Welcome to the CoastalOahu Blog.


Current Oahu Real Estate trends, listings and stories of note are posted here regularly.

According to Pacific Business News, "Oahu has fourth-largest military workforce in U.S."

In addition to being good people to have as your neighbors, this statistic is bullish for Oahu property.  For anyone who owns or has owned an investment property on Oahu, or even rented out part of their house, this is no surprise.  Military rental demand is strong island-wide, and is part of the reason why we have some of the highest rents in the nation.  As a percentage of the total workforce, PBN found Oahu to be down much further on the nationwide rankings, but on sheer number, we are fourth.   The government supplies the active duty (there are 38,936 service men & women on Oahu according to this article) with a "Basic Allowance for Housing" that varies based on rank, but adds a big chunk to Military personal's compensation package.  For example, a high ranking enlisted person with dependents such as an "E-9" in 2012 would be entitled to $2,979 per month in additional pay to offset housing.   You can click on this text to find the Deparment of Defense BAH Calculator here 

The September 17'th PBN Article can be found here, which also lists the top 3 largest military workforce areas in the Nation.

 

 

Honolulu real estate market ranks #8 on Inman news' 10 hottest spots for international Buyers

Inman news, one of the most authoratative real estate news sources, rated the 97 largest urban real estate markets based on 2011 data, and found Honolulu (Oahu) to be in the top 10.  This was just behind Manhattan, which rated number 7.   Some of the highlights from the article:

"

8 Honolulu

Total population (2010):    953,207
% of all homes sold that were purchased by buyers with a foreign mailing address in the public record (May '11 - Jan. '12)   3.6%
Median sales price for existing, single-family homes (Q4 '11):   $597,300
Median sales price % change (Q4 '10-Q4 '11):   -0.2%
Median sales price for condominiums/co-ops (Q4 '11): $291,100
Median sales price % change (Q4 '10-Q4 '11):   -6.8%
Top 3 countries of origin for foreign buyers: Japan, Canada, China/Hong Kong
% of people who moved in the past year who were foreign-born and moved from abroad (2010) 5.1%
Walk Score: 63

About one-fifth of the Honolulu metro area’s population 1 year old or older was foreign-born in 2010. Those who were foreign-born and moved from abroad accounted for 5 percent of people who had moved in the previous year -- the third-highest share among the 10 markets and well above the 2.3 percent rate at the national level.

According to an analysis of public records by DataQuick, buyers listing a foreign home address purchased 3.6 percent of homes sold in the area between May 2011 and January 2012. Japan accounted for 58.1 percent of foreign buyers during that time, followed by Canada at 16.3 percent and China, including Hong Kong, at 5.7 percent.  "

The article can be found at:  http://www.inman.com/reports/global-buyers/honolulu

June 12, 2013

Oahu Property Conveyance Tax or "Sales" Tax

Conveyance Tax - When you sell your Oahu Property

 

In Hawaii, it is typical based on the standard Purchase Contract released by the Hawaii Association of Realtors that the seller in a residential transaction pays the conveyance tax or "Sales" tax on that sale.  The tax rates were most recently adjusted in 2009, and have a two tiered residential tax rate depending on whether the buyer is an owner occupant or not.   The owner occupant rate is lower than the non-owner occupant rate, effectively incentivizing sellers to choose the owner occupant buyer over the investor, with all other things being equal.  There is also a progressive increase in Oahu Real Property conveyance tax rates as the sales price increases.

 

Here are the different conveyance tax rates currently on Oahu based on the Property Sales Price:
 
Less than $600,000                          non-owner occupant:  .0015
                                                               owner occupant:      .0010
 
$600,000 or more but less than $1,000,000        non-owner occupant:   .0025
                                                                                        owner occupant:      .0020
 
$1,000,000 or more but less than $2,000,000       non-owner occupant:   .004
                                                                                            owner occupant: .0030
 
$2,000,000 or more but less than $4,000,000      non-owner occupant:   .006
                                                                                            owner occupant: .0050
 
$4,000,000 or more but less than $6,000,000       non-owner occupant:   .0085
                                                                                            owner occupant: .0070
 
$6,000,000 or more but less than $10,000,000      non-owner occupant:   .0110
                                                                                             owner occupant: .0090
 
$10,000,000 or more                            non-owner occupant:   .0125
                                                                      owner occupant: .0100

May 5, 2012

Prices are rising

Pricing pressure seems to be building. Although the market is shifting to a Seller's market, the buying and selling process can still be FUN!!!