There is no question that the best deals in today’s buyers market are usually short sales, or REO/bank owned/foreclosures; these properties are commonly referred to as “distressed” properties.
Kaanapali in West Maui, one of Maui’s most sought after and beautiful locations, does not have a lot of these types of properties, but as of lately, the majority of sales in the residential market in Kaanapali have been distressed sales.
Thus far in 2011, one-third of the 15 residential homes that have sold in Kaanapali fall into this category. Four of the five, or 80% of the pending sales fall into this category. What’s my take on this? Take advantage of these fantastic deals while they last. There is an extremely high demand for these properties and a very limited supply.
Here are two new Kaanapali best buys I’d like to highlight:
1. 144 Halelo Street (MLS# 347802) listed at $781,000, is a 5 bed/2.5 bath home. This is a short sale in Kaanapali Vista (one of the longest standing communities in all of West Maui), and is perfect for homeowners occupant or investors alike.
This home last sold in 2006 for almost $1,300,000 and the current owners put about another $150,000 into remodeling the home.
I really like the architecture and floor plan of this—it’s a timeless beauty. This home sits right on the golf course and has two large outdoor covered living areas for enjoying the fantastic Kaanapali weather.
The kitchen has new granite, travertine flooring, stainless appliances, and new plantation-style cabinetry. The home also has an attached ohana or guest quarters that could be easily rented, or perfect for transient visitors.
2. 51 Hakui Loop (MLS# 347963) is a 4 bed/2.5 bath home in Kaanapali Hillside and is a new bank owned/REO/foreclosed listing.
The home has fantastic ocean views from the upstairs and is enhanced by a reverse floor plan, meaning that the kitchen and main living area are on the second story of the home; this is very common in Kaanapali view homes. This home epitomizes the open-style floor plan which allows seamlessly integrated interior and outdoor living, which is perfect to live the Kaanapali life.
In one of my previous blogs, read about what a great community Kaanapali Hillside is with detailed information and aerial photographs. Here are all Kaanapali Hillside Homes for Sale.
Like Kaanapali, but are looking for something a little more upscale? May I recommend Kaanaplai Golf Estates, the premiere residential community in all of Kaanapali. Here is the link to my Kaanapali Golf Estates blog, and all Kaanapali Golf Estates homes for sale.
Regardless if you are looking in Kaanapali or Wailea, here are the best deals in the market. Your time is now, contact me—pick up the phone, or write me an email, and I will help you make it happen.
Gina Pogol
May 13, 2011
Hi,
I’m working on an article about buying and financing leasehold property. I did some checking and see that Fannie Mae allows this sort of mortgage if the transaction meets its conditions. In your experience, are mortgages on leasehold harder to get approved than mortgages on fee simple property? Are the interest rates the same? May I quote you in my article and mention your blog? Please feel free to email me directly about this; the article is for hsh.com and probably Fox Business as well. Thank you.
Gina Pogol
May 13, 2011
Hi,
I’m working on an article about buying and financing leasehold property. I did some checking and see that Fannie Mae allows this sort of mortgage if the transaction meets its conditions. In your experience, are mortgages on leasehold harder to get approved than mortgages on fee simple property? Are the interest rates the same? May I quote you in my article and mention your blog? Please feel free to email me directly about this; the article is for hsh.com and probably Fox Business as well. Thank you.
Jeremy Stice, R(S)
May 14, 2011
Aloha Gina,
Thank you for your input. Yes you may qoute me here and mention any of my blogs that I have written.
My experience is that leasehold properties are usually a condotel property, and if that is the case, then we are looking at 30-35% down. Condotels can generally be defined as a resort type condominium that allows short term vacation rentals (in Maui this would generally mean nightly, weekly, or a monthly rental) and have a front desk operation that handles the booking and management services for the owner.
One of the main things that the lenders are looking for is a “5-year tail” meaning that if the lease is up in 32 years, they would have to get a loan of 27 years or less. (32 minus 27 equals the “5-year tail” that they want).
Rates usually aren’t higher because the units are leasehold versus fee simple, but because they are condotels rather than residential condos. These rates can be about ½ point higher but the main difference stems from the amount of down payment that they require. Residential condos can be financed with as little as zero dollars down by means of a VA loan or more commonly as a FHA loan with 3.5% down. The main exception to this generally rule and something that we have started to see become more common place are Fannie Mae REO properties that have been allocated for Homepath type financing which allows buyers to go in with 3% down and the closing costs are lower because there is no appraisal and thus no appraisal fee.
I hope this helps. You can follow all my blogs here http://www.hawaiilife.com/company/people/info-agent.php?id=138709
Jeremy Stice, R(S)
May 14, 2011
Aloha Gina,
Thank you for your input. Yes you may qoute me here and mention any of my blogs that I have written.
My experience is that leasehold properties are usually a condotel property, and if that is the case, then we are looking at 30-35% down. Condotels can generally be defined as a resort type condominium that allows short term vacation rentals (in Maui this would generally mean nightly, weekly, or a monthly rental) and have a front desk operation that handles the booking and management services for the owner.
One of the main things that the lenders are looking for is a “5-year tail” meaning that if the lease is up in 32 years, they would have to get a loan of 27 years or less. (32 minus 27 equals the “5-year tail” that they want).
Rates usually aren’t higher because the units are leasehold versus fee simple, but because they are condotels rather than residential condos. These rates can be about ½ point higher but the main difference stems from the amount of down payment that they require. Residential condos can be financed with as little as zero dollars down by means of a VA loan or more commonly as a FHA loan with 3.5% down. The main exception to this generally rule and something that we have started to see become more common place are Fannie Mae REO properties that have been allocated for Homepath type financing which allows buyers to go in with 3% down and the closing costs are lower because there is no appraisal and thus no appraisal fee.
I hope this helps. You can follow all my blogs here http://www.hawaiilife.com/company/people/info-agent.php?id=138709