oahu vistor's guide to real estate

8/9/2019 Oahu Vistor's Guide to Real Estate

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Century 21 All Islands / Mathew Ngo

CENTURY 21 All Islandsis the largest CENTURY 21 organization in Hawaii

with 10 offices located throughout the State. With more than 20 years in

real estate business, our highly-trained sales force is dedicated to providing

you with top-quality professional assistance.

We have the support and benefit of belonging to the largest, most recognized

real estate organization in the world with more than 7,800 offices

located in over 42 countries and territories worldwide.

Whether you have an interest in a little grass shack or a fine home or estate,

we can help you effectively navigate the Hawaii Real Estate Market.

PROPERTY LISTING / MARKETING SERVICE

CENTURY 21 All Islands offers extensive marketing for your property, giving

you the best opportunity to sell your property in the shortest amount

of time for the highest possible price. We design a customized marketing

system to enhance its appeal and maximize its exposure in the marketplaceby using our strategic approaches to online and offline marketing,

open-houses, and broker opens to name a few.

BUYER ASSISTANCE / REPRESENTATION

CENTURY 21 All Islandsprofessionals understand that buying a home is

one of the most important personal and financial decisions that you will

make in your life. We offer buyer representation in contract negotiations

and home-finding and we are committed to guiding you step-by-step,

answering all your questions along the way to ensure that your experience

is as pleasant and successful as possible.

RELOCATION ASSISTANCE

Neighbor Island, National and International Relocation assistance. We can

help you move to or from just about anywhere in the world.

Visitors Guide to Oahu Real Estate

www.c21allislands.comWAIKIKI OFFICE: 1-808-953-2100

AWARD-WINNING COMPANY EXCEPTIONAL SERVICE MARKET KNOWLEDGE & INSIGHT

GLOBAL REAL ESTATE NETWORK NATIONAL TOP-PRODUCING OFFICES


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How Real Property Tax on Oahu is Determined........Real property, land and improvements. Assessment process is based on comparable valuesin the area. The tax assessor will look at similar homes and their sales prices. Based on upto five comparables (comps) the assessed value is determined.

Current tax rates for residential properties and an owner-occupied is $3.42 per $1,000 ofassessed value. A $500,000 home on Oahu would have annual taxes of $1,710. On topof that, theres owner occupant exemptions that knock an additional $80,000 off the taxassessed value or $120,000 for homeowners 65 years and older. For Non-Homeowner

properties, the tax rate is $3.58.

Oahu's assessed values generally lag behind market values. Buy a $500,000 house andthere's a good chance its assessed value is $450,000. That's not always the case, yourrealtor should have that info readily available.

Resort-zoned properties have significantly higher tax rates, currently $12.40 per $1,000 of

assessed value. Keep that in mind when looking at condo hotels and vacation rentals.

$643,500

$624,000

$57Actual Sales

$325,000

$325,000

$30


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LeaseholdvsFee Simple

FEE SIMPLEFee simple ownership is probably the most familiar form of ownership to buyers of residentialproperty, especially on the Mainland. Fee simple is sometimes called fee simple absolutebecause it is the most complete form of ownership. A fee simple buyer acquires ownership of theentire property, including both the land and building. The fee simple owner does not pay groundsrent, but does pay real property taxes. The fee simple owner has the right to possess, use anddispose of the land as the fee simple owner wishes--sell it, give it away, trade it for other things, lease

it to others, or pass it to others upon death.

LEASEHOLDThe leasehold interest is created when a fee simple land-owner enters into an agreement orcontract called a ground lease with a lessee. A lessee buys leasehold rights much as one buys feesimple rights; however, the leasehold interest differs from the fee simple interest in severalimportant respects. First, the buyer of residential leasehold property does not own the land andmust pay ground rent. Second, the use of the land is limited to the remaining years covered bythe lease. Therefore, the land returns to the fee simple land-owner in a process called reversion.Depending on the provisions of any surrender clause in the lease, the buildings and otherimprovements on the land may also revert to the fee simple land-owner.

Questions to ask before you buy leasehold propertyHow long is the lease term? When is the expiration date, and is there an extension clause?How much is the lease rent?When are the lease rent renegotiation dates?How will the new lease rent be determined?What are the terms of the surrender clause?

Authorized by the Hawaii State Legislature and the State's Housing Finance and Development Corporation

Comparing Vacation PropertiesComparing the many ways you can get your hands on a vacation property.

Condo Hotel

How it works:You buy aroom in a hotel. The hoteloperator can rent out yourroom to guests when youarent using it, and youshare that revenue.

Advantages:You can usethe property when you want,

and get some rental incomeat other times which cancover part of your expenses,such as maintenance and amortgage. Condo hotelshave the amenities of ahotel, such as room service.

Disadvantages:You cansuffer from the vagaries ofthe hotel business: If yourroom isnt rented out, thenyou dont collect income. Inmany cases, you cant

decorate your own unit.

Timeshare

How it works: You buy theright to occupy a vacation

property for a few weeks ofthe year.

Advantages: You canreduce the cost of a vacationsince properties such asthese can sometimes be less

costly than staying in ahotel.

Disadvantages:Unlikecondo hotels, you dont getany income from atimeshare. They also have amixed history when itcomes to resale, and somehave been resold at a loss.

Fractional

Ownership

How it works: Like atimeshare, you buy the rightto occupy a vacation

property, though typicallyyou can use it for a longer

period of time than atimeshare.

Advantages:You can stayin an often upscale vacationspot for less money than

buying a home there. Theresale value has value has

been fairly strong in high-end markets.

Disadvantages:You haveto share the property withother people. They arenttypically rented out sotheres no chance for you to

get a bit of extra income.

Second Home

How it works: You go outand buy a second home, or aregular condo or apartment,somewhere you d like tovacation or retire.

Advantages: You can usethe property whenever youwant, and unlike some of

the other options here, youget to decorate it as youwish.

Disadvantages:Youreresponsible for all of theupkeep, from moving thelawn to cleaning the gutters.And finding tenants if youwant to rent it out.


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MARKET CONDITION

The real estate market moves through cycles. These cycles are

caused by supply and demand issues.

Supply

Demand

Home Values

Supply

Demand

Low

High

High

Low

Buyers Market Sellers Market


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WAIKIKILocated on Oahus south shore between Diamond Head and Pearl Harbor, today Waiki

one of the tourism capitols of the world. Waikiki is a place to have fun, eat out, shop, o

watch a show. While permanent residents in Waikiki number more than 28,000, over 4

million of Hawaiis 6 million annual visitors come to Oahu each year, most of these

staying in Waikiki. But it wasnt always that way. The land that is now home to dozens

resorts, nightclubs, and restaurants was once marshland used for farming taro, rice, a

fishponds. Waikiki, which literally means spouting waters in Hawaiian, was once a pla

where alii (Hawaiian royalty) came for healing, vacation, and surfing. It also provided

many of the most abundant fishing yields in the islands.

Popular Waikiki attractions include the Waikiki Aquarium and the Honolulu Zoo, the Strip, or row of shops and restauran

lining Kalakaua Avenue, and of course, the beach! Waikiki Beach is arguably the most famous beach in the world, with

thousands of visitors a day arriving to swim, surf, or simply lie out in the sun. Annual Waikiki events such as the Honolulu

Marathon, King Kamehameha Day Parade, and more frequent events--such as popular Sunset on the Beach movie showin

every weekend--have helped to make Waikiki a destination for locals and visitors alike.

Some historic sites of interest include the Moana Surfrider Hotel, the oldest resort in t

area, the Wizards Stones of Kapaemahu at Kuhio Beach, and the Waikiki War Memori

Natatorium, a saltwater pool built in honor of World War I veterans.

Waikiki is a place of fusion--where modern amenities, shopping, entertainment and di

meet a rich cultural history and unique tradition of hospitality-all tied up together in th

aloha spirit.Courtesy of Honolulu Advertiser.

Courtesy of Honolulu Advertiser


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Investment Considerations

WHY HAWAII

Timing (Price Trends/Projections)

Established and Proven Property Market

Established Leading International Vacation Destination

Existing Domestic and International Demand

Historical Rental Market Activity

US Governing Law

English Language

Access to Reputable and Experienced Local Advisors

Established Laws on Ownership & Conveyance Rights (absence of restraints on alienation)

Established Landlord-Tenant Laws

Established Estate & Tax Planning

Absence of Discrimination Against Foreign Ownership

Availability of Property Maintenance & Management

Availability of Insurance Against Most Catastrophic Loss Events

Significant State Investment in Marketing & Promotion of State

Significant Private Investment in Marketing of State as International Destination

Significant Investment in Public Transportation (with potential high speed rail)

Significant State Investment in Renewable Energy

Security / Headquarters for the US Pacific Command (USPACOM): US Army Pacific, Marine Forces Pacific, US Pacific Fleet,

Pacific Air Forces


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2010 2011 + / 2010 2011 + /

New Lis tings 0 0 -- 1 0 - 100.0%

Close d S ales 0 0 -- 0 0 --

Median S ales P rice $0 $0 -- $0 $0 --

Average Sales Price $0 $0 -- $0 $0 --

Percent of Original List Price Received 0.0% 0.0% -- 0.0% 0.0% --

Median Days on Market Until Sale 0 0 -- 0 0 --

Inventory of Homes for Sale 2 1 - 50.0% -- -- --

Months Sup ply of Inventory 0.0 1.0 -- -- -- --

2010 2011 + / 2010 2011 + /

New Lis tings 154 115 - 25.3% 419 375 - 10.5%

Close d S ales 66 68 + 3.0% 164 192 + 17.1%

Median S ales P rice $318,500 $296,000 - 7.1% $286,500 $299,500 + 4.5%

Average Sales Price $315,469 $380,513 + 20.6% $301,877 $347,048 + 15.0%

Percent of Original List Price Received 93.2% 92.8% - 0.5% 92.1% 92.9% + 0.8%

Local Market Update March 2011

Ma rc h Ye a r to Da te

Single-Family

- 25.3% + 3.0% - 18.5%Change in

New Listings

All Properties

Change in

Close d Sa les

All Properties

Change in

Inventory of Home s

All Properties

A RESEARCH TOOL PROVIDED BY THE HONOLULU BOARD OF REALTORS

Waikiki1-2-6

CondoMa rc h Ye a r to Da te

Median Days on Market Until Sale 57 54 - 5.3% 61 54 - 11.6%

Inventory of Homes for Sale 597 487 - 18.4% -- -- --

Months Sup ply of Inventory 10.3 8.0 - 22.7% -- -- --

All MLS

Waikiki

Change in Median Sales Price from Prior Year (6-Month Average)*

*Each dot represents the change in median sales price from the p rior year using a 6-month weighted average. This mea ns that ea ch of the 6 months us ed in a d

are proportioned ac cording to their sha re of sales du ring that period. | All data from the HiCentral MLS, Ltd. | Powered b y 10K Resea rch &Marketin

Waikiki

All MLS

- 1 0%

- 8%

- 6%

- 4%

- 2%

0%

+ 2%

+ 4%

+ 6%

1-2008 1-2009 1-2010 1-2011

Single-Family Detached

- 1 0%

- 5%

0%

+ 5%

+ 10%

+ 15%

+ 20%

1-2008 1-2009 1-2010 1-2011

Townhouse-Condo Attachedb

a


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$0

$80

$160

$240

$320

$400

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

$140$142$163

$181$187$169

$116

$88$73$67

$43

$208$226$228

$255$244

$214

$186

$135$125

$114$101

AveragePrice(

x$1,000)

%indicates appreciation / depreciation rate per year

Studio w/ Full Kitchen & 1 Parking

Studio w/ Kitchenette & No Parking

STUDIO WAIKIKI FEE SIMPLEHISTORICALAVERAGE PRICES

11%

11%9%

7%

27%

24%

12%4%

36% 8%17%

24%

31%10% 3%

10%

$0

$120

$240

$360

$480

$600

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

$322$313$346$352

$369

$329

$275

$199

$176$161$145

AveragePrice(x$1,000) 1 BEDROOM SOLD

%indicates appreciation / depreciation rate per year

1-BEDROOM WAIKIKIFEE SIMPLE HISTORICALAVERAGE PRICES

9%12%

16%

11%5%

28%

10%

$0

$160

$320

$480

$640

$800

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

$401$415

$483$496$494$465

$353$301

$253$230$235

AveragePrice(x$1,0

00)

2 BEDROOM SOLD

2-BEDROOM WAIKIKI FEE SIMPLEHISTORICAL AVERAGE PRICES

9%16%

24%6% 3%

2%

15%

0%%indicates appreciation / depreciation rate per year

1%

2%

14%

13%

10%

8%

1%

3%

3%


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10/10

All Islands Exclusive

Century 21 All Islands

Eco-Friendly

Waikiki Walking TourPreview Waikikis Hottest Properties Every Wednesday

Meet at 9:30 am at the Waikiki Trade Center Ground Floor Century 21 All Islands.

Learn about Condotels, Leasehold vs Fee Simple, Lender Qualifcations & More

View Properties in Dierent Price Ranges.

Century 21 All Islands Waikiki OfceWaikiki Trade Center

2255 Kuhio Ave., Ste. 1220, Honolulu, Hi 96815

Phone: (808) 953-2100No Reservations needed. Walk-ins are welcomed.

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