Living at Puamana in Lahaina

Puamana Club House

Puamana Club House

PUAMANA

Close to Lahaina downtown, famous restaurants, art galleries and stores. Check.

In walking distance to the ocean. Check.

Famous surf spot. Check.

Community that offers pools and tennis courts. Check.

Great club house, perfect for  parties and weddings. Check.

Low density community, spread over 30 acres, park setting, with many trees and plants. Check.

Gated community. Check.

Covered parking. Check.

Unit #23-4 has a good location within the community, close to the “big pool” and the tennis courts.  Great layout with a 1bd/2ba + loft, offering approx. $992 sf of living space. Listed at $640,000, this your blank canvas, ready to be decorated and transformed into your home!

Puamana Club House

Puamana Club House

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Maui Sands

Maui Sands is located oceanfront in Honokowai, about 1 mile North of Kaanapali and in walking distance to farmers market, grocery store, restaurants, small shops.

Maui Sands deck

This is truly a low density property, with only 56 units in two story buildings in Phase I and 20 units in one building in Phase II.   To see location of each builing, please check Maui Sands map .

 
 

With a large pool, pool cabana, 3 barbeque areas and a community laundry area, Maui Sands is the perfect setting for full time residents, second home owners or tourists. Lush Hawaiian landscaping, with many fruit trees and a nice wooden deck on the ocean , make this property feel tranquil and relaxing.

 
 

Floorplans include 1bd units of approximately 540sf and 2bd units of approximately 880sf. Both upstairs and downstairs units have large lanai and  units in Buildings 1 through 6 also come with additional storage.

Maui Sands is also a leasehold property. To understand this concept better, please check http://www.mycondoblog.com/category/leasehold-2/

Maui Sands pool

Maui Sands pool

The terms of the current lease at Maui Sands are as follows: $630 per month for a 1bd unit and $960 per month for a 2bd unit. The homeowners association has been in negotiations with the land owners, towards a succesfull conversion to fee simple. There are various opinions regarding the cost per unit, no definitive numbers hae been presented yet.

Maintenance fees cover all utilities but electricity. Units can be equipped with air conditioners, but washer/dryers are not permitted. Monthly maintenance fees are $530 per month. There is a special assessment for buildings 1 thru 6, for the new roofs, for $259/month and it runs until July 2014.

Maui Sands is a great opportunity for those that want to minimize theit ” entry cost” for a spacious direct ocean front unit, while being able to financially support the cost of ownership.

 

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Hale Royale

Hale Royale is by far the best residential type property located between Honokowai and Kapalua area, with resort amenities. The property features 7 buildings with one and two stories, 2 pools, Jacuzzi, bbq area and tennis courts. Buildings have been recently painted and all hand rails have been replaced. Lush landscaping with mature coconut trees, very relaxed low density setting.

 

I particularly like the 2bd units, they are quite spacious, approx. 1100 sf.  The entry level features a nice size living room, kitchen and bathroom; the 2bd and another bathroom are located downstairs. Some units have a peek a boo ocean view, while all units have beautiful garden views. The maintenance fee for a 2bd unit is approx. $680/month, which is quite affordable given the amenities.

There is only one 2bd unit currently listed as a short sale and it is in escrow. All other current listings are 1bd units.

Please click on the link below to see listings and pictures of the property:

 

http://maui.paragonrels.com/publink/default.aspx?GUID=a2a0dc1a-f8ee-4ef9-b731-5981158c7296&Report=Yes

I would definitely keep an eye on any 2bd units that may come up for sale, estimated price should be  between $275,000 and $300,000.

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The Hot Spot: KAPALUA GOLF VILLAS

One of the most desired areas in West Maui is Kapalua, due to its beautiful bays and beaches, cooler weather,  golf courses and luxurious amenities.

Kapalua Golf Villas seems to be the hot spot in Kapalua, when it comes to real estate sales. Currently, large 1bd units ( approx. 972 sf)  with golf course views,  start in the low $400,000s. Please click here to see some of the 1bd units currently listed.  2bd units, with a living area of approximately 1,344 sf now start at $525,000. Looking at historical data, one would see that 1bd units were selling in the mid $800,000’s in 2007, while 2bd units were selling for a little over $1,000,000 , also in 2007. Current listing prices for 1bd units are at 2003 levels, which is true for many other properties.

Kapalua Golf Villas

Kapalua Golf Villas

Although one has multiple choices when it comes to vacation rental management, Outrigger is the only company that has an onsite office. Most of the units that are currently listed would have to be remodeled and upgraded when it comes to décor, with a focus on kitchen and bathrooms. According to current material and labor prices, the remodel of a 1bd unit, to meet the Gold Standard, as required by Outrigger, would be close to $50,000.

Last, but not least, an extensive building remediation project is to be conducted in 2012-2013. The cost per unit varies upon square footage and it runs until March 2014. Thus, for a 1bd unit, the monthly maintenance fees will be $1548.51: $242.08 reserve contribution, $556.85 maintenance fees, $37.50 KRA dues, $716.45 remediation assessment. The remediation project includes new roofs, paint, hand rails, walk ways, etc.

 

Kapalua Golf Villas features and amenities:

  • 186 units in 16 low rise buildings;
  • 4 swimming pools;
  • Stunning ocean views and golf course views;
  • Covered parking;
  • Free shuttle bus service within Kapalua Resort.

 

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Napili Gardens Price Evolution

Napili Gardens price evolution

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Where is the inventory?

One that keeps and eye on Maui real estate market, one may have noticed that certain areas already lack inventory. 

We are particularly aware of this phenomenon at Napili Villas (only one 3bd/2ba listing at $369,000) Napilihau Village ( no listings) and Villas at Kahana Ridge (no listings). Of course, these are all FHA approved properties and the lack of inventory may be explained by the fact that first time home buyers had strong interest in these properties.

When it comes to vacation rental condos,  Aina Nalu is a good example of both a shortage of inventory and also increased values. A year ago, one could have bought a 2bd/2ba unit for somewhere around $230,000. Today, it is hard to buy anything for less than $260,000, which is more than a 10% increase in value.

Some claim that there is a significant amount of so called shadow inventory (properties currently tied up in lengthy foreclosure process) and that the market will be “ flooded” by these properties later this year. But if one looks at typical default rates for Maui and the amount of the transactions that already took place, one may conclude that there may some foreclosures coming down the lines, but there could not be a “flood”.

To see what is currently listed, please check www.forsaleinlahaina.com

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Rental Management Fees

The owners of resort condos where vacation rentals are allowed, have several options when it comes to choosing a rental manager:
1) the onsite rental management company. This company would run the front desk, check in and check out guests, advertise and market the property, pay taxes and maintenance fees in the owner’s name and send them a check for the remaining proceeds. Since it has an office on the property, such a company would probably offer daily cleaning, pool service, free daily paper or a free cocktail in the afternoon, for their guests. Rental management fees charged by this type of companies vary between 45% and 55% of the total income from rentals , depending on the property.
2) an “outside” company, that does not run a front desk on property and does not offer daily cleaning, but offers all other services: making bookings, check ins and check outs, advertising, marketing and paying taxes. Such companies offer management rates that vary between 25% and 35% of the total income from rentals.

According to Hawaii law, all off-island owners of properties that are rented must have an on island representative, that would be able to deal with emergency situations. Thus, after identifying such company or person, some owners choose to manage the vacation rentals themselves, by listing the property on websites like www.vrbo.com and making arrangements with a cleaning company and a handy man, to deal with the maintenance part. In this case, their costs are between 10 % and 15% of the total income from rentals.

To learn more about investing in resort condos, please call me at 808-357-4000.

To see  resort condos for sale in West Maui, please check www.forsaleinlahaina.com

 

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Management Options for Resort Condos

Most owners of resort condos in Maui use the services of a vacation rental management company. The services offered by such companies may include, but are not limited to:
– advertising and marketing the property to potential guests and/or travel agents;
– make bookings and keep calendars of existing bookings;
– check in and check out guests;
– cleaning the unit, changing and replacing bed linens, covers, etc;
– light maintenance;
– filing General Excise Tax and Transient Accomodation Tax in your name;
– sending you a check monthly, quaterly or annually with the proceeds from the rentals, less their management fees. Hopefullly it is a heftycheck :-)

Some management companies may run a front desk on the property in case; others have an off site office and arrange access through electronic codes or lockboxes. In some cases,it may make more sense to hire a manager that also runs the front desk, for extra perks ( daily cleaning, pool towels, daily paper). In other cases, one’s only option may be to hire an off site company.

Thus, depending on the services offered, curent management fees run between 25% and 50% of the total income from rentals.

To see the best deals on resort condos, please check www.forsaleinlahaina.com

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Deadline to file Real Property Tax Exemption Form

Please note that December 31st is the deadline to send in your Real Property Tax Exemption form. 
It is available at
http://www.mauicounty.gov/documents/Finance/Real%20Property%20Tax%20Division/Forms%20and%20Applications/Home_Exemption_2012_v3%20Public.PDF 

If you reside in Maui, you are entitled to a home exemption for real property tax, reducing drastically the amount of taxes you would have to pay.
Maui County does not know who lives here full time and it does not make any assumptions to your advantage; unless you declare that you reside in a certain property, its value would be determined at its ” highest and best use”. Thus, if you live in a “resort condo”, your property would be taxed at a ” hotel  and resort ” rate, which is twice the rate for “apartments”.

How does the home exemption work?
First of all, the Department of Taxation determines the value of the property, within the taxation period ( July 2010 to July 2011).  If there is a home exemption, the taxation basis is reduced by $250,000. The appropriate tax rate (depending on the type of property) is applied to this amount.
Example:

Type of property Property Value Adjusted Value with HE Property Tax with no HE Property Tax with HE
house $1,000,000.00 $750,000.00 $5,500.00 $1,875.00
resort condo $1,000,000.00 $750,000.00 $9,000.00 $4,125.00 
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Maui Property Tax for 2012

Maui property tax

Maui property tax rates

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