Being diligent and watchful of the Wailea real estate market, when particularly good values come on the market we inform clients so they can make a timely decision if they are interested in pursuing. Today, we will share with our readers some opportunities that have recently become available (more…)
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.
For many buyers, the possibility of making a sound investment and owning a vacation property in Maui is the perfect mix of business with pleasure. However, the typical investment model that works in most markets (20% of sales price as down payment results in a break-even or cash flow positive scenario) is simply not feasible in Maui, primarily due to relatively high sales prices, high carrying costs, and comparatively low rental rates.
As such, potential buyers are highly encouraged to perform due diligence, of key note are the following factors:
* Maintenance Fees – Properties that allow short term rentals typically enjoy nice amenities, such as pools, recreation areas, fitness centers, etc. But with nice amenities comes a price to maintain, repair, and replace. These fees vary from property to property, so remain conscientious and factor in appropriately. In most cases, these fees include water, trash, sewer, landscaping, common grounds maintenance, reserves, and insurance for the property (but not for the individual unit, which remains a responsibility of each owner).
* Property Taxes – Maui County enjoys some of the lowest property rates in the U.S., but many a buyer has purchased a condo without taking into account the related tax liability. Currently, the tax rate for properties zoned as an apartment is $5 per $1,000 of assessed valued (half of 1 percent) and for hotel/resort zoned units $8.30 per $1,000. Remember that assessed values are for the last fiscal year (in 2011, you are paying for the assessed valued during FY 2010, which ran from July 2009 to June 2010) and as such is not necessarily representative of the current property value.
* Property Management Fees – This factor can vary widely depending on the level of services, ranging from 15% of gross income for basic representation up to the 45% range for full services, including marketing, scheduling, check-in, cleaning, etc. There is a plethora of property management firms on Maui, from small mom-and-pop operations to large corporations. Some properties, such as Kaanapali Shores, enjoy the benefit of having on-site property management for those owners who choose to participate in their vacation rental program.
* Utilities – Some HOA’s cover electricity, cable, telephone, and internet but those are few and far between. With that in mind, allocate enough in your budget to cover the utility expenses, as electricity in particular is fairly expensive in Maui.
* Special Assessments – Home Owner Associations can impose special assessments for repairs and expenses that are beyond the ability/scope of the reserves. It is not uncommon for special assessments to be tacked on to the maintenance fee, as opposed to requiring lump sum payments from owners.
* Insurance – Some insurance companies do not cover properties within a certain distance of the ocean (this is dependent on company policy, contact us to find out which ones offer coverage), so getting proper estimates can be the difference between being in the black and being in the red.
When ready to invest in a Hawaii dream property, be diligent and retain the services of a qualified Maui Realtor. Should you have any questions, feel free to contact me at Alex@MauiRealEstateSearch.com or 808.385.5034 at any time.
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.
Being mindful that the Maui real estate market is very dynamic, with new inventory added daily and properties receiving price reductions continuously to match market trends, we thought it’d be beneficial to potential buyers to peruse properties that offer a great value (even in a buyer’s market) in Maui oceanfront properties.
One of the best Fee Simple properties in Maalaea, the Maalaea Kai offers oceanfront living in one of Maui’s premier locations. Consisting of 79 units atop 2.2 acres of prime Maalaea real estate, it is popular with residents and visitors alike. Unit 417 (MLS# 343782) is a 2 bedroom / 2 bathroom unit (878 sq. ft.), priced aggressively at $529K. Take a look at all Maalaea Kai units currently for sale, with an average price of $674K, and its value becomes more apparent. (more…)
The views and opinions in this website are exclusively those of Alex Cortez and are for entertainment purposes only