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I went back and looked at the pictures of that house. I've actually been inside that house! They were having an open house last time we were house hunting in Ewa Beach. It's not a bad place. I recall that I liked it, but it needs some TLC. Maybe I should buy it?
Be very careful about buying in Ewa Beach unless you are truly going to be in Ewa Beach a very long time.
When price declines begin on Oahu - they start in Ewa Beach. And, they fall the furthest.
When prices go up - the last place they go up is Ewa Beach.
When the economy struggles on Oahu - Ewa Beach gets hit the hardest with foreclosures and short sales.
I can't stress the above enough.
Best generic explanation is: Many people overextend themselves in Ewa Beach since the prices are so much lower than town, windward, east side, etc - the let homeownership override common sense if they can really afford that purchase. So when unemployment dips up - they can't make payments.
When the economy is bad here, you will see foreclosures in the lets say Kailua or Hawaii Kai (but most people can afford to live in those areas), but not near the number of Ewa Beach - not even close. And foreclosures will dramatically impact your home value.
When the tide turns, all other areas outside the urban core will suffer.
In late 1990s and early 2000s, I have spent many Tuesday noon time outside the courthouse where they conducted the foreclosure bidding. I saw so many houses and townhouses in Ewa, Makakilo and Kapolei went unbidded. Many townhouses were sold for low $70K.
But for those foreclosed properties in Kaimuki and Kapahulu, they still fetched a premium 20%-50% over the bidding price even in those difficult times.
Most single family homes are located in planned community in Ewa, i.e. Sun Terra, West Loch,...etc.
After the City Council passed the bill on Accessory Dwelling Units, it is even more unwise to invest in those houses.
According to the bill, any house which lot is at least 5,000 sq ft big and if its front yard or back yard has room, the owner can build a 800 sq ft additional unit for rental. Such 800 sq ft 2 bedroom unit can get $2,500 monthly rental income.
If the owner builds it cheap, i.e. $200/sq ft, a $160,000 investment can generate $30,000 in return annually. That is a 18.75% rate of return.
But those planned communities already stated that even most houses are eligible with their lot sizes, it will be against the community's rule to build ADU.
Most single family homes are located in planned community in Ewa, i.e. Sun Terra, West Loch,...etc.
After the City Council passed the bill on Accessory Dwelling Units, it is even more unwise to invest in those houses.
According to the bill, any house which lot is at least 5,000 sq ft big and if its front yard or back yard has room, the owner can build a 800 sq ft additional unit for rental. Such 800 sq ft 2 bedroom unit can get $2,500 monthly rental income.
If the owner builds it cheap, i.e. $200/sq ft, a $160,000 investment can generate $30,000 in return annually. That is a 18.75% rate of return.
But those planned communities already stated that even most houses are eligible with their lot sizes, it will be against the community's rule to build ADU.
Been on these CD forums for almost ten years beating the same drum - don't ever buy any property in Hawaii where you don't have full control of the land. Condos, townhomes, "planned" communities with wildly overreaching, nazi-like associations are all horrible long-term investments.
The approval of ADU's reinforces what I have been saying for years. Zoning density allowance in or near the urban core can only increase over time (and it will only increase more over time). There is no upside in condos or other properties where density (FAR) allowances are already high, structures cannot be feasibly demolished and rebuilt and land is shared in common interest. What you see is what you get - the towel has been wrung, zero upside.
It's intelligent investing 101 - buy property that will inherently become more scarce over time, not property that will become more ubiquitous. It's strange that very few people can wrap any of this around their heads.
Been on these CD forums for almost ten years beating the same drum - don't ever buy any property in Hawaii where you don't have full control of the land. Condos, townhomes, "planned" communities with wildly overreaching, nazi-like associations are all horrible long-term investments.
The approval of ADU's reinforces what I have been saying for years. Zoning density allowance in or near the urban core can only increase over time (and it will only increase more over time). There is no upside in condos or other properties where density (FAR) allowances are already high, structures cannot be feasibly demolished and rebuilt and land is shared in common interest. What you see is what you get - the towel has been wrung, zero upside.
It's intelligent investing 101 - buy property that will inherently become more scarce over time, not property that will become more ubiquitous. It's strange that very few people can wrap any of this around their heads.
But nobody is building ADU. The even waived over $10,000 in fees to try get people to build. Nothing wrong with condos in prime locations. The upside is the location. The upside of an ADU is the downside of the SFR on the site.
It's intelligent investing 101 - buy property that will inherently become more scarce over time, not property that will become more ubiquitous. It's strange that very few people can wrap any of this around their heads.
Would you say the same if some people want to buy property because they want shelter rather than an investment? Some people want to buy property because they would like to settle at that place for long term living but not merely for investment.
Would you say the same if some people want to buy property because they want shelter rather than an investment? Some people want to buy property because they would like to settle at that place for long term living but not merely for investment.
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