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July, 2010 - Newsletter for the Maui Market
Aloha! Here is your eNewsletter for the Maui Market from Jim Foster and visit our web site when you have time www.JamesBFoster.com for searching properties on the Maui MLS or researching sales under the tab Condo Sales for all the major complexes individually or for 2010 to date, 2009, 2008 and all of the MLS statistics.
Make sure you view the Useful Internet Sites & Interesting DVDs: in the right hand column of this news letter and read about Sapphire Energy and a Life Decoded, very uplifting and encouraging during these difficult times we have been living through.
Featured Property For Sale - Kapalua Golf Villas Unit 18P5&6 a two bedroom two bath unit directly on the Kapalua Golf Course and completely remodeled to Gold Club Program Standards. This beautiful condo has ocean views from the lanai where you can sip your Mai Tai and watch golfers play the 10 hole on the Bay Course. Previously listed at $1,200,000 and now priced at $795,000. Seller is highly motivated and will respond quickly to all offers. For details and photos email Jim@JamesBFoster.com We also have several beautiful ocean front units for every price range so call us and let us know how we can assist in making your Maui Dream come true!
To view information about the Honua Kai, the newest resort in the West Maui area view this web site for general information, what is for sale and past sale: www.HonuaKaiOnMaui.com and it is very easy to navigate. Currently there are 282 units offered for sale by the developer and we can represent buyers for these units which are studios, one, two and three bedroom units. In the MLS there are 27 units offered for sale and of those 8 are resales by the developer and 19 for other agent/brokers. As a percentage of the 628 units, 48% are available for sale. This is a four star master-planned resort and the only beachfront condominium built in the Kaanapali Resort area in over 25 years. Honua Kai currently has two condominium towers with 628 units consisting of Studio, one bedroom, two bedroom and three bedroom units. Situated on nearly forty acres of the world's most beautiful beachfront, this resort is the first to integrate all the services and amenities of a luxury resort hotel with spacious homes that seamlessly blend indoor and outdoor living and is designed to deliver a one-of-a-kind experience. It is the perfect home base to enjoy everything the island has to offer.
Honua Kai Resort & Spa is Maui’s newest and finest Resort, Luxury Condominium, hosting; Studio Apartments, One bedroom, Two bedroom, and Three bedroom Residences, located on Kaanapali North Beach’s pristine shoreline. The Honua Kai Resort & Spa’ s valuable and scarce Resort Zoning allows for both Residential and Vacation Rental use. As an owner of the Honua Kai Resort and Spa, you may choose to enjoy your residence as a Primary Residence, or Secondary Vacation Residence. The Honua Kai’s Resort Zoning also enables you to vacation rent your residence at those times you are not there to enjoy it. Should you decide to off-set your expenses you may do so by vacation renting your residence. There are several ways to accomplish this, you may Self Manage, In-House Resort Manage, or Third Party manage. The choice is yours.
Hot Buys for July, 2010 - If you are looking for some excellent buys in the Kaanapali area that are REOs, Short Sales or aggressively price listed properties for sale for condominiums, single family residential and vacant land (lots), call Jim @1-888-661-7994
We have a list of Short Sales and REOs for residential and condominium properties in West Maui and Short Sales and REOs for unimproved residential properties or lots. If you would like the details please send email. For a complete list of REOs and Short Sales in West Maui or the entire island send email request to Jim@JamesBFoster.com or would like to be notified daily of new listings or price changes that are REOs or Short Sales call me on my toll free number 1-888-661-7994 or email me at Jim@JamesBFoster.com
If you specifically are interested in a Short Sale or REO properties, you can now search on my web site www.JamesBFoster.com the Short Sales & REOs on Maui in the MLS. Email me and I will email you back the instructions on how do to do the search. There are a substantial number of Short Sales and REO properties for sale in the Maui Realtors Association Multiple Listing Service (MLS) and the number is increasing and if you would like to have a list or are interested in these types of properties send an email to Jim@JamesBFoster.com
New IDX Search Features - on www.JamesBFoster.com Search properties and you can search for Short Sales, REOs, by location and other categories. If you would like directions on how to use email me at Jim@JamesBFoster.com and I will email instructions.
Make sure you check out the Useful Internet Sites and Real Estate Tips at the end of this newsletter.
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.
Maui Real Estate - To view the year end 2007, 2008, 2009 & year to date 2010 Sales Statistics go to http://www.jamesbfoster.com/condosales.php and click on Maui MLS Statistics 2009 and 2010.
The West Maui Real Estate Market
Relative to vacation rental and hotel occupancy, as we move into the second half of this year we are seeing small signs that things are improving. According to Paul Brewbaker, the state Council on Revenues chairman here in Hawaii, the recession has already ended and his analysis predicted actual economic growth, not seen since the bottom fell out of the local and national economies nearly two years ago. He still believes however that Maui is lagging behind the rest of the state. A recent study shows visitor days are up 7.4% but are still down by about 8% from 2007. A very good sign of improvement is that the airlines are beginning to fill the void left by the bankruptcy of Aloha Airlines and ATA more than two years ago. There are more flights and more visitors coming to Maui. Based on Brewbaker’s analysis, the second half of this year should be the turning point that we all have been waiting for.
The first quarter of this year showed higher occupancy compared to the first quarter of 2009 however the rates are down which is a trend that will continue we believe through the end of this year and perhaps into 2011 depending on the rate of economic recovery. We have kept a very close eye on our competitors and the “rental by owner” market in order to determine our pricing for each of our properties. We have rolled some of our regular and value season rates back for later this year and many owners have given us the flexibility to discount as we feel it is necessary to generate occupancy especially for bookings within 30 days of arrival. We ask that the bookings that are discounted for last minute arrivals be paid based on 60% of the gross rent we collect and not the contracted rental rates however.
As a reminder the transient accommodations tax rate will increase to 9.25% effective July 1, 2010 which brings the total rental tax up to 13.41%.
There are predictions that a rebound of the 2nd home market. Maui is one of the top second home markets in the U.S. Maui has market corrections but not as volatile as the mainland or other parts of the world because Maui attracts an affluent market that is less sensitive to the economic challenges.
Sellers who continue to aggressively price their properties if they want to sell have a good opportunity of selling and need to understand the impact of REOs and Short Sales in comparable areas or developments.
We have not yet reached the bottom of the market and REO and Short Sales continue to impact value but property that is aggressively priced in relation to comparable sales in the last six months are receiving offers.
Buyers should understand the current market with very low interest rates and some of the lowest prices since 2000 to 2004 should give serious consideration to making offers on properties they like that were at their peak four years ago.
Buyers in the market currently, for the most part, are looking for deals or the lowest prices. We are seeing improvement in the number of showings and increased bookings for vacation rental. The current inventory of West Maui condominiums for sale is now at 640 (at 7/2/10) and on the same month in 2009 it was 692. Properties are requiring approximately five to six months to sell and in many instances, longer. Buyers have a much larger inventory of properties for sale to choose from than at the height of the market. 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. In the current Maui real estate market, the for sale inventory continues to increase and prices are typically flat or have decreased.
Condominiums for Sale
2007 - In the West Maui real estate market, at the beginning of January, 2007 there were 410 condominiums listed for sale with the total value of $372,238,031.00; February, 2007 - 431 condos with the total value of $393,681,669.00; March, 2007 - 458 condos with the total value of $420,941,268.00; April, 2007 - 479 condos with the total value of $429,708,159.00; May, 2007 - 472 condos with the total value of $424,095,260.00; June, 2007 - 455 condos with the total value of $415,187,129.00; July, 2007 - 475 condos with the total value of $432,797,008.00; August, 2007 - 469 condos with the total value of $420,479,301.00; September, 2007 - 474 condos with the total value of $430,914,408.00; October, 2007 - 471 condos with the total value of $423,631,002.00; November, 2007 - 466 condos with the total value of $416,008,907.00; and December, 2007 - 485 condos with the total value of $421,080,117.00. The average number of condominiums for sale on West Maui for 2007 was 462 and the average total value was $416,730,118.25.
2008 - At the beginning of January, 2008 there were 511 condominiums listed for sale with the total value of $445,656,447.00; February, 2008 there were 559 condos with the total value of $500,946,603.00; March, 2008 - 595 condos with the total value of $529,779,322.00; April, 2008 - 647 condos with the total value of $606,635,687.00; May, 2008 - 634 condos with the total value of $583,391,821.00; June, 2008 - 644 condos with the total value of $590,736,279.00; July, 2008 - 680 condos with the total value of $662,919,268.00; August, 2008 - 703 condos with the total value of $693,069,348.00; September, 2008 - 693 condos with the total value of $654,411,079.00; October, 2008 - 673 condos with the total value of $620,032,454.00; November, 2008 - 715 condos with the total value of $652,379,032.00; and December, 2008 - 729 condos with the total value of $660,335,998.00. The average number of condominiums for sale on West Maui for 2008 was 648 and the average total value was $604,191,111.50.
2009 - At the beginning of January, 2009 there were 742 condominiums listed for sale with the total value of $693,143,047.00; February, 2009 there were 757 Condos with the total value of $709,234,346; March, 2009 there were 787 Condos with the total value of $681,864,289; April, 2009 there were 805 Condos with the total value of $693,368,793; May, 2009 there were 717 Condos with the total value of $629,812,465; June, 2009 there were 691 Condos with the total value of $591,075,527; July, 2009 there were 692 Condos with the total value of $588,385,017; August, 2009 there were 682 Condos with the total value of $575,359,815; September, 2009 there were 662 Condos with the total value of $540,291,317; in October, 2009 there were 662 Condos with the total value of $527,367,912; in November, 2009 there were 636 Condos with the total value of $486,410,609; and in December, 2009 there were 629 Condos with the total value of $495,645,642. The average number of condominiums for sale on West Maui for 2009 is 705 and the average total value is $600,996,564.92.
2010 - At the beginning of January, 2010 there were 608 condominiums listed for sale with the total value of $511,345,892; February, 2010 there are 643 Condos with the total value of $519,749,801.00; March 2010 there were 681 Condos with the total value of $549,060,756.00; April 2010 there are 649 Condos with the total value of $516,570,310; May 2010 there are 647 Condos with the total value of $497,221,612; June 2010 there are 625 Condos with the total value of $480,371,404; and July 2010 there are 640 Condos with the total value of $504,764,616.00. The average number of condominiums for sale on West Maui from 1/1/2010 to 7/2/2010 is 642 and the average total value is $511,297,770.14.
The condominium for sale inventory since July, 2005 has been as low as 165 and was up to 805 in April, 2009 with the current inventory of 640 on July 2, 2010.
Condominium Sales
2006 - The total condominium sales on West Maui during the month of January, 2006 there were 42 sales and the total value was $28,574,643.00; February, 2006, there were 48 sales with total value of $32,995,078.00; March, 2006 - 40 sales with total value of $32,199,584.00; April, 2006 - 43 sales with total value of $41,898,525.00; May, 2006 - 51 sales with total value of $39,644,886.00; June, 2006 - 40 sales with total value of $32,533,500.00; July, 2006 - 30 sales with total value of $26,212,000.00; August, 2006 - 28 sales with total value of $31,885,500.00; September, 2006 - 30 sales with total value of $24,770,000.00; October, 2006 - 29 sales with total value of $23,359,299.00; November, 2006 - 22 sales with total value of $13,414,600.00; and December, 2006 there were 30 sales with total value of $23,169,999.00. For 2006, the monthly average sales were 36 sales per month with the average sales value of $29,221,467.83 per month.
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; February, 2007 there were 26 sales with total value of $16,330,000.00; March, 2007 - 32 sales with total value of $24,121,000.00; April, 2007 - 27 sales with total value of $16,766,000.00; May, 2007 - 28 sales with total value of $30,774,929.00; June, 2007 - 28 sales with total value of $18,917,000.00; July, 2007 - 21 sales with total value of $13,314,200.00; August, 2007 - 32 sales with total value of $33,258,999.00; September, 2007 - 23 sales with total value of $24,701,900.00; October, 2007 - 42 sales with total value of $28,159,900.00, however this included a packaged sale of 19 units at Aina Nalu in Lahaina; November, 2007 - 15 sales with total value of $15,930,000.00; and December, 2007 there were 13 sales with total value of $13,335,500.00. For 2007, the Month of December saw 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.
2008 - The total condominium sales for West Maui during the month of January, 2008 there were 20 sales and the total value was $16,184,800.00; February, 2008 there were 20 sales and the total value was $14,414,584.00; March, 2008 - 26 sales and the total value was $20,079,000.00; April 2008 - 28 sales and the total value was $20,488,500.00; May 2008 - 22 sales and the total value was $20,055,000; June 2008 - 14 sales and the total value was $11,957,000; July 2008 - 10 sales and the total value was $6,955,999; August 2008 - 13 sales and the total value was $8,055,000; September 2008 - 12 sales and the total value was $6,707,122; October 2008 - 12 sales and the total value was $8,042,500; November 2008 - 10 sales and the total value was $8,444,000; and December 2008 there were 6 sales and the total value was $6,265,000. For 2008, the average monthly sales were 16 sales per month with the average sales value of $12,304,042.08 per month.
2009 - The total condominium sales for West Maui during the month of January, 2009 there were 76 sales and the total value was $95,573,286.00; February, 2009 there were 54 sales and the total value was $68,795,841.00; March, 2009 there were 37 sales and the total value was $32,979,595.00; April, 2009 there were 23 sales and the total value was $13,142,872.00; May, 2009 there were 11 sales and the total value was $8,879,500.00; June, 2009 there were 18 sales and the total value was $12,530,000.00; July, 2009 there were 28 sales and the total value was $30,196,900.00; August, 2009 there were 25 sales and the total value was $17,891,397.00; September, 2009 there were 14 sales and the total value was $5,684,550.00; October, 2009 there were 23 sales and the total value was $14,202,856.00; November, 2009 there were 19 sales and the total value was $9,850,550.00; and December, 2009 there were 35 sales and the total value was $39,598,000.00. For 2009, the average monthly sales were 30 sales per month with the average sales value of $29,110,445.58 per month.
Condominium Sales in 2010 - The total condominium sales for West Maui during the month of January, 2010 there were 31 sales and the total value was $21,104,950.00; February, 2010 there were 46 sales (12 were in Honua Kai) and the total value was $43,926,209.00; March, 2010 there were 72 sales (38 were in Honua Kai) and the total value was $85,051,544.00; April, 2010 there were 77 sales (42 were in Honua Kai) and the total value was $75,154,100.00; May, 2010 there were 42 sales (19 were in Honua Kai) and the total value was $43,586,500.00; and June, 2010 there were 44 sales (22 were in Honua Kai) and the total value was $33,329,100.00. From January 1, 2010 to July 2, 2010, the average monthly sales were 52 sales per month (or 30 per month if you do not include the sales in Honua Kai) with the average sales value of $50,358,734 with the Honua Kai sales factored in.
We have gone in to the Maui MLS database and pulled information for 2000 through 2010. In 2000 - 654 condominium units sold in the West Maui area for a total value of $209,064,010; in 2001 - 605 condo units sold for a total value of $271,681,337; in 2002 - 730 condo units sold for a total value of $240,178,915; in 2003 - 737 condo units sold for a total value of $319,748,466; In 2004 - 700 condo units sold for a total value of $375,033,467; in 2005 - 682 condo units for a total value of $408,582,315; in 2006 - 435 condo units for a total value of $351,782,614; in 2007 - 327 condo units for a total value of $271,290,428; in 2008, - 193 condo units sold for a total value of $147,648,505; in 2009, - 363 condo units sold for a total value of $349,325,347.00; and in 2010 from January to June, a total of 312 condominium units in the West Maui area for a total sales value of $302,152,403.00.
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
Mortgage Rates as of July 2, 2010 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 4.375% 30yr fixed 1.00pt (4.493 APR) 4.625% 30yr fixed 0.00pts (4.745 APR) Stated Income - No longer available: Interest Only To $625,500: 4.875% 30 yr fixed (10/20) 1.25pts (5.059 APR) Interest Only to $1M: 5.000% 30 yr fixed(10/20) 1.125pts (5.096 APR) Condotels 5.5% 30 yr fixed 1.25pts (5.801 APR) (Points include origination fee)
Mortgage Rates as of June 3, 2010 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 4.625% 30yr fixed 2.00pts (4.745 APR) 4.875% 30yr fixed .500pts (5.042 APR) 5.000% 30yr fixed -0- pts (5.123 APR) Stated Income - No longer available: Interest Only To $625,500: 5.500% 30 yr fixed (10/20).375pts (5.621 APR) Interest Only to $1M: 5.500% 30 yr fixed(10/20) .625 pt (5.642 APR) Condotels 5.75% 30 yr fixed 1.25pts (6.056 APR) (Points include origination fee)
Mortgage Rates as of May 3, 2010 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 4.75% 30yr fixed 2.00pts (4.871 APR) 4.875% 30yr fixed 1.00pts (4.997 APR) 5.125% 30yr fixed -0- pts (5.249 APR) Stated Income - No longer available: Interest Only To $625,500: 5.625% 30 yr fixed (10/20)1.000pts (5.753 APR) Interest Only to $1M: 5.625% 30 yr fixed(10/20) 1.000 pt (5.753 APR) Condotels 5.75% 30 yr fixed 1.25pts (6.056 APR) (Points include origination fee)
Mortgage Rates as of April 2, 2010 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 4.875% 30yr fixed 2.00pts (4.997 APR) 5.125% 30yr fixed 1.00pts (5.249 APR) 5.25% 30yr fixed -0- pts (5.375 APR) Stated Income - No longer available: Interest Only To $625,500: 5.875% 30 yr fixed (10/20)1.000pts (6.076 APR) Interest Only to $1M: 6.00% 30 yr fixed(10/20) .000 pt (6.117 APR) Condotels 5.75% 30 yr fixed 1.25pts (6.056 APR) (Points include origination fee)
Mortgage Rates as of March 1, 2010 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 4.625% 30yr fixed 2.00pts (4.745 APR) 4.750% 30yr fixed 1.00pts (4.871 APR) 5.00% 30yr fixed -0- pts (5.123 APR) Stated Income - No longer available: Interest Only To $625,500: 5.75% 30 yr fixed (10/20)1.000pts (6.036 APR) Interest Only to $1M: 5.875% 30 yr fixed(10/20) .750 pt (5.945 APR) Condotels 6.125% 30 yr fixed 1.25pts (6.312 APR) (Points include origination fee)
Mortgage Rates as of February 3, 2010 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 4.875% 30yr fixed 1.500pts (5.090 APR) 5.000% 30yr fixed .750pts (5.148 APR) 5.125% 30yr fixed -0- pts (5.207 APR) Stated Income - No longer available: Interest Only To $625,500: 5.875% 30 yr fixed (10/20)1.000pts (6.036 APR) Interest Only to $1M: 5.875% 30 yr fixed(10/20) .750 pt (5.945 APR) Condotels 6.125% 30 yr fixed 1.25pts (6.312 APR) (Points include origination fee)
Mortgage Rates as of January 1, 2010 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 5.125% 30yr fixed 1.625pts (5.354 APR) 5.250% 30yr fixed .500pts (5.378 APR) 5..375% 30yr fixed -0- pts (5.458 APR) Stated Income - No longer available: Interest Only To $625,500: 6.125% 30 yr fixed (10/20)1.500pts (6.035 APR) Interest Only to $1M: 6.000% 30 yr fixed(10/20) 1.000pt (6.079 APR) Condotels 6.500% 30 yr fixed 1.00pts (6.687APR) (Points include origination fee)
Some recent and past news about what is going on in Maui & Hawaii
Weather - As I am writing this newsletter today, July 4, 2010, it is about 86 degrees and sunny. Between now and June 13th, we are expecting a few sprinkles and windy conditions winds but typical Maui weather, as near to perfection as you can get in the 86 to 87 degree temperature range.
Chase N Rainbows Real Estate - Vacation Rental Management and Bookings for Travel Information - Need a sun break? If you're tired of the rain and cold you can get away now! Call us (877.647.9575) to check availability and book today. We can place any condo on a courtesy hold while you firm up your flights. Remember to check for low fares and use the fare finders at Kayak.com & Vacapedia.com. Sign up for e-mail reminders with Travelocity and Priceline too! www.ChaseNRainbows.com Sign up for Monthly Newsletter. If you are advertising your units on VRBO and are turning away leads because your unit is booked you are losing out on an opportunity to generate additional revenue! Please refer your leads to us and we will pay you a 10% referral fee if we are able to book them into another available unit. You can email the lead to info@chasenrainbows.com and then we will have the ability to track the referral and set up the commission at the time we confirm the booking.
Proposed New Legislation By Maui County Could Raise Property Taxes - Legislation that could alter condo property taxes, push thousands of units into a higher property tax classification and potentially drive more condominium units into foreclosure has been proposed by Maui County. While there are 26,701 condos in Maui County, 3,565 of those would be affected by the tax change, according to county property tax officials. But that fraction would be hit hard and condo owners affected by the law change would have paid a cumulative $9.1 million in additional property taxes if the legislation had gone into effect this year. A number of testifiers noted that condominium properties have been hit hard by foreclosures, and condo associations are already struggling to pay for maintenance and other costs with an increasing number of owners falling behind on their association fees. Forcing those owners into a higher property tax category would only make the problem worse, they said. Several also said the county should instead look for ways to catch cheaters who are using their condos as vacation rentals but paying taxes at a lower rate.
AOAO for Condos drained as Maintenance Fees not Paid - One management company who represents condo associations said some of the condo associations are on verge of collapse because so many condominium owners have fallen behind on their fees. Creating the problem for Associations are foreclosures, short sales and the overall economic problems. Even when condominium owners stop paying their monthly maintenance fees, they are still services that have to be provided to keep the complexes viable. If a condominium is foreclosed on the associations are limited to $3,600 as the maximum amount that can be collected from the new owners even if the owner was thousands of dollars in arrears.
Direct Flights To Las Vegas from Kahului Airport - Starting in October, 2010, Hawaiian Airlines will begin a twice-weekly, nonstop service between Kahului and Las Vegas. The addition of two new Airbus A330 planes gives Hawaiian more flexibility in choosing markets and Las Vegas has long been a favorite destination from the islands, and well-served from Honolulu. Hawaiian will be using a 260-seat Boeing 767-300 for the new Maui-Las Vegas route. Flights will arrive in Las Vegas at the McCarran International Airport at 4:30 p.m. on Mondays and Thursdays, giving visitors a chance to get checked into hotels and still have a full evening of fun ahead of them. Return flights to Kahului Airport will take off at 6:25 p.m. Sundays and Wednesdays and arrive at 9:25 p.m.
Economic Growth Recovery for Hawaii is Slow - Hawaii's economy hit bottom and is slowly bouncing back up, according to a county-by-county statistics. It will be a slow bounce and it is anticipated that all counties will see net growth for the year as a whole and led by surprisingly consistent growth on Maui. The national recession hit the western states hardest, and the Neighbor Islands, and especially Maui County, had depended more on visitors from that area. Oahu gets more international visitors so it has been less. The economic forcasters foresee continuing growth in 2011 in the visitor industry, although hotel occupancy levels will remain substantially below levels seen prior to the industry downturn. The forecast for 2011 shows growth of 5% that would bring the state back to the depressed level of 2008.
Makena Resort Sold at Auction - The top bid was $55 million by Wells Fargo Bank, which is the lenders' trustee, in what is believed to be the largest foreclosure in Maui history. Maui developer Everett Dowling and his partners used commercial mortgage securities to help buy the resort in 2007 from the Seibu Group of Japan for a record $570 million for a Maui hotel. Dowling and Morgan Stanley Real Estate invested another $100 million into the Makena Resort on planning, designs and infrastructure but defaulted on their loan last August and the court foreclosed on them and put the Wells Fargo trust in the driver's seat since it held the mortgage on the real property. Dowling has said that he wants to reacquire Makena Resort. However, he wasn't at the auction.
Maui Hotel Occupancy rate Is Rising - Maui hotel occupancies continued to gain in April, as indicated in the by Hospitality Advisors. The Maui rate, 66.7 percent, would not be considered good even though April is a "shoulder" month, but it was a lot better than the 56.2 percent in April 2009. The statewide rate was 65.4 percent, also a gain from the 62.8 percent of the year before. Only Maui showed a significant gain. Wailea's average room rate was $356, while West Maui was under $200. Despite its very high rates, Wailea enjoyed the biggest percentage gain in occupancy of any subcategory in the survey, up from 62.5 percent to 73.8 percent.
Star Noodle A New Restaurant For West Maui - We featured this article about Star Noodle last month and have eaten there since and it is receiving rave reviews and it is definitely a place you want to try, highly recommended. Serves fresh noodles daily for West Side noodle aficionados and is located in the Lahaina Business Park located across from the Lahaina Cannery Mall and up Keawe Street. To view the web site the many wonderful choices view their web site www.starnoodle.com Star Noodle has just about every type, shape and taste of noodles and I can recommend it after having sample their dishes, excellent! Star Noodle is the newest venue to Old Lahaina Luau and Aloha Mixed Plate. Open for lunch from 10:30 a.m. to 3:00 p.m. and for dinner from 5:30 p.m. to 10 p.m. For reservations, call 667-5400.
Professional & Business Referral Recommendations:
Attorney in Lahaina - Gary Robert resides in West Maui and has been providing legal services here for over 30 years in Lahaina. His office is located at 808 Wainee Street, Suite 201, Lahaina, Maui, Hawaii 96761. To contact Gary - Tel: 808-667-7741
Fax: 808-667-7550 Email grlaw@hawaiiantel.net Web site www.garyrobertlaw.com
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Accountant - CPA Tom Marino, CPA, Tax Manager with Levin & Hu. Tom has a Bachelor of Science degree in Accounting. Tom is a licensed CPA in both California and Hawaii since 1987. Levin & Hu provide professional services for individuals relative to Tax Planning/High Net Worth, Sole Proprietorship/Small Biz, Home Sale/Purchase, Rental Property, and Property Taxes. They also provide services for International clients in the areas of Expatriate Tax, Offshore Corporations, Foreign Corporations in the U.S. and Non-Resident Aliens and other areas of taxation and financial matters.
Remodeling or Upgrading condominium or house - It is critical to have a licensed contractor and subcontractors with excellent references and experience working with Maui properties if you will be Remodeling or Upgrading a condominium or house Should you need assistance or referrals for a property you own or need an estimate for property you are contemplating purchasing, all Jim Foster on his toll free number 1-888-661-7994 or send him an email to Jim@JamesBFoster.comand we can provide names and contact information as we have contact information for several reputable contractors for both remodeling and new construction.
Installation of Home Entertainment Systems - If you are looking for an experienced company for Home Theater Systems, Whole House Sound Systems, Telephone & Computer Network Wiring, HD TV Specialist/Blu Ray, Complete Color Calibration System and Universal Remote Control Systems and much more - contact Jason Vizthum with Integral Technologies in Lahaina. Phone is 1-866-420-3013 and Cell is 808-214-4212. Licensed, excellent referrals and a West Maui resident. www.integraltechmaui.com Email for Jason integraltech@hawaii.rr.com
Real Estate & Financial Planning Tips:
Hawaii Foreclosure Law Process Summary
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Typically 60 days
- Right of Redemption: None
- Deficiency Judgments Allowed: Yes
In Hawaii, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, the property will be auctioned off to the highest bidder.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:
1)The notice of intent to foreclose must be published once a week for three (3) successive weeks, the last publication to be not less than fourteen (14) days before the day of sale, in a newspaper having a general circulation in the county in which the mortgaged property is located.
Copies of the notice must be mailed or delivered to the mortgagor, the borrower, any prior or junior creditors, the state director of taxation and any other person entitled to receive notice. Additionally, the notice must be posted on the premises not less than twenty-one (21) days before the day of sale.
Said notice must state: 1) The date, time, and place of the public sale; 2) The dates and times of the two (2) open houses of the mortgaged property, or if there will not to be any open houses, the public notice shall so state; 3) The unpaid balance of the moneys owed to the mortgagee under the mortgage agreement; 4) A description of the mortgaged property, including the address or description of the location of the mortgaged property, and the tax map key number of the mortgaged property; 5) The name of the mortgagor and the borrower; 6) the name of the lender; 7) The name of any prior or junior creditors having a recorded lien on the mortgaged property before the recordation of the notice of default; 8) The name, the address in the State, and the telephone number in the State of the person in the State conducting the public sale; and 9) The terms and conditions of the public sale.
2)Up until three (3) days before the sale, the borrower may cure the default and stop the sale by paying the lien debt, costs and reasonable attorney's fees, unless otherwise agreed to between the lender and the borrower.
3)The sale, which may be held no earlier than fourteen (14) days after the last ad is published, is to be made at auction to the highest bidder.
4)Any sale, in which notice has been given, may be postponed from time to time by public announcement made by the lender or their representative.
There are no rights of redemption in Hawai
[§667-27] Public notice of public sale; contents; distribution; publication. (a) The foreclosing mortgagee shall prepare the public notice of the public sale. The public notice shall state:
(1) The date, time, and place of the public sale;
(2) The dates and times of the two open houses of the mortgaged property, or if there will not to be any open houses, the public notice shall so state;
(3) The unpaid balance of the moneys owed to the mortgagee under the mortgage agreement;
(4) A description of the mortgaged property, including the address or description of the location of the mortgaged property, and the tax map key number of the mortgaged property;
(5) The name of the mortgagor and the borrower;
(6) The name of the foreclosing mortgagee;
(7) The name of any prior or junior creditors having a recorded lien on the mortgaged property before the recordation of the notice of default under section 667-23;
(8) The name, the address in the State, and the telephone number in the State of the person in the State conducting the public sale; and
(9) The terms and conditions of the public sale.
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.
We have assisted sellers (for sale by owners) who had buyers but needed someone to facilitate the sale and guide them through the process and assure them they were asking a current market value price for their properties.
Many property owners who currently own underperforming assets can sell those assets and take advantage of tax deferred exchanges, turning an underperforming asset such as land into an income producing asset. If you are contemplating selling highly appreciated real estate during 2010 and would like for us to provide an analysis of how to best structure your transaction, please call me or send me an email if you would like additional information at 808-661-7994 or email Jim@JamesBFoster.com
Useful Internet Sites
www.sapphireenergy.com Totally fascinating solution to our dependence on foreign oil. The CEO, Cynthia Warner, is a 51 year old women who was previously a top level executive with British Petroleum (BP). As stated on the web site, Sapphire Energy believes the time is now to create new energy solutions that are environmental, scalable, and renewable. Sapphire is leading the new industrial category of Green Crude production with the potential to profoundly change America’s energy and petrochemical landscape for the better. With only sunlight and CO2, Sapphire Energy is turning algae into Green Crude that can be refined into the three most important liquid fuels we use today: gasoline, diesel and jet fuel. There is no need to make changes to our vehicles, pipelines, or distribution systems—as Green Crude offers a complete drop-in replacement solution. (If you find this interesting and positive read J. Craig Venter’s book, “A Life Dedcoded - My Genome: My Life” and you will have hope for our future and the world.)
www.photovisi.com Need a quick montage (collage or the like) of many photos neatly assembled on one print? Maybe it's for a business presentation - maybe for a family or class reunion. Whatever - a chore that might take hours using conventional methods can be finished in 5 minutes using this neat service. This easy to use online tool lets you create photo collages using one of their many collage templates. You simply drop your photos onto the template and then customize it dragging the photos around. After you're happy with the layout and design, you can download or print your masterpiece.
www.cnet.com To find out which software programs on your computer are out of date go to this web site and click on Top Categories and then Software Updates. The most recent software updates give you the latest features to help ensure that your computer runs smoothly and protects it against potential security vulnerabilities. Now CNET has come to the rescue with a neat program that shows you the software on your computer that is out of date and provides you with the information you need to decide which updates you want. You can view available updates online or from your desktop. You can check CNET and user ratings at a glance and download updates safely and spyware free.
www.gazelle.com Use this web site to turn junk into money and learn how to do it. If you have thought about selling some of your abandoned cell phones, cameras, PDAs, laptops, external drives, MP3 players or GPS devices but were discouraged with the hassle of listing it in eBay or the like, try this. Just visit the site and enter the gadget name in the search bar. Then simply answer a few questions about its condition and if you have the original accessories like cables and AC adapters. Up pops the price they'll pay you for your gadget. Just accept this price and they'll even send a postage-paid box to ship it to them.
www.wordnik.com Do you enjoy words and like to more than you'll find in a standard dictionary? Would you like to see an example in a sentence or related words and not just synonyms and antonyms? This web site goes beyond what we typically see in a dictionary and provides images related to the word and even hear the word pronounced.
http://video.pbs.org If you are a fan of the Public Broadcasting System (PBS) (or want to be) then this is a very worthwhile place to visit. Frontline -- Masterpiece Theater -Nova -- American Masters -- this great place has full length videos at your fingertips - on demand! You can watch your favorite shows and catch any episodes you may have missed -- all on your schedule. You can also send your favorites to friends and post them to social networks. There is no cost but if you are not a member of your local PBS affiliate you should become one as it is the highest quality of entertainment and a bargain price.
Kindest Regards, Jim Foster
Chase 'N Rainbows Real Estate, Inc.
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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