The Two Most Common Questions From Hawaii Military Buyers
These are the two most common questions that I am asked by my military real estate buyers in Hawaii:
1) How much can I expect to make if I buy a home this year and sell it after my 3-6 year military tour in Hawaii?
If you are asking yourself this question or asking this question to your realtor, the answer you must be receiving is "there is no way to accurately predict that". If anyone tells you differently, they are not being truthful. Experts may tell you what "market trends" have been in the past and what they are "expected to do" in the future but the truth is, nobody really knows for certain. I can tell you what has happened in the past and what you "could have made" if you "would have bought" 3 years ago but I cannot tell you what the future holds nor can anyone else for that matter.
There is something that I can tell you though: You need a place to live and more than likely, you will have to pay for that place unless you plan on shacking up with your parents or friends, living in the barracks or pitching a tent on the beach.
You may choose to rent and after a 3-6 year tour of duty in Hawaii, you can leave with no strings attached. What will it cost you to get into this typical 3 br, 2ba single family house in Mililani, Pearl City, Aiea, Ewa Beach or Kapolei, Hawaii? Approximately $4,600-$6,000 out of pocket expense payable immediately BEFORE you move in. This equates to an average rent in Mililani, Hawaii of between $2,300 and $3,000 per month for a single family home along with one months rent for a security deposit. You should get your security deposit back as long as you live up to your end of the contract.
On the other hand, if you decided to purchase a property, you would not pay anything until 30-45 days AFTER closing on the property. The property would not be quite as nice or big as the example above but, it is yours and you can claim the tax exemption and claim the interest on your tax return on it as long as you live in it and when you sell, if there is a profit to be made, it goes into YOUR pocket and not your landlords pocket.
•2) What do I do after my tour is up and we are still in a buyers market?
You have several choices to make. First of all, you can sell the property and break even, lose money or make money. Who the heck wants to lose money????? Nobody! Instead of that option, use the property for a rental and hire a property manager to take care of it for you. Keep abreast of the market conditions and when the market turns back into a sellers market or the property has appreciated considerably so you can make a nice profit off of it, then that may be a good time to sell. You may also consider the property as your investment for your future and just keep it as a rental for as long as possible. You should be financially stable enough to be able to have reserve funds that you can use in the event that you may need to pay a mortgage payment or two before the next renter is placed into your property. Again, I cannot predict the future but I can tell you to be prepared for the worst but hope for the best.
The choice is yours to make. When will you ever get ahead financially if you continue to live in government quarters or rent for the rest of your military career? This is one of the best opportunities that you may ever have to purchase a home because of the extremely high BAH rates and COLA in Hawaii not to mention the VA Home Loan Guaranty eligibility that you have. Think about it and when you have decided to take that step, give Team Kucic a call.
Aloha and we look forward to continuing to serve with our fellow service members.
David Kucic, Hawaii Real Estate Agent
MILITARY BASES, POSTS AND FORTS ON OAHU, HAWAII AND POHAKALOA TRAINING AREA BIG ISLAND OF HAWAII
Schofield Barracks: Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii Schofield Barracks and adjoining Wheeler Army Airfield are the 2nd Brigade, 3rd Brigade, Aviation Brigade, 45th Sustainment Brigade and the 8th Military Police Brigade. In addition, the 8th Theatre Sustainment Command, 65th Engineer Battalion, 25th Special Troops Battalion and the 556 Personell Service Battalion are also part of the Division team and play an integral role in the success of the Division.
The 25th Infantry Divison has proudly served in numerous wars and conflicts around the globe. The Soldiers that make up the division are currently deployed to several locations to include Iraq.
Pearl Harbor: Pearl City, Pearlridge, Aiea, Salt Lake, Honolulu, Waipahu, Oahu, Hawaii
Hickam Air Force Base: Pearl City, Pearlridge, Aiea, Salt Lake, Honolulu, Waipahu, Oahu, Hawaii
Marine Corps Base Kaneohe: Kaneohe, Kailua, Oahu, Hawaii
Camp H. M. Smith: Salt Lake, Moanalua, Honolulu, Aiea, Pearl City, Pearlridge, Oahu, Hawaii
Tripler Army Medical Center: Salt Lake, Moanalua, Honolulu, Aiea, Pearl City, Pearlridge, Oahu, Hawaii
Fort Shafter: Salt Lake, Moanalua, Honolulu, Aiea, Pearl City, Pearlridge, Oahu, Hawaii
Wheeler Army Airfield: Mililani, Wahiawa, Kapolei, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii
Helemano Military Reservation: Wailaua, Wahiawa, Mililani, Haleiwa, Oahu, Hawaii
Kahuku Training Area: Kahuku, Oahu, Hawaii
Kilauea Military Reservation: Hilo, Kona, Hawaii
Pohakuloa Training Area: Hilo, Kona, Hawaii
Makua Military Reservation: Waianae, Nanakuli, Makaha, Oahu, Hawaii
TEMPORARY LODGING FACILITIES FOR THE ARMY, NAVY, AIR FORCE, MARINE CORPS, COAST GUARD, RESERVISTS, NATIONAL GUARD, DOD CIVILIANS AND RETIREES ON OAHU, HAWAII
The Hale Koa Hotel on Waikiki Beach: Honolulu, H
The Inn at Schofield Barracks: Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii
Navy Lodge Hawaii at Pearl HarborThe Beach Cottages at Kalaeloa (formerly Barbers Point NAS): Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii
GOLF COURSES ON OAHU, HAWAII FOR ARMY, NAVY, AIR FORCE, MARINE CORPS, COAST GUARD, RESERVISTS, NATIONAL GUARD, DOD CIVILIANS AND RETIREES
Leilehua Golf Course (Army, Schofield Barracks) Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii
Walter Nagorski Golf Course (Army, Ft. Shafter)
Kaneohe Klipper Golf Course (Marine Corps, Kaneohe Bay)
Barbers Point Golf Course (Navy, Barbers Point): Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii
Navy Marine Golf Course (Obvious Right?)
COMMISSARIES ON OAHU, HAWAII FOR ARMY, NAVY, AIR FORCE, MARINE CORPS, COAST GUARD, RESERVISTS, NATIONAL GUARD, DOD CIVILIANS AND RETIREES
Schofield Barracks Commissary near Wahiawa, Waipahu and Mililani, Hawaii Kaneohe Marine Corps Base Commissary near Kaneohe and Kailua, Hawaii Barbers Point Commissary near Kapolei, Ewa Beach and Makakilo, Hawaii Pearl Harbor Commissary and Hickam Air Force Base Commissary which are both near the cities of Pearl City, Pearlridge, Aiea and Honolulu.