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Location: not sure, but there's a hell of a lot of water around here!
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Originally Posted by hawaiian by heart
The house is 10 years old. Plus its in a far cheaper area then lets say Hawai'i kai, Kaliua, Waialae-kahala, Palolo, etc. Only other areas cheaper are Kalihi-Palama, Kalihi Valley and Alamanu.
But still its a nice house i wouldn't turn my noise up on it.
I wouldn't call Makakilo cheap. Besides, my company was a subcontractor on that subdivision, so, at least it's well built. Nice views from up there too. And only 10 minutes to downtown!!!!!
I wouldn't call Makakilo cheap. Besides, my company was a subcontractor on that subdivision, so, at least it's well built. Nice views from up there too. And only 10 minutes to downtown!!!!!
(Kapolei that is, the second city)
I won't agrue with you uncle Jung, i trust your lifetime experience in Hawai'i. For a learning experience for me? Are we talking Makakilo or Kapolei? Doesnt Farrington Hwy seperate the districts? Thats what ive always have known, am i wrong? Its ok if im wrong i am here to learn also.
As a former Alaskan living in Hawaii, I'm curious why you mentioned Alaska. As you noted, Hawaii is more expensive than Alaska (that really only pertains to the population center, Anchorage. Once you leave town costs in Alaska quickly eclipse the most expensive prices in Hawaii, but there are very few people paying those prices so the averages show Hawaii as the most expensive, per capita).
Aside from that...
Alaska has no state sales tax.
Alaska has no state income tax.
Alaska gives every legitimate resident a PFD check every year.
I have realized that Hawaii is considerably more expensive than Alaska.
Almost 50% of the population of Alaska lives in the Anchorage bowl. True, those citizens aren't as as isolated as the other communities in Alaska, so it isn't as expensive as in other places in the state, but it is still very expensive compared to the rest of the country and half the population is there paying through the nose, too.
I mentioned Alaska because it is the other U.S. state where $72,000.00 a year doesn't go very far. Housing alone, including in Anchorage, eats that up pretty fast. When I compared living in Hawaii on that income to the other states, I excepted Alaska for that reason. Of course, California isn't cheap to live in either, or anywhere else where housing is really high, but Hawaii and Alaska are the most expensive to survive in because of their isolation from the rest of the country.
Yes, as expensive as it is to live in Alaska, it does have those financial benefits over Hawaii. That was my point.
The 800k was anticipated avrg price for home in honolulu by 2015. The real deal is this: Where is it all going? In our real estate blog in April, we reported on a forecast by the University of Hawaii Economic Research Organization (UHERO)—its prediction was that the median home price in Honolulu would climb* to $650,100 through 2013, then to $724,000 in 2014, hitting $815,000 by 2015.
Economist Paul Brewbaker tells us, “People are going to have to wrap their heads around the idea of a median single-family home price on Oahu of $1 million before the 20-teens are over. It’s conceivable home prices could double … within the 20-teens.”
These kinds of studies always leave out some important details.
Why would "a person" who works the mythical minimum wage be looking for a 2 bedroom apartment in an expensive city in the first place?
Minimum wage is for new and/or unskilled workers.
If an employee is still working minimum wage after a couple of years, it says a lot about that employee and their lack of ambition as well as the inability to do something to better themselves.
Besides, minimum wage on Oahu, is more like $9 - $10 per hour because that is what the market demands.
Even Wal-Mart on the Big Island starts people around $9hr and I routinely see the local fast food places advertising $9hr on up, to start, plus free and/or reduced price meals.
You can't afford a single room if you make $9/hr so I don't get what your point is
Economist Paul Brewbaker tells us, “People are going to have to wrap their heads around the idea of a median single-family home price on Oahu of $1 million before the 20-teens are over. It’s conceivable home prices could double … within the 20-teens.”
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Mr Brewbaker completely missed the question he should be asking as an economist-- why is the median value of a house going to be $1 million soon? Where is the money coming from to buy houses at those prices?
Mr Brewbaker completely missed the question he should be asking as an economist-- why is the median value of a house going to be $1 million soon? Where is the money coming from to buy houses at those prices?
Not Hawaii...
Of course a lot of that money is coming from Hawaii - think of all the people in Hawaii who bought houses in the 70's, 80's, even the 90's - they are living in houses worth potentially an extreme amount of money - if you bought in 1984 with a 30 year mortgage, you have a completely paid off house - they make a heck of a down payment on the next place.
The median home in the mid-80's in the US was about $85,000 - if that person bought a house for lets say $170K in Hawaii that is a heck of gain for a house that is likely over $1 million today.
Here in Kailua, when you look at pricing history, the houses that go for $1.2 million or so were only going for less than $500K in the late 90's - that is quite a gain to apply to the next house.
Of course a lot of that money is coming from Hawaii - think of all the people in Hawaii who bought houses in the 70's, 80's, even the 90's - they are living in houses worth potentially an extreme amount of money - if you bought in 1984 with a 30 year mortgage, you have a completely paid off house - they make a heck of a down payment on the next place.
The median home in the mid-80's in the US was about $85,000 - if that person bought a house for lets say $170K in Hawaii that is a heck of gain for a house that is likely over $1 million today.
Here in Kailua, when you look at pricing history, the houses that go for $1.2 million or so were only going for less than $500K in the late 90's - that is quite a gain to apply to the next house.
They're only "worth" $800k because someone will pay the price. Who are these people buying $800k median houses?
I've read news reports about Chinese investors and the like buying up property... If it's really just investors driving up values, those aren't real values. They're prices based on what someone thinks the market will be like in the future.
Last edited by winkosmosis; 03-09-2014 at 01:40 PM..
They're only "worth" $800k because someone will pay the price. Who are these people buying $800k median houses?
I've read news reports about Chinese investors and the like buying up property... If it's really just investors driving up values, those aren't real values. They're prices based on what someone thinks the market will be like in the future.
Chinese investors aren't buying $800K properties. They buy the multi-million dollar houses.
I know $800K sounds like a lot to you - but 2 wage earners making $70K each can easily afford a $800K house. There are a lot of people making $70K on Oahu. $800K with 10% down at 4%, is only $3,400/month, or $1,700 each. And, they'll quite a lot of that back as part of a tax refund - certainly several thousand dollars.
And there are plenty of people with a lot of equity in their current houses upgrading and using that equity as a down payment.
They're only "worth" $800k because someone will pay the price. Who are these people buying $800k median houses?
I've read news reports about Chinese investors and the like buying up property... If it's really just investors driving up values, those aren't real values. They're prices based on what someone thinks the market will be like in the future.
Forget it wink you could bring a hundred photos that the sky is currently blue, but what is true or correct isn't more important then being right for viper. So moving on. Mahalo for your opinions.
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