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Welcome To Past Answers!
(Answers To Excellent Questions Right Here Online)
Question On Aloha Spirit:
"For a golden aged past life mermaid, where is Aloha the best?"
-- K.D., Livingston, Texas
Answer:
Retirement in the warm water climes of Hawaii sounds just right for you, K.D. The Aloha Spirit is well and alive in every part of Hawaii, so you may want to choose your new Hawaii home site based on other criteria, as convenience, amenities, and facilities, and proximity to the blue ocean and white sand beaches.
-- James Patton, Honolulu
Question On Discounts:
"Do you offer free discount coupons if I use your services?"
-- S.C. Denver, Colorado
Answer:
No. We are aware some real estate firms, even some very large ones, offer non-real estate related incentives to get your business.
At Coco Isle Realty, we do not feel this is a good basis upon which to select an agent to represent you in a purchase or sale of one of your most important assets. We feel this choice should be based on merit, competence, and quality of service rather than discounts on appliances or even "travel" miles. We may produce pens or calendars on occasion with our names, but we certainly do not expect a client to choose us because of our pens or calendars!
If discount coupons or non-real estate related incentives are important, please look at our Close & Fly program. Other than this, the best we can do is be the best for you in Hawaii real estate. We stay neutral in areas not related to representing you well, and we get no payment or reimbursement from the manufacturers or suppliers of goods or non-real estate services, including lenders, airlines, and makers of sundry items you may hear about.
In our overly commercial age, this is our pledge to you. You might say we try to keep it pure. We can, however, refer you over to firms which do offer "loss leaders" or a material incentive if you buy or sell through one of their agents.
-- James Patton, Honolulu
Questions On Land Ownership And Inheritance:
(1) "As a U.S. citizen when I would purchase property in Hawaii, do I own or rent that land?
(2) When you purchase a land spot on Hawaii, can that land be passed on to your heirs?"
-- F.B. Chicago, Illinois
Answer:
(1) On Oahu, when you purchase "fee simple" property you own the land; that is, you get the whole "bundle of rights" normally associated with ownership, as on the mainland. About 93% of houses are on fee simple land on Oahu. When you buy leasehold property, someone else owns the land and you pay them lease rent according to the terms of the lease, and the term of the lease, which usually had 55 years when it started. I have written an open letter addressing some aspects of the current, changed leasehold situation. Citizenship does not affect the ownership of land available for purchase.
(2) Yes, you can pass on by will your rights to land. The question is what those rights are. If the land is fee simple, you pass on the same full "bundle of rights" you enjoyed to your heirs, just as you do in other parts of the United States. If the land is leasehold, you pass on the rights of the lease, and your heirs enjoy the same rights you would have had, and for the same length of time. Check with an attorney for specific details.
-- James Patton, Honolulu
Question About Foreclosures:
"Do you have foreclosures in Hawaii I can buy and can I reduce my housing cost this way?"
-- D.L. Seattle, Washington
Answer:
There are quite a few foreclosures in this buyer's market and our sluggish economy. There are two kinds -- the "pre-foreclosure" and the REO's ("real estate owned").
I find that the only people who do well in pre-foreclosures are the ones who specialize in them and make them a business. They study the market and the available foreclosure properties. They go to many auctions and bid. They may watch non-professionals, people who were not specialists, bid the price close to (or beyond) market value and drop out for next time, waiting for the right one. So, most people don't really come out, since they could not choose the property and it can be difficult to get a below market price. Furthermore, the property in effect chooses the purchaser (not the reverse) by being a foreclosure. There is a high likelihood the property had qualities the purchasers didn't want (as wrong or poor location or bad shape), but they went ahead anyway because they thought the price was good.
In addition, properties that don't have problems of some sort generally don't get to foreclosure. Virtually everything sells on Oahu if it is priced right in the first place. Foreclosure usually means the owner owes the bank more than they can net by a market price sale. These days, sellers in this position often ask the bank to take a large monetary hit or loss -- the "short sale." The bank sometimes agrees to take less to avoid the costly foreclosure process. If the bank can't take less or says no, foreclosure is a certainty and the property is sold to the highest bidder at an auction. Banks want to be paid in full, and very often open the bidding with what they are owed -- and end up purchasing the property themselves (the REO)!
The REO is generally listed in the Multiple Listing Service (MLS) with a real estate company such as Coco Isle Realty real estate or one of the franchises. You have access to every one of these properties through your professional association with Coco Isle Realty. When representing a buyer, we seek these properties together with you, the buyer. This is where the banks are prepared to take losses, and buyers can pick up bargains.
-- James Patton, Honolulu
Question On Cost Of Living:
"Is Hawaii expensive? How can I decide if I want to afford to live there?"
-- V.G., New York City
Answer:
Here is a principle: People when comparing Hawaii financially to the mainland United States will always find the mainland less expensive on almost everything point by point. You are from New York City, and may find the cost of living in Hawaii quite comfortable (as might someone from San Francisco). For many people, money is the main determinant. A person relocating from a less expensive part of the U.S. mainland -- and needing Hawaii to be equal or less in costs -- probably cannot or should not come here to live.
It works best by looking at goals and looking at it relatively, from the inside -- not overly comparing to what could be gotten at the same price in a less expensive part of the mainland. Paradise costs! Don't forget -- you have to live in that other place to get that other, lower cost! The real question to ask is "What do I really need in housing and how to get the best deal for it? How do I survey the Hawaii scene and focus on the most suitable available properties?" This attitude or approach is how people "win" in Hawaii (other than just being able to be here!). This is an area where I can truly help you. We all have million dollar tastes, but we don't all have a million dollars or anything near it. Fortunately, we do not need money like that to do well on Oahu. We will do well by looking at the overall picture in terms of present needs, long-range goals, and priorities.
Virtually all people relocating to Hawaii, especially the more desirable, amenity-rich Oahu, take a hit in housing and certain aspects of lifestyle over what could have been achieved in the old home area -- even the fabulously rich Doris Duke. Understanding this is a basic screening feature of whether to come or not to Hawaii. It is not just money, but money is a major part. Emphasizing this to you is part of the service. Those successfully relocating to Hawaii in the past -- and there are many thousands -- have decided, "Yes, the benefits of Hawaii make it worth it." I am committed to making it work if you decide you want Oahu. I want your eyes open to the "upfalls" and the "pitfalls" before you come here so there are no surprises except the good ones.
And is it really a surprise that housing in one of the best places in the world to live and prosper is also one of the most expensive? (Well, expensive by U.S. standards but not necessarily by the standards of the world's largest, best cities!)
-- James Patton, Honolulu
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James Patton Toll Free (800) 997-8701 Ilikai
Marina Bldg, #1389, |
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