Ever wonder why there are so many listings for sale at Makaha Beach Cabanas now? Here's the short answer. The building is zoned for residential use. For years, some owners have been illegally renting their units out for short term periods of less than 30 days. In 2014, the board decided to stop allowing these activities. Here's an excerpt from the July 19, 2014 Board of Directors Meeting Minutes:
Mr. West (president of the Board) reminded everyone that beginning December 2014, anyone who rents an apartment twice in a 30-day period will be referred to the City Zoning Code Enforcement.
The only units that were legal for vacation rentals are those with a Non-Conforming Use Permit. To my knowledge, there is just one unit at Makaha Beach Cabanas with such a permit. I was the seller's agent for that unit in 2011 (and it's not for sale now).
Now we have more listings for sale than anytime before in my memory - going back 10 years or so. Some of the listings were used as vacation rentals, others are now for sale because the owners are ready to move on.
Here's the current Comparative Market Analysis, or CMA report.
On the low side of pricing, we are now looking at the $230,000's and higher. The lowest priced units are usually in original condition or mildly remodeled. The top priced units are extensively remodeled. During the last market top in 2005, sold prices at Makaha Beach Cabanas went as high as $370,000. Some people wonder if they are coming into the market too late as buyers. It looks like we have room to grow as the most recent sales averaged $262,950.
For prospective investors, legal use of your unit would be rentals of at least 30 days at a time. In that sense, short term vacation rentals are still legal. Be sure and make the rentals for a minimum 30 days.
A long term lease might be an easier solution. There are folks who love to live at the Cabanas year around.
The change in the Board's policy will be helpful for future buyers. We've had problems with financing at times because mortgage lenders would research the building by searching on the internet. They would find a lot of vacation rentals and in the mortgage companies' view the building seemed to be a hotel rather than a condo. It IS a condo, residentially zoned and designed for long term occupancy.
I believe this is the best priced condo on Oahu based on its price and the sandy beach frontage. Want to see what I'm talking about? Take a look at Makaha Beach Cabanas listings here.
More info about Makaha Beach Cabanas
- Most, if not all of the units with original floorplans have 456 square feet interior and lanais measuring 64 square feet.
- The building is not pet friendly. Some owners have assistance pets as permitted by Hawaii's Fair Housing laws.
- Smoking is not allowed in the common and public areas, including the lobby, elevators and laundry room. Residents are allowed to smoke in their units and on their lanais.
- Hurricane insurance is generally required by mortgage companies. Some insurance companies (State Farm, for example) do not issue homeowners insurance policies for condos and houses on the beach.
- Air conditioning systems are allowed on the ocean-side of the building.
Feel free to call me at 808-548-1220 for more information!
Aloha, Mike
Michael Bates (Realtor Associate)
iProperties Hawaii
1585 Kapiolani Blvd #1533
Honolulu, HI 96814
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