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.

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.

Ke Alii Ocean Villas Sales Update

Many potential buyers are waiting for the bottom to fall out before purchasing a property.  And while it is still possible that values may decrease slightly in segments of the market, in many instances values have already shown a marked improvement, year over year. Such is the case in Ke Alii Ocean Villas, one of South Maui’s premier properties. In the first quarter of 2010, there were 8 sales with a median of $510K and average of $532. Compare that to the first quarter of 2011, whereas 10 transactions had a median of $628K and average of $634K. Is this indicative of a Maui market that has experienced a remarkable improvement? No, but it clearly shows that there are pockets where increased demand (due to quality of build, location, etc.) has resulted in increasing values. This is where having a qualified real estate professional can be the difference between making an informed decision and blindly shooting at the wall.

Ke Alii Ocean Villas has become one of my favorite properties in South Maui due to what it has to offer: location across the street from Kam I, superior craftsmanship, open floor plans, and world-class amenities. Residents enjoy exclusive access to a salt-water infinity pool, jacuzzi, barbecues, and fitness center. There are a total of 144 units across 7 acres of prime Maui real estate, of which 15 units are currently for sale. Should  you wish further information on this property or a specific unit, don’t hesitate to contact us.

Kihei’s Premier Property: Hokulani Golf Villas

With a setting of 40 acres of prime Maui real estate, Hokulani Golf Villas is redefining luxury living in South Maui by creating the perfect fusion of single family residences and the conveniences of association-maintained condominiums.  The floorplans for the 152 homes range from 1,832 square feet to over 2,516 square feet, but share the same concept: Quality, Integrity, and Custom Design. Residents enjoy a 66 ft. infinity pool, a clubhouse, and spa, as well as walking trails and interior parks.

Currently, there are 9 Hokulani Golf Villas for sale, from $895K (MLS# 341724) to $1.39M (MLS# 345896). In the past year, there have been 6 sales, from $925K to $1.2M and list price to sold price ratio has been a phenomenal 99.3% (compared to 95.2% Maui-wide).  Interested parties may contact Alex at Alex@MauiRealEstateSearch.com or Mariah at Mariah@MauiRealEstateSearch.com for more information or to schedule a viewing of any the units currently for sale.

For those seeking luxury real estate in South Maui, there is a plethora of options. But for those looking for a permanent residence, without having to deal with transient visitors which come with short-term vacation rental properties, the choices then become more limited. Among those, Na Hale O Makena is heads and shoulders above competing properties.

And now, there has been a price reduction on MLS# 346473, making it one of the best values in high-end Hawaii real estate. Currently priced at $1.375M, this is well below the 4 other units for sale, from $1.565M to $1.85M. In the past year, there have been 3 sales at this property, for $1.495M, $1.875M and $2.05M, which proves that values at this property are well above the asking price of the unit in question.