Ka’anapali is located on the West Side of Maui

Ka’anapali is located on the West Side of Maui and is not only a premiere resort destination, but Hawaii’s first master planned family resort community.  There are several major resorts located in the area.  Some of these are the Westin, Sheraton, and Marriot among other major chains and world class golf courses.  Ka’anapali is a very popular destination for tourists and residents because of the amazing beaches and spectacular views of the West Maui Mountains.  Ka’anapali Beach also known as Dig-me Beach by the locals occupies a three-mile stretch and was once voted “Best Beach in the US.”

Ka’anapali has a population of just over 1,515 people with most of the residents occupied in some form of the tourism industry.  Many of these jobs are at the resort or in other areas that cater to tourists.  Residents here are more affluent than in other areas because of the resort oriented community and have an average income of about $105K.

Some activities that locals and tourists enjoy is going to Black Rock for snorkeling and cliff diving.  There is also shopping and dining that is typically done at Whalers Village, which has many local and national stores.

Real estate available in Ka’anapali is single-family homes and condominiums in the resort communities.  Ka’anapali Shores and Maui Eldorado are great locations to purchase a vacation home with prices starting out at $200K and going over $2 million for the more luxurious condos with a view.  Ka’anapali Plantation has townhomes that start at $300K for one-bedrooms and $550K for two-bedrooms.  More luxurious condos in the area are priced between $600K and over $1 million.

The Pinnacle, Ka’anapali Hillside, and Ka’anapali Vista are beautifully landscaped neighborhoods with single-family homes.  These homes will typically start at prices a little lower than $1 million.  More affluent estates will be listed in the multi-millions and will typically have stunning views of the mountains and ocean.

The average time on the market for a home in Ka’anapali is 393 days.  It is typically a little longer than in other areas because people making purchases here are usually considering a vacation home or making an investment, which tends to take a little more time.

Someone considering purchasing Ka'anapali real estate has a multitude of options as there are several types of homes in a wide price range to meet any budget.  This is a great investment for someone considering purchasing rental property as tourists love this area and rentals are constantly staying filled.  It is also a great place just to have a second home to get away to paradise for vacation.

Haiku is where paradise can truly be found

Haiku can be found on the island of Maui in the North Shore region.  It is a tropical paradise that entices not only tourists but locals too with its distance to the water. There are numerous outdoor activities that can take place in this area, and many of these can take place near many of the homes. These include trails, hiking, and swimming.  There are also several parks in the area including Haiku Park, the Fourth Marine Division Park, Pa’uwela Point Park, and Hookipa Beach Park. These provide several types of recreational activities for everyone in the area.

There are 8,000 residents in Haiku, and many of them were drawn to the area because of its distance to the water; however, Haiku is not an oceanfront community. It is close to some of Maui’s favorite beaches including Kihei, Wailea, and Makena. One of the best perks of living in this area is that residents are close enough to the busy areas for convenience, but they are still far enough away for privacy and relaxation.

This was once a thriving pineapple industry town, but now many of the old buildings have been turned into shopping centers, restaurants, and other businesses.  Two of the shopping centers are Haiku Town Center and Haiku Marketplace. The town is still full of its rich history.

Most of the real estate in Haiku consists of single-family homes, and many of these have a main house and an “ohana” or cottage on the property. Most of these homes are available on two acres of land, which is just enough for growing a garden or planting some flowers.

The average price for homes in Haiku is just under $1 million with an average of 203 days on the market.  There are homes here that are capable of fitting practically anyone’s budget.  Homes in the area that need some updating can be found as low as $299K.  Small cottages are available starting at $500K, and small homes on nice lots are listed at starting prices of $599K. Haiku Ranch Estates has very nice homes in a landscaped environment that are priced between $799K and $1.2 million.

Haiku is where paradise can truly be found.  Anyone that would like to experience it year round or even during certain seasons should consider purchasing real estate here.  It is truly a tropical paradise with beautiful lush green properties, and being just on the outskirts of busier environments.

Hawaii Escrow Services

Escrow in Hawaii is a confidential and impartial third party, who will be responsible for holding the money and documents in safekeeping until it has been determine that all conditions have been satisfied.  When it comes to real estate in Hawaii, escrow will follow the original sales contract also known as the purchase contract.

The escrow company is responsible for following and maintaining several duties.  These include:  receiving and holding deposits, ordering title searches and conveyance documents, clearing title, making pay-offs to existing lenders, providing a settlement statement, handling closings with buyers and sellers, recording documents, and disbursing all funds when the conditions of the purchase contract have been fulfilled.

The escrow is necessary to handle transactions to be conveyed from seller to buyer.  This process begins with the signing of the purchase contract and continues until closing.  At this time the buyer will take the title to the property.  The normal time for this process is three weeks, but it can take up to two months if the buyer is acquiring finance through a mortgage lender or has a number of other issues.

An escrow officer in Hawaii is responsible for tending to every detail until the transaction takes place and closes.  This third party will represent neither the buyer nor seller, and will work to meet both parties needs until the completion of the transaction.

There are a number of guidelines that will have to be followed during an escrow transaction.  The Hawaii real estate agent will deliver an original purchase contract to the escrow officer to open escrow.  The escrow officer will then review the contract and address any questions or errors.  An escrow file will then be opened and assigned an escrow number.

Next, the escrow will request a title search from the title department, and this should be completed within three business days.  The instructions to the escrow are then prepared and sent to the seller and buyer for their signatures.  The instructions will also be delivered to the realtors involved.

After that, escrow will submit requests to lenders for current mortgages on the subject property.  The pay-off figures must be obtained because escrow will have to pay off all mortgages.

Once escrow has obtained the title search, they will be able to determine if there are any defects, additional liens, or mortgages that were not disclosed in the purchase contract.  It is possible that additional demands could be requested from creditors.  The escrow will also review contingencies specified in the purchase contract and financing requirements.

The escrow will then order conveyance documents from a local attorney.  Demands, documents, the purchase contract, and any special conditions will be reviewed and updated where necessary.  Closing statements should then be prepared and closing appointments will be made.  The buyer and agent will be notified of the amount due at the time of the closing.

Then all necessary documents will be forwarded to the Recording Department for the actual recordation of the documents at the Bureau of Conveyances of the State of Hawaii.  This should occur within two days after the signing.  The Recording Department will notify escrow when the documents have been recorded.  This will allow escrow to disburse all funds.  This can include seller’s proceeds, mortgage pay-offs, and real estate agent’s commissions. 

Escrow will then notify the agent that the transactions have been completed.  They should then forward all final documents to the necessary parties such as buyers, sellers, lenders, and anyone else of interest.

Hawaii Title Insurance

Buying real estate in Hawaii can be a life changing experience, but so can losing such great property.  That is why a title company is required to make sure that the seller of the property actually has the ownership rights that they are claiming to have.

Hawaiian property rights can sometimes be a little confusing.  At times other parties such as government agencies, mortgage lenders, or private contractors could have rights to the owner’s property because of outstanding claims.  That is why it is important to acquire title insurance to determine who the actual owner of the property is.

Hawaiian title insurance policy allows the buyer to have information on the title of the land before any purchase is made.  It also protects the buyer against claims that may affect the title after they are the new legal owner.

During escrow public records are searched to find all related documents to the property being conveyed.  The documents will be examined and a preliminary title report is issued.  The report will provide all information to all parties involved in the transaction, and it will reveal who the actual current owner is.  It should also show any limitations on the owner’s property rights such as easements and outstanding mortgages.  This will allow the buyer and lender to be aware of all limitations that must be removed to keep the property from suffering after escrow closes.

Title insurance is necessary because even the most careful of searches may not notice some title flaws such as forgery, fraud, or confusion due to similar names.  If these problems arise after the buyer is the owner, it could affect them drastically.

Hawaiian title policy provides protections against any future claims that may come up after the transaction has been completed.  Policy terms and conditions determine the extent of coverage provided to the insured.  The policy restates the condition of title, reflecting all changes in ownership rights from the date of the preliminary title report to the date of the close of escrow.  Separate policies are issued to protect the owner’s and the lender’s interests.  The owner’s protection continues for as long as they own the insured interest, without any additional fee.

Title insurance is available to obtain for anything that is involved with real estate in Hawaii including leaseholds and rights under contract of sale and easements.  Any property being purchased in Hawaii requires title insurance for the following reasons.

First, a deed does not provide that the seller is the actual owner of the Hawaii property.  Second, Hawaii title insurance provides the buyer with the information on the title status of the property.  This allows any problems to be corrected before purchase of the property is complete.

The third reason is that title insurance covers losses resulting from defects in titles.  A few of these include:  forgery, acts of persons of unsound mind, acts of minors, undisclosed heirs, mistaken legal interpretation, errors in research or clerical work, invalid court proceedings, and invalid conveyance documentation.

Fourth, title insurance is paying ahead of time for legal service in case it is needed.  The underwriter will provide legal defenses against challenges to the insured title.  It is like having car or health insurance where the extent of the defense depends on the policy coverage as well as the estimated cost of a possible settlement.

Fifth, any unpaid taxes, liens from contractors, or personal judgments would be disclosed and protected against through a new title search and owner’s policy. The sixth reason is that this type of insurance only requires one premium to keep the owner fully protected for as long as they are the owner, and last because even the most thorough searches sometimes do not reveal defects that could affect the new owner down the road.

Hawaii 1031 Exchange

Any Hawaiian 1031 Exchange must involve property that will be used in a business, investment, or trade and be like other properties.  This will allow the Exchanger to defer any gains or losses that are due upon the sale of the relinquished property for the replacement property.  The likeness is meant to be understood as something similar in nature and character.  This is only implied in the grade or quality of the property and not its kind or class.

An example of this type of trade is vacant land being held for investment.  It may be exchanged for single-family rentals used for a trade or business or any combination of the following:  single-family rentals, ranches and farms, golf courses, commercial and office buildings, hotels and motels, multi-family rentals, vacant land, industrial, retail and leasehold properties of 30 years or more.

The delayed exchange is the most commonly utilized tax planning strategy for investors.  This happens when there is a delay between the sale of relinquished property and the purchase of the replacement property.  Since the 1979 federal case where the validity of the delayed exchange was changed, there is now a 45-day identification period and a 180-day exchange period.  This means investors have up to 180 days to purchase a replacement property once their relinquished property has closed escrow.

The Delayed Exchange occurs in three steps.  First, the Exchanger must retain a Qualified Intermediary to prepare an exchange agreement, assignment of sale contact, and closing instructions to the escrow closing agent before closing on the sale of the relinquished property.  The QI is responsible for instructing the escrow agent to direct deed the relinquished deed to the buyer and to deliver sale proceeds to the exchange company.  The Exchanger will not have actual receipt of the funds and once the funds are delivered to the exchange entity, they will be restricted for the remainder of the exchange period.

Next, the Exchanger must identify the replacement property within 45 days of the relinquished real property close of escrow.  The Exchanger must designate the replacement property in written document to the seller of the replacement property to give a valid identity to the exchange property. 

Three different identification rules will apply.  One, the 3-property rule wherein three properties must be identified no matter what the fair market value.  Next is the 200 percent rule where any number of properties as long as the aggregate fair market value does not exceed 200 percent of the fair market value of all the relinquished properties.  The third rule is the 95 percent rule.  This is where any number of properties without any regard to value, providing 95 percent of the value of the identified properties, is acquired.

Last, within 180 calendar days from the date of sale of the relinquished property, the Exchanger must acquire a replacement property.  The property that is acquired must be one or all of the previously identified replacement properties.  The Exchanger will once again assign the purchase and sale contract to the exchange company.  The exchange company will then purchase the replacement property with the exchange and proceeds and causes the transfer of the replacement property to the Exchanger by way of a direct deed from the seller.

A Reverse Exchange happens a little differently than a Delayed Exchange.  The Exchanger will acquire a replacement property before the sale of the relinquished property.  This will then prompt them to have the QI purchase the replacement property and hold the title while the Exchanger is sells the relinquished property.  The Reverse Exchange must also be completed within 180 days.

There are two types of Reverse Exchanges.  One is the Exchange Last version.  This is when the title to the replacement property is held by the exchange accommodation titleholder (EAT).  The Exchanger will enter into a written agreement with the EAT, who will hold the title for the replacement property until the relinquished property is ready to close escrow.  The EAT will then then transfer the title to the Exchanger in exchange for causing the transfer of the relinquished property to a third party buyer.

The other type is called Exchange First.  This type requires the QI to purchase the replacement property and causes it to be deeded directly from the seller to the Exchanger in exchange for the Exchanger’s transfer of the relinquished property to the exchange accommodator.  The exchange accommodator will hold the relinquished property until a buyer is found, and that person will then sell the relinquished property.

The Exchanger and the exchange accommodator will enter into a written agreement.  The Exchanger must identify one or more relinquished properties within 45 days.  This must be completed within 180 days.

A major issue arises when the Exchanger is selling his relinquished property and he uses Exchange Proceeds to pay off either expenses incurred for the exchange or settlement fees paid through escrow.  When an expense is paid by using sales proceeds it reduces the amount that is sent to the Exchange account.  If the expense is allowed to be paid with the proceeds it does not cause a problem, but if the expense is not allowed, it causes a taxable event which will subject those expenses to capital gain treatment.

If the allowed expenses are paid with exchange funds, the IRS deems the Exchanger as having constructive receipt of those funds, thus the Exchanger has received the case and then paid for the expenses himself, which will subject the Exchanger to boot in the transaction, creating a taxable event.

Some exchange expenses allowed to be paid for with exchange funds include:  sales commissions, finders’ fees, legal fees, escrow fees, accommodator fees, transfer fees, document preparation fees, messenger fees, notary fees, processing fees, and loan payoff.  Some examples of non-exchange expenses include:  homeowners’ dues, rent proration’s, property taxes, property liability insurance, utilities, repairs, termite treatment, and replacement property loan acquisition fees.

Canadian Financial Information for Purchasing Real Estate in Hawaii

Anyone from Canada interested in purchasing a home in Hawaii in any of the major areas such as Oahu, Lanai, Molokai, Maui, or the Big Island should be aware of certain tips that will help with their real estate purchase and any financing that is also necessary.

There is plenty of information that potential home buyers must be aware of when considering purchasing a house in Hawaii, especially if they live off island. For instance, a Tax Identification Number may be necessary for those that plan on renting out their home when they are off the island.

The common loans in the United States have mortgages that are paid off over 30 years. Many Canadians have felt comfortable using a Hybrid Adjustable Rate Mortgage because these have a fixed rate for 5 to 10 years. Also, many loans in the U.S. do not have a prepayment penalty, and any that do are usually no longer than 12 to 24 months.

Down payments can vary depending on the type of home the person is looking to purchase and obviously its cost. An example of single family residences and conforming condos down payments are 20 percent down on a loan of $625,500, and 30 percent down on a loan amount of $850,000. All properties that require a loan of $1 million will require a 35 percent down payment and anything $5 million and over that goes up to 40 to 50 percent.

Any mortgage that is taken out in the United States will need income verification. This will require full income documentation for at least two years. The documents needed include T-1’s, T-4’s, corporation and business returns, and current pay stubs.

Anyone that is self-employed, retired, or has strong assets might consider asset depletion to help with verification on a mortgage. This will require documentation of all liquid assets with at least two to three months’ worth of bank, stock, retirement, and mutual fund statements.  Sometimes there are situations that arise where all of retirement accounts cannot be used.

There are closing costs that Canadian buyers need to be aware of because they are different in the United States than other countries. Title and escrow companies can have a number of charges that can include:  notary, conveyance tax, deed, association dues, inspections, escrow fee, property taxes, transfer fee, recording fee, maintenance fee, and title policy. The lender will also have fees that are applicable such as underwriting, loan documents, administration, appraisal, credit report, processing, and funding. These should all be disclosed to the borrower. 

There will also be points that are fees relating to the mortgage rate. One point equals one percent of the loan amount -the higher the points the lower the rate, and the lower the points the higher the rate. Canadian buyers will have a hard time having zero points available.

Now, here is what should be known about taxes.  Any property owner in Hawaii is required to pay taxes based on the county assessed value.  Someone from Canada purchasing a home in Hawaii would be subject to FIRPTA or Foreign Investment in Real Property Tax Act.  This means that 10 percent of the sales tax is required to be held to ensure that U.S. Federal taxes are paid.  Any overpayment out of the 10 percent will be returned.

When It's Time to Move to Hawaii

These are a few tips on how to move your family, pets, furniture, car and other belongings safely over sea and land.

One of the most common challenges that you will face when moving from or to Hawaii even if it's just another Hawaiian Island is getting your belongings and family there. You have to move them safely by sea usually.

To begin with you will want to interview a variety of shipping companies that can meet your needs within your specified budget. You will want to research them and their background as well as feedback from previous customers if possible. You will want to make sure that any company that you are interested in knows your timeframe and budget for this project. A company known as Matson and a few other well known shipping companies provide complete shipping services at an affordable price, extending between Hawaii and the Mainland United States.

Should you ship or sell your belongings? Rather than ship everything some individuals find that it's more economical to sell specific items and replace once they have moved. Items such as older automobiles or items worth just a few hundred dollars should be sold. The shipping on them would be relatively expensive due to their size. If you are moving to Hawaii and certain items that may carry a high dollar price tag should be kept just because the prices in the Aloha State tend to be expensive for manufactured goods.

Time frame for shipping depends on the particular items that are being transported. For example a car or large container of household goods may take as long as four weeks to arrive. Most cars are shipped in a separate container aside from household goods but may allow other things to be packed with it depending on the specific shipping company. Also remember to ask if your items can be delivered to your home.

Which Hawaiian island will be most suitable for you?

Where to Live Which island will be most suitable for you? If you are interested in moving to Hawaii the first thing you will need to decide is which of the gorgeous islands will be perfect for you and your family. Each of the islands has their own unique characters and appeal. Each Hawaiian Island offers predominate job markets, pace of life, and distinct personality. You should base your decision on your chosen lifestyle and what each island can offer you. Oahu Oahu houses one of the most popular beaches in Hawaii know as the Waikiki Beach. Also it's the home to Honolulu which is the stateís capital. Oahu, also known as the Gathering Place is the most populated and developed of all of the islands. Major industries found here include retail, tourism, federal and state government and construction. There are many large corporations that operate here including Bank of Hawaii, Hawaiian Electric Industries, Verizon Hawaii, The Queen's Health Systems, Kyo-ya Co., Hawaiian Airlines, Outrigger Hotels & Resorts, Aloha Airlines, and many other larger companies. Many of the Oahu locals choose to work in Honolulu because of the diversity and job market that is available here. If you are looking in the suburban areas consider one of the following districts: Kailua, Hawaii Kai, or Waikele. These are just a few areas that offer excellent schools, community pride, parks, health care, shopping, and developed neighborhoods. Maui Maui while having a variety to offer its less developed than Oahu and most employment sectors are based around retail and government. Most individuals choose work in the cities of Wailuku, Kahului, and Ka'anapali. Kauai Kauai is one of the quieter islands that may be great for those who are looking to move away from the entire bustle of a larger area. While it tends to be on the lower key side of things its still a very popular tourist area. Employment here includes government offices, Kauai Veterans Memorial Hospital, Wilcox Health Systems, Kuhio Medical Center, Guava Kai Plantation, and Gay & Robinson's Olokele Sugar. The most popular districts for work and living is Wailua, Waimea, Koloa, Hanalei,and Lihu'e. Big Island The Big Island of Hawaii is self explanatory with it being Hawaiiís biggest and most populated. With over 4,000 square miles it has a variety of lava fields, rainforests, gorgeous beaches, and one of the most active volcanoes in the world. Lanai and Molokai These are the smallest of the populated islands found in Hawaii but appeal to those who are looking for privacy. Many of the areas are actually closed off to visitors which helps to shelter for tourist if you are not looking for that lifestyle. Most of the employment here is based around tourism, agriculture, and government.

There Are Advantages When Hiring Your Own Oahu Real Estate Agent

Well, you finally found a place you’d like to call home, but now, things might get a little difficult. There are some very important things to consider before selecting which home you’re actually going to purchase. Here’s where a good Hawaii real estate agent can be a gold mine.

It’s not a law that you have to hire any Oahu real estate agents to assist you with this process, but the help they can deliver is beyond compare. Most people don’t realize all the paperwork and legal issues involved with real estate. It can be overwhelming.

If you happen to locate the right person for assistance in purchasing your new Hawaii home, the one great advantage, is not having to do it all on your own, and this is especially true if you’re a person who is busy and needs their time for other very important things. Many real estate pros are aware of the nuances involved in real estate, and can do a much better job for you than you could on your own. 

Another great advantage to having an agent is their knowledge concerning the whole housing industry, and familiarity with neighborhoods. Agents have access that enables them to gain valuable information about many Hawaii homes for sale. They can let you have a truthful assessment of the crime rate for any particular areas. They can deliver information about schools, demographics, and much more. They get the data necessary for making a buying decision that is going to affect your life in a big way.

Another area of their expertise is in guiding you in regard to prices. They can give you all the information you need for weighing out what you need to make a final decision about your new home. All the factors involved will be given to you, so you can create a good solid plan for negotiating the best price with sellers.

When it comes to negotiating, they possess great skills. They’ve been trained for it, and they know the bargaining points, and know how to use them to your advantage. 

One thing you can definitely count on when buying a Hawaii home is tons of paperwork. This is a big reason many people turn to hiring real estate agents. Many files need to be handled, like the purchase agreements and the disclosures that are mandated by federal, state, and local statutes. The handling is crucial, and it only takes one little mistake to cost you heavily in terms of money.

Buying your Hawaii dream home is one of the biggest decisions of your life, and it’s essential that all things are handled properly and the process goes smoothly as possible. When you hire an agent, you’ll be doing yourself a huge service, and save yourself many headaches.

How a Hawaii Real Estate Agent Can Help You to Find the Right Home

Be forthcoming with information about what it is you want. If you really must have four bedrooms, don’t waste everyone’s time looking at three-bedroom houses. If you want a specific neighborhood, don’t go looking around in other neighborhoods. If you want a one-story house, don’t spend time looking at split-level or two-story build­ings. Tell you agent up front, “I want four bedrooms, in the Hawaii Kai area, on a single level.”

There’s the old saying about a patient who goes into the doctor’s office and sits down. The doctor asks, “So, what’s wrong with you today?” To which the patient replies, “You’re the doctor…you tell me!”

The problem is that often we don’t really know what’s wrong ourselves; we don’t really know what we want. Thus, a part of the house-hunting process is actually dis­covery. By seeing what’s available on the market, we can come to realize what we don’t like and, conversely, what we are really searching for.

It is for this reason that good agents will often ask right at the onset, “Is this the first time you’ve looked, or have you been out house hunting before?” They want to know where in the search process they’ve contacted you. If it’s your first time, a good agent will plan a broad spectrum of homes to look at, to help you narrow down what it is you want. If you’ve looked before, the agent will expect you to be able to provide a more succinct explanation of what it is you want. Remember, the more correct, detailed infor­mation you can give your agent about your desires and needs, the better able he or she will be to satisfy them.

There is also the matter of feedback when walking through homes. Don’t be a shy or quiet buyer. When you like something, tell the agent. When you dislike some­thing, say that, too. A good agent is listening carefully and soon puts together a list of your likes and dislikes. This helps that agent prepare the next tour for you, elim­inating houses you obviously won’t like, adding in those you may go for.

Remember, it’s your money. Don’t settle for less than you want and can get.