THE CONVERSATION
According to a report from the University of Hawaii Economic Research Organization, Oahu has a very small supply of developable land. So when a development does happen, it is actually good for the real estate industry. Here are four reasons why...
(1) Increased property values: One of the primary benefits of redevelopment is the potential increase in property values. When a neighborhood undergoes revitalization and improvements, such as the development of new amenities, improved infrastructure, or modernized housing, it tends to attract more buyers. As a result, the demand for homes in the area rises, leading to higher property values. Homeowners can take advantage of this appreciation by potentially selling their homes at a higher price or using the increased value as collateral for loans or refinancing.
(2) Enhanced community amenities: Redevelopment projects often focus on improving community amenities and infrastructure. This can include the construction or renovation of parks, schools, hospitals, shopping centers, recreational facilities, and transportation networks. These enhancements not only make the neighborhood more attractive but also provide residents with better services and a higher quality of life. Homeowners can enjoy the benefits of living in a well-equipped community, which can positively impact their daily lives and the desirability of the area.
Here's an example at Hoopili. Let's not forget the amenties being built at Koa Ridge too.
(3) Improved neighborhood aesthetics: Redevelopment initiatives often prioritize improving the visual appeal of neighborhoods. This can involve renovating or replacing outdated and dilapidated buildings, enhancing landscaping and green spaces, and implementing design guidelines to ensure consistent architectural standards. These efforts can greatly enhance the overall aesthetics of the neighborhood, making it more visually pleasing and desirable.
(4) Increased economic opportunities: Redevelopment projects can stimulate economic growth in the surrounding area. As new businesses and commercial spaces are developed, they can attract investment, create job opportunities, and boost local commerce. This can have a positive impact on homeowners by increasing employment options, fostering a vibrant local economy, and potentially leading to higher incomes for residents. Additionally, the increased economic activity can contribute to a sense of community pride and financial stability, which can indirectly benefit homeowners through a stronger overall housing market.
Here are some re-development projects:
Let's not forget that Kaka'ako and Ward Village was once filled with warehouses. It'll be interesting to see if developers will continue to build luxury or if they will shift to a different product.
TIDBITS
When you buy a condo, you become a member of the homeowner's association. This means all the owners must pay a monthly maintenance fee. The maintenance fee covers the association's current expenses and reserves (funds for future common element projects).
Your monthly maintenance fee is based on the percentage interest in the common elements. This means each owner is responsible for paying their fair share of the common expenses. Common expenses can be elevator maintenance, landscaping, pool cleaning, and purchasing new gym equipment. Regardless if you use these amenities, you still have to pay your monthly maintenance fee.
Here are some other things to know about maintenance fees:
Make sure you pay your maintenance in full and on time. If not, the association can assess a fine. Interestingly, the Hawaii Supreme Court recently ruled that condo association non-judaical foreclosures are illegal.
Maintenance fees usually go up every year since the costs of good services also increase too.
You should attend your homeowners' association meetings so you know how the board of directors are managing the condo.
Within the governing documents, you will see how the association determines your percentage interest. This determines what your monthly maintenance fee is.
HOME MAINTENANCE
I recently repaired a handful of screens at my house and it was an easy DIY project. Here are some tips:
If the screen it bent, you should buy a new frame. It might not be a good idea to re-screen a bent frame.
Measure your frame because the screens come in different dimensions. Buy a slightly larger screen because you can always trim it down.
As I often advise, buy quality tools and products. This includes a sharp knife or scissors to cut/trim the screen, a spline roller, and the screen itself. I personally like Phifer SunTex 80 because the screen is thicker and it blocks out 80% of the sun and heat.
If you buy a Phifer screen, the label will tell you what size spline to purchase.
AUGUST MARKET STATS
The low mortgage rates of yesteryear have created a golden handcuff effect on homeowners. Inventory still remains low because owners don't want give up their current mortgage rate. Overall, housing prices have steadied. However, desirable properties are still selling for top dollar.
OPPORTUNTIES
Greg and I recently listed 5-bedroom/3-bathroom single-family home in Kahala. In addition, we are prepping for a split level condo in Kailua. Please let me know if you have any questions.
Stay safe and health.
-Ryan Oda
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