I woke up at 5 a.m. to meet my friend for surfing. I looked up while driving in the morning darkness and saw a sliver of the moon. My friend called me up and said there's an eclipse.
Then I started thinking about it. The night before, I went to bed during a full moon. Now the moon is a sliver? Looking back up into the sky, I noticed the moon was already much brighter than it was half an hour earlier.
By 7 a.m. the sun was rising and the eclipse was nearly finished. We had our full moon again. What a sight. Lucky my friend mentioned it or it would have taken me longer to notice what was happening.
I didn't get any pictures, it takes a good camera for a lunar eclipse and I didn't have one with me. Checkout the links below.
I went to my regular haircut place on Kapahulu Avenue last week. The owner and I always have things to talk about because we both live in Palolo Valley and we see each other regularly.
The owner asked me if I knew a certain realtor. I knew the name and had spoken with this person before, however I didn't know that realtor personally.
Then the owner told me about her experience with this realtor. She came in for a hair treatment and was given a reduced rate because she was a "friend of a friend". When the treatment was finished, she pulled out a credit card. The owner said they accept cash and checks only. The realtor said she had no cash. The owner said a check would be okay and the realtor said she didn't have her check book. The owner suggested going across the street to the bank ATM. The realtor was too inconvenienced and promised to drop off the money in the next day or two. She gave her business card to the shop owner.
A week went by and the realtor had not come back. The shop owner called the realtor and she seemed to have forgotten that she didn't pay for the treatment. The owner said she didn't pay and please come by with the $30 fee. Then the realtor claimed that she had paid $20 and only owed $10. The owner said "no," the realtor had not paid anything yet. The realtor said she'd stop by - and she didn't.
The shop owner called an acquaintance at the same real estate company. This person spoke with an in-charge person and they had a meeting with this realtor. She agreed to go and pay the bill.
Guess what? She hasn't paid yet! And this particular realtor is pretty successful, it's not like she can't afford to pay the bill.
Please don't tarnish our image! Pay your bills and be a good neighbor!
Have you seen these cones on Waialae Avenue lately? This week the City and County of Honolulu is conducting a study to see how a bike lane would affect traffic.
A long section of Waialae Avenue in the town-bound direction has three lanes. Within this area, a lane is blocked off, leaving two lanes for drivers.
Some people are grumbling about the traffic disruption. I believe we should look at the bigger picture and see how bike lanes will benefit Kaimuki and the surrounding neighborhoods.
In Palolo Valley there are a lot of people who are (choose one or more):
Being green
Getting exercise
Saving money
- by riding their bikes regularly.
Here's a photo of a rider heading down Palolo Avenue. There's less motor vehicle traffic here and bicyclists can get into and out of the valley with less anxiety. Once you get to Waialae Avenue it's a different story.
My wife and I recently rode our bikes from Palolo Valley to the City Mill store in Kaimuki. Riding down Palolo Avenue wasn't bad, but once we got to Waialae Avenue we rode on the sidewalk! It's against the law to ride a bike on a sidewalk in Honolulu, however we'd rather risk a traffic ticket than getting run over by a car.
Result - we got some shopping done, fit exercise into our schedule, didn't burn gas and spent some quality time together.
We should do this more often! Adding bike lanes to Honolulu's city streets will allow more people to safely commute and get other things done. More bikes on the road = less cars on the road.
Think about it and please support bike lanes. How many of us are too fit and couldn't use some more exercise?
This home was built in 2003 and remodeled in 2011, nearly doubling the interior size. It is now a three bedroom, two bath with 1,376 square feet interior and a 240 square foot lanai.
Engineered wood floors, claw foot bathtub and shower in the master bedroom, walk in closet. Split air conditioning throughout.
What a great house on quiet 9th Avenue, just a mile from Waialae Avenue in Kaimuki. For a tour of the home, click here.
Competitively priced at $815,000 fee simple. For more pictures and info, contact me at (808) 548-1220 or visit our website, OahuMLS.Net.
I read an interesting article in Sunday's Parade magazine, which discussed myths for home buyers. Thinking about Hawaii's real estate market, I thought about how these myths affect us. Here they are:
1) "The perfect home is out there." Some buyers want everything right and may overlook all the positive features a home offers. I remember looking at a particular townhome in Ko Olina, where the buyer liked everything except the kitchen cabinets. If a home is hitting on other points, particularly price and location, don't let kitchen cabinets hold you back, especially in Hawaii.
Hawaii is not like some other states, where there's an endless inventory of homes to choose from. In the more affordable price ranges, it's a case of "write the offer now before someone else gets it."
2) "The listing information is always accurate." Definitely not. Much of the information in a listing is subjective, that is, up to the owner and listing agent. For example, property condition. An owner might think his property is in excellent condition while a buyer considers it average. The listing agent might be somewhere in between on this.
Maintenance fees on condos and townhomes often increase at the beginning of a new year. An agent listing a property in November or December may not have known about maintenance fee adjustments in January. The listing agent should inquire with the owner to keep this info updated.
Real property tax assessed valuations are also overlooked at times.
3) "You should buy as much house as you can get." Generally, the larger your house, the more time and money it will cost to upkeep. Some people want 2,000 square feet interior to showcase their personal collections plus a garage for the extra cars, jet skiis etc. That's fine if you can afford it and have the time to maintain things. If the expense and maintenance will be a drag on your personal life, then consider going smaller. Simplify.
4) "If your offer was accepted right away, it was too much." Buyer's remorse. In the past couple of weeks I worked with one couple who wanted a hot property at Diamond Head. They really wanted this condo and we talked about making an offer for about a week. The only thing hanging them up was an offer amount. They didn't want to pay too much. After about ten days, the seller accepted an offer from someone else. The buyers were immediately disappointed they missed out and were then ready to make a backup offer within $5,000 of the list price. We'll have to wait and see if we're too late.
In this same two week period, I've been working with another buyer who wants to purchase at the Makaha Beach Cabanas. He said he's ready to make an offer, told me the amount and... well it's way too low. His planned offer is about 35% off the list price, lower than any sale in the last several years. It won't work. Owners who aren't distressed will not give up years of built up equity to a lowball offer. If you really want a property, step up to the plate and make an offer that will work. It's all about supply and demand and in Hawaii, demand exceeds supply.
5) "The value of the home will increase." The article goes on to say don't expect big short term profits in real estate. I agree that short term profits should not be the goal of a Hawaii real estate investor. However, I do feel that most if not all Hawaii real estate will increase in value over the longer term.
The Honolulu Board of Realtors historical sales data shows from the year 1985 to 2010, Oahu's median home prices increased by 273%, which averages out to 5.4% per year. There were definitely some bumps along that time range, however the trend is clear. Property values in Hawaii are rising.
I picked up the January 6, 2011 Honolulu Star-Advertiser and was shocked to see that Virginio "Marcus" Marcos passed away on December 6, 2010. That was a whole month ago and I only read about it today.
Marcus and I met back in 1982. Marcus' friend Dave Cruz was a resident advisor (RA) at Hale Anuenue, a dormitory at UH. I had just moved to Anuenue to start the fall semester and Dave was the RA for the second floor.
Marcus used to hang out with us at Anuenue although he lived somewhere else (off campus I think). Dave Cruz was a pretty good musician, I remember listening to him play guitar and sing in the lounge area of the dorm. By the way, Dave's brothers are Ernie Cruz Jr. and John Cruz. Back then they were hard working musicians who were not famous yet. Later on Ernie Cruz hit it big as a member of the Ka'au Crater Boys. And John has several popular albums at present.
Back in the Anuenue days Hawaii's drinking age was 18. Many of the guys in the dorms looking for fun would head down to Bullwinkle's on University Avenue. After 12/31/1982 they changed the name to Moose McGillicudy's because the Bullwinkle's franchise put legal pressure on the bar's owners about the name.
Bullwinkle's had live music, and the one group that really stood out was the Delta Band. The played all kinds contemporary dance music and seemed to learn each new hit song as it came out on the radio.
I remember going to Bullwinkle's with Marcus, Dave and his brothers for some drinks and then hanging out at the dorm to talk story and drink a few more brews.
Marcus used to ride his skateboard around campus and I remember he was into surfing.
Decades passed and I read a newspaper article about Marcus opening a restaurant somewhere in Honolulu. One day I went to Diamond Head Cove with a customer for smoothies. The customer told me a guy behind the counter was looking at me. I turned around and it was Marcus! That was 20+ years after the Anuenue days. Marcus was the owner of Diamond Head Cove, we talked awhile and I looked at his surfing pics on the wall. He was busy with his customers so we said we'd catch up later.
Now that I knew this was Marcus' shop, I went back with another customer a few months later. Marcus treated us to an Acai bowl and off he went, busy with his restaurant again. We had exchanged phone numbers and e-mail addresses and kept in touch now and then. Today I read about Marcus' passing away and reflected, wondering what his health condition was last time I saw him and if he was keeping quiet about it. According to the newspaper Marcus died of cancer.
As I searched the internet for news about Marcos I found this video:
Marcus' celebration of life will be held on Saturday, January 22nd 2011 at Fort Derussy Park in Waikiki. Starting at 8:30 a.m. with a paddle out to "Threes" (surf spot) and continuing to 6:30 p.m. with music and food.
"Chet the Jet" is a well known triathlete in Honolulu. I met him in 1997 when I had just gotten into triathlon and he had recently moved to Hawaii from the mainland.
We started training regularly and became close friends. Next thing you know, he talked me into doing my first Ironman distance triathlon (The Maui Triathlon).
Several years back, Chet started coaching triathlon groups and started his own clinic, called Team Jet Hawaii. He's always managed to get a great crew of elite and everyday coaches to assist in the swim, bike and run training of his groups.
Several years back, Chet did the Deca Triathlon in Mexico. That was 10 Ironman distances - swimming 24 miles, biking 1120 miles and running 262 miles. Yeah.
Another year or two later, the organizers decided to hold a one-time only Double Deca (multiply those distances x 2). Chet went back to Mexico and did it again. He was gone for about a month!
Well guess what? The organizers decided to hold another Double Deca in 2010. Chet signed up and was ready to go, along with fellow triathlete Charles Dias, who would be his "handler" - taking care of Chet's food, drinks, etc.
They were all set to go, but then decided to cancel because of the danger these days of being in Mexico. Organized crime, drug dealers, shootings etc. They didn't want to risk their lives and Americans might be more at risk than some other participants.
Chet and Charles decided to do the event in Honolulu. Just Chet with Charles' assistance. On November 13, 2010 Chet started his swim at the Oahu Club pool in Hawaii Kai. That's 48 miles, going back and forth in an olympic-distance pool.
Three and a half days later, he wrapped up the swim and began his bike ride on Lagoon Drive, near Honolulu Airport. On Thanksgiving day, 13 days into the event, Chet reached 1,200 miles on the bike. Due to health issues (try sitting on a bike seat and ride that far), his doctor advised him to discontinue the bike ride and move on to the run. So the bike portion became a "Deca" instead of a "Double Deca."
Now Chet's at Kapiolani Park, running laps for about 11 hours a day. Averaging 33 miles per day. He will wrap up on Saturday afternoon with 26.2 miles left to go. Sunday morning, Honolulu Marathon here we go! He'll finish the event and his supporters will be there in force!
Is he crazy? Yes! I give him credit though, how many people can do that? I did 11 individual Ironman races and could not imagine going any further than that for a single event. It wears you out both physically and mentally.
If you see Chet on Sunday, give him an encouraging shout.
Can you feel it? Investors are returning to Hawaii and buying properties in force. In the last couple of weeks the phone calls have been coming in almost daily by investors looking for a place to park their money. Condotels such as Ala Moana are regaining their luster.
What's Turning the Tide with Hawaii Condotels?
Our economy - at least here in Hawaii, is on the mend. Hawaii's economic engine - tourism, is picking up. Today's issue of the Honolulu Star Advertiser proclaims Tourism Carrying Isles.
Room occupancy is increasing, which leads to higher room rates. Higher room rates lead to more revenue for owners of condotel units. This is a welcome sign as Hawaii's tourism market has been down since 2008.
What's a Condotel, Anyways?
If you're not familiar with the term, condotel refers to a hotel which has been converted to condominiums. There are several prominent condotels on Oahu. Ala Moana Hotel is probably the most well known, because of its long history and its great reputation. Ala Moana Hotel gets great reviews on websites such as TripAdvisor.
Condotel Return on Investment
Return on investment from operating income is not all that great at Ala Moana Hotel. Monthly income after hotel expense deductions is about enough to cover the maintenance fees, property taxes and put some money in an investor's pocket. How much? That varies with the season, views and room rates. I've seen statements where owners receive $100 - $500 per month after expenses.
Let's just say (for the sake of argument) that a given unit selling now for $100,000 pays out $250 per month average after expenses. That's $3,000 per year net, about 3% return on investment. That beats interest rates a lot of banks are paying. Taking a look online today, First Hawaiian Bank and Central Pacific Bank offer 1.75% on a 60 month CD. Bank of Hawaii seemingly doesn't want to publish their rates, call or visit a branch for more info.
Maybe 3% ROI isn't so bad? On top of that, condotel prices are rebounding. Most of the low priced listings (less than $90,000) are getting snapped up. Considering that many of the Ala Moana Hotel listings are at about half the price they were five years ago, they may continue to appreciate. Money in the bank will earn 1.75% on a five year CD. Where do you think Ala Moana Hotel prices will be five years from now?
Financing for Condotels
Financing is pretty much non-existent. Lenders generally are only interested in financing residential properties with full sized appliances (refrigerator and stove). Condotels such as Ala Moana have mini fridges and microwaves, sometimes with hot plates. Condotels are basically for cash buyers.
Condotel Short Sales
The lowest priced condotel listings are usually short sales. When we make an offer on a short sale listing, keep in mind that the seller's mortgagor (bank) must give approval in writing before the deal can close. This often takes months and because of the attractive pricing, sellers will often receive multiple offers. The seller's bank will normally take the highest cash offer. Sometimes the bank will reject all offers and tell the seller's agent to go back to each buyer's agent with a minimum price.
For buyers wanting to close a deal quickly, short sales are not the best way to go. However, they may offer the lowest prices.
For buyers ready and willing to move quickly, making a fast offer on a non-short sale listing might result in the best deal. This may mean making an offer on a unit sight-unseen. Keep in mind that, once the offer is accepted we can take a look at the unit during the home inspection period and cancel the transaction if the property is unacceptable.
Buying a Condotel with Cash
Cash buyers - sellers usually want to know the cash is actually available. This may require a copy of a recent bank statement. Your account number can be covered up to protect your privacy.
One buyer I worked with felt providing statements was a hassle, so they just put all their money into escrow within the first week after acceptance. They were still protected by the contingencies in the purchase contract so that if they felt a need to cancel, they could do so and receive a full refund. Fortunately, they liked the property and closed the deal.
If you are ready to invest in a condotel or other Hawaii real estate, feel free to call Mike Bates at (808) 548-1220. Or visit our Ala Moana Hotel page and fill out the contact form.
I found some interesting old pictures of places in Hawaii. They include the University of Hawaii at Manoa campus, Oahu Country Club in Nuuanu and the sugar cane train in Waipahu.
There are many more pictures, it just takes time to edit them for a blog post. If you'd like to see pictures of a particular part of the island, send me an e-mail or post a comment and I'll find something interesting.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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