Re: Relocating - Is My Plan Flawed??? - Posted by Ian(Honolulu)
Posted by Ian(Honolulu) on March 04, 2002 at 03:11:53:
There certainly are many homes that need TLC on the islands. Yes I just rechecked the MLS listings… there are a total of 28 listings in Maui County. 8 of these are for homes (other are vacant land) while 5 of these are under 2 million dollars. Maybe what you were seeing on the internet was a FSBO listing area. Keep in mind though that as well as with the MLS, often on other internet listings Maui will be under the category “Maui County,” though it may not mention this. Maui County is in fact the islands of Maui, Molokai, and Lanai (food for thought.) As I mentioned earlier, there are many possible rehabs (especially on Oahu with the greater volume of homes.) Because there are so few investors that advertise publicly, you may have an advantage if you advertise aggressively. Moving on to your specific question on the housing market in Hawaii… I’d say it’s luke warm. Sorry it’s late and I’m fighting a cold so I wasn’t able to pull up a lot of numbers, but working with figures from the past 2 years we’ve shown slight appreciation. The “desirable” areas of Oahu such as Manoa, Kahala, Diamond Head, Hawaii Kai, etc. all had slight (less than 5%) increases in price. Volume has also slightly increased. However, many investors in the area are saying that they believe the after effects from Sept. 11 haven’t fully been felt on the housing market as of yet. While it crippled our economy (loss of over 50% in tourism, our main staple), the housing market had stayed strong surprising many people here. However, if Sept. 11 does not have any adverse effects on the housing market, and if it remains on the same wave pattern it has for the past 40 some years, then it should be expected to appreciate slowly for the next few years before hitting another down phase. Keep in mind that the Leeward side such as North Shore and also Waipahu have been irregular in terms of following the set pattern the past few years as both have lost value. Leeward has never had a steady chart to follow making it very hard to predict appreciation. Waipahu has recently had many job cuts since sugar plantations have been going out of business. Waipahu probably offers the best cap rates right now on the island, but it may be hard to find suitable tenants. Some feel that the area is poised for a rebound in the coming years, but this is of course only speculation. Sorry I got to rambling… hope I helped.