Are you thinking about purchasing a villa at the Beach Villas at Ko Olina at the Final Sales Event in September, 2009? Should you buy? Here is the latest scoop.
Last week in Federal Court (August 13th, 2009), the Master Developer of the Ko Olina Resort, Jeff Stone lost his motion to stop Centex, the developer of the Beach Villas at Ko Olina from recharcterizing the limited common areas of our property into common areas. This allows Centex to take the areas such as the pools, grounds parking lots, etc. and turn these areas over to the homeowners via our homeowners association. This is through the process of converting the limited common elements into common elements.
The judge ruled that Centex was within their right to proceed with the change, based on the wording of the contract signed by the Master Developer and Centex.
With this said, the rental program front desk and the beach bar will continue to be under a long term lease (20+ years) to the Master Developer. In addition, the fitness center and owners lounge are currently slated to be owned by the Master Developer and are not part of the current proceedings.
Here is a copy of the court document:
A big caviat, while I believe I have the best perspective of what's going on from being involved with the property in many different ways, I am not an attorney. The above referenced document and other documents that were signed between the Master Developer and the Developer of the Beach Villas along with the latest Condominimum Report filed with the State of Hawaii and the purchase agreement between you and Centex should be read, digested, interpreted and advised upon by a licensed attorney. Not just any attorney, but one you trust and who is very skilled in this type of work. I would be glad to speak with your attorney to help them make a better educated guess as to where all of this will end up and the risks and rewards offered.
As I continue to say, the developer wouldn't be offering an additional 35%-40% discount off of the already reduced prices if the situation was perfect and the economy wasn't in the dumps. As with any investment, you'll have to make an educated decision as to if this investment is better than another investment for your situation. A lot has to do with your own motivations and why you wish to be here at the Beach Villas. I can lend you my ear but ultimately, only you will know if this is the right fit for you.
If you wish to brain storm and get my perspective on "Should You Buy" based on my being a homeowner at the property, a licensed Hawaii Real Estate professional, a member of the homeowner group who brought all of these issues to see the light of day and who runs a successful rental operation at the property, give me a call or drop me an email.
Ko Olina Vacation Reservations available at: Beach Villa Resort Reservations.