Rich Bosselmann - Kailua-Kona (808) 345-5085

Kona Real Estate Market Update - March 2012

I just reviewed the Kona real estate market data as of March 2012 and it looks very similar to last year at this point. The North Kona District saw 56 single family homes sold in the first three months of 2012 compared to 58 homes sold during the same period in 2011. Land sales are also looking very similar to last year with 8 transactions year to date compared to 7 in 2011. There has been a slight slow down in condo sales with 44 units sold so far in 2012 compared to 50 a year ago.

The median sales price of homes sold in Kona during the first three months of 2012 is almost unchanged compared to 2011, down just 2.52%. Condo prices are are down 11.1%. I believe that we are seeing signs of the Kona real estate market stabilizing. Although, the statistics do not show prices increasing, I have seen some slightly upward pressure on prices in the most popular, mid priced neighborhoods ($320,000 - $425,000). Homes that are priced where recent comparables sold are moving fast in many cases. Home sales in the higher price ranges are still sluggish.

Financing is still difficult to obtain for most buyers, especially those that are self employed. I believe that there is good demand for real estate in Kona, especially at the current prices. The missing piece of the puzzle in my opinion is widely available financing. I have seen buyers willing to put substantial money down to purchase, often 50% of the price and are still unable to obtain financing. In past real estate corrections, the first buyers willing to step in and assume some risk are the investors. This really isn't happening now because of the current state of lending.

I believe that a wider range of financing options will be available in the not too distant future. Right now, lenders are waiting for a clear sign that prices are on an upswing. However, upward pricing pressure comes from more buyers. When such a large segment of the buying population cannot get a loan, prices do not increase. At some point, the cycle will begin to move again and both sales activity and prices will begin to pick up. At the present time, the Kona real estate market is just moving along sideways with well priced properties and only strong competition for the most desirable lower and mid priced properties.

If you would like more information about the Kona real estate market, contact Rich Bosselmann at (808) 345-5085, or Konaconnection@gmail.com.

What You Need to Know Before Buying a Vacation Home Rental in Kona, Hawaii

Are you considering buying a vacation home in Kailua-Kona, Hawaii? First, let me say that owning a vacation rental is currently one of the best investments you can make. You get a home that will most likely appreciate in the years to come, after a drastic, 30 plus percent market drop. In Kailua-Kona Hawaii, successful vacation rentals can maintain average occupancy rates of 80% year round, generating cash flow that far exceeds a long term rental. I do not know of any other place in the United States that can match that. By owning a vacation home in Kona you also have a place to enjoy with family and friends.

Not all Vacation Home Rentals are Successful:

Before you run out and start looking for a vacation home to buy, here's a word of caution. Not all vacation home rentals are successful. That's right, after 15 years of experience owning and managing vacation rentals in Hawaii, I have seen vacation homes that sat empty, causing negative monthly cash flow. I have also seen homes that are booked almost every day year round with hardly a gap between groups. I have owned rentals that were initially, unsuccessful and after making the necessary changes, they turned into top producers. Just like every other business, there is a formula for success which is usually developed through trial and error. Fortunately, I have a successful formula and am happy to share my knowledge and vacation rental ownership experience with you. As your Realtor, I can help you find a vacation home that you will not only enjoy but benefit from it's strong production as an investment.

Here are a Few Tips to Help you Find the Perfect Vacation Home Rental in Kona Hawaii:

Check the neighborhood or development CC&R's to make sure that leasing your home or condominium for less than 30 days is allowed. Some neighborhoods in Hawaii have bylaws that do not allow rentals for stays less than 30 days. While this may not be a deal killer, it severely restricts your ability to tap into the lucrative one to two week stay, vacation rental market.

Who Rents a Vacation Home in Kona Hawaii, and What Do They All Want?

Most families on vacation prefer to stay in a home or condominium. It just makes the vacation more enjoyable.The price of a hotel suite large enough to accommodate most family groups is prohibitive, not to mention eating out every meal. In many cases there are three generations staying together, grandparents, parents and the kids. What do families want in a vacation home in Hawaii....and I mean almost EVERY family? You know I can't give everyone my best stuff on this blog. That's for my clients...but you can be one.

The TV Looks Ancient:

Some folks will never touch a remote while on vacation but a substantial percentage of visitors do and they want flat screen tv's not the old gigantic set with the tiny screen; that will turn many people away. Speaking of technology, wireless Internet access is a must as well. Today you are bound to have more than one guest in the home with a laptop, tablet or other wireless device, and they all want access.

Where's the Beach?

Can you walk to the beach? Something almost every vacation rental inquiry in Hawaii asks. While it is not necessary to be within walking distance, anything longer than a short drive could be a problem. If the beach is within biking distance, providing beach criusers is a plus. You also need to provide beach chairs,towels and coolers. Nobody wants to buy that stuff for a week long vacation in Hawaii.

Where's My Bedroom?

A successful vacation home must have a minimum of three bedrooms and two bathrooms. For a condominuim this is not necessary because your customer is in a different demographic. A home needs to sleep six people in bedrooms. If you have a home with four bedrooms that is a major bonus. Now you can sleep eight people and your nightly rate just went up.

Lose the Personsal Effects:

Personal items like family pictures need to be stored in a secure owners closet for when you return. Vacation renters do not want to feel like they are in someones personal space. They want a clean well appointed home without too many knick nacks. Think of a nice hotel suite.

Do You Need a Property Manager?

Managing a vacation home involves advertising, answering calls and emails,typing invoices, collecting money, coordinating arrivals and check outs, scheduling the cleanings, repairs and usually a fair amount of washing laundry. It can be hard work, especially if you own more than one property.It can also be stressful when you have a group waiting to check in and something like the refrigerator is not working. If you would rather have someone else handle this for you, make sure you find someone that does all of these things and doesn't just sit in the office handing out keys. Hire a property manager that takes too many shortcuts and your rental will start looking run down. Stay on top of maintenence and cleaning and you will get repeat business, referrals and high occupancy rates.

How Do You Advertise my Vacation Rental?

If you do decide to self manage your vacation home or condo, you are going to need to advertise for renters. Web sites that advertise vacation rentals have flourished in recent years. There are surely thousands of them. However, just a handful of the web sites that advertise vacation rentals dominate the bookings and Internet traffic. Don't spend money on the sites that do not produce inquiries. How would you know which sites to avoid? The answer to that question is very simple and I think you have heard it before.

Hire me to find you the perfect vacation rental in Kailua-Kona Hawaii and I will show you the web sites that will produce renters . I will also share everything else that you need to know to get you started including setting up your first advertisement on a vacation home rental listing site. Call or email to discuss buying and managing a successful vacation rental in Kailua-Kona, Hawaii.

Bayview Estates - Kona Neighborhood Video Tour

Bayview Estates is one of Kailua-Kona's Premier neighborhoods. Located in the Keauhou area of Kailua-Kona, this gated upscale development features custom built single family homes and vacant lots, many with panoramic Kona coastline views.

I really like Bayview Estates, the setting is beautiful, from the landscaped streets to the terraced lots that maximize the ocean views, it is a well designed upscale neighborhood. Monthly maintenance fees are just over $200 which is very reasonable. Most of the lots are 15,000 to 18,000 square feet with building pads and in many cases, rock walls. The neighborhood CC&R's have guidelines regarding construction and landscape design to ensure that quality homes are built.

Kailua-Kona's Bayview Estates is just a couple blocks to the Keauhou Shopping Center with restaurants, entertainment, movie cinemas a Saturday morning farmers market and groceries. Click on this link for a current list of homes for sale in Bayview Estates. If you would like more information about Bayview Estates or Kona real estate, contact me at (808) 345-5085 or Konaconnection@gmail.com.

Watch my Neighborhood Video Tour of Bayview Estates

Peaman 2012 Race Calendar is Set

Kona residents and visitors looking for a fun way to get out and exercise have plenty of choices. If you want to mix in some friendly competition, try the Peaman races. Named after founder and chief organizer Sean "Peaman" Pagett, these free races are for all age groups and levels of fitness. The events usually consist of either a sprint triathlon, biathlon or run and they start at the Kailua Pier. The distances are always manageable with swims ranging from 1/4 mile to 3/4 mile, runs are usually 2 to 3 miles and bike distances are normally less than 15 miles. Some of the races feature themes and it's not uncommon to see someone competing in a zany outfit.

I really enjoy the Peaman races, everyone is friendly and out to have fun first and compete second. It's also great motivation to exercise when you know that you have a race coming up. Even if you aren't in great shape you will find someone to push yourself to catch or beat. One of the best things about living in Kona where it is always warm and beautiful is getting out and enjoying it. Check out the 2012 Big Island Race Calendar for upcoming events.

As a resident and real estate agent in Kailua-Kona, Hawaii, I assist buyers and sellers in accomplishing their real estate goals. If you would like to know more about Kailua-kona real estate, contact me at (808) 345-5085 or Konaconnection@gmail.com

Beaches of Kona video tour - Mahaiula  Beach

Mahaiula Beach is located within the Kekaha Kai State Park about 8 miles North of Kailua-Kona. The access road off of Hwy 11 is between mile markers 88 and 89. The 1.5 mile road is unpaved and full bumps and potholes; but it doesn't seem to deter the tourists from taking their rental cars across the desolate looking lava field. Just a short walk from the parking area is a picture perfect tropical cove with plenty of shade and deep sand.  The stunning contrast between the desert lava fields and the lush and refreshing cove is what makes Mahaiula's Beach so memorable and unique. 

If you hike the trail on the North end of the cove across the lava fields, for about 20 minutes you will come across another spectacular cove called Makalawena Beach. On most days you will be the only people around to enjoy the wonderful swimming and snorkeling.  Due to the extra effort required to access these beaches, they are for the slightly adventurous. If you want a beautiful beach with easy access, try Kua Bay just a couple miles up the road (watch my Kua Bay video tour). 

If, while visiting Kona, you would like information about real estate opportunities, contact me, Rich Bosselmann at (808) 345-5085 or Konaconnection@gmail.com .

Watch my beaches of Kona video tour of Mahaiula Beach