After six(6) years in Maui Hawaii doing Real Estate, I finally terminated or cancelled my license, December 31, 2012. The reason, there are no opportunities like there were before. Right now, the competition between Realtors is more furious and competitive. Furious in terms of interaction as professionals. The reactions and behaviour in transactions are more and more cut and dry. Everyone is looking out for the "buck" and how much are you winning or loosing in terms of commissions and money. Competitive, the more your advertise, the better your chances are of been contacted by a prospective buyer. The problem is that advertising is very expensive. Only a few of the Realtors are able to do this. You can see them in one or two of the magazines left dealing strictly with Real Estate. The two major companies are: REMAX and PRUDENTIAL. Others are smaller privately own companies that have been around for twenty(20) years or more and they advertise fiercely.
In Maui Hawaii, Time Share is still a thriving market. You can check by yourself by visiting Starwood Hotels such as: the Westin Kaanapali Resort, the Westin Villas and the Sheraton Maui. Another is the Marriott Time Share company. The cost is astronomical but the average buyer has no clue of the financial consequences. What they want is a great vacation and the option of trading with other properties around the world. Construction is pretty much at a stand-still, although some residential developments are commencing in different sections of Maui.
Although nationally homes prices are on an upturn, here in Maui, the single median family home ranges between $600,000 to a $1,000,000 or more. But watch-out for what you get for the buck, specially if you are from the mainland are accustomed to a manicured development where all residences looking about the same. Here in Maui, the dichotomy still exists. A nice house, where behind there is a shack or the next block or two you can find a condo development that is affordable housing.
Some factors in favor of the buyer are low interest rates and an income level per capita that beats the average per capita income of the average Mauian laborer. Another factor is that some houses with mortgages here in Maui are still in stages of mortgage default and are upcoming listings. So be ready to make a cash offer, if you have it.
In conclusion, the Maui market is still a "buyers market", money talks and qualification by the bank is king. Good credit scores are a plus. The down payment specially if it is 20,30,40 or 50% is a qualifier. Be ready to supply evidence to the bank that your income and assets are projectively prosperous for the term of the mortgage maturity.
A good investment is buying a fractional ownership, specially if it a high end residential property in a reputable neighborhood like Kapalua, and Kaanapali. Equity is good.
Whether you are a first time buyer in paradise, or looking for a second pad I recommend that the first person you should consult is your accountant, then your banker and then the Realtor, in that order. Always ask the Realtor, to see The Public Record Data. This information will give you the factual prices of the property from day one to the present. It will give you a clue of its appreciation and how old it is, plus many other tips.
And finally, my personal opinion dont buy any properties if you can not afford it. If you are in the market for the long term, do it. Good luck.
ANDRE ADOLOFFO(BA)
andreadoloffo3@gmail.com
www.saaaproductions.org
www.andreadoloffostudio313.com
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