Hawaii Real Estate News

Unless you have ever been in the Marine Corps or have had a husband or relative in the Service, you may not be familiar with this relatively unknown area on the island of Oahu. Of course you have heard of Waikiki on the same island, which is among Hawaii’s most popular vacations spots, but Kaneohe is another story altogether. Although it is home to one of the 12 remaining Marine Corps bases in the United States, many people aren’t familiar with the CDP area, Kaneohe, on the windward side of the island.

A Little Bit of History

At one time Kaneohe was largely agricultural but at the moment the only crop of any import is bananas. The state’s libraries are full of legends about the ancient Polynesian peoples who once populated the area, but it is known that in the mid 1800’s King Kamehameha I graciously gave the land back to its local people prior to unifying all of the islands into one sovereign land. Early the next century, sugar cane became a huge industry in Kaneohe. This brought a diversity of peoples from near and far who had great expectations of a better life brought about by the multitude of sugar plantations, but then WWII erupted and the rest is history. Kaneohe was the first area of this island to be bombed as the Japanese made an effort to land here but were foiled by the in progress bombing of Nagasaki in Japan which was the beginning of the end of the war. 

The Economy in Kaneohe

After the downfall of the sugar industry and having recovered from the damages wrought by the war, Kaneohe quickly began to prosper once again. Although bananas are the main crop in this lush, green area of the island that receives plenty of rainfall, rice is also a major player in the agricultural arena. However, tourism is Kaneohe’s leading industry as the coastline is one of the most beautiful to be found in Hawaii. Also, families and friends come to visit Marines stationed here on the base which just adds to the tourists who come to drink in the natural wonders all around them. With Kaneohe Bay being the largest of the sheltered bodies of water in Hawaii, it sports a public pier that brings in thousands of nautical visitors annually. The mean income per family is approximately $66k while the per capita income is reported as being $39k. This is extremely high in comparison with the rest of Hawaii, which just goes to show that those who live in Kaneohe truly do live the good life.

Once you have had a chance to visit this lush and beautiful tropical paradise you will be sold without ever having seen the first property listed for sale. Whether you were once stationed here as a Marine or are visiting for the first time, the land will speak for itself. From condos to single family residences, prices are more affordable than those in Kahala for example, and well within the means of anyone looking for a Kaneohe home this side of heaven. 

When travelling to Hawaii the first place that usually comes to mind would be the Waikiki area of Honolulu on the island of Oahu. However, just across the island is an even lovelier area, Kaneohe, that is not only home to the Kaneohe Marine Base but holds some of the most affordable vacation rentals in all of the Hawaiian Islands. If you are envisioning a vacation in a lush tropical paradise, Kaneohe is just the place to explore.

Must See While in Kaneohe

Since many visitors to Hawaii are unfamiliar with the Kaneohe area within the county of Honolulu, there are a number of places which should make the ‘must see’ list when touring Oahu. Among those places are the Hoomaluhia Botanical Garden, the Byodo-In Temple and of course Senator Fong’s Plantation and Gardens. The Hoomaluhia Botanical Garden is on 400 lush acres of some of the most exotic landscapes to be found anywhere in the world. Not only can you view rare and endangered Hawaiian flora but you can hike the trails, camp and join in a number of educational programs.

Then there is the Byodo-In Temple built in 1968 in commemoration of the centennial celebration of the very first immigrants from Japan to Hawaii. It is scaled to replicate the Uji temple in Japan that is dated back almost 1,000 years. And of course, who could resist a guided tour of Senator Fong’s Plantation and Gardens. With daily lei making classes and an up close view of the Exotic Fruit and Nut Garden with over 70 different edible plants from around the world, this is a tour you won’t want to miss. Make sure to call for times as all tours of the grounds are guided.

Reasonable Kaneohe Vacation Rental Prices

One of the aspects of staying in Kaneohe which visitors to Oahu especially like is the fact that vacation rentals are actually quite reasonably priced. For example, a 3/1 vacation apartment can be found for as little as $195 per night and the unit would sleep 6 people comfortably. Some of these Kaneohe vacation rentals have pools and other amenities while others are simply guest houses on the grounds of larger homes which may also be rented at a higher price. 

Vacation rental houses and apartments usually include linens, cookware, microwaves, coffee makers, toasters, dishes and tableware, bakeware, cable TV and some even include internet access. Depending on the location, as some are right on the water, you might even find that some rentals come with boogie boards, beach chairs, coolers and kayaks. Check to see if there is a booking reservation fee or cleaning fee when making the reservation but do remember to book well in advance so that you can get the size and location for the vacation rental you are looking for.

Whether you are simply spending a week or two to visit a family member stationed at the Base or would like to rent an affordable Kaneohe condo as a home base while touring nearby locations or other islands, Kaneohe has what you are looking for. Prices are reasonable, the scenery is truly lovely, there are plenty of places to explore and you won’t lack for anything to keep you entertained.

Anyone who remembers that syndicated show of the 80’s and 90’s entitled ‘Lifestyles of the Rich and Famous’ can certainly identify with it when visiting Kahala. With some of the most expensive real estate in Hawaii located in Kahala, you are sure to feel a bit awed at the luxurious homes in this subdivision within the larger Honolulu neighborhood of Diamond Head.

Demographics of Kahala

There are actually two very diverse age groups living in Kahala. Many of the older homes have been inhabited by the same families for half a century while the newer mansions are owned and lived in by the younger business moguls and perhaps a star or two, but we’ll never tell! Whether the inhabitants come from the older ‘aristocracy’ or are the up-and-coming 21^st century elite, there is one thing they all have in common and that is money – and plenty of it.

The Cost of Kahala Real Estate

In the year 2006, the average asking price for a home in Kahala was approximately $3 million while older homes that needed major renovations were selling for at least $1.5 million. That fact alone should tell you just how expensive real property is in Kahala. Even when the mortgage crisis of 2008 and 2009 was in full bloom, properties on Kahala were not devalued. There was no reason to do so as there were plenty of people who had money to pay cash for their slice of this tropical heaven.

A Glimpse at Today’s MLS Listings

If you are looking for an ocean front home then you can expect to pay upwards of $10 million while a 1/1 condo apartment which may or may not have an ocean ‘view’ would be listed for no less than $1,250,000. In fact, many beach front homes list for more than $15 million and that is a home with only four bedrooms and perhaps 4.5 baths. This would be a luxurious and certainly spacious home but by no means what we would call a mansion. Still, it isn’t the actual home that demands the asking price it is the property that comes at such a cost. Even a vacant lot, if one could be found, would cost more than a million dollars. Anyone looking to live in the lap of luxury would not find a more ideal setting than Kahala in Honolulu County.

In real estate it’s all about location and if you can afford the asking prices then Kahala is certainly the place to live. Whether you are looking for an older home to renovate or a newer spacious home with all the latest amenities, you can easily find what you are looking for in this prestigious area of Honolulu. Even homes which are not on the ocean front are still within easy access to some of the world’s loveliest and secluded public beaches and you are never far from shopping, theatre, restaurants and entertainment of all sorts. You may have missed out on the television series but you can certainly enjoy Kahala’s lifestyles of the rich and famous.

Buying a home on a tropical island paradise can be a bit more expensive than many of us can afford. For this reason we look for homes that have been foreclosed on in order to get a good deal that might be a once in a lifetime opportunity. Keep in mind that almost anywhere in the Hawaiian Islands is prime real estate which means that the asking price is going to be higher than it would in many mainland locations, so finding a foreclosure house in Kaneohe might just be a dream come true.

The Problem with Auctions

Before looking at foreclosure properties listed to be auctioned, it is wise to understand that it is not always as easy as it seems. There are a number of things you will need to know before you should participate in an auction and one of those things is how to line up financing. Unless you have sufficient money to pay cash for the property you intend to bid on, you will need to have an accurate value of the home. Pre-auction financing is a bit trickier than financing on a home which has been inspected by an appraiser approved by the lender.

Foreclosure Homes Listed with Realtors

One aspect of buying a foreclosure property in Kaneohe or Kaneohe Bay that is listed with a realtor which is confusing to many people is that it isn’t always necessary to deal directly with the Seller’s Broker. If you have a real estate agent you are comfortable working with then that realtor can represent you as the Buyer’s Broker. Usually the commission is paid by the seller and if there are two brokerages involved in a transaction they split the commission based on a broker agreement between the two brokerages. This means that using your own agent will not cost you any more money but you have the security of knowing you are working with a broker who has a fiduciary duty to represent you in the transaction. This means, in laymen’s terms, your agent is working on your behalf and for your interests only.

The Advantages of Buying Bank Owned Foreclosures

As mentioned above, buying properties which are being auctioned can be a real ordeal if you have never purchased a property at auction before. When buying a bank owned foreclosure you can easily have your Broker submit a letter of intent or a purchase agreement for the bank to approve or counter with another offer. Sometimes prices are negotiable as the bank is mainly looking to reclaim their investment with perhaps a small profit margin. Your agent will know what the comparables are in the neighborhood of Kaneohe and would be able to help you decide on the price you would like to offer. There are benefits to having a Broker represent you as the Buyer’s agent.

One of the real perks to finding a foreclosure property in Kaneohe is that these homes are already much more reasonable than those on the Leeward side of Oahu. Buying them under foreclosure can even serve to lower an already reasonable price even more simply because the lender is primarily interested in reclaiming their investment. Where properties (even foreclosures!) in Waikiki and Kahala may be more than you can afford, foreclosures in Kaneohe can make your island paradise dreams come true.

Even though Kahala is known for its luxurious mansions on some of the state’s most expensive real estate, there really is plenty to do in and near Kahala. Whether you are planning a stay at the prestigious Kahala Resort and Hotel or are just visiting from the nearby neighborhoods of Kaimuki or Waialae, keep in mind that there is more to this elite neighborhood than multi-million dollar homes.

Public Access to Secluded Beaches

One of the perks of living in or visiting an elite neighborhood such as Kahala is that the beaches are far less crowded than other public beaches. Of course the homes with beachfront property are restricted from the public, but there are still plenty of pristine white beaches for the enjoyment of visitors and inland dwellers. In fact, the beaches in Kahala are the perfect place for quiet wedding vows or renewal ceremonies simply because there aren’t likely to be many onlookers.

Shopping in Kahala

What would a visit to Kahala be without visiting one of Hawaii’s favorite malls? The Kahala Mall is quite close to Diamond Head and only minutes from Waikiki. There is a Macy’s, Barnes & Noble, a huge Whole Foods Market and Consolidated’s Kahala’s Theater. There are literally dozens of specialty shops for that last minute souvenir and if you can’t find what you are looking for on the first level try the second level. Then there are the unique rooftop shops which few malls can boast of!

Welcome to Shangri La

Most museums or arts & cultural centers we would like to visit are anything exciting to others in our group. However, Shangri La, built per the specifications of Doris Duke, is considered to be an architectural marvel that blends elements of Hawaiian and Islamic décor. It is said to hold one of the largest collections of Islamic art in the Western World and it is open to the public. Kids especially like viewing the sandy beaches and 75ft saltwater pool while adults are most fond of the amazing arts and live performances within.

Free Dolphin Show for Kids of All Ages

You will not need to stay at the Kahala Hotel & Resort to enjoy the daily free dolphin show at feeding time. Kids of all ages love to watch the playful dolphins living in the lagoon perform their tricks at feeding time. The dolphins are fed three times daily at 11, 2 and 4. Before or after watching these playful creatures take the time to walk around the grounds awhile and enjoy the tropical flower gardens the waterfalls and of course the lagoon with the dolphins.

Kahala may be the land of the rich and famous but it is also a place to visit some attractions you may not find anywhere else in the Islands. From luxurious mansions to secluded beaches, something definitely not common in paradise, Kahala has it all. You may need to be a millionaire to live here but you can certainly visit and enjoy some amazing sights!

It is well known that there probably isn’t a piece of real estate in the Kahala area of Diamond Head that sells for less than $1,000,000. Even the oldest buildings are priced well above that, but there are some amazing investment properties even at that price. Coveted beachfront properties will of course sell for considerably higher prices, but even so, once the older homes are renovated they will make a handsome sum for the investor who had the foresight to snatch up the property while it was available.

Tear-Down Houses Quite Popular

Many of the older homes in Kahala would actually cost more to restore to their previous states of luxury so real estate investors come in and buy up these homes to tear them down. The property alone is often worth more than the asking price of the home which is why they sell quite quickly and easily. Where the older home once stood a newer, more spacious mansion is built which attracts the younger elite. Kahala has a mix of older residents who have lived on the island for decades and then there is a younger crowd of budding millionaires who have come to Kahala for the luxury it provides.

Renovating Older Homes

Some of the homes in Kahala are actually in quite good repair. There is no need to tear them down so investors simply hire restoration contractors to bring them back to their previous state of elegance. It is not unusual for these restored homes to sell for double the price the investor snatched up the property for and these are the homes which seem to be most in demand. The older the home, the more character it is likely to have and there is nothing quite like an authentic Hawaiian mansion built in the mid part of the last century. Newer properties may have more amenities, but older homes have more class.

The Law of Supply and Demand

Keep in mind that Kahala properties are coveted by those who can afford a 7 or 8 figure price tag. Also, consider the fact that Kahala is a small area of Diamond Head that isn’t going to grow. There are only so many acres available to be built on and as more and more young business moguls and celebrities buy up existing properties there will be fewer left to be developed, torn-down or renovated. Because of the basic law of supply and demand, the high demand for limited properties can only serve to keep the prices on an upward swing.

Perhaps it is the relative flatness unlike other areas of the island that makes Kahala as popular as it is and then it could be its proximity to Waikiki. In fact, it is close enough to this popular tourist spot to travel within minutes, but far enough to enjoy the relative seclusion of these high end homes. In any case, Kahala investment properties are among some of the soundest real estate investments in the nation and any investor would be wise to consider Kahala as his or her next business venture.

Although Hawaii Kai is predominantly a residential neighborhood in the eastern end of Honolulu, there is plenty to do and see any time of the year. From the Sunset Serenade Summer Concert Series at the Hawaii Kai Towne Center to a visit to the legendary Makapu’u Lighthouse, Hawaii Kai has something for everyone.

Shopping, Events and Programs at the Hawaii Kai Towne Center

Whether you are looking for beachwear, furniture or fresh cut flowers, shopping at the Hawaii Kai Towne Center is a must. While you are there catch some exciting events such as the East End Hot Rod Car Show in July or September or the Summer Serenade Concert Series between June and August. When it’s fresh fruits and veggies that capture your interest, step out back in the area facing the marina to the Farmer’s Market that runs Mondays, Wednesdays and Saturdays.

 Perhaps you want to shape up a bit with Luk Tung Kuen on Wednesday mornings with the free movement dance class for improved circulation and flexibility. Don’t forget the amazing shopping at the Towne Center with stores such as Costco, the City Mill Home Improvement Center or for extra value in clothing you could stop by Ross Dress for Less.

Places of Interest on Hawaii Kai

If you are a history buff you might like to visit Makapu’u Point State Wayside where there are some old bunkers dating back to WWII which are quite near the summit. You can also visit the Makapu’u Lighthouse that was constructed to keep ships from running aground as so many did prior to its being erected in 1909. Although the lighthouse itself has restricted access it is probably safe however since a series of vandalisms in the 1980’s there has been limited access to the public.

Then there are places quite near Hawaii Kai that appeal to the outdoorsman or nature enthusiast such as Koko Crater which is a crater from an old volcano and is now a lovely botanical garden. Of course, what is a trip to Hawaii without spending time on the pristine white beaches or body surfing the waves? The one thing you should know when deciding to stay in one of the fabulous vacation condos or in a residential vacation property is that Hawaii Kai is actually a neighborhood on the eastern perimeter of Honolulu so there is always something to see or do as Honolulu is about the 10^th largest city in the United States.

Although there are no highly advertised hotels and/or motels directly in the Hawaii Kai neighborhood, there are vacation rentals which can be rented weekly or seasonally when visiting this off the beaten track section of Honolulu. Some people prefer to stay away from the major hubs of activity simply for a taste of what life is really like on an island paradise. While it is a relatively new area of the Oahu Island upon which Honolulu is located, it is not one of the major areas where the larger hotels have taken over. For a true glimpse of life in Hawaii, Hawaii Kai is a perfect choice.

Although there probably isn’t a person alive who doesn’t immediately associate Honolulu with Hawaii when the nation’s 50^th state is mentioned, very few people may be familiar with Hawaii Kai, the largest residential neighborhood in the eastern area of the city. The Hawaii Kai community is residential for the most part with 619 owner occupied single family residences, 282 single family rental housing units and a number of larger condominiums and apartment complexes as of the June 2011 statistics released by the Chamber of Commerce.

Living in Near Perfect Climate

Whenever we think of Hawaii, we envision sandy beaches and tourists sipping cool tropical drinks while enjoying luaus and watching Hawaiian fire dancers. But there is a whole other side to the Hawaiian Islands in which families live, work and go to school just as we do everywhere else in the country. The only difference is that the residents of Hawaii Kai are fortunate enough to live in a neighborhood that has near perfect climate and some of the loveliest views in the world.

Relocating to Hawaii Kai

If you are relocating to Hawaii Kai or the greater metropolitan area of Hawaii, the first thing you will want to do is find a residence. As mentioned, there are 282 SFR rental units in this neighborhood which also boasts more than 237 buildings with twenty or more units. These larger complexes are mostly condominiums, some of which have seasonal or yearly rentals available.

A Relatively Young Neighborhood

One of the things you will notice about Hawaii Kai is that it is a relatively young neighborhood in the scheme of things. It is noted that there are no existing residences that were built prior to 1940, with most residential buildings being erected in the 1970’s and 1980’s. According to the latest statistics published by the Hawaii Kai Chamber of Commerce, the ages of residential buildings are broken down as follows:

• Before 1940 – 0
• 1940’s – 6                  
• 1950’s – 12
• 1960’s – 61
• 1970’s – 726
• 1980’s – 371
• 1990’s to present – 88

By these figures, it is apparent that the majority of buildings are between 30 and 40 years old but what isn’t at first obvious is that the newer buildings are mostly condos and larger apartment complexes.

A Glimpse of the People in Hawaii Kai

Another surprising fact about living in Hawaii Kai is that the majority of households are married couples without children of which there are 514. The second demographic group would be couples with children totaling 233 families. There are only 50 single parent households, 16 of which have a male head of household while 34 of those have a female head of household. Then there are 55 non family households.

Any family that is looking for rental properties in Honolulu would be well served to consider Hawaii Kai since this is a neighborhood largely comprised of couples and families. While there are some exciting things to do and see in this eastern part of the greater metropolitan city of Honolulu, you can feel secure in knowing that it is a largely residential area with the more ‘touristy’ locations elsewhere on the island. 

When looking for upscale residential property on the island of Oahu, Hawaii Kai is the place to start. Near enough to the center of Honolulu, yet far enough away for your right to quiet enjoyment, this community on the southeastern edge of Honolulu city and county is as close to perfect as possible. Some of the ocean front properties are a bit pricey but you get what you pay for. If it is perfection you are looking for – this is it!

Hawaii Kai Subdivided into 23 Unique Neighborhoods

While some of the more reasonably priced neighborhoods are a bit inland, there are high end homes facing the marina which are of course among the costliest you will find on the island. Hawaii Kai itself, for the most part, is residential and the properties do not come cheap, even those which are on the low end of the market for this area. Location is everything when it comes to real estate and any property on water is of course going to have a higher asking price. Among the 23 unique neighborhoods in Hawaii Kai to choose from are Anchorage, Hahaione-Lower, Hahaione-Upper, Hawaii Loa Ridge, Kalama Valley, Kamehame 

Ridge, Kamilo Nui, Kamiloiki, Kealaula Kai, Koko Head Terrace Koko Kai, Koko Villas, Laulima, Luna Kai, Mariners Cove, Mariners Ridge, Mariners Valley, Napali Haweo, Portlock, Queens Gate, Spinnaker Isle, Triangle and West Marina.

High End Homes in Spinnaker Island

Spinnaker Island is undoubtedly the premier location in all of Hawaii Kai as each and every home is located on the water. In fact, they all back directly onto the Hawaii Kai marina and each home has direct access to a dock. This is not a neighborhood for the average middle class family as prices tend to range from $1,000,000 to $2,000,000 plus, but again, location is everything. In fact, there probably isn’t a family in the neighborhood that doesn’t own a boat or some other high tech water toy! If you love the water, are looking for an upscale neighborhood and can afford the prices, Spinnaker Island is a definite possibility. Keep in mind that homes here are not often listed on the MLS so that if you come across an occasional listing you might want to get the jump on other buyers. These listings don’t last long. 

Highly Popular Mariners Cove

If you are searching for property on the marina yet a bit more affordable than those on Spinnaker Island, Mariners Cove is just what you are looking for. A good portion of the 416 homes in this neighborhood are quite new, many of which have been built within the past ten to fifteen years. Low end homes are available for under $800,000 while there are some listed at over $1.2 million. Houses tend to move a bit quicker in this area, which is evident by the fact that an amazing 24 homes were sold in 2007 alone and even during the height of the mortgage crisis in 2009 another 16 were sold! That alone should indicate just how desirable this property is. 

Make no mistake about it – property anywhere in or near Honolulu is going to be costly as this is one of the largest metropolitan areas in the United States rounding off at number 10 or 11. However, with the diminishing availability of waterfront property and the fact that Hawaii Kai is located in a state that is known worldwide as a tropical paradise, prices are actually quite reasonable.

Who wouldn’t want to live in a neighborhood that was once the playground of royalty? That’s just what the beaches of Waikiki are and although this neighborhood in the city of Honolulu is still one of the most favored vacations spots of anywhere on earth, it is also home to thousands who live in Waikiki condos. The prices of condominiums in Waikiki are based on several factors among which would be the proximity to the beaches, the age and condition of the condo and of course the amenities provided as part of the condo package. 

Near Perfect Temperatures Year Round

Have you ever dreamed of living somewhere that never gets too hot or too cold and that the average highs and lows are the same year round? That’s what most people consider to be an island paradise and that place is Waikiki. With cool ocean breezes there is rarely a need to run the air in the summer and you will certainly never need heat in the winter.

The average high temperatures are usually in the mid 80’s and the average lows never fall below 64 degrees Fahrenheit. Real estate in Waikiki may be a bit higher than in other coastal areas in the United States, but when you consider the advantages of living in a near perfect climate where you rarely pay for climate control, that cost is minimal in comparison.

Waikiki Condos as Investment Properties

Even if you aren’t yet in a position to leave your job and uproot your family to this island paradise, buying a condo in Waikiki can be a fabulous investment for your future. Perhaps you are looking for a vacation hideaway to stay in once or twice throughout the year or simply want to rent it out to cover the mortgage you would most often have on the property.

In either case, one thing is for certain. Real estate in Waikiki will surely not depreciate as in so many areas of the country. Not only is coastal property becoming harder to find but the prices are going up accordingly. You have probably heard the old real estate mantra, “Location, location, location” and there is no finer location than the pristine beaches of Waikiki.

Checklist for Condo Hunting in Waikiki

Although you may find a beachfront condo in Waikiki at a price you can afford, there are certain condo association rules which may prohibit you from purchasing that specific unit. If you have younger children or pets, some condos may have restrictions in this regard. Some communities are for ‘seniors’ 55 and older while some may not permit pets. Others may have bylaws prohibiting renting your condo while some may allow rentals with the approval of the condo association.

You will also want to discuss with your agent any condo fees, maintenance fees and any other fees and/or taxes which may not be apparent when looking at the MLS or an online advertisement. Some condominiums require you carry a certain amount of condo insurance in the event of any natural or manmade disasters. After all, the value of the entire complex is directly related to the value of each and every unit.

Even so, buying a condo in Waikiki is much like making an offer on a condo anywhere else in the United States, except that it is located on one of the nation’s prime pieces of real estate. If you can find a condo here that fits your budget and is not restrictive in its bylaws, then you have found your little piece of paradise.