"How Can We
Help You?"
Time
For Honolulu
& Waikiki
In Your
Real Estate Portfolio?
By Bob Cook
Realtor, Principal Broker, Property Manager
Captain Cook & Associates, Honolulu
almost
any Hawaii investment was sure to create gold. It was not uncommon to hear "He just
knocked on my door and offered me $100,000 more than I just paid last month!" or some
variation. Then came the inevitable slow down in sales activity and the subsequent price
slide. Those who bought at the peak eight years ago have yet to do well. The long
downswing has again brought a prime time for investing here.
And in my
twenty plus years in the Oahu real estate industry, I have represented many investor
clients. They have especially come from the U.S. and Canadian mainland, and an assortment
of foreign countries. Investing in vacation or other type of rental property is, for
obvious reasons, very popular. From the business standpoint, it gives a 'business'
and tax reason to make periodic trips to Hawaii to inspect an owned property and meet with
me as the property manager. From the investment standpoint, it gives extraordinary
long term potential. From the personal standpoint, it gives the investor and his
family, friends or business associates a "condo in Hawaii" when it is reserved
or not rented.
In fact,
no matter what your real estate taste, if you can afford middle level buy real estate outside
of Hawaii, there is something in Hawaii for you. Now, with price decreases of 40%
off the 
peak in
some areas of Oahu, investors around the world are again beginning to flock to Hawaii and
finding bargain prices. The combination of the lowest prices in
ten years and the lowest interest rates in recent memory make the cost of ownership in the
islands the best it has been in a very long time. If you have ever wanted to
own here, now is the time, by coming or conducting by e-mail.
Keeping
track of the recent change in the tax law, you find it has created a good reason for many
to sell now (see the Taxpayer's Relief Act Of 1997 allowing couples to take $500,000 in
tax free capital gain, see also Mike Moore's accounting
article in Panel Of Experts). Take, for example, the couple who bought
their modest home 30 years ago for $40,000, go up in value to $400,000 in 1990, then to
$280,000 today. While they might wish they had sold at the peak in 1990, the fact
remains that they can sell today and make a $240,000 tax-free profit--a
profit they may not have been able to make under the old rule.
Indeed, sellers seeking to take advantage of the new law are one more explanation of why properties are able to sell at prices so much lower than before. We saw many buyers from Japan buying here in the boom times of ten years ago. With the current state of the Japanese economy, we find many of these "boom time buyers" now are "buyer's market sellers" and that they sometimes must sell, right now, and get what remaining equity they have to send or bring back home. There are more sellers than buyers, and well-priced, properties are available now in every category, whether rental or home, condominium or house.
Kauai and
Maui have a difficult time competing with Waikiki--because everyone seems to want to
include Waikiki in their itinerary. The Rentals Division at Captain Cook & Associates
is subdivided into one section serving Long-Term Rentals and one section serving Vacation
Rentals. We maintain a sizeable management inventory. You may wish to call me on my toll
free 
number (800) 892-7931 to discuss specific rental incomes. However, you may
find it useful now to know that our long-term rentals range in monthly income from $600 to
$5,000, from Waikiki studios to Diamond Head houses--and we have consistently run at
occupancy rates in the high 90 percent range for the past two years. We have had no
problem providing good, consistent cash flow for most of our owners. We have monthly
reporting, electronic communication, handling the paper work for the excise tax payment,
prompt client payment, tenant screening, a sound maintenance program, and exacting
check-in and check-out procedures. Bear in mind, State Law requires
off-shore owners to have a local property manager.
Interested
in our Vacation Rental Program? An acquisition of a rental firm in 1997 increased the
Vacation Rental side of our business to thirty units. Waikiki's only beachfront
condominium property available for short-term rentals is our primary vacation rental
focus--the fabulous and famous "Waikiki Shore" near Fort DeRussy. Of course,
"by the nature of the beast," occupancy rates at a short term rental are not as
high as in long term rentals--but the rents are much higher to more than make up for that.
We rent 
with rates
from $50 for off-beach properties to $300 daily for prime beachfront suites--and yet we
are still priced at nearly half of what comparable hotel rooms cost! That makes us
very competitive.
Vacation Rentals at Captain Cook has an aggressive marketing program. Once we attract our vacationer, we provide the personal touches that guests often just don't get in the hotels. Our guests seem to notice this (some even praise us for it)--and we make them want come back to us for more next year. Often, a guest doesn’t leave without making their next reservation for the return trip!
And take a moment to look at the bottom line. It goes something like this: now is a good time to be investing in the Hawaii real estate market. If you are in the small group with the resources to do this, we have a seasoned sales staff to show you how the numbers come together, identify and procure for you the best property for sale in your price range, and ensure professional service in the buying process.
Computerized, sophisticated, experienced--we care for your property when you are absent--and turn down the bed for you when you come to stay a while! Call on my toll free line, it would be my honor to get to talk to you!--Aloha Nui Loa, Bob Cook
Want To Know More? Contact Bob at
bobcook@hawaiireal.com
Bob Cook, Realtor, Principal Broker,
Captain Cook & Associates
2851 Kihei Place Suite A, Honolulu, HI 96816
Toll Free: (800) 892-7931
Telephone: (808) 735-5588
Fax: (808) 737-8733
Old Rustic "Kilohana Square" On Kapahulu Avenue
Captain Cook & Associates Is A Full Service
Real Estate Firm Handling
Home & Investment Sales, Long Term Rentals, and Vacation
Rentals
Thank You
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