Oahu Real Estate Information

About Short Sales and Foreclosures on the Ewa Plain, Oahu Hawaii

Kate Braden R ePRO ABR — Wed, 03 Feb 2010 20:12:00 GMT

Foreclosures Test Ewa Beach area

By Allison Schaefers www.starbulletin.com > Business >

POSTED: 01:30 a.m. HST, Jan 24, 2010

[Quotes in blue are from Broker in Charge and Co-owner of Hawaii Real Estate Online, a Hawaii Real Estate Company "Online in Your Time". Meet Allyson Blackard and give her a call if you want to know more about Short Sales on Oahu. Search all the Listings on Oahu Here]

Mason and Jessica Thompson, who just left Germany on a military transfer, were excited about their move to Oahu and thankful that their arrival was in the midst of a housing slump so that they could realize their dream of homeownership.

The couple decided to focus their single-family home search where they could get the most bang for their buck, so they chose Ewa Beach, which was ground zero for foreclosure and short-sale activity on Oahu last year. Currently, more than 42 percent of Ewa Beach's active listings are short sales or foreclosures, and prices have dropped about 30 percent from the height of the last up cycle, said Stephany Sofos, a Honolulu-based real estate appraiser.

"All those new homes that were going for $450,000 to $500,000 10 years ago are now going for $410,000 to $450,000," Sofos said. "It's a great time to buy there."

That is if you can find anything, said Mason Thompson, who has looked at about 25 properties with his wife since arriving on the island in December.

"If you are looking for something under $625,000, there's just not a lot of inventory," Thompson said. "I think we missed the peak of the inventory."

The couple, who are temporarily living at the Hilton Hawaiian Village while they look for a permanent home, have made offers on two short sales. However, they are not confident that either deal will close before their military-issued temporary housing allowance runs out.

"We're not desperate yet; we can see desperate in the horizon," Thompson said, adding that he and his wife want to find something before the first-time homebuyer tax credit expires and he gets deployed to Iraq.

It might be a distressed market, but the Thompsons and others have found that finding available inventory is more challenging than they had anticipated.

"Our search has been kind of disastrous," Jessica Thompson said. "We're very hopeful, but we didn't expect it to be this difficult."

Prices have been dropping in Ewa Beach for some time, but starting last November sales began to pick up, said Allyson Blackard, broker and co-owner of Hawaii Real Estate Online.

"We're at or near the bottom because there is so much competition for offers," Blackard said.

While homes in Ewa Beach are going for sometimes $100,000 to $200,000 less than what the previous owner paid, Blackard said she thinks the drop is a phenomenon of the last market rather than a lasting slump.

Many Ewa Beach buyers paid top dollar for properties during the last cycle and then saw their equity depreciate from the effects of regional traffic woes, sagging consumer confidence, global economic downturn and tougher lending standards, she said. Also, the region was popular with military buyers, and many of them were forced to transfer in the midst of the down cycle, Blackard said.

Ewa Beach's reputation as an affordable place for new homes attracted a lot of young couples, who could only afford the payments using creative loans or by working more than two jobs between them, Sofos said.

"If Mr. and Mrs. Hawaii no longer have 3.2 jobs, how are they going to afford their payments?" she said.

FORECLOSURE GROUND ZERO

Ewa Beach finished 2009 with the dubious distinction of being Oahu's worst ZIP code for foreclosures and the state's second-worst ZIP code behind the Big Island's Kailua Kona. Here's a snapshot of current real estate listings.

143	Number of listings in Ewa Beach
55	Number of short sales
6	Number of foreclosures
42.7%	Percent of market in distress

Source: Multiple Listing Service

While there are some resort developments in Ewa Beach, the region is primarily a working-class neighborhood, and real people are the ones that have been damaged by this cycle, said Howard Dinits, a Realtor with RE/MAX Resort Realty in Wailea, Maui.

"During the last cycle, you had predatory lenders trying to turn renters into owners and get them into loans," Dinits said.

By the end of 2009, 636 Ewa Beach homeowners were in some stage of foreclosure, said Daren Blomquist, marketing communications manager for RealtyTrac, which tracks nationwide foreclosures. One out of every 22 households in the Ewa Beach ZIP code was in distress last year, Blomquist said.

Some neighborhoods in Ewa Beach were harder hit than others, said David Kucic, a Realtor associate with RE/MAX Honolulu, who lives in Ewa Beach and specializes in the region.

Most of Gentry's Montecito Tuscany neighborhood was built and sold in the 2005-to-2006 time frame, so almost all the houses listed in that neighborhood now are short sales, Kucic said.

"Of the 17 homes that have been sold or are currently on the market, nine are short sales, and one is owned by the bank," he said.

Fifty-two out of 101 recent sales in Haseko's Ocean Pointe were short sales or foreclosures, Sofos said.

"Buyers are eager, but it's a challenge finding them homes," said Kucic, who is trying to help the Thompsons navigate the market.

While RealtyTrac expects the nation's foreclosure problem to peak by year's end, the problem could take longer to work itself out in Hawaii, Blomquist said.

The U.S. Treasury Department program, called Home Affordable Foreclosure Alternatives Program (HAFA), which is designed to streamline short sales, is still pending, Blomquist said. And, modification programs are fighting a lost war, he said.

"They are designed to address people who got into bad loans, but they don't address people who are unemployed," Blomquist said.

More needs to be done to help distressed Oahu homeowners try to save their homes or get them sold as short sales before they fall into foreclosure, said John Riggins, owner of Leeward Oahu-based John Riggins Real Estate.

"Many don't have their properties advertised in the multiple listing service," Riggins said. "It's as if the homeowners, lenders, attorneys and real estate agents are like deer in the headlights and doing nothing."

There are buyers who want to buy specific types of properties; however, many of those properties are in the pre-foreclosure, auction or lender-owned process, Riggins said.

"Lenders need to approve short sales faster, and when they foreclosure, they need to list the property for sale and get it sold," he said.

While some real estate professionals believe Ewa Beach's real estate prices have bottomed out and that the worst of the foreclosures are over, Sofos said she anticipates further contractions this year.

"When you have no jobs and your taxes are increasing, you are creating a very difficult situation for your citizens," she said. "There is no way that all of these people will be able to get themselves on their feet."

Worse yet, distressed sales affect pricing across the broad spectrum of the market, Sofos said.

"Everyone has to compete with the lowest-priced inventory," she said. "Distressed properties bring other sales prices down."

Kucic said he's worried about what will happen to sales and prices in Ewa Beach when incentives expire and interest rates rise.

While short-term declines will occur, Sofos said she expects Ewa Beach will fare better in the long term.

"The roads have been improved, there is good recreation, the houses are very nice and the setting is in a well-planned-out urban development," Sofos said.

Kucic said he was disappointed to see the value in his Ewa Beach home drop after it had shot way up. That said, he finds comfort in knowing that he enjoys living in the suburbs and is in it for the long haul.

"I love it out here," Kucic said, adding that he's putting in a pool and a Jacuzzi.

Times are tough now, but in a few years Ewa Beach buyers probably will see their properties appreciate through the roof, Blackard said.

With any luck, the Thompsons said they'll be part of this group.

Other options

Homeowners who are behind in their mortgage may have several options for avoiding foreclosure. Those in default should check with a Realtor, lender or financial adviser to see if any of these options would apply:

» Forbearance: The lender can agree to add missed payments to the tail end of the mortgage

» Loan modification: Getting the lender to reduce the interest on the loan for a period of time or agreeing not to implement an adjustable rate hike.

» Short sale: The owner owes more than the market and the lender agrees to lower the mortgage balance and pay the sales cost

» Deed in lieu of foreclosure: The owner deeds the property to the lender, thereby reducing foreclosure costs and avoiding a promissory note or deficiency judgment.

How to Find A Safe Neighborhood - Anywhere

Kate Braden R ePRO ABR — Wed, 03 Feb 2010 19:32:00 GMT

Find out more about Oahu and Hawaii Real Estate HERE

How to find a safe neighborhood

Your new home’s inspection report won’t come with a safety rating for the neighborhood, a crucial determinant of quality of life. It’s up to you to check out the area before you move. Here’s how.

By Karen Aho of MSN Real Estate

It’s one of the first things buyers ask and something real-estate agents can’t answer: Is the neighborhood safe?

Agents, constrained by fair housing laws, aren’t allowed to badmouth neighborhoods or even declare them “safe.” They can only say something to the effect of, “We suggest you check out any area you’re considering.”

OK – so how, exactly, do you do that?

You can jump online and get your fill of colorful maps overlaid with crime data, thanks to a growing number of such sites. But these dense splashes of data, while useful, can also become confusing. (More on this below.)

“They give you a picture, but it’s a very fuzzy picture,” says Greg Saville, a former police officer who now teaches urban planning and leads the movement to design safe communities. “You really need to know what you’re looking at to know what it means.”

Saville says that while he appreciates the data, it’s not enough. You have to turn off the computer and go take a good, studious walk.

Trust your gut?
Issamar Ginzberg, who buys residences to lease in New York City, gauges a neighborhood using what he calls the potato chip method: “Get out of the car, buy a bag of chips at the corner bodega and calmly eat the bag of chips outside the house.

“If I can finish the bag of chips and feel safe the whole time, I'll buy real estate in that neighborhood,” he says.

It’s what police have long said, for many situations: pay attention and trust your gut. Homebuyers certainly rely on it, often by taking a drive. Even safety officials reiterate the concept.

“I always feel like if your gut says there’s something wrong, there’s something wrong,” says Robbi Woodson, manager of the National Sheriffs’ Association Neighborhood Watch program, at USAonWatch. “If things don’t look right, then most likely they’re not right.”

But the gut is driven by real information, even when people aren’t aware of it. And some of that information may, in fact, be off, colored by preconceived notions of what a “safe” area is supposed to look like.

To be certain, experts say, prospective buyers need to know what to consider and apply the same methodical inventory they use to evaluate the home. Check off the boxes.

“A lot of people spend so much time looking at the physical configuration of the house, but they forget that they don’t just live in the house, they live in the neighborhood,” Saville says. “Their life is affected by the neighbors.”

Some of the tips offered below might seem obvious, but others might surprise.

A neighbor who cares
If you’ve been paying any attention to the news since the 1990s, when community policing came into vogue, then you’re familiar with the broken-windows theory.

Broken windows, nearly all criminologists agree, along with dilapidated buildings, abandoned lots, missing street lights, rampant graffiti, unkempt yards -- basically any signs of neglect -- attract crime. The reasons are both practical -- dark, lonely spots sit out of view – and psychological -- would-be vandals are, ironically, less apt to mess with nice stuff.

As a prospective resident, though, you have to consider an underlying question, too. Will people who let their lots fall into disrepair treat you badly as well? After all, it’s the neighbors, not the police, who will serve as the first and best line of defense.

“If the lawns aren’t mowed, the trash is not picked up, that shows people have no pride in the neighborhood,” says John Z. Wetmore, the producer of “Perils for Pedestrians,” a television show about neighborhoods and safety. “If you care about the neighborhood, you’re probably going to care about your neighbors too.

“You can be on a street with really modest homes, but if people take care of them, it can be a good place to live,” Wetmore says.

“Neighbors” includes the folks down at town hall. Take a walk. Do you see damaged signs? Potholes in the road? Breaks in the sidewalk? Come back at night. Are there broken street lights?

“It gives you an indication that the local council is not doing a good job,” Saville says, or that locals fail to demand that the town make repairs. “The physical condition of the roadways tells you a lot, actually.”

Tax Credit Passes!! Plus Adds Credit for Present Homeowners!

Kate Braden R ePRO ABR — Sat, 07 Nov 2009 21:00:00 GMT

Aloha, Victory!

Congress passes homebuyer tax credit.

The Senate and House voted in favor of extending the first-time homebuyer tax credit. As you know, the legislation extends, through April 30, an $8,000 first-time homebuyer tax credit and creates a new $6,500 credit for homebuyers who have been in their current residence for the last five years or more.

The Senate unanimously voted Wednesday night (98-0). The House just passed the bill this afternoon (403-12).

President Obama signed the legislation on Friday, November 6.

Boo!! Current Oahu Hawaii Real Estate News

Kate Braden R ePRO ABR — Wed, 07 Oct 2009 21:03:00 GMT

Here's a video of Hawaii's beaches for you to relax with and dream of Hawaii an dClick Here to sign up for the Monthly Newsletter - get all the current Oahu Hawaii Real Estate News Here ANYTIME!

Aloha,

This month’s newsletter includes useful information and links to videos about the first-time home-buyers credit, property searches, and articles such as:

"Home Buyer's Tax Credit Changes Possible";
"Don't Let An Over-priced Home Be a Humbling Lesson";
"Job-hunting Strategies For Trailing Spouses";
"Home Staging Helps Bring Top Dollar Sale";
"How to Stay on Top of Mortgage Payments During a Short-Term Financial Crisis"
“September Roundup:Rates Remain Low Increasing Affordability”;

And all the help you need to buy or sell a home in Hawaii or just stay up to date on what’s going on here in the Islands!! If you can’t read the newsletter below, just cut and paste the following in your browser (the latest newsletter will always be found here): http://hawaiirealestateonline.com/currentnews.shtml

As always, we’re just a phone call or email away!!

The Brokers at Hawaii Real Estate Online

KATE BRADEN R PB                         ALLYSON BLACKARD R BIC
Direct/cell 808.265.6803                Direct/cell 808.224.6624
                 Toll Free Office: 877.997.9888
                 Toll Free Fax:     888-830-0153
         Webs: HawaiiRealEstateOnline.com
               OnlineHawaiiProperties.com

Aloha, Oahu Real Estate this Fall! Get YOUR Tax Credit!!

Allyson Blackard R BIC — Fri, 11 Sep 2009 03:35:00 GMT

Summer’s over and the kids are back in school so back to business for all of us. The Brokers are happy to present our September newsletter about the Oahu Real Estate Market and real estate in general. As always, “the market” is the local market, and in Hawaii the specific neighborhood you are interested in buying or selling your home.

Just cut and paste the following in your browser: http://hawaiirealestateonline.com/currentnews.shtml. At that link you’ll always find the latest info on selling, buying, mortgages, federal guidelines, and links to helpful videos and sites and articles like:

August Roundup: Rates Still Record Low;
Sellers: Know Your Market;
Major Campaign to Extend $8,000 Home Buyer Tax Credit;

New Disclosures Help Mortgage Consumers Know Risk;

Real Estate Investment 101;

And much, much, more!

Mahalo,

Kate and Allyson

(808) 265-6803 (808)224-6624

Admin@hreomail.com

Oahu's current market conditions suggest we're on the way up!

Kate Braden R ePRO ABR — Fri, 07 Aug 2009 03:58:00 GMT

Click the link below to review Old Republic Title and Escrow's compiled information and analysis:
July 09 Oahu Real Estate StatisticsMost economists will tell you that when the number of sales start to pick up then the market is beginning to turn. Now some will say that's because there are such good deals and because of the tax credit incentive....well check out the graph on rising median prices. Real Estate is always assessed over time - and comparing to last year is a waste of time. Last year the market was crashing. What we've been waiting for is signs of the recovery - and in Hawaii, at least on Oahu, I believe we are begining to see that recovery.

Some people will say the increase in sales is because of the short sales and lower prices - lower prices and low interest rates are key to the recovery. But on the whole, most areas of Oahu have realistic prices and the market values have become reasonable. Will we return to the go-go days of double digit market value gains - no and thank goodness. Real Estate is always measured over time, and we are in a stable market with small or flat value increases and indications we have passed the bottom.

So take advantage like the investors and if you can buy now, get the first time buyer's credit, and ride the small wave back up. Most of you will be kicking yourselves for not getting in the market now!!

Read here Everything You Need to Know About the First Time Buyers' Tax Credit

If Hawaii's Real Estate Market is Bad - Why am I so busy??

Kate Braden R ePRO ABR — Thu, 18 Jun 2009 17:39:00 GMT

I just love reading the incindiary reporting in the papers, mostly written by mainlanders with - buried way in the interior - the nugget says but in Hawaii this is improving. Comparing this year to last year or the year before and/or talking about median prices is ludicrous. They are basically comparing apples to chicken - friut to meat?!!. Now I'm talking about Oahu's real estate market - the neighbor islands are a different story.

Everyone agrees that the go-go market that over increased market values swung back to normal somewhere around late 2006 early 2007. What most people don't remember is what normal is. Home owners still have 4 years of appreciation on their side. Most people in trouble here are those who bought at the height of the market and either expected to be able to flip the property in under three years at a profit or borrowed more than they could truly afford with tricky mortgage products.

Median price. If I sold three homes, one for $750, one for $550 and one for $450, the median price would be $550. But if I sold 10 for $750 and one for $550 and two for $450 then the median price would be $750. Which basically doesn't mean anything when it comes to deciding what you should pay for the home you're looking at.

And the skewing continues. As most economists say - when the number of sales start to rise, that's when the market is turning. I'm seeing the numbers rise - but it's hard to tell when short sales are involved because it can take months to get them in escrow and months to close so you don't "see" the numbers immediately. I'm seeing investors getting back in the market, albeit the lenders are making things incredibly difficult.

There is always demand in paradise. We have continuing influx of military, investment, and vacation buyers looking to build thier wealth and there are lenders and realtors ready to make their dreams come true. I feel strongly that prices are as low as they are going to go, rates are as low as they will be and will rise, the up to $8000 buyers credit is pau December 1st - so if you're not in escrow by October 10th you will miss out on the buy low side of the buy low sell high equation!

Check us out at http://hawaiirealestateonline.com and see what we can do for you, or just give me a call. I'm off to look at some beach side property in Kailua for a client - such great values! We'll talk later.

Do you qualify for the $8,000 homebuyer credit?

Kate Braden R ePRO ABR — Mon, 11 May 2009 19:59:47 GMT

Take the Quiz yourself:

Here are the correct answers to the Quiz. For more information contact your Realtor at Hawaii Real Estate Online Click HERE!! Got more questions? Get free help at 877-997-9888 x 300

1.	To qualify for the 2009 First-Time Home Buyer Tax Credit, a home must be purchased in what time period?

	Your Answer Is Correct: Jan. 1, 2009-Dec. 1, 2009 The home must be purchased on or after Jan. 1, 2009 and before Dec. 1, 2009 = to qualify.

2.	In order to qualify for the full $8,000 tax credit, the house must be at least what price?

	Your Answer Is Correct: $80,000 Any home that is purchased for $80,000 or more will qualify for the full $8,000 credit. The credit is equal to 10 percent of the home's purchase price, up to $8,000. So if the house costs less than $80,000—say, $75,000—the credit will be 10 percent of the cost (in this case, a $7,500 credit).

3.	A first-time home buyer is defined as a buyer who hasn't owned a = principal residence for how long?


	Your Answer Is Correct: 3 years prior to the = purchase A first-time home buyer is considered to be a purchaser who has not = owned a home in the three years previous to the day of the 2009 purchase. = So if the last time you owned a home was in 2005, you would be eligible = for the tax credit, even though it's not technically your = "first" home. Married joint filers must both meet this "first-time home buyer" requirement in order to claim the credit on a joint = return.

4.	What is the income limit for claiming the full tax credit for married taxpayers filing a joint return?

	Your Answer Is Correct: $150,000 Married couples filing jointly cannot have an income of more than $150,000 to qualify. If the couple makes more, they don't lose out entirely, though. The credit phases out for married couples (filing jointly) who earn $150,000 to $170,000 in annual income, with a smaller credit being awarded for the higher amounts.

5.	What is the income limit for claiming the full tax credit for a single taxpayer?


	Your Answer Is Correct: $75,000 Similar to married couples filing jointly, singles making more than $75,000 in annual income don't necessarily lose out entirely on the benefit of the credit. The credit phases out for single filers earning between $75,000 and $95,000.

6.	How is a home buyer’s income determined for tax credit = eligibility?


	Your Answer Is Correct: Adjusted Gross Income (AGI) For most individuals, “income” will be defined and calculated as Adjusted Gross Income (AGI) on their IRS 1040 income tax return forms. AGI includes wages, salaries, interest and dividends, pensions and retirement earnings, rental income, and several other elements. AGI is the number that appears on the bottom line of the front page of a 1040 form.

7.	What is the most significant difference between this tax credit and the = one Congress approved in July 2008?


	Your Answer Is Correct: The repayment feature is eliminated. The 2008 home buyer tax credit that Congress approved was basically an interest-free loan but it had to be repaid over 15 years, whereas the 2009 tax credit does not have to be repaid. The 2008 tax credit also had a limit of $7,500.

8.	What types of homes do not qualify for the tax credit?


	Your Answer Is Correct: They all qualify Basically any home that is used as a principal residence qualifies for the tax credit, including single-family houses, mobile homes, townhouses, condos, manufactured homes and even houseboats. Generally, you must spend 50 percent or more of your time in the home for it to be considered a principal residence.

9.	To claim the tax credit, you will need to:


	Your Answer Is Correct: Claim it on your federal income tax = return. It's that easy: Just claim it on your federal income tax return; no = pre-approval is necessary. Home buyers will need to complete IRS Form 5405 to = determine their credit amount and then claim that amount on Line 69 of their = 1040 income tax return.

10.	Which of the following statements about the tax credit is = TRUE?


	Your Answer Is Correct: Vacation homes and rental properties are = not eligible. The home must be a principal residence that is owned by the occupant, so = vacation homes and rentals would not be eligible for the tax = credit.

11.	What if buyers are eligible for an $8,000 credit, but their entire = income tax liability for the year is only $5,000?


	Your Answer Is Correct: They'll get a refund for = $3,000. Any credit amount unused will be refunded as a check to the buyer. So the = purchaser would receive the difference between the $8,000 credit amount and = the amount of tax liability (so in the above case, a $3,000 = refund).

12.	How long do owners have to stay in their homes without having to repay the tax credit?


	Your Answer Is Correct: 3 years The home cannot be sold until three years after the purchase, or owners will be required to repay the tax credit. This is to prevent buyers from flipping properties in order to cash in on the credit.

Mahalo,

Kate Braden, R, PB, ePRO, ABR
CEO & Principal Broker
Cell/Direct:          (808 )265-6803
Toll Free Fax:      (888) 830-0153
Toll Free Office:   (877) 997-9888X108
Email: Kate@HREOmail.com
Webs: HawaiiRealEstateOnline.com

Are We at the Bottom? According to NAR We are Pretty Darn Near!!

Kate Braden R ePRO ABR — Wed, 08 Apr 2009 21:49:00 GMT

Are We at the Bottom?

Many see the housing market as the key to economic recovery but acknowledge that until its pereceived that the market has hit bottom, many would-be buyers will sit on the sidelines. A March 24 Good Morning America (GMA) segment suggests that maybe we're there. GMA reported on a influx of foreign and domestic "professional buyers" (investors who buy homes--sometimes in bulk and sight unseen--at bargain prices to later sell at a profit). Their presence typically signals the market bottom, or near to it, and thus the beginning of a recovery.
(From the National Association of Realtors April news update)

And in Hawaii we are starting to see the number of sales (mainly on Oahu) start to pick up, which is our first indicator of the market. Short sales have slowed and most foreclosures appear complete (now are bank owned) – but there is still lingering pressures due to unemployment and softness in the tourism and other business markets. The military, as always, is a strong presence in Hawaii; and with the current prices and rates (prices are flat and rates are low), providing many opportunities for our military to buy homes in Hawaii that even six months ago were out of reach. Talk to our military lender, retired Chief Allen Blackard or one of our excellent, experienced agents so we can help you buy your piece of paradise!! Or search the Oahu MLS, all properties listed by Oahu’s real estate companies.

Kate Braden, R, PB, ePRO, ABR
CEO & Principal Broker
Cell/Direct: (808 )265-6803
Toll Free Fax: (888) 830-0153
Toll Free Office: (877) 997-9888X108
Email: Kate@HREOmail.com
Webs: HawaiiRealEstateOnline.= com

April Showers Bring a Blooming Real Estate Market in Hawaii - no foolin'

Kate Braden R ePRO ABR — Fri, 03 Apr 2009 01:06:00 GMT

Experienced Agents Marketing Hawaii to the World

April 2009
Real Estate News
You Can Use
Equal Housing Opportunity

Where Housing is Headed

We received an important indicator of where housing is headed last month, when new mortgage applications for home purchases and refinances suddenly surged as they hadn't in months.
(Read "When Greed Overcomes Fear")

Applications for FHA loans to buy houses were up by 10.4 percent. And overall home purchase applications jumped by 7.1 percent.

Meanwhile mortgage interest rates dropped to their second lowest level in nearly two decades, according to the Mortgage Bankers Association. Thirty year fixed rates averaged 4.96 percent and fifteen year rated dropped to just 4.5 percent.

More Articles

	March Roundup: Rates Hit Another New Low
	US Treasury: Mortgage Rates As Low As 2Percent
	Investor Report: Refinancing

WOW
***Mortgage Rates ***
U.S. averages as of March 26, 2009:

30 yr. fixed:   4.85%
15 yr. fixed:   4.58%
1 yr. adj:        4.85%

Contact our Lending Partner for Current Rates or a Pre-Qualification

Why's this important? New financing applications to buy homes obviously point to rising purchase contracts and closed sales in the months ahead. They also suggest that prices have hit a level in

CONTINUED >>>

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Seller's Home Appeal: How to
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Are You Represented? The Seller Is!!

Did you know that before the early 1980's buyers were never represented? Sellers had agents to list their properties and negotiate the contract with all the expertise of professional Realtors and buyers were at a disadvantage in every transaction. From that imbalance evolved the Buyer's Representative or the Buyer's agent. CONTINUED>>>

Five Ways to Wow Buyers

These days, tax credits and high housing inventory make it a buyers' market. If you're a seller, don't despair. There are a variety of renovations that can help make your home stand out. Many buyers look at numerous homes when shopping for a house; so enhancing your home to make it more memorable is vital and increases the chances of a successful sale.

Clearing clutter, taking down personal photos, applying a fresh coat of paint, making minor repairs, and keeping a pleasant aroma are all basic techniques to make your home more appealing. But there are a few other creative enhancements that you can do to wow buyers without emptying your wallet. The results not only attract more attention, but also paint a picture of a well-cared-for home.

While not everyone has the same taste in housing, typically buyers are attracted to

CONTINUED >>>

What You Need to Know to Buy a Home Today

Don't let a sluggish economy get you down. There are reasons to shop for personal items—including a new home. I recently saw an advertisement for a new car that said you could return the car in the first year if you lose your job. While there may not be that incentive for homes yet, some other perks might give you reason to start your housing search.

If you can afford to buy, consider making homeownership a goal this year, especially if you haven't owned a principal residence in three years prior to buying. The new stimulus package sweetens the deal for homebuyers who purchase a residence on or after January 1, 2009, and before December 1, 2009. The incentive is for first-time homebuyers who remain in their home for at least three years. It provides a credit for 10 percent of the home purchase price, up to an $8,000 limit. The credit can be taken on your 2008 or 2009 tax return.

CONTINUED >>>

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Honolulu, HI 96815

HREOs on the Sandbar

Kate Braden R ePRO ABR — Mon, 30 Mar 2009 01:01:00 GMT

I sold a lovely home in Portlock last year to a couple trying to escape the winters in Washington state, and this year we have the coldest, gloomiest winter in 20 years in Hawaii!! Although 68 degrees may not sound cold to you, in Hawaii with our indoor-outdoor living, single wall homes, and no heat; a damp, 68 degree day can be quite unpleasant. (I can hear my son now in Montana at -15 degrees telling me to hush up!!)

As we have faith in Hawaii's weather to rise to the occasion ; the HREOs, as our real estate agent Ohana (family) is affectionately known, got together yesterday for our monthly family-fun event. We headed out to the Kaneohe Sand Bar to picnic and play ocean football.

As most are affiliated in some way with the military we rented some pontoon boats at Marine Corps Base Hawaii in Kaneohe (duh)and met another agent and her husband at the Sandbar (they have a really nice boat). The sun came out to play and good Kau-kau(food) and generous libations were shared by all!!

We're out working today to help clients find their piece of paradise. We'd love to help you build your wealth and for our military show you how to use your benefits to do it!! Check us out and give us a call - we're waiting to serve you.

http://onlinehawaiiproperties.com http://bestoahurealestate.com http://hawaiirealestateonline.com and our military lending partner Ret. Chief Allen Blackard at http://gotbah.com.

It's a sad day in Cyberspace

Kate Braden R ePRO ABR — Fri, 27 Mar 2009 19:14:00 GMT

Blogs are a great way to get our thoughts out there and, for those of us with services to provide, to tout our wares like we used to do in print ads. My company and I believe in the virtual world and all our marketing is done via the e-world in cyberspace. We put ourselves out there and do our best to share information and expertise to help people looking for real estate in Hawaii (and oh yeah, make a living at it).

No one has to go to our sites, or read my blogs, or sign up for news or alerts with us. No one. So it blows my mind that someone thinks it's fun to go post trash, meaningless comments on my blogs; sign up on my sites with nonsense information, and try to send malicious spam to posted email contacts. I never understood hackers either; who simply want to dystroy other people's computers and information - bad enough those that try to steal (and it's not a fun little teenage thing when its stealing or dystroying) information or money from vunerable people out there who are just trying to keep in contact with their grand-kids.

To me, it means I have to take my or my agents valuable time to clean up the sites and blogs and review and clean up the emails - why? Because I don't want to miss the person who actually wants to talk to us for the malicious person who has nothing better to do with their time than trying to block our message.

So if you want information about Hawaii, Hawaii's real estate market, what's happening in Hawaii, or anything else about Hawaii that we can help you with - feel free to login to any of our websites (listed below), chat with us on any of our blogs (listed below) check out our various listings and postings on Craigslist, You Tube, or email us or call!! We'd love to Welcome You Home to Hawaii with Aloha.

The rest of you - your Mommy is calling - go grow up.

WEBSITES:                                                                     BLOGS
http://hawaiirealestateonline.com                              http://search.onlinehawaiiproperties.com
http://bestoahurealestate.com                                    http://homes.hawaiirealestateonline.com
http://onlinehawaiiproperties.com                              http://blog.selloahuhomes.com
http://buyingoahurealestate.com                                 http://www.realtown.com/kateb/blog

There's more, but that should suffice for those of you trying to figure out what we are doing.

Why a Prequalification is Important

Kate Braden R ePRO ABR — Fri, 13 Mar 2009 17:35:19 GMT

Why a Prequalification is Important

The Hawaii market is currently a balanced market with more opportunities for Buyers than in the recent past. Sellers are aware that properties will not go for more than market value ( last sold for like property plus a 3-5% appreciation per annum). Well priced properties still go relatively quickly, so the savvy buyer needs to be prepared to make an offer promptly and be ready to negotiate for what they want.

Some neighborhoods are more price competitive than others, but in all of Oahu's neighborhoods a seller will not consider an offer without at least a pre-qualification, preferably by a local lender. With today's credit crunch, most prefer a pre-qualification. It is the first step in buying a home in Hawaii and quite simple. The process declares that a lender has assessed your situation and upon confirmation of your information, you are able to borrow this amount.

A smooth transaction depends on working closely with the lender and title company to correct any issue so that the title to the property can be transferred cleanly to the new owner and the funds will be available to close the transaction in the time specified in the contract. Contact the lenders above to assess which one will meet your needs in securing a pre-approval and the mortgage that will work best for you. We also have a military VA loan specialist, Allen Blackard, who will help you maximize your BAH, COLA and VA to build your equity not someone else’s. Allen is a retired Navy Chief, so you’ll be in trustworthy hands. Check him out at gotbah.com or just give him a call at 808-221-5670

Toll Free Office: (877) 997-9888X108
Webs: HawaiiRealEstateOnline.com Search all Oahu's mls listings for sale!!

The latest from our Title and Escrow partner in Hawaii

Kate Braden R ePRO ABR — Sun, 08 Mar 2009 00:01:57 GMT

THE BUZZ from Lois Miyashiro
(One of our Title & Escrow partners)

America’s real estate is in unchartered waters: in some areas, existing home prices have dropped considerably, while in other locations prices are holding steady. The stock market is down, unemployment is climbing, and businesses are predicting a long, slow recovery. Yet it is at times like this that we are reminded that some of the best deals are possible right now.

On the national average, sales of existing homes declined in January. Inventories fell to a two-year low. According to the National Association of Realtors (NAR), buyers are waiting to see how details of the economic stimulus package will affect them. = NAR’s Chief economist Lawrence Yun reports, “The drop in total inventory is an encouraging sign because the number of homes on the market has declined steadily since peaking in July 2008, and inventory is at the lowest level in two years.”

The Obama administration has responded to NAR’s call for lowering interest rates, giving buyer incentives, reducing preventable foreclosures and reinstating the higher loan limits for FHA, Fannie Mae and Freddie Mac. With these measures now being implemented, housing values should stabilize and the housing market should begin to strengthen.

JUST ASK

Q: How will inflation effect real estate?

A: The Federal government is reportedly increasing the money supply by 20 to 30% of our Gross Domestic Production. This means inflation will very likely rise. Why? The prices of all fixed assets will have to increase to keep pace with the devaluation of our currency. Thus the prices of homes won’t be this low again for a long time. This is a perfect time to buy a home as long as you see it as a long term investment. If you want to live in your home for less than two years, then renting may be the better option. But with inflation in the economic forecast, smart buyers are looking for properties now.

MY TOWN

Let’s take a walk down memory lane. Talk to someone who remembers the 50s and you will hear stories of Ike being president and life being simple. Gasoline was 22 cents per gallon and a new Chevy would cost you about $2,300. A home might have cost $13,000. By 1977 that house cost $300,000, the Chevy cost $30,000, and the interest rates were averaging a whopping 21%. While that same house today could list for $1,000,000, interest rates are much lower now, averaging around 6%.

Have you estimated the equity in your home?

FYI

With so much news about the massive federal stimulus program playing in the media, you may want to find out exactly how the monies are being spent by going to www.recovery.gov. In particular, the program contains a tax credit for first-time homebuyers equal to 10% (up to $8,000) of the home’s purchase price. The tax credit does come with some stipulations – for example, the home must be purchased between the dates of January 1 and December 1 of 2009. There are income requirements too.

If you’re thinking of buying your first home this year, you’ll definitely want to find out more. Follow the link below for more details about the tax credit for first-time homebuyers: https://www.usaa.com/inet/ent_utils/McStaticPages?keyadvice_stimulus_home

Our team can help you answer these and any other questions regarding mortgages, home values, first time homebuyers process, = military relocation and many more aspects of the Oahu Hawaii real estate market – check us out at onlinehawaiiproperties.com hawaiirealestateonline.com or = at our blog search.

Mahalo,

Kate Braden, R, PB, ePRO, ABR
CEO & Principal Broker
Cell/Direct:=           (808 )265-6803
Toll Free Fax:      (888) 830-0153
Toll Free Office:   (877) 997-9888X108
Email: Kate@HREOmail.com
Webs: HawaiiRealEstateOnline.com

3/4/09 Stimulus Details - Our Lenders' Opinion

Kate Braden R ePRO ABR — Sun, 08 Mar 2009 00:01:44 GMT

This is all very complicated!! For clarification call our lending partner in Hawaii:
Allen Blackard (Ret), Loan Officer/ VA Specialist
Mobile: (808) 221-5670 Email Allen@Mortgage808.com Website: http://gotbah.com/

Details of Recovery Initiative Provides Huge Refinance Opportunity

Last Updated: March 4, 2009

Many borrowers and originators have been anxious to take advantage of today's historically low rates for refinancing, only to be frustrated by lower home values combined with reduced loan to value options on many product offerings. The refinancing element of this plan allows for rate and term refinances to a 105% loan to value - here's the quick scoop.

Loans must be currently guaranteed by Fannie Mae or Freddie Mac, be in good credit standing, and meet present qualifying guidelines. It must be a primary residence, with a balance not exceeding $729,750 for a one unit property. This will allow a large number of homeowners seeking to cut their monthly expenses, and benefit from the lower home loan rates available = today.

Of course, there are still a few unknowns in the mix.

For example, it remains unclear how second mortgages will = play into the picture. In order for these refinances to go through under this plan, holders of second mortgages in many cases may have to agree to subordinate, and remain in a second position. The LTV limit of 105% on the new first mortgage does not account for amounts owed on second mortgages, and holders of second = mortgages may get nervous in situations where the combined LTV of both mortgages is say, 125% of the value...however, improving the situation on the first mortgage should make it easier for homeowners to continue making their second mortgage payments in a timely manner.

Another uncertainty is whether homeowners with balloon payments coming down the road will put enough faith in this plan to act now. In some cases, refinancing now could result in a payment that is unchanged in the short term and in extreme cases refinancing under this plan could even expedite an increase in the monthly payment.

But combined with earlier measures, such as the $8,000 tax credit for first time homebuyers and the extension of higher loan limits, this current plan may actually have some legs to help the housing market and economy overall. As trusted professionals, it is our job to help clients determine what is right for them.

U.S. DEPARTMENT OF THE TREASURY

Washington March 4, 2009

Making Home Affordable

Summary of Guidelines

Making Home Affordable will offer assistance to as = many as 7 to 9 million homeowners, making their mortgages more = affordable and helping to prevent the destructive impact of foreclosures on families, communities and the national economy.

The Home Affordable Refinance program will be available to 4 to 5 million homeowners who have a solid payment history on an existing = mortgage owned by Fannie Mae or Freddie Mac. Normally, these borrowers would be unable to refinance because their homes have lost value, pushing their current loan-to-value ratios above 80%. Under the Home Affordable Refinance = program, many of them will now be eligible to refinance their loan to take advantage of today’s lower mortgage rates or to refinance an adjustable-rate mortgage into a more stable mortgage, such as a 30-year fixed rate loan.

GSE lenders and servicers already have much of the borrower’s information on file, so documentation requirements are not likely to be burdensome. In addition, in some cases an appraisal will not be necessary. This flexibility will make the refinance quicker and less costly for both borrowers and lenders. The Home Affordable Refinance program ends in June 2010.

The Home Affordable Modification program will help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly mortgage payments. Working with the banking and credit union regulators, the FHA, the VA, the USDA and the Federal Housing Finance Agency, the Treasury Department today announced program guidelines that are expected to become standard industry practice in pursuing affordable and sustainable = mortgage modifications. This program will work in tandem with an expanded and improved Hope for Homeowners program.

With the information now available, servicers can begin immediately to modify eligible mortgages under the Modification = program so that at-risk borrowers can better afford their payments. The detailed guidelines (separate document) provide information on the following:

Eligibility and Verification ;

Loans originated on or before January 1, 2009.

First-lien loans on owner-occupied properties with unpaid principal balance up to $729,750. Higher limits allowed for owner-occupied properties with 2-4 units.

All borrowers must fully document income, including signed IRS 4506-T, two most recent pay stubs, and most recent tax return, and must sign an affidavit of financial hardship.

Property owner occupancy status will be verified through borrower credit report and other documentation; no investor-owned, vacant, or condemned properties.

Incentives to lenders and servicers to modify at risk borrowers who have not yet missed payments when the servicer determines that the borrower is at imminent risk of default.

Modifications can start from now until December 31, 2012; loans can be modified only once under the program.

Loan Modification Terms and Procedures

Participating servicers are required to service all eligible loans under the rules of the program unless explicitly prohibited by contract; servicers are required to use reasonable efforts to obtain waivers of limits on participation.

Participating loan servicers will be required to use a net present value (NPV) test on each loan that is at risk of imminent default or at least 60 days delinquent. The NPV test will compare the net present value of cash flows with modification and without modification. If the test is positive– meaning that the net present value of expected cash flow is greater in the modification scenario – the servicer must modify absent fraud or a contract prohibition.

• Parameters of the NPV test are spelled out in the guidelines, including acceptable discount rates, property valuation methodologies, home price appreciation assumptions, foreclosure costs = and timelines, and borrower cure and redefault rate assumptions.

• Servicers will follow a specified sequence of steps in order to reduce the monthly payment to no more than 31% of gross monthly income (DTI).

• The modification sequence requires first reducing the interest rate (subject to a rate floor of 2%), then if necessary extending the term or amortization of the loan up to a maximum of 40 years, and then if necessary forbearing principal. Principal forgiveness or a Hope for = Homeowners refinancing are acceptable alternatives.

• The monthly payment includes principal, interest, taxes, insurance, flood insurance, homeowner’s association and/or condominium fees. Monthly income includes wages, salary, overtime, fees, commissions, tips, social security, pensions, and all other income.

• Servicers must enter into the program agreements with Treasury's financial agent on or before December 31, 2009.

Payments to Servicers, Lenders, and Responsible Borrowers

The program will share with the lender/investor the cost of reductions in monthly payments from 38% DTI to 31% DTI.

Servicers that modify loans according to the guidelines will receive an up-front fee of $1,000 for each modification, plus “pay for success” fees on still-performing loans of $1,000 per year.

Homeowners who make their payments on time are eligible for up to $1,000 of principal reduction payments each year for up to five years.

The program will provide one-time bonus incentive payments of $1,500 to lender/investors and $500 to servicers for modifications made while a borrower is still current on mortgage payments.

The program will include incentives for extinguishing second liens on loans modified under this program.

No payments will be made under the program to the lender/investor, servicer, or borrower unless and until the servicer has first entered into the program agreements with Treasury’s financial agent.

Similar incentives will be paid for Hope for Homeowner refinances.

Transparency and Accountability

Measures to prevent and detect fraud, such as documentation and audit requirements, will be central to the program.

Servicers will be required to collect, maintain and transmit records for verification and compliance review, including borrower eligibility, underwriting, incentive payments, property verification, and other documentation.

Freddie Mac will audit compliance.

Allen Blackard (Ret)
Loan Officer/ VA Specialist
Mobile: (808) 221-5670
Fax808) 735-8141
Email Allen@Mortgage808.com
Website: http://gotbah.com/

Ala Moana Building, Suite 2010
1441 Kapiolani Boulevard, Honolulu, HI 96814

It's a Maunawili Morning and a Buyer's Market!

Kate Braden R ePRO ABR — Fri, 06 Mar 2009 20:31:00 GMT

Aloha, Every morning I get up and drink my oolong tea from China while looking at a view that is beyond beautiful. It's gorgeous even in the rain - the waterfalls off the Koolaus are spectacular!!

The current market on Oahu is falling, rising, slow, fast, stopped, and accelerating! As always with real estate, the market is local,local,local!! And in Hawaii, especially on Oahu, each neighborhood and area within the broader neighborhood can be a separate "market". We are also unique in that we always have demand.

So prices are "falling" in Ewa Beach where there is a glut of inventory from all the people buying entry level homes at lesser prices (because you have to deal with the traffic) who thought they'd be able to sell and get equity out in three years and then the market returned to the normal 5 year pattern. Whereas prices are "rising" in nearby Ko' Olina with the upcoming resort construction in the area and further development of the second city of Kapolei.

Homes that are priced at market value in any neighborhood are taking longer to sell (but actually a normal amount of time - too many people got used to the rah-rah past five years) while if you are priced just under and have perceived immediate equity, your property can move very quickly.

Prices for the fixer uppers in Coconut Grove in Kailua are back to a more realistic $450-$550,000 while closer to the beach the $2 million to $25 million homes continue to sell at a regular pace. On Oahu, the constraints to the market are in the mid-range market (under 1 million) and are mainly due to the credit crunch. Many buyers who could qualify even a month ago no longer can. So now listors are insisting on pre-approval letters from lenders to be submitted with offers, not just vague pre-qualification letters. Be careful of short sales too. The lender is involved and because it is a short sale, the sellers have no cash so the buyer ends up paying for items that the seller normally would have paid and depending on the lender the whole process could tak months and months. A buyer could end up paying more thatn looking at a house at market price that is not a short sale.

The credit market is a moving target with all the reforms and relief packages coming out daily. For up to the moment mortgage information (especially military borrowers) talk to our lending partner, retired Navy Chief Allen Blackard. Check him out at http://gotbah.com or give him a call at 808-221-5670 – tell him Kate sent you!

So how's the market on Oahu? Great for buyers - it's your market now and sellers are offering concessions and willing to negotiate. For sellers, it's still a great time to sell and get that equity working for you - you still have five years of incredible value appreciation in your home.

First step in buying on Oahu is to become familiar with the neighborhood in which you want to live and the second is get pre-approved so you know what you have to work with. Check out Buyers-Hints here. Or search all the mls listings at http://onlinehawaiiproperties.com.

Aloha,
Kate Braden R PB ePRO ABR
Hawaii Real Estate Online
(808)265-6803

Here's my morning view:

When Greed Overcomes Fear...Things will get back to normal

Kate Braden R ePRO ABR — Fri, 27 Feb 2009 00:58:00 GMT

Well, that's not quite how I would put it, but that's how Bank of Hawaii's chief economist put it. According to Paul Brewbaker, Oahu home prices are about as low as they are going to go. Timing any market is a tricky thing, but in a year one could look back at these prices (and the fact that money is cheap if you've got good credit) and kick themselves for not buying when things were so cheap!

So when you realize how things really are and you'll never have an opportunity to get into a home in Hawaii this cheaply again - you'll stop listening to the mainland pundits that don’t know Hawaii, and you’ll stop being afraid and start building your wealth (and not your landlord's!!)

Whether you are an investor, first time home buyer, or wanting to downsize/upsize - our experienced, market savvy realtors can help you develop your personal wealth by finding the right loan and home in Hawaii. Call today (877)997-9888 x 108, or check out http://hawaiirealestateonline.com to search all the listings yourself.

Your Piece of Paradise! Lakefront Executive Home on Sale!!

Kate Braden R ePRO ABR — Thu, 12 Feb 2009 01:56:00 GMT

Virtual Tour Available - Click Here Call 877-997-9888 x 103 for more information!

Posted by Online Hawaii Properties at 3/6/2009 6:19 PM and is filed under New Listings

What is Leasehold Land Tenure?

Kate Braden R ePRO ABR — Wed, 11 Feb 2009 10:00:00 GMT

You can get the legal description form the legal beagles, but here’s what it means as far as buying (or selling) real estate in Hawai‘i.

Way back after World War II, there was an influx of new residents wanting to live in Hawai‘i. At the time there were still only a few major landowners in the Islands and not many homes available. The landowners wanted to develop their holdings and build homes for those returning to make Hawai‘i the destination and strategic key to the Pacific that it is today. (I can tell you a funny about one landowner. All his relatives were lawyers and business owners downtown, and thought he was nuts to take his ranch land and put it into developments, as “there’s no future in real estate development”…well, look who’s family is worth millions upon millions today!! You gotta know your market!)

So they developed the properties, built houses on the land, sold the houses and leased the land under the houses for a monthly rent for periods of up to fifty years or so. Time passed and many of these landowners became paper rich and cash poor as the value of their lands soared with the development of the modern Islands, and the corresponding increase in value of every square inch of land (for you Econ 101 students, land in Hawai‘i equals finite supply).

Time passed and some of the leases were coming to an end. There is a renegotiation period before the end of the lease to set terms and conditions of the new lease. In some cases, the landowner did not wish to continue leasing the land as redevelopment would be more profitable, or the new lease amount and terms were not to the lessees’ liking. Either way, if the lease is terminated, the land and “all improvements thereon” revert to the landowner. “All improvements thereon” means your house and or condominium building, pools, special trees – anything put on or in that land.

Well people were losing their homes. Our society still has roots in the plantation system, so our lawmakers are prone to step in when the workers need protection. So various processes occurred and a new law was passed allowing condemnation of single family leasehold land and forcing the landowners to sell the land in fee simple (you own the land). Some landowners fought the conversion and some started offering the fee under their terms rather than being forced to do so by the courts. Some lessees could not afford the price but most over the next few years did purchase their fee. There are some leasehold single family properties in the islands but they are now the exception and not the rule as it was back in the 60s and 70s.

Now, what wasn’t included was condominium leaseholds. As the value (and corresponding prices) of single family homes increased, more and more bought smaller condominiums, waited their three to five years and sold them to move up to the next property. Problem is, now many of those condominiums are like single family homes were thirty years ago. The leases are held by large (ok, sometimes small or individual) landowner trusts who either need to renegotiate the leases to current (very much higher) values or the property location is such that redevelopment is going to bring much more to the bottom line. Needless to say, this issue is in the legislature’s hands and a condo condemnation package almost passed last year. It will pass in some form soon, but who knows when for sure.

Not only are the leases beginning to expire or reach their renegotiation dates, but the buildings are older also and have needed upgrades and other issues which translates into a need for higher fees to cover upcoming maintenance and repairs (that’s a whole other article about the laws to protect you from inadequate reserves). The actual cost of purchasing a leasehold condominium can be more than if you purchased a like unit in fee, as you are receiving diminishing equity as the lease moves towards expiration.

So what does that mean to you who are interested in real estate in Hawaii?

If the lease has less than thirty-five years remaining, you will not be able to get a conventional 30 year mortgage. In addition, there are restrictions on loans and terms depending on type and size of the unit, lease terms, and any additional landowner conditions.
There is no guarantee that the lease will be renegotiated nor what the new lease amount will be. Some newer leases have step up amounts defined in the renegotiation process; some do not.
It may be cheaper up front, but more expensive in the long run as you are basically paying the landowner to build his equity not yours. If the cost of your mortgage less the tax benefits and plus the lease payments are less than what you would pay for rent, then this scenario might work for you.

My advice? If you are the average home buyer coming to Hawai‘i, don’t do it. Even buying the fee simultaneously when you purchase the home can cost you. That’s what the FA means in listings – fee available for purchase. It is two escrows and two title fees, and usually two loans all with separate fees and very tricky as involves a third party and their lawyers in the transaction. If you’re lucky and the condo conversion law passes in the near future, you’d still have to come up with the additional funds to buy the fee. And you’re already in a new mortgage. And the mortgage market is tightening as we speak. (That’s another article too.)

Solutions for you? Work with a qualified realtor to find fee simple property that will build equity and meet your needs. Get pre-qualified with a local lender. Local lenders understand our unique market and land laws. The can both tell you what you have to work with now and what you need to do to prepare to purchase a home in Hawai‘i. Be flexible and willing to buy smaller, hold and build equity for three to five years, and then buy up.