Decline in Real Estate

[punafish]

Keith, I understand your predicament as a seller, and I sympathize since I was in your shoes just 3 months ago. I don't condone panicking, but if you're going to get all worked up, selling in this market would be my concern. The reason not to panic is that you can control only what you can control - getting your house ready for sale, etc. Beyond that your only other options are kill a chicken or pray to St. Joseph. (Some folks on this forum swear by it.) The good news is that once you sell your property on the mainland (hopefully sooner than later) you become the almighty buyer in a buyer's market and the panic factor disappears. The realtor bashers might not agree, but IMHO if you hook yourself up with a good realtor who specializes in Puna (both Johns on this forum come highly recommended) I think you've got a good shot at finding an affordable piece of paradise

Best of luck in selling your property.

Aloha

Tim

"My baby, she run away with the garbage man...please come home to me darlin', my garbage can is overflowing." Muddy Waters

[Keith]

Tim
Just looking at the all the sides. If the buyers take or counter offer we made to them then we did pretty good in the sale of one property we have on the mainland and plan on investing in Puna. Buy now and look at building in 4 years. Then move out of Dodge. I think even now Puna is under priced if you compare it with other areas that have similar geography. The infrastructure no comment yet that waits to be seen.

Keith

[Cindy B]

John, is the property tax based on the total value of the lots and house? So the taxes would be for the example home you gave - a lot in HPP for $50 K plus the 3 brm 2 bath home for $180 K - about $1863 ($8.10 (residential, improved) per $1,000)? Sorry I'm just in the dreaming stage now, but maybe after renting there a year or two if that's what it takes, I'll have my finances in order. My friend in Texas can't believe that the property taxes would be lower in Hawaii.

Thanks!
Cindy

[John S. Rabi]

Cindy, the tax actually would be even lower if it's your primary residence, it would be even lower if you apply for the homeowner exemption (the $ amount is based on age) and it would be even more lower if you filed for the Non-Speculative Dedication.

Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB,RB
http://www.JohnRabi.com
Typically Tropical Properties
75-5870 Walua Road, Suite 101
Kailua-Kona, HI 96740
(808)327-3185

[jdirgo]

Its based on the assessor's estimation of the total value of the house. Don't forget though that there are exemptions for owner-occupants and there is also a lower tax rate ($5.55 per $1000) for "homeowners". Check with the property tax people to sure you take advantage of every option.

Honestly, my property taxes for my current home (because of the exemptions, etc) is actually far less than the taxes I pay on an unimproved lot in Kapoho.

But then again, I own a lot in Kapoho, so I ain't complainin'.

John Dirgo, RA, ABR, e-PRO
Island Trust Properties, LLC
808-987-9243 cell

[Aaron S]

http://www.hawaiitribune-herald.com/arti...ocal02.txt

There was a HTH article on the glut of houses
for sale in East Hawaii. It was a very interesting read, especially if you are contemplating selling.

[mella l]

Thanks Aaron for the link, isn't it nice that links are allowed here.

Tahunatics so what's the good news? Ever heard of self fulfilling prophecy? A stock broker once told me, this was recently in the past 6 months, that hysteria of any kind drives the markets, I've read that plenty but hearing it from professionals was interesting to consider. Thanks. Curiouser and curiouser! Mella

mella l

Edited by - mella l on 08/27/2006 13:49:23

[Aaron S]

FYI, in regards to the Discovery Harbour steel framed homes.

Update on the auction sale prices

Model Home : $351,000
House #773 : $300,000
House #373 : $287,500
House #533 : $273,000
House #374 : $272,500
House #450 : $270,000

Then the next seven houses were sold for $260,000. There 3 houses left to be sold, which one of them received a bid, but it wasn't immediately accepted.Thus leaving two unsold houses.




Edited by - Aaron S on 08/27/2006 18:00:29

[John S. Rabi]

Don't forget to add the 6% "Buyers Premium" payable at closing and part of the recorded sales price.

Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB,RB
http://www.JohnRabi.com
Typically Tropical Properties
75-5870 Walua Road, Suite 101
Kailua-Kona, HI 96740
(808)327-3185

[Tahunatics]

quote:

---

Thanks Aaron for the link, isn't it nice that links are allowed here.

Tahunatics so what's the good news? Ever heard of self fulfilling prophecy? A stock broker once told me, this was recently in the past 6 months, that hysteria of any kind drives the markets, I've read that plenty but hearing it from professionals was interesting to consider. Thanks. Curiouser and curiouser! Mella

mella l

Edited by - mella l on 08/27/2006 13:49:23

---

Mella - Prophecy? Hysteria? Let's see my seat belt's going to be fastened. I can see 'the times they are a changin', because Dylan has a new album out today. Providing current news links relevant to the topic of conversation is prophecy? LOL! There's no hysteria because I already own property in Puna and I'm not selling it so I can care less what the real estate market is doing. My intent was only to inform people of the current situation so they can make an informed decision regarding any real estate transactions they might be considering. Raising interest rates 17 straight times sure hasn't helped the situation. The GOOD NEWS is this is a great market for anyone considering buying real estate.

Here's some hysterical British prophecy:
http://www.guardian.co.uk/usa/story/0,,1859157,00.html