October is the month when most of us turn the page on summer. The clocks get turned back the first Sunday in November (everywhere except Hawaii and Arizona), the days are shorter, and that all-too-familiar chill permeates the night air. The nights do start getting a little cooler here, as well; a welcome change for me. Our summer days in the low 90’s are turning to autumn days in the low 80’s. Surprisingly, though, our visitor count seems unusually high for this time of year as the line between our traditionally high season and the low season continues to blur more and more. It’s as if the world has discovered Maui…
Sales continue at a better-than-average pace for this time of year as well, in spite of the decline in buyers due to the lower exchange rate for the Canadian dollar. I prefer to focus on the new “Pending” sales rather than completed sales, which can take anywhere from 30-90 days or more in some cases. “Pending” sales are more in the moment, and our pending sales have actually increased about 8% over last month.
And speaking of sales, I would be remiss if I didn’t offer you, once again, an opportunity to own in what I believe to be one of the most exciting low-density multi-residence properties to be built in Wailea for some time. Keala O’Wailea sits perched high on the most elevated building site in Wailea. Not only does the site offer some of the most stunning views from anywhere on the island, but the amenities, quality construction, hand-selected finishes and surprisingly affordable price points make this a can’t miss value to add to your portfolio.
Comprised of a total of 70 units—7 buildings with 10 units per building—Keala O’Wailea offers 2-bedroom, 3-bedroom, and 3-bedroom Penthouse units in a 3-story format, including a state-of-the-art Pool Pavilion and Fitness Center. With 90% of the units under contract and 1/3 of the property scheduled for move in this December, the last 7 units are sure to go under contract soon.
In addition, you will enjoy the convenience of the location, with some of Wailea’s most popular retail shops and restaurants as your backyard neighbors. If you’re familiar with the area, The Gateway (to Wailea) Shopping Center is at the very top of the Piilani Highway before dropping down into the center of the Wailea Resort. You may have already enjoyed the Monkey Pod Restaurant or Pita Paradise; Sweet Paradise Chocolatier or Panties in Paradise (oh, my!) as a reference point.
Please enjoy the following artist’s renderings. These renderings were created early on before specific finishes were chosen; the finished product will have a much more upscale look to it:
Of the 7 remaining units, 5 are ground level and 2 are on the 2nd floor (all the Penthouse units are under contract). There are 2 3-bedroom and 5 2-bedroom units, ranging in price from $819,900 to $999,900—a value that you will not find anywhere else in Wailea. Looking for the perfect Christmas gift? How about one of these gorgeous units under the tree this December?For this month’s Featured Properties I am inviting you to take a look at other residential condominium properties in Wailea that feature large Pool Pavilions and Fitness areas. Once you have viewed their websites, let me know if you would like a list of available units.
Kai Malu—Clearly one of Wailea’s most popular and successful complexes built in the last ten years (the same developer as the above mentioned Keala O’Wailea), consisting of 150 two-story Townhomes, all with 3 bedrooms and 2.5 baths and approximately 1,800 sq. ft.. Many have nice ocean views and re-sales will often come fully furnished and turnkey. Prices start at about $1,200,000!!!
Na Hale O’Makena—Built-in 2002 and featuring solid concrete construction, these 2 and 3 bedroom condominiums offer large lanais to accommodate outdoor dining and entertaining. This private and tucked away Makena location is only a 4-minute drive from the Shops at Wailea and with a total of only 40 units stretched over several acres, you’ll enjoy the feeling of wide open spaces. Units start at $1,500,000!!!
Papali Wailea—One of my personal favorites, this complex of 24 3-bedroom, 3-bath free-standing homes sits nestled in a gated community in the heart of Wailea. By combining architectural components of the Northwest with early Hawaiian roof lines and other features, these award-winning homes are in high demand and rarely come up for resale. If one does, look for it to start at $2,800,000 and above.
Click here for complete September statistics. And as an added feature, you can check current interest rates, different loan options, and other financial information at www.Finance.Yahoo.com.
If you’re a fan of ethnic dining, you may want to give Kamana Kitchen, recently opened in the Foodland Shopping Center in south Kihei, a try. They have locations on Kauai and the Big Island; this is their first foray into Maui. And if you’re a fan of Sci-Fi, you won’t want to miss Blade Runner 2049—especially if you saw and loved the original Blade Runner made in 1982. Yes, it is the same Harrison Ford, 35 years later! He’s aged well. This film is an absolute stunner as it propels you into a dark and foreboding futuristic world. Fasten your seatbelts!
As always, mahalo for following my Monthly Newsletter, and it would be my greatest pleasure to someday help you realize your dream of owning Maui Real Estate!
A hui hou,
Maui Realty Associates
(808) 283-9093 direct
(808) 879-5510 fax
No doubt many of you have aspirations of owning Maui Real Estate some day, and a fair percentage are likely to consider the option of purchasing a condo that can be short-term rented while having it available for your own use as well. That’s a fine idea but it may depend on your objectives whether or not it will make sense for you.
Once you and your Realtor have identified a property that suits your budget and offers other items on your wish list, your agent should sit down with you and work up a realistic estimate of the cost of doing business, so to speak. Since there are usually many comparable units and historical statistics for reference to get you started, that should be fairly easy to do..
First, one should consider the fixed costs of ownership—things like Association dues, property taxes, and utilities. Using a $500,000 condo as an example, and breaking the numbers down on a monthly basis, those three items will add up to about $1,400/month. An average annual income for a unit in that price range would be about $32,000 or $2,700/month, with seasonal variations—more in the winter, less in the summer months. That will leave about $1,300 to work with.
Then there are the variable costs, and here’s where it gets a little trickier. The first and biggest one to consider is how you manage the rental program for the unit. If you want a turnkey service and don’t want to be bothered with anything but a statement at the end of the month that will cost you at least 20% of your monthly gross on average, or another $540. The other option is to manage the rental business yourself--handle all the inquiries, calendar, schedule cleanings, collections, etc. and simply hire an on-island contact to service your guests’ needs for about $200/month. Not many people have time or the inclination to be in the property management business.
Cleaning costs as guests depart, minor maintenance and repairs, and advertising costs (VRBO, etc.) can quickly add up to over $1,000/month, and you’re well into the red before even factoring in debt service. If you borrowed $300,000 to make the deal work, you’re looking at roughly $2,000 negative cash flow per month. If you paid cash, that will take most but not the entire sting out and when you factor in things like real estate appreciation, depreciation, expense write-offs and such, it’s fair to say that you’re at about a break-even point.
Getting back to your objectives for owning a vacation rental property, I believe that the best reasons to own Maui Real Estate are for your own sense of pride of ownership, enjoyment for you and your family, love of Maui, wanting to be part of this amazing lifestyle, anticipating retirement plans, and/or wanting to leave a legacy for your family, and you can afford it! And, yes, there is an economy of scale with vacation rentals; the numbers on higher priced units that command higher rents can look a little more attractive. That‘s why each situation needs to be looked at on a case-by-case basis.
All of this month’s Featured Properties are new listings—within the past two weeks—with great ocean views. Some of these units are really priced to sell, so this may be your opportunity to pick up a pretty good buy.
MLS #375371—This 2BR/3BA Palms at Wailea unit, the largest floor plan, boasts nearly 1,600 sq. ft. of gracious living space and is situated in one of the most desirable locations in the complex. Turnkey and move-in ready, yet with a canvas that will allow for some of your own special touches and upgrades. A very nice price at $1,195,000!!!
MLS #375384—Wailea Elua is one of the three original condominium complexes built in Wailea in the 1970’s and is the only one with a security guard and gated entry. It’s direct oceanfront location and great views make it a popular choice for owners and vacationers alike, and the added feature of an over-sized garage for your Maui vehicle, golf cart, surf boards, etc. make this one a standout. $1,399,000!!!
MLS #375385—Keawakapu (kay-a-va-ka-poo) Beach is one of the longest stretches of sandy white beach on the island, and at the very head sits the iconic Mana Kai and renowned Five Palms restaurant. Please don’t consider owning at the Mana Kai unless you’re able to handle unobstructed views of sandy beach forever and ocean that seems to stretch to infinity. A 6th floor dandy, $1,450,000!!!
MLS #375317—And for those who want to get away from the hustle and bustle of it all and are willing to take a four-minute drive south from the Shops at Wailea, come see this fabulous 3BR/2.5BA unit at Na Hale O’Makena. Known for its solid concrete construction and interior finishes this small 40-unit complex offers privacy and security like no other. $1,775,000!!!
If you are planning a visit in the next few months, here are some tips on entertainment that will appeal to the honeymooners out there and as a family affair as well. Long-time and very popular entertainers like Hapa, Eric Gilliom, and Uncle Willie K play weekly dinner shows at venues around the island, and newcomers like Mick Fleetwood’s band and the ukulele troubadours of Kanekoa are sure to provide a memorable evening of fun and dancing. Click on their links to check their websites for information.
If you have any special Real Estate requests I’m always happy to share my many years of knowledge and do targeted searches just for you! As always, mahalo for following my Monthly Newsletter and a hui hou--until we meet again next month!
Every now and then a property comes along that has something so special--call it charm, Feng-Shui, sense of place--or something even less tangible, that makes it stand out from the crowd. 1595 Halama Street is just such a property.
To properly set the stage, one must first consider the location. Halama Street is a bit of a historical icon in south Maui. It was one of the few direct oceanfront options some 50+ years ago. It was the “Wailea” of its time; a time that was so much less complicated and still grounded in family values—with the architecture of the day reflecting those values. Today’s design community is embracing the Hawaiian Mid-Century Neo-Classical look reminiscent of Honolulu in the 1950’s, and homes along Halama Street might be considered the “post” Neo Classical look of the ‘60’s and early 70’s.
There are five oceanfront homes currently listed on Halama Street ranging in price from $3.5 to $5.5 million, and some have sold for much more over the years. The other side of the street—where today’s special home is located-- is lined with homes as well, just steps away from a sprawling sandy beach while being somewhat protected from the exposure of the sun and surf on the ocean side.
When the current owners had their first look at 1595 Halama, they felt as if they were “walking through a time capsule”. Little had been changed since the original owners, still occupying the home, built it in the early 70’s. The challenge then became how best to capture the potential of this vintage home without trying to make it into something that it wasn’t.
To them, it was obvious. The home needed to be taken down to the studs and restored with very simple, clean lines and a minimalist approach to design details. To say “mission accomplished” would be an understatement (pardon the pun). The kitchen was expanded with new custom Kitchencraft blank slab cabinetry. The Kenmore Elite refrigerator/freezer and propane-operated Bosch stove was designed to allow the chef within to manifest. Use of subtle grey tones on walls and driftwood colored flooring made the interior easy on the eyes and emphasized the clean, flowing lines--giving it a nice “beachy” feel.
The home is situated on a completely level 9,165 sq. ft. lot, boasting fruit-producing mango, papaya, avocado, and banana trees. Otherwise, the landscaping has been intentionally left rather minimalist, anticipating that the new owners may want to add a swimming pool, detached ohana, or simply expand the existing footprint of the home.
Honestly, if I didn’t already own a very comfortable home, I would give careful consideration to this little gem. The sellers are motivated and ready to move on, and have already reduced the price to $1,125,000!!!
Next month I will return to the familiar Featured Properties format, but for now I’d like to mention a couple of upcoming events for the month of August. Maui Calls, Maui’s #1 Food & Wine event, will be held on Friday, August 18, from 6-10 pm at the Maui Arts and Cultural Center. This is an annual fundraiser for Educational and Cultural programs at the Arts and Cultural Center. And a gala event it is—featuring 13 food booths with some of Maui’s top chef’s offering up culinary delights, and over 20 premium wineries, mostly from the Napa and Sonoma County areas—including the likes of Duckhorn, Plumpjack, Paradigm, and, yes, even Continuum ($275 a bottle!), to name a few. A fabulous Silent Auction and music to dance the night away will round out the evening. If you will be on island, this event is not to be missed!
And for you theater buffs, August 25 is the kickoff for the Maui Academy of Performing Arts’ “The Hunchback of Notre Dame”. The famous love story of Quasimodo and Esmeralda comes to life on a grand scale in this re-imagining of Victor Hugo’s tale of hope, acceptance and what it means to be a hero. Every couple of years or so MAPA gears up for a major production like this, with previous productions including classics like Jekyll and Hyde, Les Miserables, and Phantom of the Opera, with each performance getting rave reviews. This show is sure to continue that great tradition.
So, once again, “a hui hou” from the land of Aloha, where all your Real Estate dreams and many others can come true. Enjoy the rest of your summer.
Mahalo nui loa,
Maui Realty Associates
(808) 283-9093 direct
(808) 879-5510 fax
October is the month when most of us turn the page on summer. The clocks get turned back the first Sunday in November (everywhere except Hawaii and Arizona), the days are shorter, and that all-too-familiar chill permeates the night air. The nights do start getting a little cooler here, as… Continue Reading