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March, 2010 - Newsletter for the Maui Market
Aloha & welcome to 2010! Here is your eNewsletter for the Maui Market from Jim Foster and visit the web site when you have time www.JamesBFoster.com
Hot Buys for March, 2010 - If you are looking for an excellent buy in the Kaanapali area, this is a spectacular estate home for $2,950,000 with 4.5 bedrooms, 4 full and 2 half baths, office, exercise room and pool. This home contains 4,336 square feet, a lot with 20,550 square feet and sweeping panoramic ocean views and luxurious quality construction throughout. For photos and details send me an email or call 1-888-661-7994.
We have a list of 12 Short Sales and 1 REO for residential properties in West Maui and 12 Short Sales and 2 REO for condominiums. If you would like the details please send email. For a complete list of REOs and Short Sales in West Maui or the entire island send email request to Jim@JamesBFoster.com or would like to be notified daily of new listings or price changes that are REOs or Short Sales call me on my toll free number 1-888-661-7994 or email me at Jim@JamesBFoster.com
If you specifically are interested in a Short Sale or REO, 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 at Jim@JamesBFoster.com and I will email instructions.
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 - To view the year end 2007, 2008, 2009 & year to date 2010 Sales Statistics go to http://www.jamesbfoster.com/condosales.php and click on Maui MLS Statistics 2007, 2008, 2009 and 2010.
The West Maui real estate market – 2010 for some seems like the beginning of the 1960s, ‘70s, etc. It could not be a better time. If you are a first-time home buyer, there are great affordable properties, and with the currently available tax credit and low interest rates and a very opportune time. For anyone who has thought of owning on Maui, the time really could not be better. With the recent decline in property values and the amount of inventory available, it is a buyers’ market. Land values in Kaanapali have decreased significantly over the last three years, and again, prices are truly incredible. There are quarter-acre lots starting at under $400,000 in a beautiful gated neighborhood with fantastic views just waiting to be built on. It could never have been easier to build - there are many eager, qualified architects, contractors, builders and decorators to work with that can really make the whole process much easier than one might think.
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 681 (at 3/1/10) and on the same month in 2009 it was 757. 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 - At the beginning of January, 2009 there were 608 condominiums listed for sale with the total value of $511,345,892; February, 2010 there are 643 Condos with the total value of $519,749,801.00; and March 2010 there were 681 Condos with the total value of $549,060,756.00. The average number of condominiums for sale on West Maui from 1/1/2010 to 3/1/2010 is 644 and the average total value is $526,718,816.33.
The condominium for sale inventory since July, 2005 has been as low as 165 and was up to 805 in April, 2009 with the current inventory of 681 on March 1, 2010.
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.
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; 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.
Condominium Sales in 2010 - The total condominium sales for West Maui during the month of January, 2010 there were 31 sales and the total value was $21,104,950.00; and February, 2010 there were 46 sales and the total value was $43,926,209.00.
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 March 1, 2010 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 4.625% 30yr fixed 2.00pts (4.745 APR) 4.750% 30yr fixed 1.00pts (4.871 APR) 5.00% 30yr fixed -0- pts (5.123 APR) Stated Income - No longer available: Interest Only To $625,500: 5.75% 30 yr fixed (10/20)1.000pts (6.036 APR) Interest Only to $1M: 5.875% 30 yr fixed(10/20) .750 pt (5.945 APR) Condotels 6.125% 30 yr fixed 1.25pts (6.312 APR) (Points include origination fee)
Mortgage Rates as of February 3, 2010 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 4.875% 30yr fixed 1.500pts (5.090 APR) 5.000% 30yr fixed .750pts (5.148 APR) 5.125% 30yr fixed -0- pts (5.207 APR) Stated Income - No longer available: Interest Only To $625,500: 5.875% 30 yr fixed (10/20)1.000pts (6.036 APR) Interest Only to $1M: 5.875% 30 yr fixed(10/20) .750 pt (5.945 APR) Condotels 6.125% 30 yr fixed 1.25pts (6.312 APR) (Points include origination fee)
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)
Some recent and past news about what is going on in Maui & Hawaii
Weather - As I am writing this newsletter today, March 4, 2010, it is about 77 degrees and sunny with a few scattered showers. Between now and March 13th we are expecting windy conditions, scattered showers and the general conditions improving over the next nine days. 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.
Chase N Rainbows Real Estate - Vacation Rental Management and Bookings for Travel Information - Need a sun break? if you're tired of the rain and cold you can get away now! Call us (877.647.9575) to check availability and book today. We can place any condo on a courtesy hold while you firm up your flights. Remember to check for low fares and use the fare finders at Kayak.com & Vacapedia.com. Sign up for e-mail reminders with Travelocity and Priceline too! www.ChaseNRainbows.com Sign up for Monthly Newsletter.
Maui Residents and Tourist response to the Tsunami Warning – Just like a movie where they clear the streets, looking down Front Street on Saturday morning, February 27th, there were no people or cars. Merchants closed shops and residents headed to higher ground in Lahaina, ahead of a tsunami that was feared might bring damaging waves but produced only a small surge and muddy water. The people of Maui handled the situation with patience and Aloha! Although there was very little impact, it was an good drill and Maui County learned some good lessons that may prove valuable in the future.
Good News For Maui - Visitor arrivals by air and spending for those tourists both increased on Maui in January, compared with the same month in 2009. The upward ticks mark the first time in more than two years that both tourism indicators have moved into positive territory for the recession-weary Valley Isle.
Airlines plan to boost the number of passenger seats to Hawaii – Increases by nearly 6 percent of passenger seats to Hawaii this spring, providing further evidence that the recovery in tourism is gaining traction. The increase in air seats continues a trend that began late last year, when several carriers announced plans to expand flights to the islands. Among the carriers boosting their Hawaii service this spring is Continental Airlines, which will launch four flights a week to Maui from Orange County in March. Continental also will increase the frequency of its Orange County-Honolulu flights from four days a week to seven. Alaska Airlines in March will launch nonstop service to Maui and Kona from San Jose, Calif., as well as nonstop flights to Maui from Sacramento four times a week. The San Jose-Maui flights will be three times a week, the San Jose-Kona flights four days a week, and the Sacramento-Maui flights seven days a week. The additional California flights are reflected in a 5.1 percent increase to 1.43 million in projected air seats from the U.S. West during the March-through-May period. Air seats from the U.S. East are projected to increase by 6.3 percent to 245,459. Air seats from international destinations are forecast to rise 6.7 percent to 651,163, including a 3.2 percent increase from Japan to 407,823.
Hawai‘i Tourism Authority - Statement Regarding January 2010 Visitor Data
Attributable to Mike McCartney, President & CEO
“Assessing the markets, we anticipated the uptick that we started seeing at the end
of the fourth quarter in 2009 would continue through January 2010. Among the
positive indicators, growth in visitor spending, up for the second consecutive
month, and an increase in arrivals from the U.S. West for eight of the last nine
months validates our efforts in the markets.
The Pacific Northwest marketing blitz in fall 2009 has increased arrivals from
Oregon by 8.7 percent and Washington by 6.9 percent.
Our success with increasing air access has paid off most notably this month with
the Canadian market. Arrivals from Canada increased 17.7 percent and total
spending climbed 23.6 percent over last year to $105.9 million. Canadian travelers
are taking advantage of the 60.5 percent increase in air seats with the additional
service out of Calgary, Victoria and Vancouver. Again, our Pacific Northwest
marketing blitz, which also targeted Vancouver, seems to have generated increased
bookings. Canadian visitors are also spending more per day; $151 per person
compared with $141 in January 2009.
Substantial growth in total visitor spending on Hawai‘i Island, up 15.3 percent to
$144.8 million, and Maui, up 5.7 percent to $267.5 million, compared with last
January is another highlight. Hawai‘i Island, Maui and Kaua‘i all saw positive
visitor arrival growth, which underscores again the importance of air access and
why HTA is working hard to secure complementing routes to both the neighbor
islands and O‘ahu.
We are very engaged with meetings, convention and incentive travel, which we
forecast to be down for the first half of 2010. We see much of the business and
group bookings coming toward the end of the year with inquiries for future
meetings, conventions and incentives.
HTA’s three-year strategic plan focuses on improving Hawaii’s tourism economy,
generating more taxes, and most importantly, more jobs. We will continue to drive
demand to visit Hawai‘i in all of our key markets.”
No Gambling Allowed in Hawaii - Legislators killed a bill Wednesday night that would have allowed for a casino in tourist-filled Waikiki. A second measure allowing gambling on Hawaiian homelands won't get a vote. Public testimony on gambling measures was overwhelmingly negative, leading the House Finance Committee to scuttle the idea. Gambling interests pitched casinos as a way to help rejuvenate the state's tourism industry and to bring $86 million a year in tax revenue to a state facing a projected $1.2 billion budget deficit. But opponents argued a casino would eat up tourist money, tarnish the state's family-friendly image and increase crime.
The Old Diamond Resort at Wailea In Foreclosure – Now called, the Hotel Wailea, is tied up in foreclosure. In 2008, a group of Honolulu businessmen attempted to revive the Diamond Resort at Wailea, described as tired and dated since it had not been updated since its opening two decades earlier. It was necessary to consolidate the ownership, which had been dispersed among 1,400 owners in Japan. And that generated lawsuits. Most of those challenges were dismissed by 2nd Circuit Judge Joel August earlier this month, but both the challengers and the rehabilitators apparently are likely to be left with nothing, since a Mainland lender has foreclosed on the property but it will likely be several months before things are resolved and finalized.
Sheraton Maui at Kaanapali With Plans to add 410 units - With developers talking about disturbing sacred Pu‘u Keka‘a a third time with a plan to “revitalize and expand” the Sheraton Maui Resort, a cultural line in the sand may just have been drawn at Kaanapali Beach. The existing resort consists of 508 units located within six towers, six stories high. Although the formal permit process has not commenced, on the 2010 drawing board for Kyo-ya Hotels and Resorts LP is a preliminary proposal to increase the footprint of the West Side facility to 918 units with the addition of 270 new apartment-hotel units and 140 residential multifamily apartments.
Kaanapali Coffee Farms - West Maui saw the sugar cane fields disappear that seemed to stretch for miles coloring the landscape like a green sea. With the recent phasing out of pineapple in West Maui, it too was another blow to our island’s agricultural roots. What was once the “traditional” farm is no longer a viable option for many plantations due to an unstable economy, rising operating costs and global competition. But another solution is offering hope to West Maui’s agriculture woes in the form of Ka‘anapali Coffee Farms — a “new family farm” concept that not only offers a viable option, but a promising one at that. Thanks to a dynamic collaboration between Kaanapali Land Management Corp. and MauiGrown Coffee Inc., this true agricultural community now melds the best of both worlds — spectacular home sites with a working coffee plantation. The 500-acres is now producing some of the most sought after coffee in the world with its four varieties — Yellow Caturra, Red Catuai, Typica and their signature Maui Mokka™ — under the name MauiGrown Coffee. This year, MauiGrown Coffee estimates their harvest will exceed 320,000 pounds of “green” 100 percent Maui Origin coffee, up from 290,000 pounds the previous year. On approximately one acre of a four- to seven-acre lot, you can build a dream house, cottage and/or studio. Each purchase includes your very own coffee orchard that is taken care of by veteran farmers who take pride in the fruits of their labor. For more information call Jim 1-888-661-7994
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
Real Estate & Financial Planning Tips:
Congress has passed new legislation that:
• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
• Income limits increased to $125,000 for single buyers, married couples up to $225,000.
Seller financing - In the 1980's, "agreements of sale" were very common, because bank and mortgage company interest rates were very high. So, as a means of attracting buyers, sellers were willing to finance part of the sale price and/or do a "wrap around" of an existing, lower interest rate, mortgage. We now are seeing more interest on the part of sellers being willing to sell using “agreements of sale” or purchase money mortgages. Purchase Money Mortgages are where the seller essentially agrees to lend a ban would. You obtain a substantial down payment, check the credit based on a detailed credit report, financial statements from the buyer and then record a mortgage and note with the seller being in a first lien position.
As the "baby boom" generation reaches retirement, and here on Maui where we have retirement housing opportunities, some sellers want to consider serving as a "mortgage lender." That gets them higher interest income, secured by real property that always seems to go up in value. It is important to recognize that this "return to the past" (and preferably use of "purchase money mortgage” so all other aspects of the deal are closed) is a real opportunity. It is an opportunity to attract even more buyers, and thus keep the market strong. At the same time, it is an opportunity to enable some sellers to accomplish both of their objectives at the same time – sell and have a secure (and tax advantaged) retirement income.
Four Reasons to Sell Now - Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign.
1. Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.
2. Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.
3. Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
4. Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.
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
http://henrikfalck.com/languageanalyzer Ever seen something written in an unknown language -- a language that you can't even identify? You'd like to use one of those great on line translating programs - but how can you do that without knowing the language you're trying to translate? This free web-based online language identifier does the trick. Simply paste a bit of the text into the box provided and it analyzes and identifies the language.
www.costtodrive.com Getting ready to take a long drive and want to know what it is going to cost? This web site will help you quickly and easily discover how much it costs to drive anywhere in the US. This fun and useful site will give you the approximate cost for driving any route you choose,
www.filetolink.com Use this site to e-mail large files without problems from your e-mail providers. E-mail providers set a cap on the size of files we can send - and when we exceed that cap they get nasty and bounce those great photos we tried to send. This great place lets you upload files as large as 2 gigabytes -- and there is no need to register or sign up. You simply upload your file and your link is instantly ready to email to your friends and colleagues. You can upload as many files as you want. Your files remain accessible for as long as they are being used and can be download an unlimited number of times.
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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