Status of Hawaii HB 2078

As a brief follow up to our previous posts on Hawaii HB 2078, through a number of versions of that proposed measure, HB 2078 HD2 SD2 CD1 passed Final Reading on 05/01/2012. To summarize it, the measure will:

Require the owner of a transient accommodation to designate a local contact residing on the same island as where the transient accommodation is located. Furthermore, it requires that all advertisements and solicitations for transient accommodations on any website display the registration identification numbers.

This measure is to become effective on July 1 and is set to be repealed on December 31, 2015. Through strong opposition, the original piece of legislation morphed into the version that was eventually passed. Requiring (forcing) off-island owners to use a property manager was THE controversial aspect and it was successfully opposed. Of course, that is not to say that similar legislation could be proposed in future sessions, so it is critical that potential buyers perform due diligence and be represented by a professional who is well-versed in all matters that could affect his/her client’s real estate objectives.

Thinking about investing in a Maui vacation rental? Contact us for more information on how feasible it would be depending your individual circumstances.

*  Beach homes on Baby Beach – As we had previously noted, 1181 Halepaka is one of the best deals in Maui beachfront homes to come on the market in a long time, yet one of the neighboring homes, 1189 Halapaka, is also on the market priced at $3.81M but compensating for the price difference by more interior square footage and a bigger parcel.

*  Kaanapali Luxury Homes – Ten days ago two REO’s were listed in Kaanapali’s much sought-after Ke Alii subdivision. In need of completion, 15 Kahuakai Place is listed at $1.5M, while its immaculately finished neighbor at 23 Kahuakai Place has an asking price of $2.095M

*  The Ritz – Synonymous with the absolute most high-end accommodations worldwide, The Ritz Hotel Suites has established a reputation as a Maui luxury property with few comparables in Hawaii. And a Ritz Hotel Suite 2 bedroom / 2 bathroom unit offered at $985K may prove to the be right opportunity for a potential buyer (provided that price adjustments are forthcoming).

For those interested, it is imperative to act quickly. As evidenced by 19 N. Iwa Place in Kaanapali, there is demand for high-end REO’s (this particular property went under contract in less than 4 days).

Editor’s note: The following is being posted with expressed consent from its author and was originally posted on the internal blog for the Realtor’s Association of Maui. It is in response to our previous post on HB 2078 SD2.

The last REALTORS Association of Maui Blog inadvertently upset a lot people and this is meant to set the record straight. In the last edition of the RAM Blog – issued last Thursday — in almost an afterthought I included the following statement:

“Speaking of education, one of the most interesting, perhaps amusing parts of this discussion is the complaint raised by Canadian owners of Hawaii vacation rentals that the requirement that they pay TAT or have an on-island representative somehow is a violation of the North American Fair Trade Agreement (NAFTA). Just when you thought that real state law could not get more complex, we suddenly find ourselves dealing with international trade agreements.”

This was meant more as a bemused quip about the use of NAFTA in the ongoing RBO debate than as a firm statement of fact. Unfortunately, it was poorly worded. And worse yet, one of our members, who is entitled to receive the Blog, re-posted it on his office’s Blog, complete with attribution to the RAM GAC Blog source, without getting permission to use it. That re-post was then picked up by a network of non-resident property owners who have been dueling with licensed property managers and state legislators over pending legislation that deals with vacation rental management, taxation and consumer protection matters. Many of these folks are Canadian citizens. They did not share my amusement with this issue and RAM received a number of emails from them registering their concern about the above highlighted statement.

Rather than to get into a debate about the specifics of this topic, I think it is fair to state for the record these property owners’ key concern about the blog statement. They are not, they said, objecting to paying the same tax as any other similarly situated property owner. Nor do they object to the requirement to have adequate on-island representation for their rental unit(s). Their objection is that
they believe they are being singled out for uncalled for and unfair discriminatory treatment.

This concern about discrimination, in my analysis, was caused by the way this debate got started. The original bills did discriminate in its treatment of Hawaii residents versus folks who are not full-time Hawaii residents. That discrimination helped set the tone for the subsequent discussion. For the record, our association opposed any bill that required the use of a licensed property manager.

So, Mea Culpa and e kala mai to anyone who was offended by the post. Neither RAM nor its members meant to offend anyone with the above posted statement.

REO in Lahaina’s Baby Beach

For affluent buyers who have been waiting for the right opportunity to own a beachfront property on Maui, the time has come.  A very rare offering in the high-end sector of Maui real estate, MLS# 351924, is a REO (foreclosure) 4 bedroom / 4.5 bathroom luxury home on Baby Beach. Priced at $3,502,000, how does it compare to other values on Maui? Well, in the past year, beachfront single-family residences have sold for an average of $1,541, yet 1181 Halepaka Place is priced at $1,296 per square foot and enjoys what is arguably one of the best waterfront locations in Hawaii.

With over 2,700 square feet of interior living space and almost 600 square feet of covered lanai, this home offers a spacious open floor plan prime for indoor/outdoor living. Take a break from the ocean by taking a dip in the saline pool or take a stroll to every amenity that Lahaina has to offer on Front Street. Sold completely furnished with elegant decor, this Lahaina beachfront home offers move-in ready condition at a price well-below market value.For more information and/or to schedule a viewing, contact us at alex@mauirealestatesearch.com or call 808.385.5034 during normal business hours.

Editor’s Note: The following is an excellent post written by Jennifer Mackay. Enjoy.

When a home goes on the market, its owners run through a routine list of things to do to make it sell as quickly as possible. They clean, they repair, and they update. Then, they hire a Realtor, have photos taken and make fliers to hand out at open houses.

An item that might not be on the list – and in this day and age, it probably should be – is “create a virtual tour.” Real-estate experts say making a good-quality video of a home for sale is one of the best and cost-effective marketing tools around.

An array of high-definition video-recording devices crowd electronics stores, and all of them produce gorgeous images. For those who want to spend less money, there are point-and-shoot cameras with admirable video capabilities. Even smartphones can get the job done.

The key to properly presenting a home via video is forethought. Here are some tips for staging the show.

Make a Script

Ideally, the virtual tour will take the online buyer from the curb to the back yard in less than five minutes. Consider the best features of the residence and how to convey spaciousness. Decide in what order the rooms are going to be shown. Then, come up with insightful commentary to further impress upon the viewer the sanctity and specialness of the property.

Establish the Lighting

This step might be a little tricky, but it’s critical that glare and shadows are minimized. Practice by snapping a few photos first and checking them. Do the blinds need to be closed? Does the overhead light need to be turned off? Does your recording device need a flash? When shooting outside, remember early morning and early evening provide the optimum ambience – not when the sun is high in the sky.

Add Some Cinematography

A tripod or monopod are helpful when panning the room to capture its full measure. Those accessories will stabilize the camera and lessen the “shake” factor. Also, try using a wide-angle lens — a tool of the trade for all real-estate photographers. That could eliminate the need for panning.

Create a Story

Basic video-editing software can be found for free and often comes with the recording device. Using the software to develop smooth transitions from one scene to another not only will create a story but also will add polish to the presentation and let the buyer know the homeowner is proud of his or her property and serious about selling it.

Post It

YouTube accounts take minutes to establish and allow users to post their video creations for all to see. Links to those videos easily can be sent to buyers via email or other social-media applications. Sellers should post the video on their Web site and ask their Realtor to post it on the company Web site.

About the Author:

Jennifer Mackay is an award winning real estate agent and Keller Williams team leader in the Panama City Florida area. Her website: Panama City Real Estate provides guidance, information and free buying and purchasing features for registered visitors. Follow: @realtorjennifer | Facebook