Lanikai is one of the major suburbs of the Kailua region and is primarily a residential area. Most of the real estate is concentrated in one region, along the Lanikai beach, at a considerable elevation with almost every house having a view of the ocean. Broadly, real estate in Lanikai is quite expensive and is well above the national average due to the quality of life and the high standards of living. This can be attributed to the wealthy residents and their affluent lifestyles supported by a high average income. Most of the residents are either long term tourists or wealthy retirees and nearly 30% of the houses available are rentals.
The year so far has been quite a roller coaster ride for the real estate market in Lanikai because of the economic uncertainty. The number of properties on sale had risen to its peak of 6% from almost nothing in April and it has fallen down again. The rise in vacant real estate set off a decrease in the prices and this led to a lot of buying. Currently, the price of an average home in Lanikai is a little over $3.1million, as opposed to the national average of $822,000. The real estate available in Lanikai varies from single family homes to condominiums to ocean front mansions.
The average price per square feet of real estate has gone up in the recent years from a little under $800 to $1,050 now. This is a pretty significant rise and was fueled by the fact that real estate in Lanikai turned to be a better investment option than was thought and the liberal mortgages available in the region.
At the moment, the price of houses seems to be on the decreasing trend, which should fuel more investment. Rental prices on the other hand have remained fairly steady thereby maintaining the healthy tourism industry that thrives in the region.
Mortgage and Buying Facilities
There are several real estate agents and brokers to facilitate rentals, purchases and investments. However, the high price of real estate in the region increases the commissions of these agents and it is best to enquire locally before proceeding with an agent. Moreover, if possible, it is a good idea to contact the seller directly through a mutual friend or the like. Negotiating with them always helps and doing an online search is always the first step.
Financial institutions and banks offer mortgages for reasonable rates in the Lanikai area for easy investment. The number of foreclosures has been almost zero is the past 6 months and due to this interest rates have fallen considerably. Interest rates for 10 year loans start off at 3% and can go as high as 5% for 45 year periods and more. It is advisable to look for mortgage options from every possible source before investing and choosing a repayment option that is convenient in all aspects.
Lifestyle and Quality of Life
The residential area of Lanikai features a high quality of life and almost all essential facilities are available at good standards. With the exception of higher education, everything else is within the community while the nearest universities are in Honolulu and other places in the state. The community is affluent in nature but there is a strong sense of community living with a large number of activity groups in the area. New residents irrespective of their hobbies can fit in easily and live comfortably.