBS Championship For Golf - The PGA Tour starts at Kapalua Resort. The 2010 SBS Championship tees off at the Plantation Course with an elite field of the 2009 PGA Tour champions. Purchase Tickets at the Honolua Store, Kapalua Resort’s two Golf Pro Shops or call 1-808-665-9160 January 4th through 10th, 2010.
Attorney in Lahaina - Gary Robert resides in West Maui and has been providing legal services here for over 30 years in Lahaina. His office is located at 808 Wainee Street, Suite 201, Lahaina, Maui, Hawaii 96761. To contact Gary - Tel: 808-667-7741
Fax: 808-667-7550 Email grlaw@hawaiiantel.net Web site www.garyrobertlaw.com
Business Law - Corporations, Partnerships, LLCs & Contracts.
Real Estate Law - Conveyances, Mortgages, Foreclosures, Landlord - Tenant, Partitions, Associations, Wills, Trusts, Probate, Family Law and Divorce.
Remodeling or Upgrading condominium or house - It is critical to have a licensed contractor and subcontractors with excellent references and experience working with Maui properties if you will be Remodeling or Upgrading a condominium or house Should you need assistance or referrals for a property you own or need an estimate for property you are contemplating purchasing, all Jim Foster on his toll free number 1-888-661-7994 or send him an email to Jim@JamesBFoster.com and we can provide names and contact information as we have contact information for several reputable contractors for both remodeling and new construction.
Installation of Home Entertainment Systems - If you are looking for an experienced company for Home Theater Systems, Whole House Sound Systems, Telephone & Computer Network Wiring, HD TV Specialist/Blu Ray, Complete Color Calibration System and Universal Remote Control Systems and much more - contact Jason Vizthum with Integral Technologies in Lahaina. Phone is 1-866-420-3013 and Cell is 808-214-4212. Licensed, excellent referrals and a West Maui resident. www.integraltechmaui.com Email for Jason integraltech@hawaii.rr.com
Medical Facilities on Maui - The new organization that is proceeding with Dr. Ron Kwon’s dream of a new hospital in Kihei is www.MalulaniFoundation.org To stay informed of what is transpiring with future approvals for either the Kihei or West Maui hospital, you can send me an email and request to be added to the newsletter list to my email at Jim@JameBFoster.com The Malulani Foundation, a non-profit 501(C)3, received approval from the IRS in a letter dated December 28, 2009 and is exempt from Federal Income Tax and is now qualified to receive tax deductible bequests, devises, transfers or gifts under section 2055, 2106 or 2522 of the IRC.
Real Estate & Financial Planning Tips:
Exchanging in Today’s Economy - Given the current real estate market, many investors see limited or no appreciation in their investment property and for many it will make sense for them to sell their property and do a 1031 exchange.
With almost all real estate sales involving improved property, there is the recapture of depreciation. Section 1250 of the Internal Revenue Code requires that depreciation be recaptured at the current rate of 25%, which is higher than the current long-term capital gains rate. This makes a 1031 exchange very attractive.
Other reasons to consider doing a 1031 tax-deferred exchange in a down market are:
- Diversification (i.e., selling one larger property to acquire numerous smaller properties at today's prices) or relocating investment properties to another area of the country with faster appreciation,
- Exchange raw land which produces no income for an improved property which can be rented to create positive cash flow,
- Exchange into a property that can be used professionally. For example, selling a single-family rental property and purchasing a new property that can accommodate your business, or
- Exchange from fully depreciated property into to a higher valued property that can be depreciated further.
In a down market such as we are experiencing, a 1031 exchange can be very beneficial. Leveraging the cash that may be forfeited in capital gains taxes and/or depreciation recapture makes sense in any market and a 1031 exchange is the vehicle to get it done.
Do not forget, for relinquished property transfers occurring after October 17, 2009, the exchanger may need to obtain an extension of his or her tax return due date in order to receive the benefit of the entire 180-day exchange period. This will apply only in the event that the replacement property will not be acquired prior to April 15, 2010 (for calendar-year non-corporate taxpayers). Make sure you consult your tax advisor for precise guidance on your particular situation.
Tax Assessors Office & Tax Appeals - Do not wait until you receive your new assessments to obtain current market information in your market area. Be proactive and have you information available. Here are the important dates sequentially but the most important is the deadline to file an appeal is April 9th so look for those tax assessments that are mailed out by the county around March 15, 2010 and be ready:
December 31 - Deadline for filing exemption claims and ownership documents which affect the tax year and Deadline for filing circuit breaker applications
January 1 - Assessments set for use during next tax year
March 15 - Assessment notices mailed
April 9 - Deadline for filing tax appeals
May 1 - Certified assessment roll to County Council
June 20 - Tax Rate set by County Council
July 1 - Tax Year Commences
July 20 - First half year tax bills mailed
August 20 - First half year tax payments due
September 1 - Deadline for filing agriculture dedication petitions
January 20 - Second half year tax bills mailed
February 20 - Second half year tax payments
We receive calls on a regular basis and provide letters of Market Value at the time of death to assist in the Probate process for owners of Hawaii real estate. It is always unfortunate when estate planning has not been done and the tax liability has to be dealt with in a short period of time.
Take the time to review with your current financial plans and also estate plans with your advisors. If you do not have trusted advisors ask friends and business associates for recommendations because in the long run it may be the best investment you will make.
In past newsletters, I have mentioned that the easiest way to minimize the tax impact when selling is to do a tax deferred exchange. If you have questions about tax deferred exchanges give us a call. If you are considering selling your property in Hawaii, a tax deferred exchange will exempt you from the 5% HARPTA withholding and also the Federal Capital Gains Tax. Planning in advance for the disposition or acquisition of assets is always a wise decision. Another invaluable tool for sellers in doing a tax deferred exchange is having the option of using tenant-in-common (TICs) for qualifying for replacement properties.
We have assisted sellers (for sale by owners) who had buyers but needed someone to facilitate the sale and guide them through the process and assure them they were asking a current market value price for their properties.
Many property owners who currently own underperforming assets can sell those assets and take advantage of tax deferred exchanges, turning an underperforming asset such as land into an income producing asset. If you are contemplating selling highly appreciated real estate during 2010 and would like for us to provide an analysis of how to best structure your transaction, please call me or send me an email if you would like additional information at 808-661-7994 or email Jim@JamesBFoster.com
Useful Internet Sites & Interesting DVDs:
www.komando.com For those of you who enjoy or use the internet on a regular basis or use your computer frequently, here is a web site that is a great source of information relative to computers, software and the internet - Kim Komando also does a radio talk show that is syndicated in most states, including Hawaii and is broadcast here on Saturday morning, 990 AM at around 6:30 AM. If you would like to listen go to the web site and check the schedule.
www.gotomypc.com Move around a lot? Don't feel like lugging your computer? Here's a neat trick -and you don't even need a notebook or handheld! This clever site allows you to remotely access and control your computer from any other Internet-connected computer in the world through a secure, private connection. In short you can run your computer back home from someone else's machine over the Internet. Once you have downloaded and installed the software on your computer you can remotely access it from any PC with a Web browser. Once connected, you can immediately access your email, applications, documents and network resources. Then you can work on your computer as if you were sitting right in front of it - from anywhere in the world! Saves a lot of lugging -and it's free!
www.mail2web.com Need email but laptop is a hassle? Here's a way to move about the planet and handle your e-mail without worrying about the weight or safety of your equipment! Unlike other services like Hotmail or Yahoo these folks let you use your present email account. You simply enter your email address and password and access your inbox. You can then read, reply and forward your messages. You can even delete large attachments without first downloading them! No need to register. Nothing to download. You can use this service anonymously.
Interesting DVDs
Angels & Demons(2009) - After the murder of Italian physicist Leonardo Vetra, Harvard symbologist Robert Langdon's (Tom Hanks) investigation with Vetra's daughter (Ayelet Zurer) leads to a secret society, the Illuminati, and a quest for the world's most potent -- and deadly -- energy source. Ron Howard directed the crime thriller, which is based on The Da Vinci Code author Dan Brown's novel and co-stars Ewan McGregor and Stellan Skarsgård. Out in the Blue-ray DVD format and can be purchased or rented.
Moonlight Serenade - When semiprofessional piano player Nate Holden (Alec Newman) discovers that the lovely coat check girl at a nearby jazz club (Amy Adams) has the voice of an angel, he persuades her to form a musical act with him. As the pair's melodic collaboration at the nightclub starts to gain attention, their professional relationship takes a turn toward the personal. This musical from director Giancarlo Tallarico co-stars Moon Bloodgood.
http://video.pbs.org If you are a fan of the Public Broadcasting System (PBS) (or want to be) then this is a very worthwhile place to visit. Frontline -- Masterpiece Theater -Nova -- American Masters -- this great place has full length videos at your fingertips - on demand! You can watch your favorite shows and catch any episodes you may have missed -- all on your schedule. You can also send your favorites to friends and post them to social networks. There is no cost but if you are not a member of your local PBS affiliate you should become one as it is the highest quality of entertainment and a bargain price.
Kindest Regards, Jim Foster
Chase 'N Rainbows Real Estate, Inc.
Toll Free 888-661-7994
Direct Line 808-661-7994
Cell 808-870-5858
Fax 808-667-2957
Real Estate for Sale www.JamesBFoster.com
Vacation Rental www.ChaseNRainbows.com
Email Jim@JamesBFoster.com
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