Maui Real Estate Insider

Jan. 25, 2023

Kanani Wailea Home for Sale

 

Arguably the best location in the complex. Amazing Single level home in Kanani Wailea. This gated residential condominium complex is low density with only 38 homes. Great Ocean Views! Top of the line appliances (Wolf & Subzero) and construction, this home is a pristine lock and leave home as the landscape is cared for by the association. There are two Master Suites, yes two! Both Master suites have large walk in closets and large double vanity sinks. The third bedroom in the main living space has a bathroom directly across the hall just a couple steps away. Malaysian Merbau hardwood floors, Subzero wine fridge and central vacuum are a few of the upgrades. This homes fourth bedroom is separated from the main home with a full bathroom off the courtyard, great for guests. Kanani Wailea has a wonderful, heated, infinity edge pool, spa, work out room, and a full kitchen under the cabana. Showings will be scheduled on Tuesday and Thursday mornings from 9:30 to noon. Buyer' (s) must honor the lease through April 30th, 2023 at $4500 per month. Call your favorite REALTOR to schedule a private showing today. One of the sellers holds an inactive real estate license in the state of Texas.

List Price $2,399,900

MLS# 397907

Days on Market 7

Status ACTIVE

Type Condo

Building Kanani Wailea

Subdivision Kanani Wailea

Bedrooms 4

Bathrooms 4

Living Area 2,129

Land Area 365,904

Acres 8.40

Land Tenure

Fee Simple

Neighborhood Kanani Wailea

Click here: https://www.buyorsellmauirealestate.com/property/397907/ for more details on this home or to schedule a viewing of this property, by video, or in person.

Posted in Maui Real Estate
Jan. 16, 2023

Don’t Fall into Rental Trap in 2023

The new year has arrived. And as the end of the financial year draws close, as a renter, you are weighed with three important questions.

Do you renew your rent and once again give away a huge chunk of your paycheck to stay?

Do you look for a new place?

Or do you finally take a plunge and buy a new home?

Rent increased last year – and considering the impact of inflation, that increase shows no signs of slowing down. Realtor.com reports that nearly 75% of all renters said they were asked to pay more in the past 12 months. And this increase isn’t limited to the new renters.

Existing renters also had to answer the door to see their landlords asking for more money. Over 63.2% of the renters who have renewed their lease feel this way. But don’t be alarmed by this increase, for this rising trend in rent costs is decades old. Census data shows that the rents have been growing steadily since 1988.

However, the increase has been steep since 2011. 


Median Asking Rent Since 1988

Therefore, for those considering renewing their lease, it is important to know how much increase in rent you will likely experience this year.

Realtor.com’s Housing forecast in the graph below is a good place to understand the pace at which rent will grow this year. There is only a 6.3% growth in rental costs in 2023, which is marginally lower than 2022 and nearly half of 2021 – which had an increase of 10%. So, the good news is that the rent rate growth has slowed down, but the bad news is that there is still an increase. It means if you decide to renew your lease, there is almost a guarantee that you will end up paying more than you did last year.

And in the current financial ecosystem, you need to find better ways to secure your future. And you do this by increasing your equity – which home ownership can give to you.

Own a Home to Combat the Impact of Rising Rents

Looking at the past trends clearly shows that while the rate of rent rate growth may subside, the increase will always be there. Unfortunately, you can’t say the same for your paycheck, which is why it is better to prioritize homeownership. With home ownership, you get a place to call your own. But the financial benefit of this move matters a lot more.

Freddie Mac puts it best. “While the monthly rent payments will increase overtime, fixed rate mortgage will remain the same.” And unlike rent, mortgage payments have an end date. One day, you will pay off your home, and it will truly become your own. And even till then, the fixed-mortgage payment won’t have you run for the hills and re-strategize your finances every year just to accommodate the increased rent.

So, for this year, focus on owning a home and locking your monthly mortgage costs for the duration of your loan.

Another big benefit of this move is home equity. The future is uncertain, and you need to build more wealth. "With Home Equity, an average homeowner has gained $34,300 more equity in the last four months," - a report by Homeowner Equity Insight by CoreLogic says. With rent, you pay to dwell, but with a mortgage, you pay to own.

Bottom Line

If renewing your lease or finding another place to rent is your goal this year, be aware of the true cost that you may face. Reach out to your local real estate agent today and take the first step toward owning a home.

Posted in Maui Real Estate
Jan. 11, 2023

Southpointe at Waiakoa Condo for Sale

Spectacular remodel, arguably one of the finest in the complex. White shaker cabinets with soft close drawers, glass back splash, quartz counter tops, black stainless appliances, engineered bamboo floors, custom tiled shower walls with a niche, custom wood bedroom wall, closet organizer and a 3 unit ceiling flush mount, split AC system, a new 50 gallon water heater and R30 insulation in the attic just to name a few of the beautiful upgrades. Situated in the quiet, South West Corner of the complex with a nice view of Haleakala from the front lanai. Furniture is included with the sale. You MUST see this one to appreciate the attention to detail. Do not wait, call your favorite REALTOR today to schedule a private showing.

List Price $699,900

MLS# 397820

Days on Market 3

Status ACTIVE

Type Condo

Building Southpointe At Waiakoa

Subdivision Southpointe At Waiakoa

Bedrooms 2

Bathrooms 1.5

Living Area 750

Land Area 292,288

Acres 6.71

Land Tenure

Fee Simple

 

Neighborhood North Kihei

Click here: https://www.buyorsellmauirealestate.com/property/397820/# for more details on this home or to schedule a viewing of this property, by video, or in person.

Posted in Maui Real Estate
Jan. 10, 2023

What are the Advantages of Buying a Home Today?

The perspective around buying a home has changed. Now, people are not merely buying homes to get a personal abode; they are looking for other attractive benefits. The allure of such benefits is leading them to look past the rising mortgage rates. 

That said, buying a home is not a decision that must be taken lightly. It takes a hefty investment into your future when you buy a house, which makes it important that you look at unbiased facts moving forward, not just go by the headlines from mainstream news designed to create fear, uncertainty, and doubt among buyers. 

That brings us to today’s article. Read to know the three main reasons why if you’re on the fence about buying a home, you should take a plunge as soon as possible. 

There are more homes on sale right now

The National Association of Realtors has revealed that the number of homes available to buy has increased since the start of this year. Two reasons contributed to this:

  • Most people are listing their homes for sale because their value appreciation rate is higher than last year. 
  • Buyers are waiting for the mortgage rate increase to subside before investing. 

These two factors have caused the availability of more homes on the listing sites. And because of the mortgage rates, real estate is a buyer’s market. And with less competition around, you’re likely to find homes at a competitive price. 

Current Market Conditions Don’s Show the Real Estate Market Crash

Certain news articles have created a scenario of pseudo-fear, with many people believing that the real estate bubble burst of 2008 will repeat. But home prices will moderate depending on the local market conditions like supply and demand. That means while there is a tug of war between experts, with many calling for slight appreciation on the one hand and slight depreciation on the other, as far as the bigger picture is considered, 2023 paints a neutral price appreciation graph next year. 

So, don’t worry that after buying a home, the prices will crash like in 2008; the projects are in the neutral zones with this one. 

Mortgage Rates are Likely to Come Down Next Year

Right now, the rate on home loans is subject to the tug of war between the rising inflation and the Fed’s attempt to curb the inflation. If inflation starts to slow down, the Fed’s approach to increasing the interest rate shall decrease, which will positively impact the mortgage rates. 

Preston Caldwell, Head of US economics for Morningstar Research Services, has a very optimistic view about the inflation rate. He believes that Fed tightening will cool off since the primary drivers of inflation, cars, and energy, will cool off next year as the issues, such as supply chain snag due to the Russia-Ukraine conflict, subside. 

If that comes to pass, the Fed will slow down the interest increase, giving banks some reprieve who will – hopefully – be willing to lower the mortgage rates next year. The lower mortgage rate will likely create a seller’s market, which makes now a good time to invest in a home while the buyer’s market is still hot.

Final Word

Thinking about buying a home? Explore the benefits that come with it first. Reach out to the real estate professional near you before you decide on your next move.

Posted in Maui Real Estate
Dec. 20, 2022

Home Prices - Things to Keep in Mind as a Seller

Home Prices - Things to Keep in Mind as a Seller

2022 has been a year of disappointment. The rising inflation, coupled with the repeated shock of the Fed rate increase, has really colored the real estate sector in a bad light. And it doesn't help that the media has used words to create a FUD (Fear, Uncertainty, and Doubt) in the minds of every seller. But how much truth is there in those news prices? Here are the unbiased facts you must know about home prices as a house seller. 

Revealing the Truth about Home Prices - What is Happening Behind the Scenes?

We don't blame you for worrying after seeing headlines like "Home prices in free fall" and "Can the X real estate market come back from this massive drop?". These are designed to create a sense of urgency. But these are only headlines that don't tell the full story. 

While there is a month-over-month price drop (which is only slight), charts show a yearly increase in home value. 

The chart below is taken from S&P case-Shiller that gives you exactly what's going on in today's market. 

Yes, when you look at it from a monthly perspective, there is a slight drop, likely triggered due to the inflation causing the home mortgage rates to increase. But step back and look at the graph from an early perspective, and you will notice that the appreciation rate of house prices is growing. 

Charts show from January to mid-2020, the home value appreciation rate accumulated around 3 to 4% before increasing to 18.7% in mid-2021. And while the latest bar shows a drop in rate to 10%, a yearly climb of 10% is still here. 

What does this chart mean for your home equity?

While the current economic conditions won't allow you to bank upon the 20% appreciation rate you saw early this year, you can capitalize on the 10% overall increase in market value from last year. And there is nothing small about having a 10% from last year's 3 to 4% accumulation range. 

The big lesson to learn here is this - avoid getting swayed by the headlines. They don't consider that you'll take the long-term picture into account. The truth is you have gained a lot of equity in your home as the home price has increased significantly from last year. Moving forward, the home price moderation will vary, but you can leverage the home equity boost to move forward with the sale. 

Bottom Line

Trust that what you read in the news is sensationalized. Look beyond the headlines, and you will find that your home equity hasn't been damaged. And if you want to know how much your house is worth, the local real estate office near you is just a phone call away. 

 



Posted in Maui Real Estate
Dec. 7, 2022

With Home Ownership, You are Investing in your Future - Here's why

Home buyers are still active. But after the 2020 economic collapse and the current efforts by the Fed to curb the effects of inflation, people are wondering if they must buy homes now or wait for the economy to stabilize. 

Bob Broeksmit, President and CEO of the Mortgage Banker, put it best,

"The desire for homeownership is strong, but prospective buyers are waiting for the mortgage rates to subside and the economic picture to be more appealing."

If you're one of those home buyers, you must know about the housing market's current happenings and the benefits it will bring you in the long term. 

You can find a lot of information about the value that homeownership brings to your overall net worth. However, people's perspectives about homes have changed; they are more interested in maintaining their 401k than homeownership to build wealth. 

However, homeownership is, like it always has been, one of the essential elements of accumulating generational wealth. However, according to Bloomberg, millennials have a higher 401k than the previous generation, but they aren't better off financially. The reason for their higher 401k balance lies in the fact that most millennials are less likely to own a home. 

The stats show that millennials represent 43% of home buyers in America, a 20% decrease from Gen X and 30% less than baby boomers. They are resorting to becoming renters – which, in the long-term, is not a sustainable way to maintain their finances.

And the data clearly shows the disparity in the net financial worth between renters and homeowners. Charts show that a homeowner and a renter with the same median income will vastly differ in their net wealth. For instance, for a renter earning $110k a year, the net wealth is close to $334k, which is vastly less than a homeowner's $1.3 million net worth, whose earnings are in the same range. 

Reasons why Homeowners have a Higher Net Worth than Renters

There is a multitude of reasons why homeowners have a higher net worth as compared to renters. Three of the biggest ones are as follows:

Mortgage Payment Contributes to the Net worth

Every time you pay a mortgage, you get closer to owning your home. And once the mortgage is paid off, you have an asset similar to forced saving. And a renter has to pay the landlord every month, never owning a house. 

House value appreciation

The value of a home appreciates over the years. While the recent economic turmoil has dropped the rate of a home price increase to 10%, compared to last year's 3 to 4% increase, it is still high. 

Tax reduction

As a homeowner, you can deduct home mortgage interest, home equity loan, mortgage points, private mortgage insurance, and SALT (state and local tax) from your taxes. In the long term, these deductions compound, and you'll be able to accumulate more net worth over the years. 

Bottom Line

 

Being a renter means your expenses will go into rent, while being a homeowner will put a portion of your earnings toward the mortgage. One gets you closer to building your net worth, while the other just takes a big chunk out of your paycheck. It is pretty obvious which one will help you invest in your future. Contact your local real estate advisor right now to find the best home to buy – if you're ready to invest in yourself.

Posted in Maui Real Estate
Dec. 5, 2022

Kaanapali Royal Golf Course Condo for Sale

Excellent ocean views overlooking the 9th hole of Kaanapali Royal Golf Course. Beautifully updated 2 bedroom, 2 bath condo in one of west Maui's most popular and PET FRIENDLY complexes. The vaulted ceilings and skylights with electronic remote control shades add a feeling of space to the great room and kitchen. The guest bedroom has built in maple and bamboo cabinets and the master bath was updated with custom vanities and granite counter tops. The gorgeous kitchen with inlaid maple & tiger wood flooring, custom cabinets, granite counter tops and stainless appliances is the icing on the cake. Remote blinds on the bedroom and living room sliding doors and windows add to the elegance of this property. Onsite amenities include 4 tennis courts, 2 heated pools and hot tubs. Do not wait, call your favorite Realtor to schedule a private showing today. Easy to show on short notice.

List Price $1,695,000

MLS# 397460

Days on Market 13

Status ACTIVE

Type Condo

Building Masters

Subdivision Masters

Bedrooms 2

Bathrooms 2

Living Area 1,512

Land Area 1,650,924

Acres 37.90

Land Tenure

Fee Simple

Neighborhood Kaan Hillside

Click here: https://www.buyorsellmauirealestate.com/property/397460/#  for more details on this home or to schedule a viewing of this property, by video, or in person.

Posted in Maui Real Estate
Nov. 25, 2022

Lahaina Property for Sale

This gated community across the street from Ukumehame Beach Park offers stunning views and plenty of space whether you plan to build a home, farm your land or both! Lot 5 has approximately 3.77 acres of land and is in a wonderful location at the end of a cul-de-sac. This lot not only has amazing ocean views, but incredible views of the West Maui mountains as well. The location of Ukumehame Subdivision is prime, with just under a 20 minute drive to downtown Lahaina, about a 25 minute drive to Kahului town, and 20 minutes from Kihei/Wailea town. If you need some quick items, Olowalu town is a 5 minute drive away and has a general store, a farmers market, and Leoda's Kitchen & Pie Shop. This neighborhood has underground utilities with electric, telephone and TV cable. Ukumehame Subdivision does not allow for subdividing of the lots and in turn will keep this neighborhood low density. Call your favorite Realtor today to show!

List Price $1,200,000

Days on Market 94

MLS# 396776

Status ACTIVE

Type Land

Land Area 164,221

Acres 3.77

Land Tenure

Fee Simple

Neighborhood Lahaina

Click here: https://www.buyorsellmauirealestate.com/property/396776/ for more details on this home or to schedule a viewing of this property, by video, or in person.

 

Posted in Kihei
Oct. 18, 2022

Kihei Home for Sale 2733 Puu Hoolai

As you pull up to this home you notice the spectacular curb appeal. Beautiful faux stone pillars accent the unique railing on the front lanai, stacked stone wall on the lower level and immaculate yard. Inside you will discover the open floor plan with custom cabinets, granite counter tops, stainless appliances, including a built in double oven and microwave, gas cooktop, wine fridge, a panned ceiling over the dining area and living room, hardwood floors, a bonus room just off the living area as well as a large lanai with stairs down to the huge back yard. The main level master bedroom has an in suite bath and split system AC. Downstairs bedrooms include built in cabinets and can be an office or bedroom. This unique floor plan offers a caretakers quarters behind the garage. To top it off there are 40 fully owned Solar Panels w/ backup battery and fed by a 17kw propane generator. Do not miss this one, the property square footage allows for 2 accessory dwellings per the new county rules. The back yard is terraced with many fruit trees and the possibility to have an awesome garden. Call your favorite REALTOR to schedule a private showing today.

List Price $1,999,900

Days on Market 54

MLS# 396795

Status PENDING

Type Single Family Residential

Bedrooms 4

Bathrooms 3.5

Living Area 2,788

Acres 0.19920000000000002

Land Tenure

Fee Simple

Neighborhood Kihei

Click here: https://www.buyorsellmauirealestate.com/property/396795/# for more details on this home or to schedule a viewing of this property, by video, or in person.

Posted in Kihei
Oct. 13, 2022

Kihei Kai Nani Condo For Sale - Unit 101

Searching for a spectacular vacation rental in south Maui? You just found it, one of the best rentals in the complex. Very clean and well maintained. Nicely updated with tile through out. Beautiful Ocean Views with very close proximity to Kamaole 2 beach and walking distance to dozens of South Maui's finest eateries. This unit can sleep 6 with 1 king and 2 queen size beds. The complex has BBQ grills, and a large pavilion for entertainment. The 30 x 60 pool is one of the largest condominium pool in South Maui. The complex is zoned Hotel/Resort. Great, high grossing, rental history. Do not miss this one, call your favorite REALTOR to schedule a private showing today.

List Price $799,900

MLS# 396988

Days on Market 21

Status ACTIVE

Type Condo

Building Kihei Kai Nani

Subdivision Kihei Kai Nani

Bedrooms 1

Bathrooms 1

Living Area 621

Land Area 288,803

Acres 6.63

Land Tenure

Fee Simple

Neighborhood Kamaole Ii

Click here: https://www.buyorsellmauirealestate.com/property/396988/# for more details on this condo or to schedule a viewing of this property, by video, or in person.

Posted in Maui Real Estate