When I surveyed Kohala Coast Resort real estate for best buys last month, the least expensive condo at Hualalai Resort was Hainoa Villas #12 listed for $1,470,000 (MLS# 255657). Then Hainoa Villas #20 came back on the market at an asking price of only $965,200 (MLS# 254765) for a larger (2,139 sq. ft.) three-bedroom unit.
Big ocean view from this Hualalai Resort condo offered as a short sale for under $1 million list price
Under $1 Mmillion Hualalai Hainoa Villas Short Sale Listing?
Depending on your point of view, this under $1 million Hualalai Resort condo has been on the market for two weeks…or three years. Back on the market under a new MLS number, it is the Hainoa Villas short sale mentioned in this blog post from March.
The sellers had an accepted offer that fell apart because the bank wanted a cash contribution that the seller did not have, and the buyer was unwilling to pay. We are told it is back on the market as a short sale at a price that was approved by the lender…it is vacant, being cleaned, and available to show starting this week.
Not sure what other agents are doing, but our team has two showings lined up this weekend! As an entry level strategy to Hualalai Resort, it is the cheapest listing by a good bit, $500,000 cheaper than the next least expensive non-distressed condo.
Imagine that the lender does indeed approve an offer for $965,200; your cost to buy will still be over $1 million. As with any short sale, you may have to pay any seller closing costs that the lender does not approve. A clean offer would not have seller paying for customary items such as termite inspection or condo documents.
Many short sales also require that the buyer cover delinquent dues. When you purchase at Hualalai Resort, you will also pay for membership in the Hualalai Club. The initial deposit of $225,000 is refundable when you sell.
Is Hualalai Resort the Right Real Estate Investment For You?
Even if this short sale can get you in the Hualalai real estate market for 1/3 less than any other option at the resort today, the question for a prospective buyer in the $1 million range is whether it makes sense to invest at Hualalai versus one of the other resorts.
According to Hualalai Realty, the sales team representing the developer and most sales, members typically put their toe in the water with condo, confirm that the lifestyle is right for them, then step up to a larger condo, single family home, or building lot.
There ARE investment purchasers at Hualalai counting on appreciation potential of a well-priced home or condo, and those who buy raw land and build “spec” homes…but not the kind of investor looking for cash flow.
Although Hualalai does allow vacation rentals, a buyer whose primary objective in a resort purchase is to have positive cash flow, or come as close as possible to covering their out of pocket costs will need to focus elsewhere.
Because it would be silly to own at Hualalai without being a member to enjoy the amenities, your carrying costs will be an order of magnitude different than at Mauna Lani or Mauna Kea Resort – more than double in fact.
Even with this entry level purchase, condo association dues will be over $2,000/month, but do not include the resort amenities. The annual Hualalai Resort Premier membership cost for 2012 is $32,300. In short, you will have carrying costs of over $7,000/month including dues, amenities, taxes, and utilities.
By the way, Hualalai Resort vacation renters do not have access to the exclusive Canoe Club or Ke’olu members-only golf course and clubhouse (Email me if you want a copy of the Hualalai Resort Membership Plan).
Homesite overlooking the members-only Ke’olu (Weiskopf-designed) golf course (MLS# 256767) asking $1,895,000
People buy property at Hualalai because they choose that lifestyle, not because it makes investment sense relative to other Kohala Coast real estate options. Whatever your objectives, we are happy to help you decide which resort lifestyle or investment opportunity is right for you!
A hui hou,
Beth Thoma Robinson, R(B)