Lynda Gill’s Poipu, Kauai, Hawaii Real Estate at Pacific Ocean Properties

Kauai Real Estate News

Kiahuna Plantation (LH) #234 List Price $239,000 SOLD for $225,000. This unit has been nicely upgraded and has a "peek a boo" view of the ocean. Located in building #36 this unit is a Garden View Deluxe and had a lot of direct owner bookings that came with the sale.

My listing at the Kiahuna Plantation (LH), #234, SOLD last Friday for $225,000, the list price was $239,000.  This unit is a one bedroom one bath remodeled ground floor unit with a little peek-a-boo view of the ocean.  Really nice direct rental income and turn-key interiors.  Did you miss out on this one?  Give me a call if you’d like info on another unit in this complex.

For the rest of the island we had a great week for properties going into escrow and an impressive number of properties that sold.  The number of properties that came on the market is fairly low.  The National Association of Realtors just last Thursday reported that existing home sales were down in March from February but continue to outpace last year.  Inventory on a national level is tightening and home prices are showing signs of stabilizing.  For the month of March the total existing home sales were at 3970 million, in March of 2011 it was 3750 million.

For a list of what sold, went into escrow and came on the market CLICK HERE FOR SPREADSHEET

Vacation Home Sales Surge In 2011

This entry could also be called “Why People Bought A Second Home”  The data coming from the National Association of Realtors on the year end statistics for the secondary vacation rental home market for 2011 is favorable.  Sales jumped in 2011 and now has the highest market share since 2005.  Prices, as we have seen here in Kauai, are beginning to stabilize and will continue to do so the more inventory is bought up.

The National Association of Realtors 2012 Investment and Vacation Home Buyers Survey showed second home sales surging 64.5%.  In 2010 749,000 second homes sold and in 2011 1.23 million!  In 2011 11% of all transactions were vacation homes and most were paid for with cash.  The median price (on a national level) was down 19.1% in 2011 the average price was $121,300 and in 2010 it was $150,000.

The main motive for people buying investment homes and vacation rental homes?

Lifestyle.

82% said the primary reason for buying was to use the property themselves for vacations or as a family retreat.  30% were going to use it as a primary residence and only 22% plan to rent it to others.

This might surprise you if you are looking to buy a place as a vacation rental home in hopes that you’ll make a profit off the rental income.  The main motive needs to be a lifestyle choice first and always.  Vacation rental properties have amenities and other expenses that make them a different animal than a long term rental property near where you live.

I’ve personally been an owner of a vacation rental property here in Poipu for 14 years, 6 of those years I was living in California.  The overwhelming statistic that show people buy for lifestyle verses rental income motive I know are correct from a personal and professional standpoint.

If you have any questions on this give me a call.

Sheraton Poipu Beach Renovation Complete

The Sheraton here in Poipu completed their 15 month renovation which cost $16 million.  They upgraded lobby, added new restaurants, banquent rooms, water park and pool.  They have a big banner on Poipu Road for “RumFire” restaurant and bar which is where The Shells was.  The renovation added 25 jobs and they are presently hiring.

Kauai Gets Federal Money For Floods From Barack Obama

When we had the heavy rains last March I heard from mainland clients that it was on the news that there was a “disaster declaration” for theislandofKauai.  I got a lot of concerned calls, emails and text messages.  The declaration sounds a lot worse than it is but there is a reason for it and the reason just came into play this last week.

That declaration is needed to get federal funds for emergency road work when an extreme condition like this comes up.  Last week President Barack Obama approved the disaster declaration and approved federal funds to cover 75% of the costs to repair the damage that had been done due to the flooding.

The county has 30 days to prepare an assessment and they will get 75% of that money with the remaining 25% coming from county or state funds.