Kauai Real Estate Update- I Just listed Halelani G204 and this unit has a great location, is super clean and is ready for immediate occupancy. Located in Puhi your just on the side of Lihue which makes access to everything easy. Priced perfectly at $479,000 this unit will go fast. Contact me for more information on this condominium.
For a complete list of everything that was Sold, Just Listed or went into Escrow last week on the island click here: Kauai Real Estate Activity Aug. 15 to 21, 2022
Facebook Founder Donates $1.8 Million To Wilcox Hospital
Mark Zuckerberg and his wife Priscilla Chan donated $1.8 million to Wilcox Medical Center for technology upgrades last week. Mark and Priscilla own a home on Kauai’s North Shore. This is the fourth time that they have donated to Wilcox Hospital.
The funds will be used to upgrade a CT scanner that was installed in 1999. Wilcox Hospital averages 11,000 imaging scans annually. The new CT scanner will quickly produce high quality images, it has a lower dose of radiation and has faster software.
Who Let The Dogs Out? Kauai Humane Society Wants Answers
A totally senseless break in happened last week at the Kauai Humane Society and there is a $20,000 reward to anyone who can provide information on the perpetrator.
A week ago Sunday one of the workers arrived at work to find 20 dogs running loose in the parking lot 55 more running around inside. A window had been broken and somebody opened up all the kennel doors and then they left. Why this was done no one can figure out.
The dogs had torn into the food bags and the place was pretty much in total chaos. Sadly, a couple of dogs were injured and two had gotten hit when they ran out onto the highway.
Kauai Humane Society is asking for donations to upgrade their security system, donations can be done by going to this website: bit.ly/KHSdonation
Recent Data Refutes Myth About Out Of State Buyers
It’s easy to blame out of state buyers for the rising costs of home prices but recent data shows that it’s just not so. Grassroot Institute of Hawaii recently published “The “Outsider” Theory of Hawaii’s Housing Crisis” and in the report it shows that the data just does not support the urban myth. With data pulled from Hawaii’s Department of Business Economic Development and Tourism it was found that 24.2% of the 25,970 homes sold in 2021 were bought by non-Hawaii residents, Hawaii residents purchased 75.8% (19,696) homes. Additionally, Hawaii Home Sales done by Hawaii Residents has increased for the last decade, mainland investors are on the decline. Between 2010 and 2020 Hawaii Residents went from 66.5% of the buyers to 81.3%. Mainland investors went from 29.3% to 17.4% and Foreign Investors went from 5% to 1.3%.
The impact of almost 25% of the homes sold to people from the mainland/foreign investors has had an impact on the housing market, it can’t but not. But to put the onus on Mainlanders/Foreigners is not productive and, it’s not true.
The real reason for Hawaii increasing home prices
The study revealed something that I think any Realtor and Contractor can tell you; the most significant cause of increased housing costs is: government regulation for both land use and permitting. Speaking to that finding; here is a quote that I just loved from the conductor of the study Grassroots Institute: "....and when we recognize that, we can apply the right medicine, which is to reform our land use and permitting laws here in Hawaii. That would have the biggest impact on being able to open up more housing for our local people, and that would be far better than chasing mythical causes such as the thought that outside buyers are a major factor in the cost of housing in Hawaii."
Kauai Property Taxes Revamped
On the heels of that story this next news is pretty ironic. Kauai County Council passed a bill that will have a three tier property tax system for non-residents. They are: assessed value up to $1 million, $1 and $3 million and those over $3 million. The new rates have not been set yet, this will be done next year. In the 2020 census it was found that there were 5,445 vacant homes on Kauai which is one out of every five homes.
Two Council members spearheaded this bill (No. 2872) which pass last week. One of the council members stated their intent with this bill: “We have low property tax rates compared to the mainland, so it incentivizes mainland investors to park their money in Kaua‘i real estate and make lots of money over appreciated value while paying minimal money in property taxes. It’s a contributor to our housing crisis.”
Kauai the last island to implement the tier system.
On Maui non-owner occupied are taxed at $5.85 per $1,000 of assessed value up to $1 million; $8.00 between $1 and $4.5 million; $12.50 if more than $4.5 million.
O‘ahu has non-owner occupants paying $4.50 per every $1,000 assessed value if less than $1 million. If greater than $1 million it’s $10.5 per $1,000 of assessed value.