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Old 01-08-2008, 05:54 PM   #21
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Hey Nords, Thanks SOOO much for this info, one of my many ideas is to get a place in hawaii that I can eventually retire to. This house is really close to what we have in San Diego in both price and size. It's interesting to know what we could get if we actually wanted to sell.
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Old 01-09-2008, 01:50 AM   #22
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"Mortgage assistant guy" cracks me up...it's been proly over a decade since I saw one of them out here in California.

I used to be scared of those guys when I ran into one at an open house (I didn't understand finances too well when I was in my twenties) - I always wondered if they actually helped or scared away the bulk of the realtor's potential customers.
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Old 01-09-2008, 12:11 PM   #23
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That is pretty damm cheap in Hawaii, from what I've seen. I'd be concerned about what isn't being disclosed.
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Old 01-22-2008, 10:51 AM   #24
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It ain't over til it's over!!

Sweet! Hono condos up 4.8% in 2007. CaChing! Stash over $60,000 into the old equity account and over $60,000 in collected rents. Everybody gets a rent increase (moderate) except my 7 year tenants! That's over $30K yearly per toilet. If I ever need a plumber I'll have to tip for sure.

Today is a good day to buy real estate in Honolulu! Way better than CD's. YMMV


Oahu 2007 home prices rose 2.4% - Pacific Business News (Honolulu):
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Old 01-22-2008, 11:30 AM   #25
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I'd love to go to some open houses (in Missouri), but I haven't and I'm a little timid about doing so. I am intrigued by the fact that you go to them anyway. If I'm not really planning to buy for a couple of years, would it be considered sort of nosy for me to go look through someone's home? And do the realtors "hit on you" and pressure you for information so they can start calling you at home and showing you houses you don't really want to see? What do you say when they ask you what you are looking for, and so on?

Just curious. I have only been to a couple of open houses and that was back in 1979, when my ex and I were actually beginning to look for a house but before we had a realtor.
Visiting open houses is a great way to get a feel for the neighborhood, seeing how others have renovated/decorated for example, so you can compare properties. DH and I go to one or more each month, and like Nords, we generally let the agent know who we are and why we're there. We, too, have learned who some of the best craftsmen/repair people are by talking to the agents and have gotten some really good ideas about sprucing up the old Achiever homestead in anticipation of putting it on the market before too long. When we go, we're respectful of the agent's time if he/she is showing to others and we don't spend an excessive amt of time in the home; usually just a few minutes is enough to get the overview.

And I concur about visitng the FSBO open houses...usually not a good idea. It seems that the owners are often too "invested" in their handiwork and want to explain every little detail -- or they follow you around like you're getting ready to rob them blind. While we generally don't say much when we go through any open house, if we are at a FSBO we make sure we don't say anything..because anything you say can and usually is received negatively by the owner. (My favorite was the FSBO house with the recently finished basement. The owner was so proud to show off his handiwork until I noticed that all of the ceiling lights had strings hanging from them -- the owner didn't know how to wire them into the switch boxes. But I nearly burst out laughing when he showed us the "wet bar". He also didn't know how to do plumbing...the sink and faucet were installed in the countertop, but not hooked up to the water lines, and he had a bucket under the sink to catch any water that might be poured into the sink!! Lordy, lordy...)
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Old 01-22-2008, 01:31 PM   #26
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and over $60,000 in collected rents.
hono, how much of that can you keep (after deducting: condo fees, mortgage, taxes, maintenance, vacancy, insurance)?

Just curious about hono rentals ... thanx in advance.
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Old 01-22-2008, 01:37 PM   #27
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Maui County 2007 median sales prices:
Single Family homes -9%
Condos 6%
Land -30%
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Old 01-22-2008, 03:21 PM   #28
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hono, how much of that can you keep (after deducting: condo fees, mortgage, taxes, maintenance, vacancy, insurance)?

Just curious about hono rentals ... thanx in advance.
Tryan I cash flow better than 50% but because of the 9% annual appreciation I'm very under leveraged. I do real well at tax time also.

Here's an example of my last purchase in 2003. I bought 2/2 $272K, I just made an offer at $410K for another similar unit that was rejected. I'm still up better than 11% yearly appreciation. Rents are $2500 less $474 (Maint. fee/taxes/ins.) I'm renting long term since I'm off island but three of my properties qualify for short term vacation rentals. When I'm on island I will check to see if it is worth it to me to rent vacation. An owner at one of my Diamond Head properties rents for $3500 a month whereas I rent long term for $1500. Alot of upside!

Of course you'd have to paradigm shift to invest here. No cash flow to start but good appreciation you can set your watch to. I did stated income on two properties just because it was so easy. Maybe I can feather my return with some sub-prime bail-out money
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Old 01-22-2008, 03:56 PM   #29
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Hono, just triing to understand ...

Quote:
50% but because of the 9% annual appreciation I'm very under leveraged. I do real well at tax time also.
These are past price appreciation gains (?) .... tax time gains are due to monthly negative cashflow (?)

Quote:
I just made an offer at $410K for another similar unit that was rejected. I'm still up better than 11% yearly appreciation. Rents are $2500 less $474 (Maint. fee/taxes/ins.)
I have to believe a seller (at +400k) will be much happier than the buyer/investor (receiving 2500/mo. rent). The negative cashflow would take the wind out of my sails.

Best I can see: it's a bet on future price appreciation (and bleed while you wait for results).
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Old 01-22-2008, 05:27 PM   #30
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Hono, just triing to understand ...



These are past price appreciation gains (?) .... tax time gains are due to monthly negative cashflow (?)



I have to believe a seller (at +400k) will be much happier than the buyer/investor (receiving 2500/mo. rent). The negative cashflow would take the wind out of my sails.

Best I can see: it's a bet on future price appreciation (and bleed while you wait for results).

9% 1978 to present 2004 purchase 11%, 2004 to present. Was 50% in 2005, then 25% in 2006. Expecting long term appreciation of 9%!
I have earned income..see depreciation and expenses.. I am an active manager. You with the IRS?

Believe it! The seller said no to $410,000. I think he was used to 10-11% appreciation in his shorter term of ownership and wanted to price accordingly. But then what would he do with the money? 5% CD barely matches the 4.8% appreciation he got last year plus he got a place to live or gross rents of $30,000!! Put it in the market and lose 10-15%? Oh, that's right he's not losing money he's buying at a discount. Why would anyone sell stocks at a discount if the price is sure to go up?

Why can't you understand long term appreciation? I've had 9% in Honolulu for 30 years, same as just about every other person on the island. We must all be Captains of Industry. In CA I had 50% yearly,(I won the freaking real estate lottery!!!) OK just for the first two years, 1986-1988 but I didn't go around planning purchases on 50%. My 20+ years has resulted in 11% annualy. LG4NB did the math in Florida and I think it was roughly 8-10%.

In Honolulu if someone tells me their purchase year I can pretty much quess their purchase price if I know their current market value. I wonder if I can make money doing that at carnivals?

Tryan, I sense you don't want to hear anything that doesn't conform to your experience. I don't want to convince you of anything. It's easy enough to check historical sales prices. I still think we need to get you out here and fill you with tofu, yogurt, and poi. You'll be a believer.
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Old 01-22-2008, 05:41 PM   #31
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Tryan, I sense you don't want to hear anything that doesn't conform to your experience. I don't want to convince you of anything. It's easy enough to check historical sales prices.
This conforms perfectly to my experience. Question is: What is the annual return after factoring in the monthly negative cashflow? Historical returns are no where near reality if your hemoraging a couple k/month to subsidze someones housing. And how do you buy groceries with half a dozen leeches sucking on your wallet ... or does one just plan to keep working?
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Old 01-22-2008, 06:18 PM   #32
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% RETURN ON INITIAL EQUITY 45.02% 48.90% 53.07% 57.54% 62.33% 67.48% 73.00%78.92% 85.29% 92.12%
True Gain or loss 6,392 41,591 79,607 120,663 165,004 212,893 264,612320,469 380,794 445,946
This is the result from the Twaddle chart(thanks dude) using a $420,000 purchase price. Hope this shows correctly.

This is a 10 year projection and I only used a 8% appreciation. You guys must have beat me down that day!
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Old 01-22-2008, 06:41 PM   #33
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Yeah, anything bought 5+ years ago will look rosy using the last few years of appreciation (my 6 remaining units certainly do) ... My point is, anybody paying +400k for a condo that rents for $2500/mo is simply the "greater fool". Accepting a negative cashflow of 2k/month is no way to retire - nor a plan for retirement.
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Old 01-22-2008, 09:37 PM   #34
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How smart am I? My first picture post. Not my apartment but no matter what the market does this is worth 1 CA home plus a Vegas home or a Waikiki condo + a Diamond Head condo.
Attached Images
File Type: jpg gold c.jpg (31.3 KB, 5 views)
File Type: jpg gold c 2.jpg (21.9 KB, 2 views)
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Old 01-23-2008, 10:49 AM   #35
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Well a 1 bedroom just came on the market for $340,000 in the same building I offered $410,000 for a 2 bedroom. The last 1 bedroom sold for $300,000 at the beginning of last year. There's usually about $100K difference between 1 & 2 bedrooms.


Tuesday, January 22, 2008 - 10:51 AM HAST
Honolulu has 4th least-affordable housing


Pacific Business News (Honolulu)

Honolulu has one of the least affordable housing markets of major urban markets, according to a recent survey.
Three California markets -- Los Angeles, Salinas and San Francisco -- are the least affordable housing markets, noted as severely unaffordable. Honolulu ranks 4th.
The fourth annual Demographia International Housing Affordability survey covers 227 markets in Australia, Canada, Ireland, New Zealand, the United Kingdom and the United States using data for the third quarter of 2007.
The survey, by a St. Louis-based public policy organization, compares the median house price to median household income multiple to rate housing affordability.
Thunder Bay in Canada has the most affordable housing market, followed by Youngstown, Ohio, and Fort Wayne, Ind.

More Good real estate news. Can you believe it was purchased almost 4% below asking!? Damn lowball offers! It was only assessed at $11,000,000!!! So, 6 trillion - $11,000,000.........Get out there and buy folks


Friday, January 18, 2008
Kailua estate sells for $22 million


Pacific Business News (Honolulu)

The sale of a two-acre beachfront estate in Kailua set the record for highest sale for 2008 less than one month into the new year.
The estate at 51 Kaikea Place, which has a four-bedroom main house and a two-bedroom cottage, sold for $22 million after four months on the market. It was listed on Sept. 10 for $23.7 million.
Tracy Pflueger Allen of Coldwell Banker Pacific Properties represented the seller in the cash transaction. The buyer, who is reportedly from Japan, was represented by Jeannie Fogarty and Hideo Mita of Fogarty Realty.
Pflueger Allen also brokered the $24 million sale of a two-home property at 145-Kailuana Loop in July 2006.
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Old 02-17-2008, 04:15 PM   #36
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Well, the end of the story on the original post is that the home sold for $633K last month... after nearly eight months on the market and a discount of over 10%.
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They won the effing real estate LOTTERY or NOT!!
Old 02-17-2008, 06:37 PM   #37
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They won the effing real estate LOTTERY or NOT!!

So Honobob predicted (in a TWADDLE like fashion, although maybe 100% more correct) a slightly under or slightly over $600,000 sales price based on his 30 year historical annual appreciation rate of 9% but also predicted an increase on this rate because of factors outlined in his book..buymybookbuymybook....so now the appreciation rate is TEN % annual compounded RATE, well based on this sale. And this property is as about as far as you can get from the BEACH on Oahu so I wonder if there's any 50% off beach front property available??

free4now.....10% long term appreciation.
Marquette...Miliani Town, vegetarian tolerant!!

Honobob??......Kahunabob.....him one akamai akole!

TODAY IS A GREAT DAY TO BUY REAL ESTATE IN HONOLULU!


4% appreciation my *ss
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Old 02-17-2008, 06:41 PM   #38
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So Honobob predicted (in a TWADDLE like fashion, although maybe 100% more correct) a slightly under or slightly over $600,000 sales price based on his 30 year historical annual appreciation rate of 9% but also predicted an increase on this rate because of factors outlined in his book..buymybookbuymybook....so now the appreciation rate is TEN % annual compounded RATE, well based on this sale. And this property is as about as far as you can get from the BEACH on Oahu so I wonder if there's any 50% off beach front property available??

free4now.....10% long term appreciation.
Marquette...Miliani Town, vegetarian tolerant!!

Honobob??......Kahunabob.....him one akamai akole!


4% appreciation my *ss

Hey man, I distinctly remember saying it was location dependent. Where I'm living and I'm looking, 4% would be a godsend. On the other hand, we have this stuff called "snow" and it keeps the appreciation rates down.

Oh, my wife wanted me to tell you about the Sweet Water Cafe in Marquette... it's very vegan / vegetarian friendly and, to our knowledge, there have been no wiccans turned away or killed there. Sweet_Water
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Old 02-17-2008, 06:43 PM   #39
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Oh, my wife wanted me to tell you about the Sweet Water Cafe in Marquette... it's very vegan / vegetarian friendly and, to our knowledge, there have been no wiccans turned away or killed there. Sweet_Water
I'm sure the transvestites take great comfort in that.


4% APPRECIATION MY *SS!
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Old 02-17-2008, 07:31 PM   #40
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On the other hand, we have this stuff called "snow" and it keeps the appreciation rates down.
Yeah, we have "snow" here also. Prolly affects the ability to make the monthly payments more than the appreciation rate (depending on if you're a buyer or seller).

Totally cool that Sweet Water is a smoke free restaurant.
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