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I'll have strong location connections through work, though a "deal" for me doesn't need to be paying under market (or very much under market). And cash reserves won't be a problem! Thanks for all of the advice.
While I know this isn't in your price range, it's an example of how high maintenance fees can kill the value of a condo.
$600K asking doesn't sound too bad for a very large well-maintained 2/2/2 in a luxury building in the core of town. Especially when the city assessed value is over $1M. But then you realize the maintenance fee is $1,749/mo and doesn't even include electricity.
Let's see what kind of return on investment this condo yields -
Rent (includes GET but tenant pays utilities) - $3,800
Maintenance fee - $1,749
Vacancy (typically 5% is used but we'll go with 2.5%) - $95
Mgmt fee (10%) - $380
GET (4.5%) - $171
RPT ($6.00/$1,000 valuation/year) - $509
Insurance - $45
Reserve (repairs/maintenance/upkeep of interior - I use 5% but let's go with just 3% of the replacement cost of all interior furnishings and fixtures/annual) - $180
$3,800/mo gross rental income. $3,129 operating costs. Net income of $671.
$671/mo services $140K mortgage at 4%.
Owner would need to put down $460,000 in cash (77% of purchase price) plus closing costs to break even.
The cap rate on this property? 1.3%. But hey, that's still better than a CD at any local bank.
$600K asking doesn't sound too bad for a very large well-maintained 2/2/2 in a luxury building in the core of town. Especially when the city assessed value is over $1M. But then you realize the maintenance fee is $1,749/mo and doesn't even include electricity.
$1,749/month is way out of line for that unit, and not typical for the size - and I wouldn't characterize 1,200 sq. ft as "very large". I'm sure a special assessment is baked into that monthly rather than a lump sum.
Moana Pacific units run about $700/month right in the neighborhood and about the same size....
My unit in the Pinnacle runs $1,000/month and is newer, much larger (1,800 sq. ft) and much more upscale......
$1,749/month is way out of line for that unit, and not typical for the size - and I wouldn't characterize 1,200 sq. ft as "very large".
1,200 SF is larger than 92% of all 2 bdrm condos in town. I think that qualifies for "very large". Maybe not by mainland standards, but we're obviously not talking about that.
Quote:
Originally Posted by whtviper1
I'm sure a special assessment is baked into that monthly rather than a lump sum.
Nope, no special assessment on Uraku. You can check the past records. That's just the cost to maintain the building in its current state (not improve). Ridiculous, yes, I agree.
Quote:
Originally Posted by whtviper1
Moana Pacific units run about $700/month right in the neighborhood and about the same size....
My unit in the Pinnacle runs $1,000/month and is newer, much larger (1,800 sq. ft) and much more upscale......
Moana Pacific for the same size is currently $830/mo.
Moana Pacific and Pinnacle were built in 2007 and 2008, respectively. Uraku was built in 1989. It's nearly 20 years older than your two condos. As luxury buildings age, their maintenance fees skyrocket and quickly outpace inflation. That's a fact. Your fees are low because your buildings are much newer. Moana Pacific already got hit with TWO special assessments and increases in maintenance fees from the $500's to $800+ in just a few short years. They already had to gut their whopping 7 year old lobby for renovations. That's hilarious. Unfortunately there will be many more special assessments for Moana Pacific owners as the building suffers from serious construction defects.
Pinnacle is unique in that there are so few owners - 38 condo units in the entire project. So anytime there is any fix required each owner will need to cover ~3% of the cost of that fix. That's scary. I suspect those maintenance fees will double over the next 8-10 years to where they need to be to properly maintain and operate an aging/amenity-rich high rise structure - about $0.80-$1.20/SF.
I used to live in this building which was built around the same time as Uraku -
$2,604 maintenance fee ($1.22/SF); no electricity included. Ouch.
2,133 SF for only $895K. That's $419/SF or a fraction of what it would cost to actually build that condo unit today. And the views are desirable.
But it's $419/SF for one reason and one reason only - it's an aging condo with high maintenance fees.
I do agree that Uraku's fees are exceptionally high for what you're getting. But more and more buildings are breaking the $1.00/SF maintenance fee mark (not including electricity). Unfortunately in the very near future, $1/SF will be the norm for most condos. As these fees go up, their property values will diminish.
Good day, I am new to this site, so forgive me, if I do not "get things right"
I vacationed recently and fell in love with the place, beaches, and the people.
I too have similar questions regarding moving to Oahu, I will be seeking employment as a RN and plan on moving to Oahu in January/February of 2016 with my family (wife and 2 children).
I was referred to a local realtor, who is suggesting we buy in Ewa. It seems the traffic is awful, but if I work nights 7pm-7am, maybe I can avoid the rush?
I would appreciate any honest advice any member could give me.
Good day, I am new to this site, so forgive me, if I do not "get things right"
I vacationed recently and fell in love with the place, beaches, and the people.
I too have similar questions regarding moving to Oahu, I will be seeking employment as a RN and plan on moving to Oahu in January/February of 2016 with my family (wife and 2 children).
I was referred to a local realtor, who is suggesting we buy in Ewa. It seems the traffic is awful, but if I work nights 7pm-7am, maybe I can avoid the rush?
I would appreciate any honest advice any member could give me.
Thanks,
Barry
Where will you be working? What is your home purchasing budget? Household income? Savings? Do you need a newer move in condition home or don't mind a little fixer upper? Do you mind commuting 1 hour or more a day in traffic or are short commutes an important quality of life issue for you? Have you researched schools yet? Are your two children attending public or private school? How will they get to and from school?
Where will you be working? What is your home purchasing budget? Household income? Savings? Do you need a newer move in condition home or don't mind a little fixer upper? Do you mind commuting 1 hour or more a day in traffic or are short commutes an important quality of life issue for you? Have you researched schools yet? Are your two children attending public or private school? How will they get to and from school?
I am planning on working for one of the main hospitals, I suspect our annual income would be about 60,000+ annually, planning to have approx. 50,000 after selling our home on the mainland, rather not commute, but willing to commute, would rather have a move in ready home, but would not mind smaller fixer-upper tasks, public school should be fine for now, and my daughter drives...
I am planning on working for one of the main hospitals, I suspect our annual income would be about 60,000+ annually, planning to have approx. 50,000 after selling our home on the mainland, rather not commute, but willing to commute, would rather have a move in ready home, but would not mind smaller fixer-upper tasks, public school should be fine for now, and my daughter drives...
Not sure how you're going to qualify to buy a home (assuming at least a small 3 bdrm) on Oahu let alone provide for a 4-person family on $60K/year.
Sounds like you know what you are doing. Enjoy Hawaii. It's fantastic beauty varies on each island so i'd encourage visiting every major island. Best of luck!
Queens hospital was paying a portion of your moving expenses
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Needing advice on moving to Oahu...
