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Hawaii REO and Short Sales Still Hot: Kolea and Halii Kai

Kolea—Built-in BBQ and pocket doors

I’ve blogged regularly about the REO (foreclosure) and short sale properties at beachfront Kolea and oceanfront Halii Kai on the Big Island’s Kohala Coast. Although there are also bargains to be had at nearby communities such as the Colony Villas REO my teammate Pam mentioned in a recent blog post, I am personally representing either buyer or seller in two transactions at Kolea and three at Halii Kai, with additional clients almost ready to submit offers. Why so much activity in those particular resort properties?

At the market peak, those properties sold at significant premiums to nearby competition because of their locations. There are very few Kohala Coast properties where you can walk to the beach. You can at Mauna Lani Point, but the lowest priced listing there is $865,000 for a 984-sq. ft. 1-bedroom with a carport and no ocean view, and a walk to a community BBQ grill.

At Kolea, you can choose between two REO properties that are 2 bed, 2 bath, 1,270 sq. ft., with a built in BBQ on the lanai. One is priced at $424,900 for a ground floor and the other at $453,900 for a second floor.

Similarly, at Halii Kai, who can argue about the value in direct oceanfront units priced at 50% of what the original owners paid pre-construction only a few years ago? I often get the question of whether these make sense as vacation rentals, given the high homeowner association dues at Halii Kai and Kolea. The best answer I can give came from noticing who purchased Halii Kai 13A, about which I’d blogged as an oceanfront best buy. The public records show the proud new owners are a couple who just happen to work for a rental management company managing many Halii Kai and Kolea vacation rentals!

Vacation renters don’t care whether they are renting the smaller ground floor two-bedroom that only has a carport, or the larger, more expensive upstairs unit that has a garage. On the other hand, someone buying for their own use might prefer the elevation and garage for their toys. Renters DO care about direct oceanfront location. Halii Kai 14B is an REO listed at $724,900—or if you want turnkey furnished and have the patience for a short sale, tryHK 13C, a short sale listed at $697,000 and we’ll negotiate for the furnishings under separate bill of sale. Remember whale season is coming, and this is what you’ll see from your lanai (actual photo taken from lanai of 13C):

If your price point is somewhat lower, Pam and I have just listed Halii Kai 4B, one of the few of this floor plan that has a garage. Serene golf course location, and only $409,000—competitive with the remaining developer sales across the road in the Coconut Grove. It is a short sale, we’ll talk you through the process.

A hui hou

Beth Thoma Robinson, R(S)
Direct 808.443.4588
Email: beth@hawaiilife.com

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Beth Thoma Robinson, R(S)

November 24, 2009

Subsequent to this post, Halii Kai 14B was reduced to $709,900!

Beth Thoma Robinson, R(S)

November 24, 2009

Subsequent to this post, Halii Kai 14B was reduced to $709,900!

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[…] not particularly thrilled about rampant foreclosures in Hawaii, but we do recognize that REO listings are often well-priced, and represent excellent opportunities for buyers who are entering the market, and who are prepared […]

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[…] not particularly thrilled about rampant foreclosures in Hawaii, but we do recognize that REO listings are often well-priced, and represent excellent opportunities for buyers who are entering the market, and who are prepared […]

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[…] little more online searching led me to an article about short sales starting at Kolea and a neighboring luxury property, Hali’i Kai, in 2009. By 2010 prices had […]

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[…] little more online searching led me to an article about short sales starting at Kolea and a neighboring luxury property, Hali’i Kai, in 2009. By 2010 prices had […]

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