Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Redfin is now in Oahu. They share their commission with you. You can see the listing history so can see how long the home has been on the market, how often and by how much the price has changed and when it last sold. They also provide a list-to-sales ratio, which shows how much homes are selling for in relation to asking price. They also provide a price estimate (fair market value comparison), but the Hawaii version is missing this at the moment. Redfin used to lead the way on transparency, but has since towed the party line. It is still a good website for searching and researching though.
The best value in Oahu is going to be to rent. Rents are low in comparison to home prices. The best value homes to buy will be on the west side around Kapolei and Ewa. These are newer, better build-quality homes and there is more choice. The commuting problem may be alleviated with the new train that will run from Kapolei to Ala Moana Shopping Center. After completion, there are plans to build communities around the stations. These plans are called TOD (transit oriented development) and are being replicated throughout the US to address the commuter congestion and suburbanization problem. As a long term play, it may behove you to look into this, as it clearly provides the most sensible answer to Oahu's housing problems. The communities are to be walker and bike friendly, self sufficient (shops, entertainment, etc), with live/work units, built around public transportation. If plans are realized you would probably benefit from getting in early. The first stage of the train line is due for completion at some point in the not-too-distant future so that would also be worth exploring. Be warned! There is a lot of controversy surrounding the train line, and questions regarding its completion, feasibility etc. It would seem its completion is not a foregone conclusion, but my feeling is things have gone too far to turn back, and there is no more compelling reason for it that the chronic housing and traffic problem in Oahu. I think local authorities will steam roller it through in the face of any and all resistance, finances notwithstanding.
thanks for all of the replies. I'd think that my salary before taxes (about $115,000) should be enough to go about things as i am single, etc. I'm certainly frugal with other things, so won't be splurging. When i do leave honolulu, i hope to hire a property management company and rent the place out. My other expenses would be a car payment and insurance (which would be about $79 per month). Fyi, i'll be working near pearl harbor. From talking to some friends in similar situations as i'm going to be in, they have had a lot of success in renting out their places (and profitably so) when they left hawaii!
The best value homes to buy will be on the west side around Kapolei and Ewa. These are newer, better build-quality homes and there is more choice. The commuting problem may be alleviated with the new train that will run from Kapolei to Ala Moana Shopping Center. After completion, there are plans to build communities around the stations. These plans are called TOD (transit oriented development) and are being replicated throughout the US to address the commuter congestion and suburbanization problem.
Best value in what way? Size of home to dollar paid ratio? Sure. Age of home to dollar paid ratio? Sure. But there is more to "value" than just the size and age of a home. Personally, the WORST value is any home on the west side.
Rail is not going to solve the commuting problem nor will it reduce traffic congestion. Traffic will get worse even after rail is built. Much worse. Rail is a land and real estate development scheme meant only to provide more housing options to people as TOD will allow residential and commercial development to sprout up along its route which is currently uninhabited fields of dirt. As more houses sprout up along the rail, more cars will be necessary as common sense will tell anyone that most of the people living along the rail route will still own and drive cars. Even if planners say the average person living in these TOD homes will be carless.
Rail perpetuates (for many decades) the desirability of the urban core as it allows (via our tax dollars) people to move, like sheep, more easily into the core from west and central Oahu to work and play.
As mentioned, you should rent. Then later, if you want to stay, you'll know the areas much better and not have to depend on a realtor's advice. MUCH better to know where you want to live yourself. I, and a lot of people on the forum, have seen many people move to Hawaii all enthusiastic and all, only to find out later that maybe it wasn't what they thought it was in the beginning.
If you're locked into a condo w/ a mortgage, property taxes, homeowner fees, and management fees to rent it out, you can find yourself in trouble if there's problems w/ the tenant. Condos can be noisy too. They're just apartments, and you share walls, ceilings, and floors with a lot of other folks who may not have your ideas on noise. I was always surrounded by renters when I owned condos in Hawaii, as many people rented their units out. So you may as well be in an apartment where you can easily move.
Renting out a condo is not a good way to make money. All the fees add up, and you have to pay state and federal taxes on any profit you do show, along w/ property taxes, HO fees, etc. Then there's damage, insurance fees, and maintenance. Years ago Bankrate.com wrote a good article that said the surest way to go to bankruptcy was to have one rental unit. It seldom works out. You need multiple units to average things out to actually make any money, and even then it's a gamble. Your friends that said they made profits may just have selective memories, and haven't sat down w/ an accountant to see exactly what the bottom line actually was. Condos sometimes have assessments too, and they can be large if the building has issues or if someone sues the organization.
Just to update this thread: I've found a place to rent in Pearl City...$1,300 a month. Looking at MLS listings on Oahu, I'm finding some pretty good deals in terms of FS condo sales. No, the best deals are not in downtown Honolulu, but that's not a problem for me. I'm going to save for a few months, and then jump into the housing market for a condo!
Just to update this thread: I've found a place to rent in Pearl City...$1,300 a month. Looking at MLS listings on Oahu, I'm finding some pretty good deals in terms of FS condo sales. No, the best deals are not in downtown Honolulu, but that's not a problem for me. I'm going to save for a few months, and then jump into the housing market for a condo!
Best deals? Are you talking about those aging high rise condos in Pearl City? Those are horrible investments.
Best deals? Are you talking about those aging high rise condos in Pearl City? Those are horrible investments.
I am not. I'm looking at places in Mililani and elsewhere. Why are they such bad deals, though? Just curious. Understanding what many of my coworkers are paying to rent in several locations, though, I think what some are calling terrible deals aren't such bad deals at all.
I am not. I'm looking at places in Mililani and elsewhere. Why are they such bad deals, though? Just curious. Understanding what many of my coworkers are paying to rent in several locations, though, I think what some are calling terrible deals aren't such bad deals at all.
Condos in the Pearl City area were almost all built in the 1970's. A lot of these buildings suffer from deferred maintenance issues and have grossly insufficient reserves to cover the cost of proper building maintenance and aging component replacement. So future repairs and component replacement will likely be paid via special assessment or maintenance fees will rise at triple+ the rate of inflation in the coming years.
In my opinion, all old condos are terrible investments. But for those older condos in areas where rent is more affordable (i.e. anywhere but the urban core), they are even worse. It makes it that much more difficult to raise maintenance fees because landlords and homeowners in these affordable areas are generally middle class. This particular demographic has a much harder time dealing with maintenance fee increases (and special assessments). In these particularly "affordable" areas, maintenance and building upkeep is kept artificially low and at very bare minimums by the overly frugal middle/working class building owners. In addition to dealing with the deferred maintenance "kick the can down the road" problem, AOAOs are becoming evermore prone to liability and lawsuits and the cost of maintenance/construction on these specific high-liability projects is skyrocketing. Repairs and improvements will be forced on the AOAO and maintenance fees will increase markedly. The high maintenance fees and special assessments will not only hurt landlords and homeowners (increased monthly liability), but the value of the condos will drop considerably.
Another consideration is how much the maintenance fee is in respect to rental income potential. There are 1 bdrm condos that have fees approaching $600 when rents are maybe $1,400. After property tax, GET, insurance, property management, vacancy and interior condo repairs and maintenance, a landlord may only return $500/mo or less in income. That's not going to service much debt and it makes owning these condos just plain dumb. It makes far more sense to rent. Once that number approaches zero the condos will literally be worthless and they will be worthless far before that number goes to zero.
Aging high rise condos in any geographic area that doesn't command the highest rents (for a particular region) will end up becoming slums and will be demolished or re-purposed (e.g. converted to public housing, etc) at some point in the future. Owners in these buildings simply aren't wealthy enough to provide for the proper upkeep of their rapidly deteriorating buildings and rents will not generate enough cash flow for investors at its current sale price.
I know this sounds all gloom and doom (and many people on this forum, particularly realtors and condo owners will disagree) but rapidly increasing maintenance fees are highly problematic for old high rise buildings in affordable areas. This is going to be a huge problem; its inevitable negative impact on condo valuations is highly underestimated/ignored because of self-interest and economic bias.
Reading this post has made me think twice ( not that I have not be back and forth on this move for some time) This might be one of the biggest decisions one can make. I do have two concerns I would like to pose and acquire some thoughts.
1. My Boy friend and I ( prompted by some friends) have been thinking of moving to Oahu in the near future from St Louis MO. We both have a house to sell here and affairs that would need to get in order first. I would be moving with a job transfer ( sadly at my current salary ) He is a Union carpenter. In speaking with the local Union office with his experience in both residential and commercial work he should be able to find steady reliable work. However some have said that would not be so as work is hard to come by for a transplant. Is there any Carpenters that have moved here from the mainland that could speak to the reliability of work, This would be a very important consideration as he would be the bread winner of the house hold.
2. We would be looking to move to the Mililani area as I would be moving to an office closer to this area ( where my friends live now) I know my commute would be about 45 min and knowing my boyfriend's would be longer depending on where his job site is located. We know right off the back we will not be living in the most beautiful area. So we are not coming with an unrealistic idea of that. The area we chose is due to the fact that we would be able to pay cash for the condo. It would be important to keep our monthly cost low to absorb any unforeseen surprises. We are looking at condos around 94-753 Meheula Pkwy, 95-2057 Waikalani Pl, would love to have a 3 bed 2 bath but they are hard to come by so would consider a 2 bed 1 bath over 800 sq ft w/ 2 parking pads under $200K. Any thoughts on this area and our plan ?? Also these units have no heat or A/C and was told would not need it but it feels a bit scary to me not to have it ??
We have planned in our budget to basically double utilities electric $250.00,( believe the HOA fee covers water/sewer/trash) food $800.00, gas $520.00 from what we pay currently and think we will be at and income level yearly around $100K gross. ( this would allow my boyfriend 8 weeks or so a year not working)
I just got pre-approved for a mortgage for $550,000, and am beginning the house hunting search in earnest; I currently rent a one bedroom in Pearl City for $1,300/month! Searching the MLS listings, I'm finding some interesting and affordable leads (I'm mainly looking in Mililani and at some options in town) on condos. Will continue to update this thread as I move on with my journey!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
