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June, 2008 - Newsletter for the Maui Market
Aloha! Here is your eNewsletter for the Maui Market from Jim Foster
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Make sure you check out the Useful Internet Sites and Real Estate Tips at the end of this newsletter which includes some valuable information.
Don't forget! We provide a free Automatic E-mail Notification Service that goes out to recipients whenever a new listing becomes available for a particular condominium complex. Each of these notifications includes a link to view the details of the brand new listing in the MLS. We DO NOT SHARE YOUR EMAIL ADDRESS or your contact information with anyone. To subscribe to our Automatic E-mail Notification Service, please send Won an email at Won@JamesBFoster.com with your first and last name, your email address, and the condominium property you wish to be notified of.
Another service we provide is the Condominium Real Estate Market eUpdates which is sent out periodically to inform potential buyers and owners of specific condominium properties about the real estate market activities at those properties. This service is provided exclusively for those who own a condominium property or who are interested in a particular condominium complex on West Maui. If you would like to subscribe to the Condominium Real Estate Market eUpdates for a particular complex or to get a list of all condominium properties that are included in the eUpdates, email Won at Won@JamesBFoster.com.
Maui Real Estate - The BIG NEWS this past month was the closure or bankruptcy of airlines. First Aloha made the announcement then ATA Airlines, Frontier Airlines, Skybus, LLC and EOS Airlines. This set off a chain reaction for the tourism industry here in Hawaii. The loss of more than 700,000 passenger seats to Hawaii with the closure of ATA Airlines has state tourism officials worried about a significant drop in visitors this year. That's 7 percent of the 7.3 million people who visited the state last year.
We had an owner who was doing their own booking that lost all of their bookings for about a sixty day period as a result of flight cancellations, increased fares and not being able to rebook. Occupancy levels are expected to drop to the 50% to 55% range depending on the complex, daily rates and other factors. The tourist industry in Hawaii and on Maui recovered within a 60 to 90 day period after “Nine Eleven” but this recovery is expected to take longer. It will take three to six months to determine where the market is going.
When you combine the airline problems with reduction in the work force, reduced tax revenues, increased foreclosures, slowing of sales, slowing of the construction industry, dramatic increase in fuel costs and many other related issues it has been a major shock to the State of Hawaii and Maui County.
To view the 2007 Year End Statistics go to www.JamesBFoster.com/CondoSales.php then scroll down to Maui MLS Statistics 2007
The West Maui real estate market continues to favor Buyers with Sellers willing to negotiate their prices. The current inventory of West Maui condominiums for sale is now at 634 and the same date in 2006 it was 354. Properties are requiring more time to sell such as five to six months and Buyers have a much larger inventory of properties for sale to choose from. If you’re curious about current trends in Maui real estate and where the market is headed, the answer is - it depends on Location - it depends on if it is condominium or single-family residential - it depends on whether you look at volume, average or median prices. The current Maui real estate market looks steady with minor variations.
Condominiums for Sale - In the West Maui real estate market, at the beginning of January, 2007 - 410 condominiums with the total value of $372,238,031.00; February, 2007 - 431 condominiums with the total value of $393,681,669.00; March, 2007 - 458 condominiums with the total value of $420,941,268.00; April, 2007 - 479 condominiums with the total value of $429,708,159.00; May, 2007 - 472 condominiums with the total value of $424,095,260.00; June, 2007 - 455 condominiums with the total value of $415,187,129.00; July, 2007 - 475 condominiums with the total value of $432,797,008.00; August, 2007 - 469 condominiums with the total value of $420,479,301.00; September, 2007 - 474 condominiums with the total value of $430,914,408.00; October, 2007 there were 471 condominiums with the total value of $423,631,002.00; November, 2007 there were 466 condominiums with the total value of $416,008,907.00; December, 2007 there were 485 condominiums with the total value of $421,080,117.00; January, 2008 there were 511 condominiums with the total value of $445,656,447.00; February, 2008 there were 559 condominiums with the total value of $500,946,603.00; March, 2008 there were 595 condominiums with the total value of $529,779,322.00; April, 2008 there were 647 condominiums with the total value of $606,635,687.00; May, 2008 there were 634 condominiums with the total value of $583,391,821.00; and at the beginning of June, 2008 there are 644 condominiums for sale in the West Maui area with the total value of $590,736,279.00. The condominium for sale inventory since July, 2005 has been as low as 165 and is up to 644 for June 1, 2008. The “for sale” inventory on West Maui continues to increase.
Condominium Sales in 2006 - The total condominium sales for West Maui during the month of January, 2006 there were 42 sales and the total value was $28,574,643.00; for February, 2006 there were 48 sales and the total value was $32,995,078.00; for March, 2006 there were 40 sales and the total value was $32,199,584.00; for April, 2006 there were 43 sales and the total value was $41,898,525.00; for May, 2006 there were 51 sales and the total value was $39,644,886.00; for June, 2006 there were 40 sales and the total value was $32,533,500.00; for July, 2006 there were 30 sales and total value was $26,212,000.00; for August, 2006 there were 28 sales and the total value was $31,885,500.00; for September, 2006 there were 30 sales and the total value was $24,770,000.00; for October, 2006 there were 29 sales and the total value was $23,359,299.00; for November, 2006 there were 22 sales and the total value was $13,414,600.00; and for December, 2006 there were 30 sales and the total value was $23,169,999.00. For 2006, the monthly average sales were 36 sales per month with the average sales value of $29,221,468.00 per month.
Condominium Sales in 2007 - The total condominium sales for West Maui during the month of January, 2007 there were 37 sales and the total value was $33,091,000.00; for February, 2007 there were 26 sales and the total value was $16,330,000.00; for March, 2007 there were 32 sales and the total value was $24,121,000.00; for April, 2007 there were 27 sales and the total value was $16,766,000.00; for May, 2007 there were 28 sales and the total value was $30,774,929.00; for June, 2007 there were 28 sales and the total value was $18,917,000.00; for July, 2007 there were 21 sales and the total value was $13,314,200.00; for August, 2007 there were 32 sales and the total value was $33,258,999.00; for September, 2007 there were 23 sales and the total value was $24,701,900.00; for October, 2007 there were 42 sales and the total value was $28,159,900.00, however this included a packaged sale of 19 units at Aina Nalu in Lahaina; for November, 2007 there were 15 sales and the total value was $15,930,000.00; and for December, 2007 there were 13 sales and the total value was $13,335,500.00. For 2007, the Month of December has seen the lowest number of sales in 2007. The monthly average sales were 27 sales per month with the average sales value of $22,391,702.33 per month.
Condominium Sales in 2008 - The total condominium sales for West Maui during the month of January, 2008 there were 20 sales and the total value was $16,186,800.00; for February, 2008 there were 20 sales and the total value was $14,414,584.00; for March, 2008 there were 26 sales and the total value was $20,079,000.00; for April 2008 there were 26 sales and the total value was $19,435,500.00; and for May 2008 there were 21 sales and the total value was $19,790,000. The monthly average sales were 23 sales per month with the average sales value of $17,981,176.80.
The total condominium sales for August, 2005 was 52; September, 2005 - 58; October, 2005 - 38; November, 2005 - 48; December, 2005 - 47; January, 2006 - 42; February, 2006 - 48; March, 2006 - 40; April, 2006 - 43; May, 2006 - 51; June, 2006 - 40; July, 2006 - 30; August, 2006 - 28; September, 2006 - 30; October, 2006 - 29; November, 2006 - 20; December, 2006 - 30; January, 2007 - 37; February, 2007 - 26; March, 2007 - 32; April, 2007 - 27; May, 2007 - 28; June, 2007 - 28; July, 2007 - 21; August, 2007 - 32; September, 2007 - 23; October, 2007 - 42; November, 2007 - 15; December, 2007 - 13; January, 2008 - 20; February, 2008 - 20; March, 2008 - 26; April, 2008 - 26, and May, 2008 was 21.
We have gone in to the Maui MLS database and pulled information for 2000 through 2007. In 2000 - 654 condominium units sold in the West Maui area for a total value of $209,064,010; in 2001 - 605 condominium units sold for a total value of $271,681,337; in 2002 - 730 condominiums sold for a total value of $240,178,915; in 2003 - 737 condominiums sold for a total value of $319,748,466; In 2004 - 700 condominiums sold for a total value of $375,033,467; in 2005 - 682 condominiums for a total value of $408,582,315; in 2006 - 435 condominiums for a total value of $351,782,614; in 2007 - 327 condominiums for a total value of $271,290,428.00. In 2008, from 1/1/08 to 6/1/08 - 115 condominium units sold in the West Maui area for a total value of $90,956,884.00.
For previous condo sale details, go to our web site, www.JamesBFoster.com/CondoSales.php. For the time period of 1/1/2008 to 4/30/2008 the average price for a home on Maui was $901,374 which is down 9% for the time period of 1/1/07 to 4/30/07 when the average price was $993,021. For the same time period the average price for a Fee Simple condo on Maui was $996,120 which is up 25% for the same time period when the average price was $795,105 according to the RAM (Realtor Assoc. of Maui) statistics. Condo sales in Wailea, Makena, Kapalua and Kaanapali are having an impact on the Fee Simple Condo average price by increasing it.
Mortgage Rates for week of June 2, 2008 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 5.625% 30yr fixed 2.0 pts (5.899 APR) 5.875% 30yr fixed 1.0 pt (6.058 APR) 6.125% 30yr fixed No Points (6.214 APR) Stated Income: 6.875% 30yr fixed 1.0 pt (7.069 APR) 6.25% 15yr fixed 1.0 pt (6.559 APR) Interest Only: 6.75% 30yr fixed 1.0 pt (6.943 APR) To $1M: 6.375% 30yr fixed No Points (6.466 APR) $$ for condotels. (Points include origination fee)
Mortgage Rates for week of May 1, 2008 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 5.50% 30yr fixed 2.0 pts (5.772 APR) 5.75% 30yr fixed 1.0 pt (5.931 APR) 5.875% 30yr fixed No Points (5.963 APR) Stated Income: 6.50% 30yr fixed 1.0 pt (6.69 APR) 6.125% 15yr fixed 1.0 pt (6.433 APR) Interest Only: 6.00% 30yr fixed 1.0 pt (6.185 APR) To $1M: 6.25% 30yr fixed No Points (6.436 APR) $$ for condotels. (Points include origination fee)
Mortgage Rates for week of April 1, 2008 - from First Hawaiian Mortgage – Rates: Houses & Condos Full docs: 5.375% 30yr fixed 2.0 pts (5.645 APR) 5.625% 30yr fixed 1.0 pt (5.805 APR) 5.875% 30yr fixed No Points (5.963 APR) Stated Income: 6.25% 30yr fixed 1.0 pt (6.437 APR) 5.875% 15yr fixed 1.0 pt (6.181 APR) Interest Only: 6.625% 30 yr fixed 1.0 pt (6.799 APR) To $625,500: 6.875% 30yr fixed No Points (6.96 APR) . (Points include origination fee)
If you would like to view the most current sales statistics for Maui or West Maui Condominiums, you can go to my web site www.JamesBFoster.com and click on Condo Sales in the upper left corner of the home page or go to www.JamesBFoster.com/condosales.php.
Some recent and past news about what is going on in Maui & Hawaii
Weather - As I am writing this newsletter today, June 5, 2008, it is about 86 degrees and sunshine with a few early morning sprinkles and maybe some light rain in the next few days.
Development Projects on Maui – 1) Royal Lahaina Villas – This will be an investment that will maintain its value for many years to come. Located on the best stretch of beach in Hawaii, the marketing is now focused in the West Maui area with innovative new “incentive related” recommendations to get the project on track. Changes have been made such as flipping Building 3, which was facing the West Maui Mountains, to face the ocean, and eliminated many of the large Penthouses and replaced them with two smaller penthouse units. The Developer has reduced prices and as a special incentive for buyers is offering a “rock-bottom” Pre-Construction Price List for those choosing to participate in the Pre-Sale Program. In some cases, the new price list is lower by as much as 30% from the original price list and starts at $2,995,000. Another exciting aspect of the new marketing is a 3-year Incentive Program for Pre-Sale Purchasers only which includes Golf at Kaanapali for $25/round, a membership in the Maui Arts and Cultural Center, complimentary 2-week visits to the newly-remodeled Royal Lahaina Hotel, preferred access to the Developer’s planes that fly over from California and preferred access to the new Royal Lahaina catamaran (subject to receipt of mooring permit). This program will allow binding contract holders to start enjoying the Royal Lahaina lifestyle while checking the progress of construction. It is anticipated that these exciting new incentives will encourage prospective buyers to participate early. With the shift in the market the earliest buyers will be able to take advantage of the best values. Once the pre-sale requirements have been achieved, construction can begin and retail pricing will resume. For further information and details on this incredible development at the Royal Lahaina Villas send me an email to Jim@JamesBFoster.com
Alternative to Aloha Airlines cargo operations – Maui farmers and producers of agricultural products and flowers were in a bit of a panic when Aloha announced it was shutting down its cargo operations earlier this month. They scrambled to find alternatives for shipping to other islands and what they found, they liked. They contracted with Commodity Forwarders Inc., which transports perishable items between Maui and Oahu on Hawaii Superferry. Commodity Forwarders picks up the flowers in a refrigerated truck and then loads it on the ferry and unloads in Honolulu. The Hawaii Farm Bureau and the Maui County Farm Bureau have agreed that, because the ferry requires a driver onboard, the use of wholesalers and freight forwarders to consolidate loads is a method of using the Superferry.
Aloha Airlines Cargo Division – The cargo division which handled 85 percent of the state’s interisland air cargo was cleared earlier this month to resume cargo operations under a motion approved by U.S. Bankruptcy Court Judge Lloyd King. Seattle-based Saltchuk, parent company of Hawaii’s biggest interisland ocean shipper, announced worked out a deal to buy Aloha’s cargo operation by obtaining the consent of Aloha’s main lender, GMAC Commercial Finance. Saltchuk is also the owner of Young Brothers/Hawaiian Tug & Barge, Hawaii Fuel Network, Maui Petroleum and Minit Stop Stores. Saltchuk also owns Northern Air Cargo, the largest cargo carrier in Alaska, which uses the same type of aircraft as Aloha.
Lahaina By-Pass Status - Bypass may curve to avoid cultural sites - The state Department of Transportation expects to begin construction on the often-delayed Lahaina bypass in January with a new route that will avoid two archaeological sites, department officials announced Wednesday. The $48 million, half-mile phase 1A of the bypass has been stalled since last fall when two archaeological sites were discovered within the path of the highway that would run from Lahainaluna Road to an extension of Keawe Street.
Fuel Costs and Airline Ticket Price Increases - Hawaiian Airlines increased interisland passenger fares as a result of rocketing fuel costs. Fares, which were $49, will go to $54, and other fares will increase by $5 to $20 per person. Hawaiian reached a settlement of its lawsuit against Mesa Air Group for $52.4 million in cash. Mesa will drop its appeal of an award to Hawaiian of $80 million.
Vog in Hawaii – The haze that hung around last month as a result of Kona winds pushing a blanket of vog over the islands. The vog, or volcanic haze, is made up of sulfur dioxide, particulates and other fumes spewing from the Halemaumau Crater and from the east rift eruption site on Kilauea, issuing from the vents along with a continuing flow of lava that is entering the ocean at Ki and Waikupanaha. The Kona winds, caused by a frontal band approaching Kauai, spread the haze across the state, obscuring views of Diamond Head and the Koolau Mountains on Oahu, while creating brilliant sunrises and sunsets.
Major Book Award won by Lahaina author – Author and entrepreneur Bonnie Nelson was selected for the Silver Winner of the Nautilus Book Awards. Her book was written about the cheetah, which is the oldest cat on the planet and the fastest, moving at speeds of 70 miles per hour. These cats are also heading toward extinction, with only an estimated 12,000 left. To learn more about “The Cheetah Portal” and the charities, visit www.cheetahportal.com
Gas Prices in Lahaina – Gas prices are edging to $4.50 a gallon and could likely hit $5.00 in time for Christmas. They made it up to $5.20 on Lanai.
Tourist Visits to the Islands – Tourist visits in April to Maui were down nearly 10 percent after Aloha and ATA airlines went out of business. Neighbor Islands experienced bigger declines in visitor traffic, while Oahu was down less, but still by 6.8 percent. Hawaii’s head count for the month fell 7.6 percent to 548,792. Maui and Hilo were more affected by the airline failures than any other airports. ATA had been providing half the available air seats to Kahului or 1,520 seats a month but represented only 1 percent of seats to Maui. Regularly scheduled air seats to Maui dropped by 23.8 percent to 121,571 in April but are expected to pick up as other carriers adjust. International arrivals to Maui grew by 36.7 percent, but totaled only 23,582 or about 13 percent of the Valley Isle’s total business. Tourist from Canada accounted for a 45.7 percent increase in visitors to Maui last month compared with April 2007. Japanese visitors were down 43.3 percent but the numbers are small, from 5,805 in April 2007 to 3,259 this year.
Hawaii’s Economy - Although Hawaii is experiencing a slower rate of growth it in a much stronger position it was in the early 1990s, when investors were pulling out of the state. State revenues are still projected to grow 3.9 percent through fiscal year 2008, and the unemployment rate is still around 2 percentage points less than the national average of 5 percent. There are slowdowns in the visitor industry but visitor stays and spending were up. Business in Hawaii needs to maintain its confidence, find ways to cut costs and capitalize on strengths.
Made on Maui Biochip – Trex Enterprises Corp which grew up on Maui as an R & D group, purchased by it’s employees, that specialized in microwave sensing, digital signal processing and high-resolution imaging, geared to both space and ocean exploration. It was originally the R&D division of a larger company, Thermo Electron Corp. Trex’s Maui base was originally at the Maui Research & Technology Center and growth in its operations required a move to a larger facility in the Maui Business Park in Kahului.
The “biochip” developed by Trex Enterprises has been incorporated into an analytical instrument for examining protein interactions at the molecular level.
Dry Weather on Maui – Maui County experienced another month of abnormally dry weather in April, with Kahului Airport showing a record low of 0.03 inch. Normal rainfall at the airport for April would be 1.8 inches. Below-normal rainfall is an increasing issue for the Department of Water Supply, which imposed a drought warning on Upcountry consumers in June last year because of the below-normal rainfall in 2007. The U.S. Drought Monitor for the week ended April 29 said all of Hawaii remained in abnormally dry condition, noting that a few heavy rainstorms provided short-term relief but did not alleviate the drier-than-normal situation.
Superferry in Hawaii - The ferry Alakai has enjoyed calm seas for several weeks. Since coming out of dry-dock on April 7th, the ferry has not missed a day, and projects more than 21,000 passengers and 5,800 by the end of its first full month of operations.
The projection is that the Superferry can be profitable even when selling only half its 866 passenger seats. The collapse of Aloha Airlines drove cargo business to the ferry. Beginning June 7, the passenger fare is $49 and a passenger vehicle is $65. The seven companies that will allow their customers to take rental cars aboard the ferry are Hertz Rent A Car, Dollar/Thrifty Automotive Group, Alamo/National Rent A Car, Avis/Budget Group, U-Haul, Ryder and JN Car & Truck Rental. Contact information can be found at www.HawaiiSuperferry.com
Medical Facilities on Maui - The Association for Improved Healthcare on Maui (AIHM) http://www.aihm-maui.org whose mission is to serve as an advocate for the creation of a system that will provide improved healthcare services to all of the citizens and visitors of Maui County has been making some excellent progress. For more information on making a contribution to this great cause, please visit the web site for AIHM at www.aihm-maui.org/ourfriends.htm. To stay informed of what is transpiring with future approvals of either the Kihei or West Maui hospital, you can send me an email and request a subscription to the “Coconut Wireless” to either my email at Jim@JameBFoster.com or Jan@SunshineRainbows.com
Jan Shields - Running for Office - http://www.JanShields4Senate.com Go to this web site to read more
Real Estate & Financial Planning Tips:
We recently closed two transactions that required the HARPTA forms and you can go to the following web site for information http://www.harpta.com On one sale there was a $798.00 gain and the seller was required to withhold 5% of the sale price ($17,000) at closing and file the Form N-288C to receive a refund of $17,000 less $798 or $16,202 and the process will typically take about six weeks after closing. The other transaction involved an estate where the father who owned the property died on January 25, 2008 and closing occurred on May 29, 2008. After establishing the market value at the time of death and that there was no taxable gain, the Form N-288B was filed and the exemption was received prior to closing and the 5% withholding was avoided. The estate was probated in Pennsylvania and that probate attorney had to coordinate with a probate attorney in Hawaii to coordinate the Ancillary Probate necessary in Hawaii. This also requires original death certificates and other documents before the process and closing can occur. All of us typically do not like to think about death but having all of your documents organized and planning for your estate can save your loved ones and family substantial grieve. This transaction was also a leasehold condominium where we negotiated with the fee owner to obtain an option for the buyer to purchase the fee between closing and the end of 2009.
Here are some of the things you need to know about Estate Planning in Hawaii that could benefit you in the future or save your estate thousands of dollars by doing advanced planning.
Hawaii is a "Separate Property" State, which usually means that at death assets in your sole name will pass to those you have designated in your will. However, a surviving spouse may elect to take a percentage of your estate, regardless of what your will says -- including probate assets, insurance, trust property -- depending upon the number of years of marriage. After 15 years of marriage, the spouse may elect a full 50% of your estate. Certain assets are excluded and rights of a spouse may be waived in advance by agreement, including a prenuptial agreement.
If you move to Hawaii from a community property state, the community property assets you bring into Hawaii may retain their status as community property, but only if you are careful in your planning. Maintaining community property generally affords a more favorable capital gains treatment for appreciated property after one spouse dies.
In Hawaii, if non-real estate assets in a person's sole name at death do not exceed $100,000 (not counting the value of any autos), there is no need for a probate, and the assets and any autos may be collected by the rightful beneficiaries or the person named in a will as the personal representative using a simple Affidavit and a certified copy of the death certificate.
Hawaii law allows a married couple to hold any property, real or personal, as Tenants by the Entirety. This type of ownership has rights of survivorship for a surviving spouse. Hawaii allows any type of property, real or personal, to be titled in this tenancy. Property held by the Entirety is deemed to be owned by the marital unit. Consequently a creditor seeking recovery against only one spouse will in most cases be unsuccessful in attaching any of the property held in this form.
In Hawaii, a qualified retirement plan income is exempt from state taxation, making it easier to retire in paradise; it does have a state tax on income.
In 1999, Hawaii adopted a modified version of the Uniform Health-Care Decisions Act. This law combined the features of a "living will" with those of a durable power of attorney for health care decisions, creating a vehicle for a customized Advance Health-Care Directive.
Hawaii has a complicated system of land transfer and recording. All recording of deeds and other related documents is done at the State level, either in the Bureau of Conveyances system, in the Land Court system, or in both systems. As such, there are no statutory deed forms and a Hawaii attorney will likely be required to assist in preparation of transfer documents to a revocable trust or to another person or entity. Similarly, there are no statutory powers of attorney in Hawaii.
Hawaii has only a "piggy-back" estate tax, meaning that it merely takes the maximum amount allowable as a tax credit for state taxes on the federal estate tax return, and does not impose any additional estate tax on a person's estate at death. As the law now stands, no Hawaii estate tax will be due in any event, as Hawaii has not "decoupled" from the federal estate tax law.
If a non-resident of Hawaii has died owning real estate in Hawaii, in most cases the property may be transferred without an ancillary probate, through a simple Acknowledgment of Authority procedure wherein the personal representative in the home state is granted authority to act in Hawaii.
Revocable and irrevocable trusts have been around for many years in Hawaii and assets held in trusts will generally avoid probate. If a probate is required to transfer property in Hawaii, the relatively new changes to the Hawaii Probate Code provide for a less expensive and more efficient probate or intestate administration. Attorney's fees are no longer based upon a statutory percentage of the value of the estate, and must be reasonable as reviewed by the Court. Most proceedings are handled on an informal basis, without court hearings.
Insurance Services on Maui and Hawaii – Whenever you buy property you will need insurance and I have recently worked with this person who gives excellent personal service and can explain insurance concepts so they are readily understandable. If you are purchasing real estate are thinking about he is a good source to add to your contacts. Charlie Cowan, Personal Lines Representative, Hawaii Insurance Consultants, LTD, Six Waterfront Plaza 3rd Floor,500 Ala Moana Blvd, Honolulu, HI 96813, AIG Hawaii Family of Companies, Phone: 808-544-3906, Toll Free 877-543-9789 Ext 906, Email Address: ccowan@aighawaii.com
Legal Services on Maui - If you need to establish a trust for your Maui property, set up a Limited Liability Company, or need legal assistance for preparing legal documents and require a Maui or Lahaina attorney, Gary Robert has had a legal practice here for many years and is a good source for those requiring legal related services. He can be reached by phone at 808-667-7741, address is 808 Wainee St., Suite 201, Lahaina, HI, 96761 Fax is 808-667-7550 and Email grlaw@hawaiiantel.net
We receive calls on a regular basis and provide letters of Market Value at the time of death to assist in the Probate process for owners of Hawaii real estate. It is always unfortunate when estate planning has not been done and the tax liability has to be dealt with in a short period of time.
Take the time to review with your accountant, financial planner and attorney in the matters of current financial plans and also estate plans. If you do not have trusted advisors in these areas ask friends and business associates for recommendations because in the long run it may be the best investment you will make.
In past newsletters, I have mentioned that the easiest way to minimize the tax impact when selling is to do a tax deferred exchange. If you have questions about tax deferred exchanges give us a call. If you are considering selling your property in Hawaii, a tax deferred exchange will exempt you from the 5% HARPTA withholding and also the Federal Capital Gains Tax. Planning in advance for the disposition or acquisition of assets is always a wise decision. Another invaluable tool for sellers in doing a tax deferred exchange is having the option of using tenant-in-common (TICs) for qualifying for replacement properties. Many property owners who currently own underperforming assets can sell those assets, taking advantage of tax deferred exchanges, and turn an underperforming asset such as land into an income producing asset. Call me or send me an email if you would like additional information at 808-661-7994 or email Jim@JamesBFoster.com
If you are contemplating selling highly appreciated real estate during 2008 and would like for us to provide an analysis of how to best structure your transaction, please call us at 1-888-661-7994 or send us and email at Jim@JamesBFoster.com
Useful Internet Sites:
www.didtheyreadit.com Want to know if your email was read and do it confidentially? Find out when your e-mail was read and where they were when they read it by simply typing a few letters after the recipient’s e-address when you send your message. Moments after the addressee opens your message you will receive a confirmation showing the exact date and time that the message was opened with other confirmation information plus a map showing where the recipient was when opening your message. You can track up to 10 messages a month on the house or the premium service is available for a modest monthly fee.
www.yousendit.com Go to this web site for a great free service. If you need to get a file to a friend or associate in a hurry but it’s too large to e-mail because our internet service provider blocks big files, use this service to upload any file up to 100MB. The recipient will receive an e-mail with a link to the file -- ready to download. No registration required – and you can use their free service to send files up to 100MB in size without any cost.
http://fundrace.huffingtonpost.com Using this web site you can easily search by name, address or zip to see which candidates your friends, family, co-workers, or neighbors are contributing to. An interesting feature allows you to search celebrities by name and zero in on a map showing their registered address.
www.walkscore.com This web site will rate your neighborhood for “walkability”. They calculate the walkability for your address by locating nearby stores, restaurants, schools, parks, etc. and presenting them on a map around your house. Then they score the walkability of your house’s location on a scale of 0-100 with 90-100 being a “Walkers' Paradise” where errands and entertainment can be accomplished on foot and you could get by without owning a car. 0-25 is a “Driving Only” location where virtually no neighborhood destinations are within walking range.
Kindest Regards, Jim Foster
Chase 'N Rainbows Real Estate, Inc.
P.O. Box 10398
Lahaina, HI 96761
Toll Free 888-661-7994
Direct Line 808-661-7994
Cell 808-870-5858
Fax 808-667-2957
Real Estate for Sale www.JamesBFoster.com
Vacation Rental www.ChaseNRainbows.com
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