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When you listed your home, you were surprised at the projected costs. The agent’s commission, of course, was the largest expense. A close look may help explain, in part, what you are paying for. Competent agents do extensive research prior to meeting with the seller. The process starts with reviewing tax records, permits, the title report and researching current market information. Closing cost estimates and a plan for effectively marketing the property should be presented for your approval. Once listing terms are set, photos are made. Virtual tours may be ordered. The property is submitted to the Multiple Listing Service and other web sites with which the agent participates. The marketing plan commonly includes flyers, print advertising, agent caravans and open houses. Even the sign in front of your home is not free. A complete and effective marketing plan doesn’t happen overnight. For instance, it takes years to engineer websites that get noticed. When a buyer is found, the agent must carefully evaluate the nuances of the contract. They must timely coordinate with lenders, Escrow, the Title Company, termite inspectors, surveyors, home inspectors and insurance agents; there are others if the transaction gets complicated. To this point, the seller has normally paid nothing. Like attorneys who are paid when the client wins, REALTORS® are normally expected to “front” all costs. We get paid when you “win”. Costs, exclusive of labor, quickly run into the hundreds or even thousands of dollars. Public perception is that REALTORS® make lots of money. Truth is, most do not. In 2008, the national median income (half made more, half made less) of a real estate sales person was about $31,000. Sounds like decent pay until you consider that each agent is an independent business entity solely responsible for their own costs, taxes and benefits. By the time marketing costs, commissions splits (normally 4 ways), franchise fees, GE taxes, MLS fees, local board fees, license renewal, continuing education and miscellaneous costs are factored, the agent is lucky to net 1% of the sales price. This could be broken down monthly or hourly but doing so skirts the real issue, which for the seller is, can your agent afford to provide the services you contracted for; can they work for free until your “case is won”!
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If you happen to fly out of Hilo any time soon, you may get the impression that real estate sales must have really tanked because low and behold, from time-to-time, you’ll see me manning the register at Uncle Miles Laniakea Express. Truth is, I’m happy to be there because after 2.5 years of negotiating and planning, Miles and I have finally opened a much needed food and beverage kiosk inside the secure area of our great little airport. And just to underscore that things aren’t as bad in real estate as you might think, here’s how we did this year compared to last: # Res Sales Med Res $ % change # Land Sales Med Land # Mar 08/09 Mar 08/09 Mar 08/09 Mar 08/09 Puna 31/40 235.5/197.5 +30% /-17% 96/47 37,000/26,500 S. Hilo 13/9 349k/373.5 -31%/+7% 3/6 272.5/180,000 You’ll note that there were improvements in some segments. Here’s a quick look at the situation in selected neighborhoods: #Active/Median # Under Contract # Sold since 1/1 $ Active Median $ Med $ Sold HPP 147/285,000 40/210,900 35/215,000 Ainaloa 51/187,500 11/160,000 8/140,000 Leilani 24/239,000 2/209,000 3/190,000 Nanawale 19/145,950 2/154,750 5/110,000 Mauna Loa Est 13/229,000 1/198,000 1/240,000 Royal Hwn Est 11/199,000 0 1/149,900 Fern Acres 16/201,750 2/183,499 7/237,000 S. Hilo 179/380,000 29/269,000 24/315,750 N. Hilo 38/622,500 2/275,000 2/503,000 When comparing this year to last, the most interesting thing is the fact that inventory levels have declined in many areas. This time last year, there were 193 homes for sale in HPP (147 now), 64 were for sale in Ainaloa (51 now) and Leilani had 35 as compared to the current 24. This trend appears to be pretty much across the board. Remember, if you are trying to time the market, a reduction in inventory is usually the first indicator of market change and price stabilization. The positive changes aren’t widespread but if they continue, they will be very significant. So there you have it, whether you at the airport or checking out the local real estate scene, there’s a good chance you may run into me and even when you see me helping my sweetie at the airport, feel free to stop by. After all, I’m always happy to wala`au about real estateJ
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Try as I might to closely edit this information, not a week goes by that I don’t find errors even after publication. I’m the first to admit to taking editorial liberties but even so, my schedule doesn’t always permit me to proof as completely as I’d like. The busy life of a REALTOR® can be rather like running in a hamster’s wheel. Sounds tiring but it’s actually a good thing. Here’s why. In simplest terms, our job is to sell property. This means insuring a meeting of the mind between buyer and seller. It all starts with a contract. Trouble is, once a contract is accepted, it’s tempting for an agent to stop everything and baby-sit the escrow. BAD, VERY BAD! Unless we constantly generate business, once that sale closes, the real estate "office" closes as well. The activities that keep a REALTOR’S® life –line going can be very different than other occupations. Few customers actually walk thru the door these days. Sitting in the office waiting for a phone to ring just doesn’t cut it either. A huge part of what we do involves prospecting; looking for people who want to buy and sell property. Prospecting should be the most important part of our day. Most of us are quite thankful that "do not call" ended pressure to participate in pesky telephone solicitations. Thankfully, today’s methods are more dignified and efficient. The Internet, for instance, has empowered buyers and sellers to find us when they are ready. Statistically, over 80% of buyers now begin their search on line. Of those, 3/4ths will work with the agent who responds to them first. This means that agents without a viable on-line presence must fight for leftovers. Past clients are a huge component of the lead generation equation. We should be spending a portion of each day fostering past relationships but, truth is, most of us do a poor job of staying in touch. Closing a transaction involves taking care of numerous tedious tasks involving mounds of paperwork. I could easily become buried in it. Instead, my beautiful, efficient assistant (and daughter), Mealoha along with Breezy and our great office staff, shoulder much of the administrative burden. Their careful assistance allows me to spend time on essential tasks such as negotiating contracts, meeting with buyers and sellers and of course, prospecting. In today’s buyer’s market, prospecting means an increased focus on "capturing" buyers who are actively in the market. There’s an old adage that speaks to an "agent working their way out of business". It’s so true. Truth is, as the market slowed, some agents talked themselves out of even trying. An agent who is more comfortable dealing with paperwork than prospecting won’t be around very long. Their wheel’s gonna stop and once it does, they’ll have no choice but to jump off! To them, a warm "A *** hou!"
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"The property is so cherry. The sellers used it as vacation rental so it’s totally tricked out and ready to go. My wife is ready to move-in. It’s great, the sellers want to leave all the furniture... the 50" flat screen is too good to be true! And it gets better. That new Jaguar they are willing to throw in really sealed the deal! The house is o.k and I can’t wait to turn the detached garage into my man cave! Who cares if it’s not permitted. Oh, and the lots on both sides are included so we’ll never have to worry about privacy. Just think, two extra lots means there’s one for each keiki. It’s such a find….. and it’s all just mortgage loan away." Every market has its idiosyncrasies. With today’ s buyers wanting it all and sellers looking for creative ways to move their property, sometimes sales strategies just don’t square with reality. Including furniture can be touchy. While it’s possible to include a few pieces of furniture without raising a red flag with the lender, when it comes to including expensive furniture, lawn equipment, cars and the like, doing so has more to do with sellers needing to leave things behind than what the buyer wants. It makes perfect sense. Mortgages last basically for a lifetime, furniture does not. Lenders don’t want to finance furniture. In fact, it’s best if it’s not in the sales contract at all. Once personal property is included, the entire transaction will come under closer scrutiny. If the value of any personal property seems high, it may have to be removed from the contract. The lender may even require a declaration by the buyer and seller that there are no outside agreements regarding such matters. Bottom line is that even if a seller wants to include the Willy’s Jeep they can’t use in Beverly Hills, conveying it to a buyer may not be as simple as you think. By now, the intuitive among you have likely figured out that including additional parcels is next to impossible. While it may be possible to manipulate the purchase price of an adjacent residence and include a portion of the value of the lot, values in today’s market make the possibility unrealistic unless the owner has loads of equity in both. The seller might offer to carry paper on the adjacent lot but the lender will want to include the additional debt incurred with the lot purchase in the buyer’s debt ratio. Additional parcels should rarely be included in a residential purchase contract when a conventional mortgage is involved. Again, it makes perfect sense. Two TMK numbers on a mortgage complicate a future foreclosure. Of course, the last thing on the buyer’s mind is foreclosure but that’s exactly where an underwriter’s focus is. And then there’s the man cave. Permits are always a huge issue. The seller or your agent should always provide information on the status of all permits. Some loans will allow unpermitted areas (at less than full value) while others do not. REALTORS® understand the differences and generally know what will work and what won’t. So, as cherry as the property seems, there may be a huge disconnect between what a lender will allow and what the seller is willing to do. For now, sorry Charlie, the man cave and the chick magnet car will probably have to wait!
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Remember Y2K??? It certainly doesn’t seem long ago that we were facing the notion that a computer programming error would leave us cut off from the rest of the world. In hindsight, it all seems wacky. Strange as it may seem now, I recall a handful of folks who actually migrated to Hawaii ahead of time…just in case. In fact, at least one couple was so convinced that Y2K would become a reality that they purchased property with the idea that they’d never have to pay! After all, we’d be cut-off from the rest of the world so who would come to collect. Shame on them but here’s the thing; the last laugh was really on them. Even considering recent price regressions, a legitimate purchase would have served them well. On the eve of Y2K, (1999), the median Big Island home sold for $160,000. Puna homes were selling for $83,000 and Hilo homes were going for $130,000. Just six years later, the same Big Island home sold for $385,000, Puna homes were selling for $245,000 and Hilo homes were fetching $325,000. Fast forward again to the eve of 2009. Median prices may actually surprise you. We ended 2008 with a median Big Island home selling for $345,000, about 10% under where we were at the height of the market and yet more than double Y2K levels! Hilo homes are still selling for $325,000 with Puna homes declining to $215,000, only 13% from the height of the market. Activity levels are a different story. Or are they? In the year prior to Y2K, 1445 homes sold island-wide. In 2005, the number ballooned to 2757. I n 2008, there were 1146 sales. The number of sales may be 59% less than those at the height of the market but it’s only 21% less than 1999 which was considered a much more normal market and certainly not one suffering from a severe migraine! Watch this. Puna sales numbers grew from 358 in 1999 to 931 in 2005. They are now back down to 412 which means sales are actually ahead of where they were at the start of this millennium. Hilo sales went from 246 in 1999 to 423 in 2005. We ended 2008 with 178 sales. I’m not suggesting, of course, that the start of the millennium is a significant benchmark but I am suggesting that perhaps comparing one year to the next, one month to another or even 2008 with any other year may present a misleading picture when it come to determining what “normal” looks like. It’s really best to look for value and consider opportunity. Look for 2009 to bring improvement. The housing stimulus package has pushed interest rates lower and the National Association of REALTORS® is working hard to make tax credits available to all buyers. Market change is inevitable. Real estate is real. It doesn’t go to “zero”. Values may drop but the asset remains. Sometimes it’s just best to say calm, remain objective, keep the faith and remember that the big picture is often painted with a very big brushJ
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Are your credit cards tired, overworked and underpaid? Do you suffer from extreme mailbox avoidance syndrome? Indeed, it sounds like a typical case of holiday hangover! It’s a common malady associated with the reality of “shop ‘til you drop” overspending resulting from hard-to-resist holiday generosity. Problem is, many look for temporary relief by delaying the largest bill they have; their mortgage payment. Because it’s normally the biggest, it’s also the hardest to catch up. It’s important to be forthcoming with your lender when situations get out-of-hand. While collectors are normally overly-aggressive (many get paid for each payment they collect), keep in mind that the lender wants to be sure you do not default. Tell the Collector you want to speak to Loss Mitigation Department. They assist borrowers in restructuring debt which helps reduce default rates thereby keeping their losses to a minimum. Working with them early on insures the largest menu of options is available. Choices could include a rate reduction which actually reduces your interest rate for the remainder of the mortgage, recasting the payments by re-computing payments to include any delinquency, extending the term of the loan allowing delinquent payments to be paid at the end, converting the type loan in order to reduce payments or allowing a one time assumption of an otherwise non-assumable loan. Your willingness to cooperate coupled with your individual circumstance will largely dictate your choices. If the situation seems hopeless, options such as a deed-in-lieu of foreclosure, a pre-foreclosure sale or a short-sale could be explored. A deed-in-lieu allows your interest in the property to revert to the lender. The property can be sold avoiding an expensive, time-consuming foreclosure proceeding. You may even be able to stay in the home if you list the property as part of a pre-foreclosure sale. When you owe more than the property is worth, the lender may actually forgive part of the debt allowing a “short”-sale to proceed. Remember, any debt forgiven on other than a principal residence, whether in a short-sale or foreclosure may be reported to the IRS as income. Also, keep in mind that a recently passed Hawaii law severely limits assistance REALTORS® are able to provide with distressed properties. The above is simply general information and may not apply to your situation. But, by all means, if you find yourself suffering from a Holiday Hangover, take two aspirin and call the Lender in the morning. It may be just what the Mortgage Doctor ordered!
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The Federal government requires a withholding of 10% of the gross proceeds any time a foreign seller conveys a property. Escrow will also withhold an additional 5% because the foreigner is not a Hawaii resident. The 5% withholding applies to all out-of-state owners. Buyer and seller alike should be aware of nuances pertaining to the Foreign Investor Real Property Tax Act (FIRPTA) and the Hawaii Investor Real Property Tax Act (HARPTA). As soon as an escrow is opened, an affidavit is forwarded to the seller. This normally comes from the escrow company. A copy of the completed affidavit is provided to the buyer. It’s important that the buyer retain this paperwork. This is because the buyer could be held responsible for any tax related to the sale if seller fails to pay! The buyer is not obligated to investigate any statement on the affidavit. They must simply produce a copy if questioned. Any gain will trigger withholding. Sellers able to show a loss may apply for a waiver of the withholding. This should be done well in advance. In today’s market, sellers with no gain or those with a loss should be a red flag to the REALTORS® involved. A HARPTA exemption request should be received by the State at least 10 days prior to the scheduled closing date. Foreign sellers should allow 6 weeks for approval of a withholding exemption from the Federal Government. If withholding is required, sellers with no other State or Federal income can file for a refund early. Most will be able to reclaim much of the withholding. The State extends residency courtesy for one year from the date of the resident relocates outside the State. The assumption is that sellers leaving Hawaii will need to file at least one more tax return as residents. Sellers participating in a 1031 exchange are not subject to HARPTA/FIRPTA withholding because they are deferring their gain. Seller financed sales may be subject to either incremental withholding or lump sum withholding, depending on whether or not legal title passes. It’s important to consider how the HARPTA/FIRPTA withholding will impact the required down payment on any seller-financed contract. Resident aliens are regarded as residents for the purposes of withholding. So, if a move is in your future, be sure to ask your agent checks current seller residency early on. Unfiled exemptions can delay closing which could, in turn, affect the buyer’s loan. Seller gaining even one penny on a sale should always be aware of how HARPTA/FIRPTA will impact your bottom line! When it comes to real estate sales, surprises are rarely a good thing!
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Can’t blame it on the New Year because changes to established real estate practices have been happening at warp speed for some time now. Rules for just about anyone who touches a real estate transaction have changed or will change. Locally, mortgages and mortgage products seemed to have stabilized. Values are stabilizing as well. Overall, things are much improved. While change seems necessary, here’s hoping the law of unintended consequences elevates the standard of care for upcoming regulatory changes. After all, not all changes have been positive. Appraisers and the appraisal process seem in the current cross-hairs for change. Historically, appraisers considered sales within a target area that closed within a 6 month sales window. Appraisers are now asked to limit data to 3 months. Going out of the immediate area is now almost impossible to justify. Makes sense, right? Perhaps, but remember that Hawaii neighborhoods are not standard “cookie-cutter” developments. We experience a low turn-over rate so it’s often necessary to travel several miles to find recent sales of similar properties. Just because a sale is close geographically doesn’t insure it’s an appropriate choice in establishing value. Pacific Heights, for instance, would not be a good comp for Mohouli Subdivision , yet the two are contiguous neighborhoods. The establishment of a national clearing house for appraisal assignments seems poised to create certain potential for unintended consequences. The concept that appraisers register with on-line placement companies and receive random appraisal assignments seems to make good sense in light of evidence of collaborative mortgage fraud participation by some appraisers. Sounds like a reasonable corrective measure, right? Here’s the thing. Not all appraisers are created equal; there are work quality and experiential differences just as there are with Doctors, Attorneys, REALTORS® and other professional service providers. I doubt many of us would embrace the idea of having our Doctor, REALTOR® or attorney assigned randomly. Like other professionals, the best Appraisers spent years building their business and professional reputation and watch this, I use home warranty services who randomly assign service providers. Trouble is, their system doesn’t know the difference in Kailua, Oahu or Kailua, Hawaii Island. A huge part of establishing value is extensive and intimate local knowledge. The importance of local expertise could become diluted with clearing house assignments. Proposed rules would limit any interaction with REALTORS® and loan officers. Appraisers depend heavily on REALTORS® for property specific information when it comes to comparing apples to apples. After all, appraisers rarely go inside comparable properties. If important information is missed, the REALTOR® or loan officer is in the best position to correct a faulty report before it goes to underwriting. In addition, referral services will be entitled to part of the appraiser’s fee; costs are certain to rise in kind. Out of area or inter-island travel fees will be tacked on as well. So, if your agent tells you that times have changed, listen up….here’s hoping it’s a change that will do us good!
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Even in today’s buyer’s market, finding a buyer is the easy part. While this is basically true, the steps involved in getting to that point can be critical. Establishing the proper price point, investigating permits, providing disclosure guidance, evaluating planning, title and survey issues as well as determining highest and best use of the property are but a few of the pre-listing subjects that arise. Proper pricing and effective marketing quickly brings REALTORS® to the point at which they really begin earning their money. REALTORS® assist with negotiations, provide advice regarding the nuances of the contract, assure that buyers are qualified to proceed and trouble-shoot the transaction through to closing. Each transaction is completely different. Watch this. This week alone, along with normal real estate duties, I’m juggling an access issue, tracking down documentation for a corporate sale, untangling a probate problem with an out-of-state owner while at the same time dealing with the more common problems related to termite inspections, surveys, title problems, easements, setback violations, permitting problems, settlement statement accuracy, closing dates and property inspections. It’s no surprise then that when it comes time to show a listing represented by a discount broker, a limited service broker or for-sale-by-owner, extra caution is required. Without another full-service agent involved, the work load and liability for the transaction lie squarely on the lone agent involved. Performance of pre-listing tasks is normally non-existent. Also absent are critical double-checks which insure the seller is making full and accurate disclosures; permits are difficult to validate and fair housing compliance is not guaranteed. When we are put in the position of working directly with a seller who is self-represented, we must be careful about providing advice, otherwise we risk becoming an “accidental” dual-agent. This sometimes alienates sellers who may get the impression that we are being less than cooperative. Additionally, agents involved in such transactions often lack assurance of compensation for their professional services. Most buyers these days still work with a committed agent with whom they have an established relationship. They understand the nuances of buying property in Hawaii make purchasing without competent representation very scary. Buyers and sellers deserve full and complete representation. Any arrangement which provides less is really unacceptable especially given the size and gravity of the transaction!
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Much like real estate, the spotlight during today’s game will be squarely on the guy smack dab in the thick of the activity. The “quarterback” is by every account, the person who will ultimately be credited with engineering the victory. Certainly, it’s under his watchful eye that goals will be reached and dreams realized. Of course, when hopes are crushed, the quarterback will shoulder much of the blame. The quarterback is expected to be the leader. Their belief in their own ability is as much a part of the success equation as any other factor. When doubts creep in, the quarterback is expected to assure success. Given certain parallels in the two jobs, it’s interesting to observe how we as real estate agents characterize our contributions and abilities. We describe our strongest qualities with words such as “honesty”, “integrity”, “loyalty”, “responsibility”. We are also “friendly”, “easy-to-work with” and “provide free information”. In all honesty, if we were to ask those receiving our services which quality is most important to them, they’d likely scratch their heads. After all, does anyone REALLY want a real estate agent who is dishonest, lacks integrity, is disloyal or heaven forbid, is grouchy! “Quarterbacking” especially in a changing market requires credibility and time tested abilities. Buyers want to know they are making the best choices at the right time. They need to a game plan for making their dreams a reality. They require guidance and handholding. Sellers need assurance that their agent has their finger on the pulse of the market. They need confidence in the advice of their agent; are they asking too much, how can they increase their showings, will offering financing incentives increase their net?? My daughter, Kealohanui Browning took violin lessons as a child. I recall her saying with each pull of the baton that she had to “practice and practice until I go crazy”. Few things in life come naturally. Whether it’s real estate or the NFL, practiced experience counts! So, when you begin the search for the person to lead you thru the largest transactions of your life, look for credibility, proven performance and results. These are really the things that will “Make A Major Difference” in your next move….and while that may not be the snappiest Super Bowl commercial you hear today, trust me, if you are in the real estate game to win, it will definitely be the most important! Enjoy the game  Denise S. Nakanishi R, GRI, CRS, ABR "Major Mom is a Major Difference"
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Imagine driving by $165million dollars every day and never noticing! Hard to imagine, right? I have to admit that I’d never thought of UH-Hilo and HawCC in those terms until a recent extended conversation with my friend, Harvey Tajiri. In fact, Harvey explained that UHH, HawCC and the ancillary activities generate more income for East Hawaii than the cruise ships and all forms of agriculture combined! With approximately 1500 employees, over 550 faculty members and two campuses situated on over 730 acres of land, the economic reach is huge. UHH and HawCC, this year alone greeted 51 new faculty members and about 5400 students (plus Kona)! This means that 51 new families and tons of students have been added to our local economic base. They all need housing, they’ll buy groceries, eat at our restaurants and shop in our shops…and some buy houses! And it’s not just the economic impact that’s impressive. Watch this! HCC is ranked 16th among community colleges nationwide and even though UHH is not a research institution, they garnered more per capita research dollars than even USC and Ohio State! This accomplishment is so impressive that it prompted the Executive Director of the National Science Board to take leave in order to visit UHH to figure out how they do it. After all, most schools have entire departments dedicated such activities. I understand he’s now working pro bono on the UHH campus! I don’t know about you but I certainly didn’t realize that the Chamber Choir traveled to New York City this past Christmas recess to sing at Carnegie Hall! The Marine Science program is one of the best in the nation and when it comes to computer science, only 2 other schools can say that they out-perform UHH grads. In fact, over the past 5 years, graduates of this program scored above the 90th percentile in their national exit exam. Of course, if you want a PhD in Hawaiian language, UHH is the only place in the world to get one! And when it comes to playing with the big boys, like Cornell and Oxford, UHH ranked second in a recent model United Nations competition! Truth is, there’s virtually no part of our community untouched by our growing university. From athletic workshops to hosting the Concert Society to rounding up volunteers for turtle tagging, UHH and HCC touch us all. The real beauty about the University, especially now, is that it’s recession proof. In fact, during tough economic times, displaced workers tend to go back to school! There are really no negatives when it comes to the University. *** Ka Ua, an all volunteer non-profit organization focuses on ways to help the University move forward. Each year in November, they host a night of fun, laughter and prime rib. If you missed it this year but still want to help, call Haidee at 936-8081 (or call me). Trust me, I’ll never again see UHH as just a small school from which three of my daughters graduated. Nope, from now on, I’ll not only look at UHH as 6900 potential homeowners, I’ll think of it as a $165million dollar gift that makes Hilo look good every day!
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This confusing topic generates numerous inquiries, especially now when looking for ways to be creative can make all the difference. The common rent-to-own concept is that a tenant can increase their rental payment and have a portion applied toward the down payment on an eventual purchase. While this is entirely possible, there are reasons this may not be the best arrangement for buyer/ tenant or seller. Absent a formal recorded agreement, either party can change their minds and terminate the agreement at any time. Seller can even sell to another party without the buyer/tenant knowing. The buyer may find it difficult to recover their investment if this occurs. Conversely, sellers have no assurance a tenant will ever perform. The buyer has little invested. It takes so long to accumulate enough to make a real contribution toward a down payment that buyers often give up. Having possession of the property over time tends to makes the future purchasers critical of the property. They often wish to renegotiate price. A more appropriate arrangement is a lease-option. This is a formally recorded arrangement detailing the complete agreement that could eventually lead to a sale. A non-refundable up-front deposit is required as "option" money. It can be any amount but is usually much more than a rental deposit. Remember, rental deposits are refundable, option money is not. This gives the tenant a sense of ownership so renegotiations are less likely. Because the lease-option is recorded at the Bureau of Conveyances, the buyer is protected against a competing sale. It becomes an encumbrance on title and may affect the seller’s ability to mortgage the property or use it as collateral. Lease-options in residential transactions are considered a form of creative financing. They are normally considered as a last resort. Buyers like them because it moves them into the property for less money down. Lease options are a tool to freeze pricing. Sellers like them because it assures an eventual sale and failing that, they get the property back without a long legal proceeding. It’s certainly an important tool to consider in today’s market. Consult your REALTOR®. We still have several conventional alternatives that will work for most buyers but when all else by all means, be creative. Just be sure that an option to buy doesn't end up being a case of rent-tp-be-dissapointed.
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Imagine driving by $165million dollars every day and never noticing! Hard to imagine, right? I have to admit that I’d never thought of UH-Hilo and HCC in those terms until a recent extended conversation with my friend, Harvey Tajiri. In fact, Harvey explained that UHH, HCC and the ancillary activities generate more income for East Hawaii than the cruise ships and all forms of agriculture combined! With approximately 1500 employees, over 550 faculty members and two campuses situated on over 730 acres of land, the economic reach is huge. UHH and HCC, this year alone greeted 51 new faculty members and about 5400 students (plus Kona)! This means that 51 new families and tons of students have been added to our local economic base. They all need housing, they’ll buy groceries, eat at our restaurants and shop in our shops…and some buy houses! And it’s not just the economic impact that’s impressive. Watch this! HCC is ranked 16th among community colleges nationwide and even though UHH is not a research institution, they garnered more per capita research dollars than even USC and Ohio State! This accomplishment is so impressive that it prompted the Executive Director of the National Science Board to take leave in order to visit UHH to figure out how they do it. After all, most schools have entire departments dedicated such activities. I understand he’s now working pro bono on the UHH campus! I don’t know about you but I certainly didn’t realize that the Chamber Choir traveled to New York City this past Christmas recess to sing at Carnegie Hall! The Marine Science program is one of the best in the nation and when it comes to computer science, only 2 other schools can say that they out-perform UHH grads. In fact, over the past 5 years, graduates of this program scored above the 90th percentile in their national exit exam. Of course, if you want a PhD in Hawaiian language, UHH is the only place in the world to get one! And when it comes to playing with the big boys, like Cornell and Oxford, UHH ranked second in a recent model United Nations competition! Truth is, there’s virtually no part of our community untouched by our growing university. From athletic workshops to hosting the Concert Society to rounding up volunteers for turtle tagging, UHH and HCC touch us all. The real beauty about the University, especially now, is that it’s recession proof. In fact, during tough economic times, displaced workers tend to go back to school! There are really no negatives when it comes to the University. *** Ka Ua, an all volunteer non-profit organization focusing on ways to help the University move forward, is hosting Frank DeLima on Nov 15 for a night of fun, laughter and prime rib. It’s at the Hilo Hawaiian Hotel and I know you’ll want tickets. The number to call is 936-8081 (or call me). Trust me, I’ll never again see UHH as just a small school from which three of my daughters graduated. Nope, from now on, I’ll not only look at UHH as 6900 potential homeowners, I’ll think of it as a $165million dollar gift that makes Hilo look good every day!
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With 8843 lots and approximately 4000 homes, it’s no wonder that many of us view Hawaiian Paradise Park as the second city of East Hawaii. Recently recognized as the fastest growing subdivision in the State it speaks well that years ago the association adopted their own general plan in order to insure that future growth would not happen haphazardly. It seems to have become the address of choice for many mainland transplants yet some local home-buyers still resist the idea of moving to the country even though a comparably sized home in town sells for substantially less in HPP. Truth is, the HPP home will actually be on a larger lot, be much newer and have numerous upgrades. I recall feeling a definite disconnect between what I saw and comments I’d heard from many local folks when I first visited the Park. I was impressed by a breathtakingly beautiful coastline outlined by a bay popular with fishermen and whale watchers alike. I found huge canopies created by mango groves and bamboo orchids blanketing the landscape as far as I could see. HPP is quickly evolving into an established community where neighbors have pulled together to become a tight knit community. Consisting of mostly one acre lots with 4 main arteries connecting the highway to the ocean, residents each year make fewer and fewer compromises. While cable television is inching makai of 21st Ave, most areas now have power, phone and even DSL. As the paving of the137 miles of roads gradually occurs, thing seem more groomed but it’s still “country” and unequalled peace and quiet are what attracts people to the area. While most homes are still on catchment, some have installed their own wells and strides such as UV filtration have made catchment virtually a non-issue. There are no covenants, conditions and restrictions which means that in this agricultural subdivision, it’s possible to have not only animals but crops as well. Besides agricultural pursuits, there’s a full time veterinarian, a couple of premier plant nurseries, a full time fire station and a variety of home businesses which have found a place to flourish. Interestingly, area residents who pre-dated the first occupants considered the lands marginally productive. I think most who live in the Park would definitely disagree. The mild climate allows most everything to grow and thrive. With an outstanding association and active community policing, the association pavilion is a buzy hub where residents gather to participate in structured recreational activities or the active senior program. I spend a lot of time in Hawaiian Paradise Park. Most people feel it’s a great place to live. But you don’t need to take my word for it. If you’ve never been there or if you haven’t been there in awhile, trust me, you’ll be proud to see how this little slice of our Hawaii is growing. See ya then!
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Great Ohana, 1 Block from Ocean
• 2,389 sq. ft., 3 bath, 5 bdrm 2 story -  MLS® $659,000 Keaukaha, Hilo - Think of it as time travel…Go back to old Hawaii where the ocean is so close you can smell it, where traffic is almost non-existent and where neighbors form a community ohana! With 2 homes on almost a half acre this property exudes Hawaii. With mature landscaping including numerous avocado trees, citrus, lychee, banana, ulu and coffee, the main home boasts island style architecture with extensive lanais and South Pacific styling. The 3 bedrooms and 2 baths dwelling offers usable space on the lower level while the upper level is the perfect office escape. It also features open beamed ceilings, skylights, white washed maple cabinets, Corian counters, full pantry and track lighting. With 2 bedrooms, the rear Ohana dwelling is a stand alone dwelling with it’s own electric meter, laundry and storage/workshop. The property is just a short stroll to some of East Hawaii’s favorite beaches, parks and snorkeling spots. It’s all comes together as part of the perfect spot for those seeking an in-town tropical oasis!
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