Being watchful of the Maui real estate market, we know when new listings represent an amazing value and present that information to our visitors. And as such, we present a new REO (Bank-owned/Foreclosure) in Kahana’s Valley Isle Resort.

Maui oceanfront REO condo is a terrific value

This 1 bedroom / 1 bathroom oceanfront unit (Maui MLS# 344610) is listed for $364,900. How does it compare to other units at Valley Isle Resort? Check out other Valley Isle Resort condos for sale. As you can see, the lowest priced 1 bedroom unit is offered at $565,000, and even a much smaller studio unit has a higher price tag at $425,000. The only condo to have sold in this complex in 2010 was a unit the same size for a price of $650,000.  In the past 5 years, seven 1 bedroom / 1 bathroom units have sold, from as low as $550K to as high as $850K. So at $364,900, obviously this represents an unbelievable deal.

Valley Isle Resort is permitted as a vacation rental, thereby maximizing income potential. Amenities for the exclusive use of residents and visitors include a pool, barbecue areas, and on-site shops. Nearby, some of the most recognized championship golf courses, five star restaurants, exclusive shops and top-rated beaches await. If you would like more information on this or other Maui real estate opportunities, contact Mariah at Mariah@HawaiiLife.com or Alex at Alex@HawaiiLife.com

We receive many requests for information from prospective buyers who would like to invest in Maui real estate but are unsure as to how to proceed. Today we will explore how to successfully implement a ‘Buy and Hold’ strategy. To briefly summarize, ‘buy and hold’ is a long-term plan of action in which an investor purchases a property and rents it to tenants with the goal of maintain positive cash flow while building equity.

Harbor Lights offer tremendous investment returns on Maui real estate

Rather than talk about abstract economic principles, I thought it’d more conducive to illustrate my points by giving actual examples. Let’s take a look at a 2 bedroom / 1.5 bathroom Harbor Lights condominium (Maui MLS# 343800), currently listed for $34,900.  With a down payment of 25% ($8,725), which is typical for investment purchases, financing the remaining 75% ($26,175) with a 30 year fixed rate APR of 4.8% (which is conservative, given that we are experiencing historically low rates) results in a monthly payment of $137.  These units typically rent from $900 to $1,200 per month, so for the sake of argument we’ll take the average of $1,050. Monthly expenses include mortgage payment ($137), maintenance fees, which are extremely high on this particular complex ($688), taxes and insurance (approx. $30), totaling $847. Deduct the rent collected from the monthly expenses, leaving $203 a month. For the first year, you would have a surplus of $2,436 ($203 x 12) and $400 paid towards the principal. So your investment of $8,725 results in a first year ‘profit’ of $2,836. How many investment opportunities give you a rate of return of 32%? Notice that I didn’t take appreciation into account.

Is a Keonekai Villages short sale the right investment for you?

Now let’s take a look a Short Sale 2 bedroom / 1.5 bathroom condo at Keonekai Villages (Maui MLS# 343842) listed for $165,000. With a 25% downpayment ($41,250), financing the remaining 75% ($123,750) at a 30 year fixed APR of 4.8% for a monthly mortgage payment of $650. Additional monthly expenses include monthly maintenance of $340 and approx. $100 for property taxes and insurance, bringing the total of expenses per month to $1,090. These units typically rent for $1,150, leaving a surplus of $60 per month. The first year, the amount paid towards the principal on the mortgage totals $1,892, to which we add $720 ($60 x 12) for a total of $2,612.  Now the original investment of $41,250 ‘only’ returned $2,612 the first year.  Although this property does not enjoy the whooping 32% return that the Harbor Lights unit did, it returns a very respectable 6.3% and is in a much more desirable area (near one of the most popular beaches in Hawaii, Kam III) which makes it more prone to appreciate at a faster pace.

When implementing this type of strategy, remember to build ‘reserves’ for repairs, which would be kept at a minimum in condominiums as compared to single family residences, and take into account vacancy rates and status of special assessments. If you would like to learn more about real estate investing in Maui, contact me at Alex@MauiRealEstateSearch.com

Maalaea Mermaid Foreclosure priced at $156,900

For many, the thought of  owning an oceanfront Maui condo is reserved only for the rich and famous. Take a look at Maui MLS# 344414, a Maalaea Mermaid  1 bedroom / 1.5 bathroom recently listed foreclosure condo offered at $156,900. This condo offers a very open layout, with a split-level design and two lanais to enjoy whale-watching, direct access to Maalaea Harbor (with all its shops, restaurants and marina), and the security of a secured-entry building.  Keep in mind that other Maalaea Mermaid condos of the same size are listed for $229K  and $265K  and it becomes clear that this is a great deal.

Maalaea Mermaid sits atop 2/3 of an acres of prime Maui real estate and encompasses 39 condominiums. Just a short drive away, residents can enjoy championship golf in Wailea or Kaanapali, a plethora of fun activities, world-class shopping, and five-star restaurants (try the Waterfront restaurants, a critically-acclaimed Maui institution) . With an oceanfront location, covered parking, and an on-site convenience store, residents enjoy the best of both worlds: oceanfront Maui living at affordable prices.

Napili Sunset beachfront condo is priced to sell

Looking for a beachfront Maui property? This Napili Sunset unit, Maui MLS 344389, is truly one to consider, as a 2 bedroom / 1.5 bathroom beachfront condo priced at $799,900.  Priced at $1,056 per square foot, it is well below the average price for this complex, which typically commands $1,500 per square foot. Residents and visitors can enjoy exclusive use of a pool, recreation area, and storage facilities. Being a permitted vacation-rental property, savvy owners can enjoy the best of both worlds (using it during their stays, yet earning vacation rental income during their time off-island).

If you would like more information on Maui real estate opportunities, contact Mariah at Mariah@HawaiiLife.com or 808.385.4955

With the real estate market nationwide being volatile there are many opportunities for investors and vacation buyers. How does Maui differ from the infinite choices? The list is literally endless, so for the sake of brevity I will go with my top 5 reasons:

*  For the time being, it is a buyer’s market.  A high inventory of properties, including distressed bank-owned properties and shortsales, results in motivated sellers eager to price competitively. For those looking to sell, it is also a great time.  Sure, you will sell at a low price point, but will also be upgrading at a low price.

*  It is a unique destination with an array of activities to enjoy and the unparalleled beauty that few places in the world can even compare.  Whether you enjoy kayaking, surfing massive waves, paddle boarding, hiking, sunbathing, or walking on the beach, the only limit to what you can do is your imagination (unless you also imagine shoveling snow, blizzards, or freezing temperatures).

*  It is a vacation destination unlike many others, where you can enjoy the safety and comforts of the U.S., enjoy an exotic culture, all while avoiding complexities and heavy taxation of foreign ownership.  The Hawaiian culture is the perfect setting for enjoying a relaxing vacation away from home, a mai tai poolside, a luau with the family, Hawaii is America’s paradise and Maui is the epitome.

*  Maui is on the forefront of land conservation.  What does that mean for property owners?  With limited areas for development, land becomes more and more valuable as more people try to buy here.  The opportunities for appreciation are rarely seen (think of Manhattan or Boston… if only they were on the beach).

*  And lastly… because it’s Maui!  One of the most renowned islands in the world, Maui was recognized yet again as “Best Island in the World” by Conde Nast and named the “Best Place to Own a Second Home” by Barrons.  Such acknowledgments brings more interest from mainlanders and foreign investors.  More interest equals more appreciation.

Condos can range from entry-level units starting at approximately $100K, to popular Kihei Akahi units, to high-end Wailea Golf Vistas.  Homes also run the gamut from starter homes to beachfront estates. Contact us if you would like to discuss the possibility of owning a piece of Maui.

Napili Shores Oceanfront Condos Are an Affordable Choice

Napili Shores pool with spa and cabana

If you are searching for an oceanfront Maui condo at affordable prices, Napili Shores can be the ideal choice.  Set amidst 6.33 prime beachfront acres of Maui real estate, Napili Shores is composed of one hundred and fifty six units.  There are ninety studio units (448-540 square feet) and sixty two 1 bedroom, 1 bathroom units (675 square feet of living space).  Residents and visitors enjoy exclusive enjoyment of amenities which include a beachfront pool with spa and cocktail lounge, barbecue areas, and shuffleboard area.  In addition, there is an on-site restaurant which is open to the general public.  Napili Shores is permitted as a short-term vacation rental, perfect for those looking for an income-producing property in Maui.

Located in Napili off of Lower Honoapiilani Road, there is a plethora of activities in the immediate area.  Besides being near some of the most celebrated beaches in the world, residents can also enjoy five-star restaurants, world-class golf courses, exclusive shopping opportunities, water activities unrivaled in most of the world and Lahaina’s art scene and thriving nightlife.

You can search for current Napili Shores condos for sale and contact us if you would like further information.

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