It is currently Tue Jan 24, 2017 4:09 am

All times are UTC - 10 hours [ DST ]




 Page 1 of 1 [ 7 posts ] 
Author Message
 Post subject: Considerng buying a Pualani Estates Home
PostPosted: Tue Oct 29, 2013 1:00 pm 
Kama

Joined: Mon Oct 28, 2013 10:34 pm
Posts: 1
Aloha folks from Dublin, CA (SF Bay area)
We are considering buying the following home in the Pualani Estates:
http://www.hawaiilife.com/mls/265758/

460K Asking price.

Our offer slightly below the asking price has been agreed and will become formally finalized when we sign the doc and fedex it back in the next few days.

Now that we are close to buying, my wife and me are a little nervous and anxious about the whole thing. We are in our late 30's and looking to buy this as a investment property. Planning to put in a 30% down payment and rent this home on a long term basis. We are hoping the rent will cover mortgage payment. We are not planning to live there in the immediate future. Would like to hear from the experts on their thoughts on the following:
- is this a good investment choice
- how is the rental market for long term lease in BI and specifically Pualani
- thoughts on how RE future in BI looks.

I know these are big questions. But any thoughts.. specifically from Kona Dave and/or John Rabi would be much appreciated.

After 30% down, my monthly payments on mortgage, tax, insurance, HOA, utilities, property mgmt is about $1900.

Also, any good contacts for property mgmt and home insurance, would be much appreciated.

Thanks a bunch
-Sent


Offline
 Profile  
 
 Post subject: Re: Considerng buying a Pualani Estates Home
PostPosted: Tue Oct 29, 2013 3:04 pm 
Site Admin
User avatar

Joined: Sat Dec 10, 2005 7:30 pm
Posts: 4190
Location: Kapolei
Sent wrote:
Aloha folks from Dublin, CA (SF Bay area)
We are considering buying the following home in the Pualani Estates:
http://www.hawaiilife.com/mls/265758/" onclick="window.open(this.href);return false;

460K Asking price.

Our offer slightly below the asking price has been agreed and will become formally finalized when we sign the doc and fedex it back in the next few days.

Now that we are close to buying, my wife and me are a little nervous and anxious about the whole thing. We are in our late 30's and looking to buy this as a investment property. Planning to put in a 30% down payment and rent this home on a long term basis. We are hoping the rent will cover mortgage payment. We are not planning to live there in the immediate future. Would like to hear from the experts on their thoughts on the following:
- is this a good investment choice
- how is the rental market for long term lease in BI and specifically Pualani
- thoughts on how RE future in BI looks.

I know these are big questions. But any thoughts.. specifically from Kona Dave and/or John Rabi would be much appreciated.

After 30% down, my monthly payments on mortgage, tax, insurance, HOA, utilities, property mgmt is about $1900.

Also, any good contacts for property mgmt and home insurance, would be much appreciated.

Thanks a bunch
-Sent

I won't be able to answer all your questions as I am not the real estate expert that John is. I am sure John will give you his answers as well. But it might be a week or two before he is able to.

Whether this is a good investment or not really depends on what YOU consider to be a good investment. My father hated real estate as an investment and always told me to stay away from it as an investment. And being the good son that I am I promptly went into the real estate market and have done only okay for myself. My investments in real estate include mainland properties as well as Hawaii properties. There are three ways in my opinion to benefit from real estate investments. And that is as a flip or through renting or a combination of long term ownership and renting. This does not include property that you buy to live in. I have done well in the long term rental market and have done okay at the short term sales I have had. As far as steady income from rentals is concerned I am doing okay. But if I have to sell them for any reason I will be taking a loss or making very little. Property on the BI is a bit more conservative. As prices are more stable and don't go up or down quickly like they do on the mainland. So having them as rentals is probably a good idea. But only if you can get good tenants long term. Finding good tenants on the BI is hard enough. But to find long good long term tenants is VERY tough. I am lucky that it took me only 3 years to find good long term tenants for my property on the BI. Your plan sounds solid to me but the tenant factor is going to be a concern for you. Unless you bought the home below market value I would not expect it to go up in value like what you see on the mainland.

I think the future is bright for the BI but not like Oahu, Maui or Kauai. I believe you will see slow and steady growth. But I do mean slow. Unless of course we have another market meltdown. Let's face it. If your house was on one of the other islands it would have sold for asking price within a few weeks instead of 2-3 months.

Your mortgage of $1,900 is not bad considering you should be able to get rent close to or more than that. The problem again is finding good long term tenants. Sorry but I can't answer the other questions for you. We will have to wait for John to answer some of those.

Good luck with your new home and welcome to Hawaii Life :D :D :D



_________________
Dave Brilliant (S)
Real Estate Agent RS-77348
(808) 366-8714
Dave Brilliant
Proudly Serving Both Oahu and the Big Island!!!
Kona Ka'u Realty
75-143 Hualalai Road, B-205
Kailua-Kona, HI 96740

Ka'u Web
Ka'u Blog
Ka'u Homes
Pohue Bay
Kona Forum
Offline
 Profile  
 
 Post subject: Re: Considerng buying a Pualani Estates Home
PostPosted: Wed Oct 30, 2013 3:00 pm 
Kona Kastoff
User avatar

Joined: Wed Dec 14, 2005 10:53 am
Posts: 3871
Location: Kailua-Kona
Sorry guys, I was out of the country and did not check the forum during that time. I already posted my opinion about Pualani Estates several times, and it's the same every time: don't buy there. You can get a better deal elsewhere.

Real estate as an investment works only if you don't have a time frame and are able to carry the property as long as needed. However, with a house like that and at that price, don't expect to make much money, even on a long run.

The real estate market is cycles with one cycle lasting about seven years. We hit the bottom last year, so the next 5-6 years shall be upcycle. Some properties will appreciate more than others, I'm sure you heard of the "location, location, location" before. With all that said, I don't think anyone should buy a $500,000 property as an investment in Hawaii, unless that investment represents only 10% of your net worth.



_________________
John S. Rabi
Principal Broker
"THE NEXT LEVEL OF SERVICE"
Typically Tropical Properties
75-5737 Kuakini Highway
Suite 202
Kailua-Kona, HI 96740
888.819.9669
johnrabi.com


This is what I think of the Kona Board of Realtors: Click HERE
Offline
 Profile  
 
 Post subject: Re: Considerng buying a Pualani Estates Home
PostPosted: Fri Nov 01, 2013 8:59 pm 
Malihini
User avatar

Joined: Fri Oct 12, 2007 9:47 am
Posts: 308
I agree with John, real estate as an "investment" is not a wise choice in Hawaii unless your "investment" is for your personal enjoynment. With the prices here you can't get a decent ROI.



_________________
Panilo Club
Men have two emotions: hungry and horny. If you see one without an erection make him a sandwich!
"I Hate Scumbags!"
Offline
 Profile  
 
 Post subject: Re: Considerng buying a Pualani Estates Home
PostPosted: Sat Nov 02, 2013 12:14 pm 
Kona Kastoff
User avatar

Joined: Wed Dec 14, 2005 10:53 am
Posts: 3871
Location: Kailua-Kona
Paniolo Club wrote:
I agree with John, real estate as an "investment" is not a wise choice in Hawaii unless your "investment" is for your personal enjoynment. With the prices here you can't get a decent ROI.
Well, it's true and it's not true. While hardly anyone buy property here for a $ to $ return, investment is more than that. Many people buy property here to use it as a tax write off against other income, some people buy property here because they want to be able to tell their friends they own property in Hawaii, and some people buy property here because they can just simply afford it. Of course there is a segment of buyers who buy property here but they shouldn't.



_________________
John S. Rabi
Principal Broker
"THE NEXT LEVEL OF SERVICE"
Typically Tropical Properties
75-5737 Kuakini Highway
Suite 202
Kailua-Kona, HI 96740
888.819.9669
johnrabi.com


This is what I think of the Kona Board of Realtors: Click HERE
Offline
 Profile  
 
 Post subject: Re: Considerng buying a Pualani Estates Home
PostPosted: Sat Nov 02, 2013 12:50 pm 
Site Admin
User avatar

Joined: Sat Dec 10, 2005 7:30 pm
Posts: 4190
Location: Kapolei
As much as I hate to admit John is right.... :lol: :lol: :lol:

I don't think buying property on the BI is good as an investment. Unless you are going to live in it. Like where you intend to retire. With that said, the real estate on Oahu is increasing in value at a decent rate. Oahu might be a better place to put your money if you are looking to buy in Hawaii. Otherwise, there are much better areas to invest in property. For instance, I know the SoCal market is hot in the LA and OC areas. I also know that the Phoenix area is coming back quite strong. And though I don't have a magic 8-Ball I hear that the Vegas area is getting close to making a comeback if it has not already started. I am sure there are other hot markets at this time as well as some that are not so much. I have been in the BI market now since 2005 and I have been watching it quite closely and I have to say I wouldn't invest here unless I was going to move and live on the property. JMHO of course.



_________________
Dave Brilliant (S)
Real Estate Agent RS-77348
(808) 366-8714
Dave Brilliant
Proudly Serving Both Oahu and the Big Island!!!
Kona Ka'u Realty
75-143 Hualalai Road, B-205
Kailua-Kona, HI 96740

Ka'u Web
Ka'u Blog
Ka'u Homes
Pohue Bay
Kona Forum
Offline
 Profile  
 
 Post subject: Re: Considerng buying a Pualani Estates Home
PostPosted: Sat Nov 02, 2013 11:11 pm 
Malihini
User avatar

Joined: Fri Oct 12, 2007 9:47 am
Posts: 308
Having a second home anywhere will cost you money, and it will cost even more in Hawaii. If you can spend only like two weeks a year there than you might be better off renting something for two weeks. If you plan to eventually retire there than it's a different story.



_________________
Panilo Club
Men have two emotions: hungry and horny. If you see one without an erection make him a sandwich!
"I Hate Scumbags!"
Offline
 Profile  
 
Display posts from previous:  Sort by  
 Page 1 of 1 [ 7 posts ] 

All times are UTC - 10 hours [ DST ]


Who is online

Users browsing this forum: No registered users and 1 guest


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  

cron