About Kamuela's Kohala Ranch

The geographical area where I do most of my real estate business runs from the resorts of the Kohala "Gold" Coast up to the rural northern tip of the Big Island of Hawai'i, past the towns of Hawi and Kapa'au. The two-lane highway parallels very close to the oceanfront during the stretch from the Kohala Waterfront subdivision past Kohala Ranch on the mauka side, until about the park at Mahukona. That makes it one of my favorite places to spot whales as I drive by in the winter season...and of course the buyers of properties for sale along this stretch will get to watch whales all day long!

Oceanfront public access at Kaiholena is walking distance from the highway for up-close whale watching.

During the past year large chunks of the coast were acquired for conservation purposes, extending Lapakahi State Park and preserving oceanfront stretches some estimate may have the largest concentration of historic sites in the Hawai'ian islands. Hawaii's State Legacy Land Preservation Commission has just designated as its top priority for 2011 the purchase of two of the three remaining parcels at Kaiholena (listed for $6.5 million on the open market). These oceanfront parcels command premium prices despite being completely "off-grid"...HELCO electric lines stop at Kohala Ranch, and there is no county water, telephone or cable service.

It was exactly along this stretch that I saw the first giant splash of a humpback breaching this season.

Surprisingly, two parcels in the small, 11-lot Kaiholena Mauka subdivision just the other side of the highway are listed for bargain basement prices compared with the ocean-side ($325,000 for 19.58 acres!), despite being only a short walk from the ocean along a dedicated public access trail.

Kaiholena REO is a Best Buy at $503,000 (MLS 240416)

The best buy however, is the one home already built in the subdivision. This home is now for sale as an REO (bank-owned) property at a listing price of only $503,000 for an 1884 sq ft residence on 7.6 acres PLUS the adjacent parcel for a total of 16 acres! Having two lots means the buyer could build a second residence for guests or extended family. The highway below is not visible from the house, which means you can watch those whales as if you were on the oceanfront.

The subdivision has a well in place that produces brackish water (the previous owners told me they used it for everything except drinking water, even brushing their teeth) and the home has a photovoltaic system. Cell phone reception is good and Internet available via verizon wireless card.

By the way, I have detailed information on the property including a survey map and lab results on the well water from when the property was for sale before the foreclosure at an asking price of $975,000. Move this home just south to Kohala Ranch, and that's what you'd expect to pay for it. Call me if you have questions!

Cattle graze on 1,000s of adjacent acres; this property would also be perfect for a horse or goats...or adopt some of the donkeys being relocated from the Waikoloa Village area!

Although the landscape in this dry, sunny Big Island location is not very green, the home certainly offers a "green" lifestyle! Living completely off-grid might not be everyone's dream, but it would make it an easy second or vacation home. Because of its proximity to "civilization", the previous owners found it simple to rent a back-up generator or drive to Waimea for bottled drinking water.

A hui hou,

Beth

Kohala Ranch, Kohala Estates, Kohala By the Sea, Kohala Waterfront - four communities just minutes from the beaches and resort amenities of the Kohala Coast!

A Just north of the famed Kohala Coast resorts on the Big Island of Hawaii lies the district of North Kohala. The three gated communities of Kohala by the Sea, Kohala Waterfront, Kohala Ranch--plus the gate-less neighborhood Kohala Estate -- are an obvious choice for newcomers ready to step beyond resort living. Twelve months ago there was a surplus of homes for sale in these communities as sales had ground to a halt. Over the past twelve months there have been no fewer than 32 real estate transactions - 13 land parcels sold and 19 residences.

The houses ranged from a $450,000 starter home in Kohala Estates to a $2.6 million ocean view estate in the lower Heathers section of Kohala Ranch. The average sales price was almost $1.3 million. Very few of these were distress sales, but real estate prices are still quite attractive compared to the market peak.

There are currently only three homes in escrow: two short sales (one in Kohala Estates for under $500,000 and one at the Summit of Kohala Ranch that looks like screaming deal at $1,250,000) and the third is an REO (foreclosure) in Kohala By the Sea at $706,000.

Among the 29 active listings in these communities, a dozen houses were featured on a broker caravan last Friday. My "best buy" picks include:

• a bank-owned equestrian estate at the Kohala Ranch Summit that once was on the market for $3 million and now is at a crazy $1,425,000 with 8-stall barn and separate 2 bedroom caretakers cottage
• a contractor's own home in the Meadows with both blue ocean and green mountain views way below replacement cost at $1,099,000
• a home in the lower Heathers whose location makes you feel as though you are almost oceanfront. I love everything about the home except the kitchen, which has a challenged layout. But who cares when you can barbecue around the pool? Now reduced to $1,750,000.

A hui hou,

Beth Thoma Robinson R(S)

Direct: 808.443.4588 Email: beth@hawaiilife.com

I blogged over on AlohaLiving about the recently released NAR survey of second home buyers. Although nationwide the respondents indicated that 30% of them plan to use the second home as their retirement home, in my experience that is true of an even higher percentage of buyers looking at real estate here on the Big Island of Hawaii today. I'm surprised how many people for whom retirement is 10 years out are looking for property today. They are savvy enough to know that the real estate market offers them an opportunity that might not be there closer to their anticipated retirement date.

Some prospective buyers arrive having a clear idea of what they want--perhaps to downsize to a resort condo near a golf course and lots of options for dining out, perhaps to own a coffee farm in a rural area. But many buyers aren't sure at the outset, and other times their ideas and objectives will shift midstream as a result of what they learn during the real estate search process itself.

For example, last year I had buyers who were torn between two houses. They liked the floorplan and swimming pool at one house, but preferred the location of the other. They solved their dilemma by purchasing a lot where they can build the retirement home of their dreams.

This year I worked with buyers who were convinced they wanted the flexibility of a condo, the ability to be able to close the door and travel for extended periods without worrying. But after staying at a resort condo for six weeks, they realized they didn't like having a continual stream of vacationers coming in and out of other condos in the building and generally behaving as people do on vacation. Privacy became a more important factor in their minds. Once they started looking at single family homes, the husband started getting itchy to build. Now they are looking outside the resorts and asking "should we buy or build?"

The simple answer is: it depends.

Here are some of the factors to consider.

1. Acquisition cost. In the luxury and resort areas of the Big Island today, there are high end (meaning $3 million, 10 million and up) homes built on spec or bought for investment at the wrong moment, Some of them can be purchased for less than the cost of construction. In other cases, more modest homes were bought as fixer-uppers, and the market has brought prices down to far less than they have in the home. In these cases, it is clearly cheaper to buy a completed home rather than to build or remodel.

2. Carrying cost. Maintenance and property taxes are signficantly higher on a residence than on raw land. Depending on where the property is located and your own plans for use, it might be possible to rent on either the long-term or vacation rental market, but won't necessarily generate enoughincome to offset the additional carrying costs.

3. If you aren't paying cash, financing options are very different for land versus homes versus condominiums. Most land loans will require that you build and refinance within three years.

4. Where will you live or stay while your home in Hawaii is being built?

5. Do you have the experience and patience to successfully manage the construction of a home, especially if you can't be here to supervise and make the seemingly endless daily decisions your contractor will ask of you?

There are wonderful lots and acreages available in North Kohala (here are some examples) and some houses listed below replacement cost (call or email me for suggestions in your price range).

A hui hou,

Beth

Beth Thoma Robinson R(S)

Cell: 808.443.4588 Email: beth@hawaiipalmproperties.com

Thought for the day: April showers bring May flowers...