Chris Castner: GoHawaii Living & Investing

Sun, 06 Nov 2005 21:13:35 GMT

Oahu Home Sales Hit Record $5 Billion

For the first time ever, the Oahu homes market has posted sales exceeding $5 billion (through October). This year's ten-month figure of $5.051 billion was $1.13 billion above the same measure in 2004, a dollar volume increase of 28.9 percent. Such staggering figures have created a real boon for sellers, brokers, appraisers, lenders and others associated with Hawaii's real estate industry.

Condominium sales reached a record median price of $290,000 in October, up $3,000 from September's previous record of $287,000. Total condo sales for the first 10-months of 2005 were 6,831. This represented a 4.1 increase over last year. Likewise, single-family home sales were bumped up 0.7 percent, with 3,936 transactions.

One local real estate agent, Gary McCarty, outlined various factors that point toward continued growth in Hawaii's housing market: aging baby boomers investing in real estate, strong local job and income growth, and record tourism. He also mentioned an open house he held on November 2nd for other agents to see two Waikiki condo units. 14 people showed up, including two tourists. McCarty stated, "They were serious buyers. Business is just hot."

Another island real estate expert, Helen On, commented, "Every year it's been busier and busier since 1997."

Mon, 31 Oct 2005 02:18:42 GMT

Hawaii: 7,100 Jobs Added in September

For the seventh consecutive month, Hawaii's jobless rate remained the lowest in the nation at 2.7 percent. Also, an additional 7,100 jobs created in September, 2005 brought the total number of new jobs since September, 2004 to 29,150.

For the last several months, Hawaii's economy has been cruising along at an increasingly healthy clip. Key factors in this upswing have been the very strong real estate and tourism sectors. More...

Mon, 05 Sep 2005 23:54:45 GMT

Oahu Homes & Condos: More New Price Records

Oahu home sales bounced back sharply in August, after experiencing a slight dip during June and July. Median prices for single-family homes and condominiums soared to $625,000 and $282,000, respectively. These were new records for Oahu real estate.

The median price for a single-family home jumped 38.9 percent over August, 2004's $450,000 figure. Condos escalated 35.7 percent over the $207,800 mark set 12 months earlier.

Judith Kalbrener, President of the Honolulu Board of Realtors said: "We're back on track for another record year."

Prices continue to rise, given the high demand and short supply of island homes on the market. Those that are reasonably priced are quickly sold, shortly after being listed. August's sales garnered strong attention from first-time buyers, Mainland investors, and families utilizing low-interest rate loans.

One long-time renter, Kapiolani Community College Professor David Behlke, decided it was time to buy after his landlord informed him of a pending 25% rent increase. He purchased a three-bedroom townhouse at West Loch in August.

Fri, 05 Aug 2005 07:32:48 GMT

Kailua: "A Lot Better Than Malibu"

Commenting on Oahu's quiet and beautiful beach town of Kailua, Coldwell Banker Pacific's Vice President Mary Beddow recently said:

"I think Kailua is a lot better than Malibu (CA)...they just have the movie stars."

Situated on the southeast shore of Oahu (Windward Oahu), Kailua's real estate market is one of the hottest in Hawaii. Median home prices have quickly skyrocked to $885,000. In addition to its beach proximity, the easy commute from Kailua to downtown Honolulu is a major selling point.

Indeed, several years ago, Malibu's Mayor Ken Kearsley predicted such a bright future for little Kailua. Beddow now praises him for his forward thinking.

The Honolulu Star-Bulletin recently published a letter from another astute thinker, real estate investor Gary Castner of Los Angeles, CA. In that correspondence, Gary discussed his strategy to buy Kailua real estate in 2000. That single-family home has now appreciated approximately 200%.

Spike in Hawaii housing prices was predictable, will continue

I bought my home in Kailua in 2000, anticipating that this was going to happen. It took four trips to find something reasonable.

Three major factors are all coming together at the same time here in Hawaii. First, interest rates dropped from 8.5 percent to a record low of 5 percent, and people ultimately buy on monthly payments, not on price. Two, the baby boomers are using this as an opportunity to get out of the rat race in mainland cites, either by refinancing or selling their homes that they live in. Three, the economy in Hawaii has corrected, and then some.

All three of these impending and foreseeable circumstances led me to fly to Hawaii four times from 1998 to 2000, to purchase a home on Oahu, and on the Big Island as my future retirement home. This is just the beginning. There are 75 million baby boomers ready to retire, and looking to leave places like Los Angeles and other cities that have demographic problems with infrastructure, housing costs, traffic, etc.

I love Hawaii and everything about it. The challenges are there, to be sure. We just have to remember who we are and help each other whenever possible.

The Legislature also has to perform and think "outside the box," and that is a really tough thing to do. I give them a lot of credit for their efforts so far! Aloha.

Gary Castner
Los Angeles

http://www.RetireToHawaii.com

Sat, 09 Jul 2005 22:16:15 GMT

Honolulu & Phoenix Employment Outpaces L.A. & S.F.

Employment growth in both Honolulu and Phoenix is outpacing that of Los Angeles and San Francisco, according to the Federal Reserve Bank of San Francisco.

Based on year-to-year gains, analyzed month by month, Honolulu is up 3 percent, and Phoenix is up 4 percent. These figures are in marked contrast to two of the West's greatest urban areas, Los Angeles and San Francisco, each of which is up less than 1 percent.

Positive changes in employment tallies were first noted in summer, 2002 for Honolulu and Phoenix. However, Los Angeles, Long Beach and San Francisco evidenced no turnaround until spring of 2004.

Job growth in Hawaii has spread across all sectors.

Construction employment rose 11.2 percent in Arizona, 9.7 percent in Hawaii and 6.0 percent in California.

Residential construction permits in Hawaii are running 21 percent ahead of last year.

Mon, 04 Jul 2005 17:38:18 GMT

Oahu Housing Boom Not Headed for "Bubble"

Despite rapidly increasing prices over the last five years, local economists do not foresee any "bubble" or boom-to-bust scenario for the Oahu housing market. In fact, they predict this sharp upward trend will continue for at least another year or two.

The price of a typical Oahu single-family home has nearly doubled since 2000. During May, 2005, prices were up $65,000 over those of April. This brought the median sales price to $610,000.

One 14-year-old Oahu home recently listed at $875,000. In August, 2003, it was sold at $402,000, and then again in August, 2004 for $660,000. Such increases are common across the island.

At worst, experts like Paul Brewbaker, Bank of Hawaii Chief Economist, and former state Council on Revenues Chairman Mike Sklarz believe any housing price peak would most likely be followed by a leveling-off effect, rather than a sharp drop. Another expert, Mike DeMello of Pacific Locations, said he, too, is reassured by the real estate market's momentum. All three expect the rising price trend to continue.

The notion that home prices will not collapse is bolstered by Hawaii's economic outlook. It projects the state's inflation-adjusted gross product to increase about 2.5 percent annually through 2008.

The concept of supply and demand is a key factor affecting Oahu's housing market. Island construction has been limited by Hawaii's land permitting process. Relatively few new homes have been added annually, while purchases have reached record levels. Nonetheless, demand continues to increase, primarily driven by low interest rates. Hawaii's steady job growth and population increase have also generated more buyers.

Likewise, more and more baby boomers are investing in Hawaii real estate. This group comprised 23 percent of island home buyers in 2004. Many have cashed-in poorly performing stocks or tapped-into existing mainland home equities to purchase income properties and dream homes for retirement.

Studies confirm that most housing booms do not lead to busts. Recent findings by The Federal Deposit Insurance Corp. determined that in the 54 housing booms nationwide from 1978 to 1998, 83 percent did not result in busts. Further, even after those booms had slowed, prices continued to rise by an average of 2 percent per year over the next five years.

Sun, 26 Jun 2005 03:57:51 GMT

Hawaii Workers Earning More in 2005

As expected by local economists, personal incomes on the Islands rose sharply during the first quarter of 2005. The 6.9 percent increase was recently reported by the U.S. Bureau of Economic Analysis.

Strong showings within the construction, real estate and tourism sectors are largely responsible for the current economic upswing. Another factor was a 2.9 percent rise in jobs during this time frame.

During all of 2004, personal incomes increased only 3.4 percent. University of Hawaii economist Carl Bonham commented:

"The best part for us is we seem to be on track.

Sun, 19 Jun 2005 22:31:58 GMT

Kapolei: A Real 21st Century City

Located only 20 minutes west of Honolulu International Airport, the master-planned city of Kapolei is the fastest growing area in the state of Hawaii. It is also the focal point for Oahu's future growth, with cutting-edge technology that is highly attractive to businesses involved in international trade and commerce. Investors are keenly eyeing Kapolei's tremendous growth potential.

Technologically smart and globally connected, Kapolei already enjoys a strong mix of business activities ranging from high technology, financial and healthcare companies to restaurants, retail, professional and personal services and entertainment. The city is centered about an 890-acre urban development that will ultimately provide 7 million square feet of office and retail space.

Of special note, Kapolei's mid-Pacific geographic location and state-of-the-art telecommunications infrastructure are very attractive to international companies wanting to do business with the U.S. mainland and Asia on the same business day. Here, the Kapolei Teleport is a unique asset that enables Hawaii to "see" North American satellites invisible to Asia, as well as Asian satellites not visible to North America. The result: Kapolei-based companies can reach widely separated global markets quickly and easily. Said Don Omura, Vice President of Total Resource Management, Inc.:

"Kapolei is the ideal platform for our entry into the Asian market, specifically China, Japan and Korea."

On the housing front, it was recently announced that 492 affordable homes will be built in Kapolei, beginning in July, 2006. The project is designed to help ease Oahu's shortage of rentals and for-sale homes. Governor Linda Lingle affirmed her Administration's commitment to create more affordable housing units:

"We are excited to move forward with this project in Kapolei," she said.

Also, in other Kapolei-related news, Ko Olina Resort & Marina recently announced its plans for a billion dollar development that will feature a world-class aquarium. The 642-acre resort will include a golf course and seven man-made lagoons. The aquarium will be situated on a 25-acre site. Its adventure lagoon will include both shark-encounter and reef-encounter programs.

Sat, 11 Jun 2005 22:52:22 GMT

Big Island Homes: More for Your Money

While appreciating 21.7 percent over May, 2004, Big Island homes still remain the most affordable among all Hawaiian Islands housing. Here, buyers commonly get more land or residential space for their money, as single-family homes under $400,000 are in ample supply.

Local real estate expert Gary Davis commented:

"The Big Island has literally been discovered in the last few years. We're getting lots of people who were looking to buy something in Hawaii and found that prices in Maui or Kauai were too expensive."

Big Island houses are even selling for less than condos on the Island. In May, 2005, the median price of a house was $371,000, up from $304,761 in May, 2004. The median condo price was $414,250 in May, 2005, as compared to $280,000 12 months earlier. Condo prices were ramped-up mainly due to a large influx of second-home and investment buyers.

The Big Island's single-family home inventory has increased steadily as both luxury and moderately priced home projects have been completed.

Sat, 11 Jun 2005 08:55:32 GMT

Hawaii Job Totals Set New Record

A record 594,700 people were employed in Hawaii in April, 2005, according to the latest figures. This represented an increase of about 15,000 workers over April, 2004.

Nearly 6,800 jobs have been added during the first four months of 2005. Over the last five years, Hawaii has added approximately 46,000 jobs. These numbers do not include active duty military personnel or farm laborers.

As Hawaii's economy has rapidly expanded, large numbers of jobs have been created, especially in construction, retailing and tourism.

According to the U.S. Department of Labor, government supplies 119,000 jobs as the state's largest employer. It is closely followed by the tourism industry, which accounts for another 106,000 jobs.

Thu, 09 Jun 2005 04:56:44 GMT

Retiring Boomers Plan to Buy New Homes

Many baby boomers want new homes as they retire and take on new lifestyles. This was one of the key findings in a recent survey commissioned by home builder Del Webb. The company regularly monitors the attitudes of this ever-important customer group between the ages of 41 and 59 years old.

Jacque Petroulakis, spokewoman for Pulte Homes, said:

"This market segment is so important for so many reasons."

There are approximately 77 million baby boomers in the United States.

The survey's data also indicated the following:

Fifty-nine percent of the boomers age 41 to 49 want to buy a home for retirement; half of all boomers 50-59 are planning on doing the same.
Social security is a big concern for many boomers, as 62 percent age 41 to 54 believe the system is "in crisis;" seventy-five percent of the group will not rely entirely on social security to fund their retirement.
One-fourth of the non-retired boomers age 41 to 54 believe they will end up retiring later than expected due to social security worries.
The rising cost of health care in retirement was the primary concern of all respondents.
All ages indicated their number one retirement activity would focus on travel. Other planned activities included learning new skills, exercising, volunteering and sharing time with friends.
Some boomers will continue to work after retiring, either because of money needs or a simple desire to stay active.

This is an excellent time for wise investors and future retirees to take a serious look at the exploding housing markets in both Hawaii and Arizona!

Sat, 04 Jun 2005 23:26:37 GMT

Oahu Home Prices Jump 35 Percent Over 2004

Oahu home prices soared 35 percent in May over a year ago, as median prices climbed to $610,000 for single family homes and $265,000 for condominiums. In May, 2004, prices were $445,000 and $195,000, respectively.

Home prices have more than doubled, islandwide, since 2002.

In a related development, the number of Oahu homes and condos for sale dropped for the first time since 1997. The reduced figure did not reflect any softening of demand, but rather a lack of inventory. Nonetheless, Herb Conley, co-managing director of Coldwell Banker Pacific Properties, believes the number will soon rebound based upon transactions in escrow. Conley also said:

"There's going to be continuing pressure on prices to increase with demand the way it has been. It's the supply side that's driving the prices up at the moment, because the demand is still strong."

So far in 2005, $2.18 billion in Oahu residential real estate has been sold, an increase of 30 percent over the same five months in 2004.

Single-Family home prices have risen similarly on neighboring islands: Maui, up 36 percent; Big Island, up 34 percent; Kauai, up 14 percent.

Fri, 03 Jun 2005 03:52:50 GMT

Homes Now More Affordable Than in '80s and '90s

Single-family houses are now more affordable than they were ten or more years ago, according to a recent study by the Federal Reserve Bank of Chicago. The data also tends to refute speculation that a real estate "bubble" could be just over the horizon.

In 2004, the monthly mortgage payment on a median priced home was covered by less than 16 percent of a median household's income. This figure was lower than those of 20 percent and 18 percent for the mid-80s and early 90s, respectively.

As written by senior economist Richard Rosen in the Chicago Fed Letter:

"The increase in housing has come at the same time as mortgage rates have declined and incomes have increased. These two factors have kept housing affordability for the United States as a whole roughly constant as housing prices have increased."

Likewise, other federal officials, including Chairman Alan Greenspan, have stated they do not foresee a national housing bubble that will burst.

Sat, 14 May 2005 23:17:59 GMT

Oahu Homes: No Boom-to-Bust

Even though the median price of a single-family home in Oahu's red-hot market is approaching $600,000, industry experts do not foresee any sudden slowdown in sales activity or prices. On the contrary, the demand for homes is expected to remain high.

Key factors here are Hawaii's rising wages and the economy's positive long-term outlook. Also, because of restrictive island land-use laws, county leaders have not formulated plans for new housing developments on a large scale.

Carl Bonham, University of Hawaii economics professor, recently said:

"All of the properly entitled land is built out, and that means prices will keep going up over the longer term. There's not a lot of risk of there being too much product."

Wed, 11 May 2005 04:15:45 GMT

Hawaii Investor's Strategy Pays Off

In a recent letter published by the Honolulu Star-Bulletin, a California-based investor outlines the factors he considered in purchasing an Oahu home in 2000 that has since appreciated by approximately 120 percent. Shortly thereafter, he used the same strategy in buying a Big Island home that has increased by 60 percent:

Spike in Hawaii housing prices was predictable, will continue

I bought my home in Kailua in 2000, anticipating that this was going to happen. It took four trips to find something reasonable.

Three major factors are all coming together at the same time here in Hawaii. First, interest rates dropped from 8.5 percent to a record low of 5 percent, and people ultimately buy on monthly payments, not on price. Two, the baby boomers are using this as an opportunity to get out of the rat race in mainland cites, either by refinancing or selling their homes that they live in. Three, the economy in Hawaii has corrected, and then some.

All three of these impending and foreseeable circumstances led me to fly to Hawaii four times from 1998 to 2000, to purchase a home on Oahu, and on the Big Island as my future retirement home. This is just the beginning. There are 75 million baby boomers ready to retire, and looking to leave places like Los Angeles and other cities that have demographic problems with infrastructure, housing costs, traffic, etc.

I love Hawaii and everything about it. The challenges are there, to be sure. We just have to remember who we are and help each other whenever possible.

The Legislature also has to perform and think "outside the box," and that is a really tough thing to do. I give them a lot of credit for their efforts so far! Aloha.

Gary Castner
Los Angeles

Sat, 30 Apr 2005 23:58:05 GMT

Big Island's Puna Frontier Land Rush

After nearly 15 years, a second and more rapid investment boom is now underway amidst the Big Island's vast Upper and Lower Puna subdivisions. During the first "boom" in the early 1990's, developers and speculators carved up large tracts of land into 70,000 lots in this area that is roughly the size of Oahu. However, prices did not accelerate nearly as fast or by as much during the earlier land rush.

Even in Hawaii's hot real estate market statewide, investment attention is clearly drawn to the fast-accelerating prices of vacant Puna lots. The median price for a lot in March 2002 was $7,375. That figure jumped to $14,700 in March, 2004, and $32,500 twelve months later in March, 2005 as 452 transactions closed.

Historically, the Puna subdivisions represented the one place where a regular island restaurant or hotel worker could still buy land and build a house. In earlier years, mainland buyers were not focused on the area, but that is certainly no longer the case: many are now quickly purchasing lots and building homes to live in or rent out.

In 2004, building permits were issued for 868 new Puna homes. That figure was about equal to the total number issued for the entire island in 1998.

Sat, 19 Mar 2005 18:46:40 GMT

Huge Demand for Hawaii Business Property

Hawaii's soaring commercial property market generated sales of $3.55 billion in 2004, up 67 percent over the $2.13 billion tallied in 2003. This decade-high figure resulted from a multitude of sales involving hotels, shopping centers, office buildings and other property.

Mainland investors accounted for 80 percent of the transactions, according to the Honolulu real estate brokerage Colliers Monroe Friedlander. Low interest rates, Hawaii's strong economy and a shortage of investment options elsewhere were key factors influencing the high activity levels. Mike Hamasu, Colliers research and consulting director, said:

"Mainland investors are demonstrating a growing appetite for Hawaii commercial real estate and they continue to scour the state for likely investment targets."

In a similar light, Hawaii Business Online reports that 2005 should be a very good year for Oahu's office landlords. Here, the current year projects the conversion from a tenants' market to a landlord's market.

Tue, 15 Mar 2005 19:59:42 GMT

Honolulu: One of Five Safest U.S. Cities

A new safety study ranks Honolulu among the safest cities in the United States, according to Mercer Human Resource Consulting. The data also lists Honolulu as the 45th safest in the world for crime levels, personal safety and internal stability.

Honolulu was listed among the five safest cities nationally, along with Houston, Lexington, KY, San Francisco, and Winston-Salem, N.C.

The study evaluated 215 key global locations.

Tue, 15 Mar 2005 01:07:00 GMT

Hawaii's Jobless Rate Lowest In All 50 States

With an unemployment rate of 3.3%, Hawaii posted the nation's lowest jobless rate for 2004. This data, reported by Pacific Business News, was just released by the federal Bureau of Labor Statistics. As such, Hawaii enjoyed a rate significantly below the national unemployment rate of 5.5%.

Key factors in this #1 ranking were Hawaii's hot real estate market, strong tourism, and military and civilian construction...as they combined to create thousands of new jobs.

Economists generally consider an unemployment rate of 3% to be the equivalent of "full employment."

Wed, 09 Mar 2005 22:10:45 GMT

Big Island: New Homes at Half Price

A group of Kona companies have plans underway for 100 affordable new homes at about half the price of a typical West Hawaii home. Here, factory construction of all interior and exterior walls is a key element in minimizing construction costs. The Honolulu Star-Bulletin article also states:

"The homes, structured as low-rise, four- and eight-unit condominiums, will sell for about $250,000, which includes the price of the land, said Alan Dickler, president of Westpro Holdings LLC."

"In comparison, for West Hawaii homes under $1 million on the market now, the average price is about $600,000, while condominiums comparable to the Westpro units average $450,000."

Assembly of all 100 homes is scheduled for 2005's third quarter at the company's Seascape project, a 10-acre site.

This "modular" construction process is now used in about 70% of Oahu's new homes, and it is increasingly common in mainland construction.

Tue, 08 Mar 2005 00:19:07 GMT

1031 Tax-Deferred Exchange is Valuable Tool for Investors

Real estate investors are afforded a wonderful opportunity to build wealth and save on taxes via Section 1031 of the Internal Revenue Code. Commonly referred to as a "1031 exchange," investors are thus able to:

dispose of a current investment property
apply all equity to aquire replacement investment property
defer regular capital gain tax
effectively leverage all equity into the new property

In general, this mechanism allows investors to accomplish many objectives including increased leverage, diversification, enhanced cash flow, consolidation of property, and freedom from joint ownership. Mary Monday, in an Arizona Daily Sun article, strongly recommends the use of 1031 exchanges:

"If you are thinking about selling an investment property you should consider a 1031 exchange. An exchange offers an investor an opportunity to reinvest the federal capital gains that would normally be paid to the IRS and put that money to work for yourself. Essentially, the exchange should be thought of as an interest-free loan from the IRS; one in which the principal may be increased through subsequent exchanges and may never require repayment, if you plan properly."

Arizona investors, in particular, are using 1031 exchanges to acquire multiple newer properties in and around the fast-developing Greater Phoenix area. Here, the Valley's hottest investment areas include Surprise, Goodyear and Avondale, where new homes are sprouting "like desert wildflowers."

Sat, 19 Feb 2005 23:45:30 GMT

Island Councils Look to Cut Taxes on Homeowners

The Honolulu City Council is reviewing a series of measures designed to reduce property taxes on homeowners, according to the Honolulu Advertiser. The provisions of those bills range from exempting a higher portion of a home's value from taxation, to restructuring the tax and offering credits for those below a certain income level.

Such measures are in line with various efforts across Hawaii in the wake of rising property taxes as home values reach record highs. For example, Oahu's residential properties skyrocketed 26 percent in a year, meaning higher tax bills for homeowners unless tax rates are reduced.

Councilwoman Ann Kobayashi, who heads the City's Budget Committee, said the council is studying one proposal that would limit property tax amounts to 3 percent of a family's income. Another proposal, akin to California's Proposition 13, would only allow the tax rate to increase by a set amount each year.

Meanwhile, on neighboring Kauai, the Mayor and County Council said they would seek their own property tax relief measures. This action comes after 5th Circuit Judge George Masuoka invalidated a voter-approved amendment to roll back property taxes to 1998-99 levels.

Sun, 13 Feb 2005 06:27:34 GMT

Retire To Hawaii!

Yes, you can own and retire to your Dream Home in Paradise!

Hawaii is an incredible location, filled with lush tropical beauty and an idyllic lifestyle beyond compare! Here, you will find the world's finest beaches, magnificent rainforests, and fantastic year-round weather. Also, Hawaii's unique blend of big city and country living, varied nightlife, and relaxed friendly lifestyle make "the islands" a true Paradise. Read more

Sun, 13 Feb 2005 01:17:20 GMT

Isles Rank #1 in Broadband Usage

Honolulu has the highest percentage of broadband internet users when compared to 75 other U.S. metropolitan areas. This new study, conducted by Scarborough Research, showed that 52% of homes access the internet via broadband connections, as opposed to the national average of 33%. This equates to 316,380 Honolulu people using high-speed connections.

Gary Meo, head of Scarborough's Internet services division, said Hawaii's geographic location likely plays a part in islanders opting to surf the web faster with this technology. Said Meo, "For people in the islands, it's a good communications tool. People who have broadband connections tend to be higher educated, better employed and have higher incomes..."

Understandably, islanders rely heavily on the internet for round-the-clock information, since they live several time zones from the U.S. mainland.

Thu, 03 Feb 2005 05:46:47 GMT

Oahu Median Home Price Tops Half a Million

For the first time, the median price of a previously owned single-family home on Oahu rose to the half-million-dollar level in January, 2005. Here, the median of $505,000 represented a 26.3 percent increase over the $400,000 measure of January, 2004, according to data supplied by the Honolulu Board of Realtors today. Realtor board President Judith Kalbrener described these figures as a "robust start" for the current year.

Also, with 570 transactions, Oahu condominium sales were up 2.2 percent over the 558 sold in January, 2004. The median condo price in January was $224,000. In 2004, the figure was $187,000 for the same month.

Sun, 30 Jan 2005 21:17:58 GMT

Interisland Ferry on Track to Sail in 2007

Hawaii Superferry, a new low-cost alternative to air travel, recently secured $200 million in private and governmental funding for its proposed 2007 interisland service. However, operations are contingent on an additional $40 million for needed upgrades on four state harbors. Those funds are now being considered by the state Transportation Department.

The plan includes the building of two $80 million catamarans that would run between Oahu, Maui, Kauia and the Big Island. These vessels would be capable of carrying up to 866 passengers and 282 cars. Transit time would be three to four hours, and fees would be about half the cost of airfare.

Wed, 26 Jan 2005 05:45:50 GMT

Hawaii Military Housing Gets $25 Million Boost

Hawaii's red-hot real estate market will further benefit from a recent $25 million bump in housing allowance funds for U.S. military personnel. More than 19,000 island military families will be helped by this 8% increase. This boost comes amidst a multi-billion-dollar federal program to construct and renovate military housing across the state.

Military families choosing to live off-base receive a monthly housing allowance that can be used to pay either rent or a mortgage. In a tight rental market, this increase could give military families an edge against civilian competition. Also, among property managers, military personnel enjoy reputations as reliable, promp-paying tenants who do not leave suddenly.

Hawaii's military families will now receive between $926 and $3,127 per month for their housing, an annual average of $17,630 per family in 2005.

Mon, 10 Jan 2005 03:32:19 GMT

Tsunami Info...

Here's an interesting link from the Sydney Morning Herald (got it from a friend in Australia)...

Waves of Devastation

http://www.smh.com.au/tsunamiflash/index.html

It shows exactly how the waves moved across the Indian Ocean, impacting various countries. Also, click on "Impact Indonesia," Impact Sri Lanka," "Anatomy of a Tsunami," etc. for regional slide shows, & other info.

Needless to say, the devastation is pretty incredible...

Sun, 02 Jan 2005 03:16:56 GMT

Mainland Holdiay Visitors up 10 Percent

This holiday season, Hawaii visitors from the U.S. mainland were up 10 percent, according to industry analysts. In some cases, it was necessary to turn away customers, because island-bound planes were already filled to capacity.

Across the nation, December, January and February leisure travel is expected to increase by 2.5 percent over that of a year ago.

Sat, 25 Dec 2004 07:22:35 GMT

Many Californians Considering Other States

According to a San Francisco think tank, one-fourth of all Californians are thinking of relocating to another area, even out-of-state, due largely to the cost of housing. Significantly, half of those under 35 are seriously considering making a move. This group constitutes the state's prime labor force. Many are simply overwhelmed by the median price of a single family home: $465,000. Only 19% of California's population can afford to buy such a house. Across the board, state home prices rose 31% during the past twelve months.

Not surprisingly, many first-time home buyers and other investors are focusing on the fast-developing Greater Phoenix area, where spacious new homes can be purchased for roughly 40% of the cost of a California dwelling. And even in many parts of Hawaii (Oahu & the Big Island), median home prices are still lower than those in California.

Thu, 23 Dec 2004 08:58:39 GMT

U.S. Baby Boomers a Powerful Force

Stating that, "Many fortunes have been made by following the 'Baby Boomer generation,'" The Mature Market reports that many American companies are now faced with a massive demographic shift as many boomers are now in their 50s. It was this 76-million strong contingent that rushed to buy hula hoops and Frisbees in the 1950s, jammed college admissions in the 1960s, and sent real estate prices soaring in the 1970s and 1980s. By 2010, fully one-third of the U.S. population will 50 years of age or older.

Prudent, forward-thinking businesses in all sectors must carefully meet the needs of this influential, affuluent niche to maintain their success.

Big Island has "Vast Potential"

Thu, 23 Dec 2004 08:00:57 GMT

Big Island has "Vast Potential"

The Honolulu Advertiser reports on an array of changes taking place on the Big Island...changes underlining the vast potential of this sleeping giant. Construction is booming, and homes are selling at a record pace. Contractors are back-logged with projects. Nursuries are springing up all over to meet the demands of landscapers. While portions of Hilo still retain a country atmosphere, it's modern shopping mall is bustling with activity. Well-known retailers include Wal-Mart, Sears, Borders, and Ross stores. Home Depot is on the way. Kailua in Kona, once a quiet fishing village with one street, now sports hotels, shops and tour buses. Likewise, Waimea is no longer a "cowboy" town, as it now it now showcases elegant mansions, art galleries, stylish shops and traffic lights.

Despite these changes, so much of the Big Island's potential remains untapped. Existing real estate appreciated rapidly during the last two years, and more developments are on the horizon. Investors and future retirees would be wise to keep a close eye on this, the largest of the Hawaiian Islands.