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That has to be the original 1952 kitchen and bath! That is a 67 year old decor! Don't ask me how I know. Waikikiboy, this is probably close in value to your Ilikai property and you said you did not favor condos. So, would you trade? I actually drove up today and just thought the difference in NBHD's would not be worth it to me. Saturday, and I saw someone picking weeds in their lawn and another person painting their mailbox. Then all the dog walkers going nowhere.
And Hawaiian design on a dime!
3124 Lanikaula Street Honolulu HI 96822
$840,000 | OahuRE Rebate $4,200 | VA Loan 1% Rebate $7,260 | Sold
Listed on 09-11-2020 * 48 Days until Sold
Sold for $885,000 on 10-29-2020
Well, sold for $45,000 over asking in 48 days during a pandemic with a 67 year old kitchen!
3124 Lanikaula Street Honolulu HI 96822
$840,000 | OahuRE Rebate $4,200 | VA Loan 1% Rebate $7,260 | Sold
Listed on 09-11-2020 * 48 Days until Sold
Sold for $885,000 on 10-29-2020
Well, sold for $45,000 over asking in 48 days during a pandemic with a 67 year old kitchen!
I must admit my predictions about real estate as we entered into the pandemic were wrong. I expected to see housing prices stall out and drop when Covid hit. I thought no one would be buying and we would see foreclosures increase also putting pressure on homes. I thought multi-family prices would drop also with tenants defaulting on rent and vacancies harder to fill.
None of my expectations happened. I was surprised by the high demand and escalating prices almost everywhere.
I must admit my predictions about real estate as we entered into the pandemic were wrong. I expected to see housing prices stall out and drop when Covid hit. I thought no one would be buying and we would see foreclosures increase also putting pressure on homes. I thought multi-family prices would drop also with tenants defaulting on rent and vacancies harder to fill.
None of my expectations happened. I was surprised by the high demand and escalating prices almost everywhere.
I'm in the same boat. At this point though, I've practically sold off everything I have as leases were coming up - I'm skeptical this will sustain itself and if (when) the economy tanks, the feds are out of money
I'm in the same boat. At this point though, I've practically sold off everything I have as leases were coming up - I'm skeptical this will sustain itself and if (when) the economy tanks, the feds are out of money
You are never out of money when you own the printing presses. People have been predicting the demise of Fed spending for decades. Someday it might happen.
At this point though, I've practically sold off everything I have as leases were coming up -
If these were flyover properties I would agree that now would be the time to divest. If these are HI or CA properties it is costing you $50,000-$150,000+ in selling costs and then the capital gains taxes. At this poing I have a hard time doing that when I can just cash out refi at a crazy low rate and put tax free money in my pocket. When inflation rears its ugly head those low rate long term mortgages are going to be gold.
You are never out of money when you own the printing presses. People have been predicting the demise of Fed spending for decades. Someday it might happen.
They aren't just printing money - they are borrowing the money.
And borrowing at near zero interest is fine if you get a decent return on investment - I don't see that with the latest round of stimulus funding - all one has to do is walk around Waikiki or the Las Vegas strip and it screams a clientele of stimulus.
If these were flyover properties I would agree that now would be the time to divest. If these are HI or CA properties it is costing you $50,000-$150,000+ in selling costs and then the capital gains taxes. At this poing I have a hard time doing that when I can just cash out refi at a crazy low rate and put tax free money in my pocket. When inflation rears its ugly head those low rate long term mortgages are going to be gold.
You are going to wish you locked in a 20% capital gains tax - I see that number going up - perhaps substantially.
I'm not paying anywhere near 6% to sell off the properties. My realtor took a cut since she has a basket of properties to sell (which sell in weeks not months) and with this being a sellers market - the buyers commission is negotiable - people are paying over asking - and I don't need to give a single concession.
I like cash out refi's - but right now, the rents have not risen with the house prices - I'm not getting the ROI I want.
When the market collapses - and I still think it will - I'm going after teardowns of which there is no lack of on Oahu.
I must admit my predictions about real estate as we entered into the pandemic were wrong. I expected to see housing prices stall out and drop when Covid hit. I thought no one would be buying and we would see foreclosures increase also putting pressure on homes. I thought multi-family prices would drop also with tenants defaulting on rent and vacancies harder to fill.
None of my expectations happened. I was surprised by the high demand and escalating prices almost everywhere.
Your prediction didn't foresee the government making foreclosures and evictions illegal. And how could it, it has never happened before. I don't think your predictions were wrong, they were delayed. The fact that the problem hasn't been remedied PLUS adding a year's worth of unpaid rents/mortgages/commercial real estate to the amount past due just means that when the bubble pops it's going to be all that more cataclysmic. The problem you were analyzing a year ago is now 12x worse. This is unpaid, past-due debt that doesn't "officially" exist anywhere in "the system".
Your prediction didn't foresee the government making foreclosures and evictions illegal. And how could it, it has never happened before. I don't think your predictions were wrong, they were delayed. The fact that the problem hasn't been remedied PLUS adding a year's worth of unpaid rents/mortgages/commercial real estate to the amount past due just means that when the bubble pops it's going to be all that more cataclysmic. The problem you were analyzing a year ago is now 12x worse. This is unpaid, past-due debt that doesn't "officially" exist anywhere in "the system".
Agreed - and nobody knows the extent of the unpaid rent and mortgages.
The numbers don't add up for me.
Hawaii February unemployment was 9.2%. I went house shopping in Las Vegas a couple of months ago - and passed due to the skyrocketing housing prices - it is rising as fast or faster than Hawaii. Las Vegas unemployment is running 9.3% in the metro area.
Is everyone really paying their rent and mortgages with the unemployment checks? Sure, I bet some are. Some are certainly former dual income households and someone in the household may still have a job. And the 9% unemployment figures are a huge improvement from the 15% in the fall.
When you walk around Waikiki and the Las Vegas Strip - it screams at you Stimulus Check. A completely different clientele than pre-Covid. Sorry Stimulus Check folks - but it is a much more rough around the edges crowd.
So, I largely got out of the real estate market and cashed in my chips. The gains on the properties far exceeded the rental income potential (and I don't see rents going up for quite awhile). It takes days/weeks to sell a property with no improvements rather than months. Everything sold "as is" from full asking or over asking. I will sit back now, enjoy the show - and ultimately see what happens. I'd prefer to not see a real estate collapse - but I don't see how it won't happen. The math just screams to me it will though.
Your prediction didn't foresee the government making foreclosures and evictions illegal. And how could it, it has never happened before. I don't think your predictions were wrong, they were delayed. The fact that the problem hasn't been remedied PLUS adding a year's worth of unpaid rents/mortgages/commercial real estate to the amount past due just means that when the bubble pops it's going to be all that more cataclysmic. The problem you were analyzing a year ago is now 12x worse. This is unpaid, past-due debt that doesn't "officially" exist anywhere in "the system".
I do agree that the level of government intervention is unlike anything I've in my lifetime. Eviction moratoriums, foreclosure moratoriums, government money to help compensate landlords for missing rent, etc.
I don't feel I can predict what will happen next. But I don't think it will be as bad as I would normally expect because I don't think the level of government involvement will let it go as bad as it normally could.
For example, at federal and state levels, they continue to extend non-payment eviction moratoriums. At the same time, they are using some of the Federal debt money to help keep everything afloat. It could all crash, but I think the government will keep using this money to create a soft landing. But who knows for sure.
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