Kihei REO Offers Great Value

Looking for a great deal in Kihei real estate? A REO (Maui foreclosure/bank-owned condo) in Kai Makani will please savvy buyers, as it is a 3 bedroom / 2 bathroom unit currently listed for $399K. How is it a good deal? In the past year there have been 8 sales in this complex at a price of $367 per square foot, yet the new listing is priced at $322 per square foot.

Kai Makani is one of my favorite properties in Kihei, featuring a prime location across the street from the beach (boasting arguably the best spot for windsurfing/kitesurfing in South Maui) and an array of amenities for residents, to include a pool, spa, barbecue areas, and fitness center.

New inventory is added daily to the Maui real estate market, if you would like to be alerted when a particularly good deal comes up that fits your criteria, contact Alex at alex@mauirealestatesearch.com or call 808.385.5034 any time.

As real estate professionals specializing in South Maui, we are well aware of market trends, fair values, and the general state of the Valley Isle. And as such, when we see a particularly phenomenal deal, we like to bring it to the attention of our loyal blog readers. This newly renovated Kalama Terrace vacation rental is currently being offered at $60 per night, well below comparable units in Kihei. And when taking into that this complex is within two blocks of Charley Young Beach, Kamaole I Beach, an array of restaurants, shops and activities, its value becomes more apparent. The owners took great care in renovating it fully in March and furnished it very tastefully, even the most discerning traveler will be pleased. This is clearly one of the best values in Maui vacation rentals and is offered by a caring, trust-worthy family (we highly recommend them). Should you wish additional information or to book it (hurry, this rate will only be available for a limited time), contact the owners via their VRBO Kalama Terrace listing.

A couple of listings have been added to the Maui real estate market in the past week that are noteworthy of mention. Should you wish further information about these or any other properties, feel free to contact us.

Your Views from Menehune Shores

A new listing at Menehune Shores (MLS# 345968) certainly caught the attention of Kihei condo buyers. It is a 2 bedroom / 2 bathroom oceanfront unit, priced at $365,000. Although it is a distressed sale, it is NOT a short sale or an REO. In the past 6 months, there have been 4 sales in Menehune Shores, for $360K, $395K (1 bedroom unit), $377K, and $394K.  And as you can see, it is the lowest priced unit currently in the market at Menehune Shores and also the lowest priced oceanfront 2 bedroom unit that permits short-term rental in Kihei.

For those looking for Wailea-living but at Kihei prices, it is not very often that homes in the Keonekai neighborhood are for sale for less than $600K. Yet a 3 bedroom / 1.5 bathroom (MLS# 345998), well-kept home just came on the market for $439K. Take a look at other homes in this area (South Maui/Wailea map) and see how this home is priced considerably lower than all other listings, with many homes priced well over $1M. Enjoy the Wailea Kilohana Park across the street, the phenomenal beach at Keawakapu, all the world-class championship golf courses in Wailea/Makena, and much more.

Should you wish more information about these properties or if you’d like to keep abreast of the local market (after all, the best deals are typically in escrow within days), feel free to contact us.

Take advantage of low interest rates

Many potential buyers are uncertain as to whether to buy now or wait for real estate prices to decline further (assuming that prices will decrease). For those financing, I would suggest focusing on total cost of purchase rather than fixating on sales price. Today’s historically low interest rates play a critical part in the overall purchase and cannot be overemphasized.

Rather than discussing abstract economic principles, it would be more productive to illustrate this point by actual examples. Let’s say that Bob is interested in a condo currently priced for $200K but he believes prices might dip a bit more.

Scenario A: Bob buys today at $200K with 10% down, securing financing of the remaining $180K at 4.5% interest rate for a 30 year mortgage. His mortgage payment (interest/principal) is $912 per month. But Bob wonders if he should have waited for prices to decrease even more.

Scenario B: Bob waits a year, during which time prices have gone down 5% (which is not out of the realm of possibility) but interest rates have gone up by 1%, which many analysts/economists are predicting. So Bob is very happy that he is able to save $10K from his purchase by buying it at $190K. So with a 10% down payment and financing at 5.5% interest rate on a 30 year mortgage, he assumes that he is in a much better position than he would have been a year ago. But now his mortgage payments are $971 per month.

Scenario C: Bob waits a year, during which time prices have remained flat and interest rates have gone up by 1%. So Bob considers buying it at $210K, with 10% down but interest rates at 5.5% for a 30 year mortgage. So now facing a mortgage payment of $1,068 per month, Bob realizes that he can’t afford it.

Sure, from $971 to $912 is a difference of ‘only’ $59. But in a year that amounts to $708, which over the life of a 30 year mortgage totals $21,240.  With the median sales price of a Maui home at $500K and a Maui condo at $390K, there is certainly plenty of incentive to take advantage of today’s low interest rates.

Maui Condo Deal of the Month

Even in the current real estate market where properties are at rock-bottom prices, there are still properties priced well below market value. One such property is a Kai Makani REO (Bank-owned/Foreclosure) 3 bedroom / 2 bathroom condo priced at $352,900.  This unit encompasses 1,238 square feet of interior living space and features an open floorplan, in-unit stacked washer/dryer, granite countertops, vaulted ceilings, and stainless appliances. Kai Makani was built in 2007 and it shows, as units feature upgraded designs and quality craftsmanship throughout.

How is this unit a good value? Check out other Kai Makani condos currently for sale. As you can see, there are SEVEN smaller (1,075-1,126 sq. ft.) 2 bedroom / 2 bathroom units for sale, ranging from $399K to $625K. The only other 3 bedroom / 2 bathroom unit is listed at $599K. I don’t expect this unit to last long on the market before a savvy buyer or investor swoops in.

Contact Alex at Alex@HawaiiLife.com or Mariah at Mariah@HawaiiLife.com to keep abreast of the best deals in Maui real estate.  Oh, and check out the beach across the street from this unit, the longest walking beach on Maui.

UPDATE: PROPERTY WENT INTO ESCROW WITHIN A FEW DAYS OF HITTING THE MARKET. Contact us if you’d like to be kept abreast of great values in Maui real estate.