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Oahu condos for rent* Real Estate Hawaii News Articles * Buying a Home in Hawaii * Hawaii Homes Buying Versus Renting * Oahu buying-vs-rentingHawaii has the highest median rent in Nation Don’t wait any longer. Find out what you qualify for and get into the game. You’ll be glad you did Average rents in Hawaii double every 20 years. The median price of a single- family home on Oahu today is $643,500. Ten years ago it was $307,000 and ten years before that it was $190,200. If you are still watching and waiting for the right time to jump into the real estate market, consider this: An analysis of the local rental market shows a similar upward track — averaging roughly $1,000 per month rent for a single-family home in 1985, around $1,500 per month in 1995 and well over $2,000 per month today. Are you prepared for the prospect of your rent doubling every 20 years? Or might it make more sense to lock in a mortgage payment now for the next 30 years? “Some people rent because they are ‘waiting for prices to fall’ or to ‘see what the market is going to do,’” says Carl P. Worthy, a sales trainer and coach at Prudential Locations LLC. But they forget about all the money they’re throwing away while they wait. Worthy estimates the typical renter spends $18,000 a year — that’s $1,500 a month — on rent. “Home prices would have to drop $18,000 a year just for you to break even,” he says. “And what if they don’t go down? What if they go up?” When you consider that interest rates are also rising together with the tax advantages of homeownership,it doesn’t pay to wait. “Regardless of whether you rent or buy, you’re going to pay a mortgage,” adds Worthy. “Whose mortgage do you want to pay? Yours? Or your landlords?” Both the landlord and the tenant pay for a property. The difference: a renter does not get any of the benefits of owning. A renter is not building equity — the landlord is. After years of making payments, a renter does not own anything — the landlord does. The National Low Income Housing Coalition estimates 44 percent of Island households are renters who pay approximately $1,224 each month for the average 2-bedroom rental, ranking Hawaii as having the most expensive rentals in the country. “Most people don’t realize that if they can afford to rent, they can probably afford to buy,” says Worthy. “Because the tax savings inherent in ownership will help you make your mortgage payment.” According to the Homeownership Alliance, 10 million Americans will enter the housing market by 2013. Still, some renters will be shut out due to prices continuing to rise and their lack of understanding of the benefits of homeownership. Worthy says the general public is often misinformed or they may not have the most accurate or up-to-date information. “For example, most people think the market went down last year — from 2005 to 2006,” he explains. “When the truth is that the median prices of both homes and condos increased in 2006.” If locking in a fixed monthly payment, the ability to build equity when property values increase and the tax benefits don’t convince you, then Worthy suggests you consider the security of knowing you can live in your home for as long as you want — no one will ever ask you to leave. It’s not uncommon for a tenant to find the home of their dreams only to be forced to leave at some point due to a death of one of the owners or a landlord’s deciding to sell the property for any number of other reasons. FIRST TIME HOMEBUYERS PART 1 OF 3 Three-part series focusing on strategies for first-time buyers HONOLULU ADVERTISER April 8, 2007BY LISA SCONTRAS Custom Publishing Group Sound advice for terminal renters - Bubble proof your life by locking in your house payment HONOLULU ADVERTISER , August 28 2005 BY LISA SCONTRAS Custom Publishing Group Ten years ago, today’s median priced house of $599,000 on Oahu would have cost around $349,000. And 10 years before that, it would have cost around $158,600. If you are watching and waiting, trying to decide whether to jump into the real estate market yet or not, consider this: Locally respected research analyst Harvey Shapiro at the Honolulu Board of Realtors says “In Hawaii, prices historically go up steeply and then they go flat for a number of years. That’s what happens here.” And while he says “we’re currently still in the up phase of the market, my gut feeling is that prices won’t go down — at some point they may level off.” An analysis of the rental market shows a similar track — averaging roughly $1,000 per month for a single-family home in 1985, around $1,500 per month in 1995 and well over $2,000 per month today. According to Michael Healey, broker/partner of Prudential Locations Maui branch, it’s the renters who get hit the hardest, especially the demographic group he calls the “terminal renter.” “That’s what they are, they’re terminal,” he says, “and we just can’t get them to change their mind.” He describes the terminal renter as being in their 40s or 50s, they live in nice neighborhoods like Aina Haina, paying low rent — usually $600 or $700 a month, been there a long time and generally have a good relationship with their landlord. “But remember, those landlords are probably in their 70s now and that situation is not going to last forever. When the landlord decides to sell, you’re going to be in trouble.” Healey reports that the worst cases of tenant displacement are retired people on a fixed income. “You’ve got to start somewhere,” he recommends. It used to be that the down payment held renters back from buying, but new low-down programs have answered that need. And don’t be scared off by the fact that the mortgage amount exceeds what you’re currently paying in rent, even if it’s double. “Most of that will be interest and tax deductible,” he says. “Talk to a tax professional, and get into the game.” For more listings and details not available to the general public, register for BrokersMLS dotay!!!
Part 2 of Sound advice for terminal renters HONOLULU ADVERTISER , August 28 2005 BY LISA SCONTRAS Custom Publishing Group Housing for students, on and off campus, can get expensive — especially when multiplied by four years. With today’s continued low interest rates, coupled with parents who are looking for a way to offset tuition fees, it makes more and more financial sense to buy a home or condo for college housing as an investment rather than burn dollars on dorm fees. Following the same principals of paying a mortgage and building equity for themselves rather than putting money into someone else’s pocket, parents are educating themselves on their financial options where college housing is concerned. Of course, as with any investment, your strategy will vary, depending on your financial goals, the college your student selects and market conditions in that neighborhood, but the benefits are definitely worth considering. Conceivably, you could buy a small house and rent out the additional rooms to other students, possibly creating cash flow. You may even elect to continue renting to students even once yours have graduated. Some parents may opt to include the child’s name on the loan — taking advantage of first-time homebuyer loan programs as well as teaching the student about the responsibility of homeownership. If your son or daughter decides to go to school on the Mainland, buying a home there may even satisfy residency requirements. And, if there is a shortage of off-campus housing, it may be a good investment even if you don’t have a student entering college.
Think you can't qualify? Think again FIRST-TIME HOMEBUYERS Part 1 of 3 Three-part series focusing on the challenges that face first-time homebuyers. NEXT SUNDAY: Alternative down-payment options. HONOLULU ADVERTISER , Janurary 15 2006 BY LISA SCONTRAS Custom Publishing Group Since the average Oahu home’s median sales price has doubled in the past five years, many would-be first-time homebuyers feel hopelessly intimidated at the prospect of ever owning their own digs. But despite the rising prices, many have found the courage and the means to jump into today’s real estate market and start reaping the rewards of home ownership — simply by taking some methodical steps, some good advice, and looking into some creative financing options. “There are lots of people who have everything they need to buy their first property, but they just don’t know they do,” says Christy Lovell, real estate agent at Prudential Locations.
“They’re thinking like their parents did,” said Lovell. “Traditionally, everyone always had to have 20 percent for their down payment. That’s not necessarily true anymore.” Lovell says the other big hurdle to overcome is the high price tag. “I hear a lot of ‘Prices are too high — I can’t afford anything,’” she says. “But what they don’t know is there are so many loan products out there, that chances are they really can qualify.” According to Lovell, 15 years ago there were three main types of mortgage products. Now there are more than 30 — giving buyers many more creative ways to achieve their American dream.
Alternative down payment options - two first-timers break the code FIRST-TIME HOMEBUYERS Part 2 of 3 Three-part series focusing on the challenges that face first-time homebuyers. NEXT SUNDAY: Condos allow first timers to start small. HONOLULU ADVERTISER , January 22 2006 BY LISA SCONTRAS Custom Publishing Group Kicking yourself for not buying that 3-bedroom house five years ago? That one that has appreciated 100 percent? And now you are running short on down payment cash because you just had to have that fancy new car which has done nothing but depreciate since you drove it off the lot. Besides that, the rent is due again ... Many local residents, including renters and singles, were able to buy their first home last year joining the 69 percent of Americans who did the same — a historic high. Yet others feel like they have missed the boat. After all, how can you buy a home when you have no cash? What resources are available? Can your real estate agent and loan officer really work miracles? Buyers Robert and Judy Iokepa say theirs did. “Our confidence level was low but we were persistent and ultimately it paid off,” says Robert Iokepa, whose Realtor, Toan Doran, was able to coordinate with the seller to advance the Iokepa’s most of the down payment needed to close. Iokepa says, “It was several things that all came together — the right seller, the right Realtor and the right banker — to help us come up with needed funds.” Home prices have gone up so high and so quickly they’re simply out of reach for most “normal” people. But don't tell that to Victoria and Alex Agustin. They bought their first six homes last year — all of them single family homes — they're living in one, renting four and renovating the sixth. Victoria Agustin says the tenants pay the mortgages and there is still some pocket change left over. “We took a risk to see if we qualified,” remembers Victoria Agustin, who says all six homes are in Waianae. “We were pretty shocked ourselves.I am a cashier’s assistant at Costco and my husband is a foreman at a roofing company ... we’re just regular people.” Agustin says she and her husband just decided that it was time to start planning for their retirement — even in their early 30s — and are making a case for raw determination. They successfully bought their first four homes using 100 percent financing. “It’s all about what you want in life,” says Agustin, who has never owned a credit card. “We saw how hard it is to make money and how easy it is to spend it. And we just decided that we might as well spend it on something that will bring money back in.” Doran, the Prudential Locations, Inc. agent who helped both these young families buy homes last year, says one of the key reasons holding people back is a fear of the unknown. “It’s human nature to shy away from unfamiliar territory,” says Doran. “Many first-time buyers tell me that they are so intimidated by the home-buying process because there is so much involved and they don’t know where to begin. So they end up not taking any action.” Agustin says she doesn’t think they could have done it without their Realtor and loan officer. “They gave us direction,” she says. “They really wanted us to succeed. A lot of people told us we couldn’t do it. That just motivated us more.
Mortgage Options Using this table, it’s easy to compare monthly payments vs. cash needed on a purchase price of approximately $250,000.
Condos allow first timers to start small - First Purchase can be stepping-stone to a dream home
FIRST-TIME HOMEBUYERS PART 3 OF 3 Three-part series focusing on the challenges that face first-time homebuyers.
HONOLULU ADVERTISER , January 29 2006 BY LISA SCONTRAS Custom Publishing Group Half-million-dollar-plus home prices and random triple-digit growth across the Island since 2000 have intimidated even seasoned investors from jumping into today’s real estate marketing place. But making an unexpected presence on the real estate scene, first-time homebuyers are buying homes or condos and building equity by defying conventional wisdom and doing whatever it takes. “I wish I had bought something years ago,” remembers Sarah Snawder, who recently closed on her first piece of real estate ever in Waikiki. “I knew that higher prices mean higher rents. My landlord had already raised my rent and I knew that with prices still climbing, my rent would get jacked up again and again. That was my motivation.” Snawder got smart and found a real estate agent who set up an appointment with a loan officer for her to get prequalified.
Thinking back, Snawder says, “If I knew two years go what I know now, I probably could have bought something then – I’m pretty sure I would have qualified.” “I’m definitely using this as a stepping stone, but I’m proud to have a little place I can now call my own,” says Snawder, who lovers her condo so much she may never sell it. Being open minded also helped Harzali Hashmin and Sarah Shepard buy their first property in Salt Lake “We would have liked to look at houses, but after getting pre-qualified we found that what we could afford to buy right now was a 2-bedroom, 1-bath apartment,” says Hashim, who bumped up his price range slightly after figuring in the tax savings. “We even expand the scope and the range of the neighborhoods we considered.” Samantha Corbin says her Realtor, Marshall Mower at Prudential, e-mailed her new listings that fit her criteria as they came on the market. Corbin and her husband Del are both in the navy and hadn’t been on the island long when they began looking for a place to buy. “He was able to give me name of neighborhoods that might be in my price range where we might have a shot,” recalls Corbin who purchased a home in Ewa Beach using 100 percent financing. Hashim and Shepard are scheduled to close on their condo this month. And while he says it’s not where they plan to live forever, they are already shopping at Home Depot and discussing paint colors.
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