Barbara Potts

Good news from aina nalu!

THE BUDGET

The aina nalu Board of Directors approved the 2101 budget, and it was all good news. The AOAO continues to fund reserves for future capital improvements/replacements and meets operational needs; it also allows maintenance fees to be reduced by approximately 6% in 2010. This is good news for owners who have been concerned about the financial condition of aina nalu's AOAO and about their cost of ownership.

GOING GREEN - Savings today, future payoff & good environmental citizenship

Solar panels are being installed on the roofs - there will be 700 panels that will reduce the electricity and gas bills over the next 6 years. At the end of 6 years the AOAO has the option to purchase the system, at which time we could have a ‘free source' of electricity for AOAO/common areas. The plan is to use the cost savings to fund the purchase of the system at the end of 6 years. There is an option for a second phase of panels that could reduce electricity bills for individual condo owners as well. Not only does this reduce power costs, but it reduces the dependence on foreign oil - which is good for the country!

BENEFITS TO THE MAUI COMMUNITY

Last but not least, the Charitable Funds Committee has approved recommended allocations of $2,500 to be donated to the Lahaina Complex After School Enrichment Tutor Project and $1,000 to the Maui Food Bank. We are pleased that aina nalu can contribute to these two community organizations that meet important local needs. This Fund was established by Ironwoods, the aina nalu Developer, so the donations do not come from AOAO funds.

Top 10 Reasons to buy an aina nalu condominium now:

•1. You don't need a car!- Location, location, location - easy walking distance to Front Street in Lahaina Town, with shopping, restaurants/bars, harbor, dive shops, galleries, theatres/shows, library, banyan tree with frequent events/craft fairs, etc. You can walk or ride a bike to any location downtown or to the bus stop one block away and not have to rent a car or spend money on gas!

•2. Gorgeous rooms with full kitchens, spacious stone showers, Bali-style furnishings, flat screen TV and air conditioning in each bedroom and living room and washer/dryer combination in each unit.

•3. Beautiful landscaping with lush foliage and tropical trees right outside your windows - it feels like a spa location tucked away in Lahaina Town.

•4. Two pools (one saline lap pool), a hot tub and spacious and well appointed pavilion that can be used for entertaining or special events.

•5. FREE wireless internet in pool and lobby locations, complementary coffee and newspapers.

•6. Expedia representatives onsite to provide expert advice and all of your activity needs, plus additional amenities for guests and revenue to the AOAO.

•7. It's a short drive to the best snorkeling beaches in West Maui.

•8. The AOAO is reducing maintenance fees by 6% in 2010 and installing solar panels, which will reduce electricity costs and continue the progress in making aina nalu a ‘green' resort.

•9. There are some SCREAMING DEALS - Prices are at a new low -and quite possibly the lowest they will be for the foreseeable future.

•10. You can really enjoy ownership now!

Here are some of the best buys at aina nalu today:

2 bedroom, 2 bath downstairs unit - short sale priced at $259,000

2 bedroom, 2 bath downstairs unit - short sale priced at $269,000

2 bedroom, 2 bath upstairs unit - bank owned priced at $285,000

Search all of the active aina nalu listings at www.alohapotts.com.

Quarter 3 - 2009

Kaanapali Shores Sales Statistics

Below are the sales statistics for Kaanapali Shores for the 3rd quarter of 2009. There were two sales during the quarter:

•· A one bedroom ocean view (#548 - 717 sq.ft.) that closed for $320,000 (not remodeled)

•· A two bedroom ocean view (#603 - 988 sq. ft) that closed for $670,000 (not remodeled).

Prices continue to be influenced by distressed properties on the market. Maui is considered a declining market on appraisal reports. Even though overall activity levels are picking up, there is still no sign that Maui condo prices will increase in the near term.

*Leasehold property

Lee and Barbara of Aloha Realty Group are proud owners at Kaanapali Shores. If you would like more information about buying or selling at K. Shores, call us and find out what makes the Aloha Potts Team different.

The Aloha Potts Team at Aloha Realty Group is certified to list and sell distressed properties.

For more details, contact us at 808-344-5008 (Barbara) or 808-276-8776 (Lee) or email lee@alohapotts.com or barb@alohapotts.com.

aina nalu Sales Statistics

Quarter 3 2009

As of 10/19/09 there are 25 active listings, 11 of which are short sales or REO's (lender-owned) units. During the third quarter, 6 listings were canceled or expired and 10 new listings were added. There is one active listing for 50% ownership of a 2 bedroom, 1 bath unit priced at $225,000. The fractional listings are no longer active on the MLS.

Days on market as of 10/19/09 average 199.

We are aware of more foreclosures in process in Q3 and Q4. The combination of delinquencies, ratio of non-resident to resident owners, the ownership of more than 10% of units by one owner, and other current factors make obtaining financing to purchase at aina nalu challenging.

The Aloha Potts Team at Aloha Realty Group is certified to list and sell distressed properties.

For any aina nalu sales that are closed by the Aloha Potts Team, $100 will be donated to the aina nalu Charitable Fund, which is dedicated to local community assistance. We would be honored to represent you with a purchase or sale of Maui real estate.

Call 808.344.5008 or 808.276.8776

lee@alohapotts.com or barb@alohapotts.com

I attended a Brokers Forum today with the Realtors Association of Maui where John Anderson from Na Hale O'Maui (a community land trust) presented the following information about the growing foreclosure problem on Maui.

According to John, Maui's foreclosure rates are now equal to those of CA, NV, AZ, and FL - the states with disproportionately high foreclosure rates - and pending foreclosures here are increasing by 16% per month. Maui now ranks 9^th in the nation for foreclosure rates.

At the time he prepared his presentation, there were 338 active short sale listings on Maui's MLS and 72 REO's listed. Only 15% of the shorts sales are pending (60), while 36% of the REO's (41) are pending. This makes sense, since even though REO buyers are buying ‘as-is' with no inspections paid for by the lenders, they can get answers from lenders on REO's without having to wait for many months for answers as they do on short sales - especially since some buyers are trying to take advantage of the soon-to-expire 1^st Time Homebuyers' Credit.

As of today, Maui has 494 pending foreclosures, compared to 297 in April, 389 in June and 483 in August. John stated that 60% of the foreclosures on Maui are single family residences, the majority of which are owner occupied. The areas that are experiencing the most foreclosures are Wailuku, Kahului, North Kihei and Lahaina. This is primarily work force housing, and it's a real shame in a county where affordable housing has been such a problem for so long. The next problem Maui County will face is that August 2009 REO closings are priced at an average of 41% of the current assessed value, so our tax base is seriously eroding.

The silver lining is that for buyers with cash or the ability to obtain financing, prices are lower than they have been in years, and with all the foreclosures pending it will take a while to work through this much inventory -so prices should stay low for quite some time.