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You need to face the facts. Your personal residence is not an investment. ala Robert Kiyosaki-Hawaiis own Japaneese financial expert.
If you are looking to renting to bail you out of a bad buy.......................good fr. e a .ki.ng LUCK!
A property has to go up 20-25% just to get out even. Buy @ 250, you need to sell @ 300 to come out even. 18k in commissioon, 10k in selling costs, 10 k in mort costs to make up, taxes of 10k etc.
A long term horizon is needed to make $$$s in HI condos. not 3-5 years.
Please show us some examples of Oahu properties that have tripled in value in 3 years.
Well - I don't get the appeal of Ilikai but unit 2309 sold for $61,000 in 2000, $212K in 2006, $561K in 2009, $1.1M in 2014 and listed for $1.350M now.
Well - I don't get the appeal of Ilikai but unit 2309 sold for $61,000 in 2000, $212K in 2006, $561K in 2009, $1.1M in 2014 and listed for $1.350M now.
this kant be right. i surely would have bought 1 at $61k for a 2 bedder fee simple unit in 2000.
A property has to go up 20-25% just to get out even. Buy @ 250, you need to sell @ 300 to come out even. 18k in commissioon, 10k in selling costs, 10 k in mort costs to make up, taxes of 10k etc.
A long term horizon is needed to make $$$s in HI condos. not 3-5 years.
What about the tax benefits of ownership? Our property taxes are evened out by getting it back every year on our tax refund
Well - I don't get the appeal of Ilikai but unit 2309 sold for $61,000 in 2000, $212K in 2006, $561K in 2009, $1.1M in 2014 and listed for $1.350M now.
Now I know why many here on this forum think properties just explode in value here on Oahu - lots of incorrect information being disseminated.
The Ilikai went through two separate fee conversions. The $212K figure you stated is actually $212,429,002. Yes, that is 212 MILLION. Not $212K thousand like you are erroneously stating. Same goes for your "$61K" figure. It is actually $61,085,953 (yes, 61 million). Those numbers have absolutely no relation to the value or acquisition cost of the specified individual condo unit - it is a bulk fee purchase figure based on the fee acquisition of hundreds of Ilikai units.
It's bizarre that anyone thinks it's even remotely possible for a property (which did not undergo any owner cash injections/improvements) to be worth $61,000 in 2000 and then be worth $1,350,000 16 years later. An increase of over 22-fold (2,200%+) over 16 years. That's absurd.
The property you are highlighting does, however, show an impressive doubling of value between 2009 and 2014 but this is doubling (not tripling) and over a 5 year period (not under 3). The higher valuation is also the result of a massive cash injection by the borrower to renovate the condo unit. If the owner spent $100K on renovations and it increased in value by $500K over 5 years, the appreciation over 5 years is $400K - not $500K. You cannot include the value of improvements made in appreciation figures.
Unless honobob can prove me wrong with hard sales data, there is no property on Oahu in any location that has (all on its own without cash injections from the owner) appreciated 3-fold in under 3 years.
What about the tax benefits of ownership? Our property taxes are evened out by getting it back every year on our tax refund
You get a tax deduction, not a credit for expenses such as property tax and mortgage interest. Generally, you're still better off than someone renting because you can deduct these expenses, but that distinction should be made clear
Your tax benefit stated in simplest terms is equal to your property tax x marginal tax rate. So if you paid $1000 in property tax, and your highest tax rate is at 25% federal 5% state (gross income maybe in 60k range, idk), your tax benefit is $250 federal, $50 state.
4631 Kahala sold for $5.2M in late 2013 and sold for $12.2M in early 2015
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