Archive for the Market Watch Category

JM-HTBA-MH-ebook-1-256

FOR IMMEDIATE RELEASE

How To Buy A Home In Hawaii: Metro Honolulu E-Book

“How To Buy A Home In Hawaii: Metro Honolulu E-Book”, by Jon S. Mann, the third in a successful selling series of real estate E-Books, is a comprehensive publication specifically designed for Metro Honolulu that informs, educates and instructs potential Metro Honolulu homebuyers on the Hawaii home buying process while providing valuable condominium and home buying tips. The book clearly identifies the eight basic steps to buying a home in Metro Honolulu and then explains in detail how each step is performed to achieve your Hawaii real estate goals. Along the way, valuable, straight-forward advice is provided in order to save you time and money in your home search and purchase efforts.

Honolulu, HI – February 5, 2012 - Jon S. Mann Real Estate, LLC, a full service Hawaii real estate brokerage and Jon S. Mann, Principal Broker, have published an E-book designed to consolidate and leverage the information resources available in our high-tech society and help educate individuals on the home buying process as it specifically relates to Metro Honolulu.

This E-book is designed to consolidate and leverage the information resources available in our high-tech society and help educate individuals on the Home buying process as it specifically relates to Metro Honolulu. The E-book contains over 75 resource links to additional information available on the internet to assist in your real estate activities in Metro Honolulu. The easy-to-understand question and answer format of the E-book allows the information to flow smoothly and effectively answers many of the most commonly asked questions by
Hawaii home buyers.

Whether you are interested in Salt Lake, Kapalama, Kalihi, Kam Heights, Chinatown, Nuuanu, Alewa Heights, Downtown, Punchbowl, Kakaako, Pacific Heights, Ala Moana, Makiki, Punahou, Tantalus, Moilili, Kapiolani, University, Manoa, or other Metro Honolulu neighborhoods, this book is for you.

Use this book and you will successfully navigate the ocean of information on home buying in Metro Honolulu and achieve your Hawaii real estate goals with resounding success.

The E-book will be available on all major online booksellers in mid-February 2013 for $3.99 and is currently available on the author’s proprietary website (www.HowToBuyAHomeInHawaiiMetroHonoluluEBook.com) Kindle and Nook versions are available for an additional $3.99 each.

About the Author
Jon S. Mann has been a REALTOR® since 2003 and is the Principal Broker and founder of the Jon S. Mann Real Estate, LLC in Honolulu. Jon is an MBA graduate of the University of Houston, a BBA graduate of the University of Texas at Austin, and has 25 years of consulting experience in the fields of financial management, project management, information technology infrastructure management, and of course, Hawaii real estate sales, property management and development.

Jon has authored several real estate books and is known for his commitment to assisting individuals in meeting their Hawaii real estate goals through a strong customer service orientation that is exhibited through honesty, integrity, and professional competence.

Jon S. Mann Real Estate, LLC, is a full service Hawaii real estate brokerage dedicated to exceeding client expectations by assisting, advising, and representing buyers and sellers through the residential real estate purchase and sales process. The company offers comprehensive home buyer and seller information packages, as well as, educational e-books.
In addition to residential sales, the company provides a variety of unique services, such as a Hawaii Real Estate Agent Referral Service (www.HawaiiRealEstateReferrals.com), a turnkey real estate e-book program and ecommerce marketing system for local real estate e-books as marketed through www.LocalRealEstateEBooks.com, Hawaii real estate coaching and consulting for investors and service providers, seminars and training sessions for home buyers and sellers, as well as a China Division and its Strategic Partnership Alliance Program to handle Mandarin and Cantonese speaking buyer real estate needs.
For more information about HOW TO BUY A HOME IN HAWAII: METRO HONOLULU E-BOOK, please visit www.HowToBuyAHomeInHawaiiMetroHonoluluEBook.com or contact Jon S. Mann at 808-728-1230.

JM-HTBAHIH-COE-ebook-1-256

FOR IMMEDIATE RELEASE

How To Buy A Home In Hawaii: Central Oahu E-Book

“How To Buy A Home In Hawaii: Central Oahu E-Book”, by Jon S. Mann, is a comprehensive publication specifically designed for Central Oahu that informs, educates and instructs potential Central Oahu homebuyers on the Hawaii home buying process. The book clearly identifies the eight basic steps to buying a home in Central Oahu and then explains in detail how each step is performed to achieve your Hawaii real estate goals. Along the way, valuable, straight-forward advice is provided in order to save you time and money in your home search and purchase efforts.

Honolulu, HI – February 5, 2012 – Jon S. Mann Real Estate, LLC, a full service Hawaii real estate brokerage and Jon S. Mann, Principal Broker, have published an E-book designed to consolidate and leverage the information resources available in our high-tech society and help educate individuals on the home buying process as it specifically relates to Central Oahu.

The E-book contains over 75 resource links to additional information available on the internet to assist in your real estate activities in Central Oahu. The easy-to-understand question and answer format of the E-book allows the information to flow smoothly and effectively answers many of the most commonly asked questions by Hawaii home buyers. According to the author, by simply following the “How-To” steps in this E-book and you will successfully navigate the ocean of information on home buying in Central Oahu and achieve your Hawaii real estate goals with resounding success. Everyone wants to own a little piece of Paradise . . . . and Hawaii is truly a paradise for those who can appreciate its’ physical beauty, cultural diversity and Aloha spirit.

The E-book is available on all major online booksellers as of February 2013 for $9.99 and is available on the author’s proprietary website (www.HowToBuyAHomeInHawaiiCentralOahuEBook.com) for $3.99 for a limited time promotional offer. Kindle and Nook versions are available for an additional $3.99 each.

About the Author
Jon S. Mann has been a REALTOR® since 2003 and is the Principal Broker and founder of the Jon S. Mann Real Estate, LLC in Honolulu. Jon is an MBA graduate of the University of Houston, a BBA graduate of the University of Texas at Austin, and has 25 years of consulting experience in the fields of financial management, project management, information technology infrastructure management, and of course, Hawaii real estate sales, property management and development.

Jon has authored several real estate books and is known for his commitment to assisting individuals in meeting their Hawaii real estate goals through a strong customer service orientation that is exhibited through honesty, integrity, and professional competence.

Jon S. Mann Real Estate, LLC, is a full service Hawaii real estate brokerage dedicated to exceeding client expectations by assisting, advising, and representing buyers and sellers through the residential real estate purchase and sales process. The company offers comprehensive home buyer and seller information packages, as well as, educational e-books.

In addition to residential sales, the company provides a variety of unique services, such as a Hawaii Real Estate Agent Referral Service, a turnkey real estate e-book program and ecommerce marketing system for local real estate e-books, Hawaii real estate coaching and consulting for investors and service providers, seminars and training sessions for home buyers and sellers, as well as a China Division and its Strategic Partnership Alliance Program to handle Mandarin and Cantonese speaking buyer real estate needs.

For more information about HOW TO BUY A HOME IN HAWAII: CENTRAL OAHU E-BOOK, please visit www.HowToBuyAHomeInHawaiiCentralOahuEBook.com or contact Jon S. Mann at 808-728-1230.

This week the Federal Reserve publicized its intention to keep it’s near zero interest rate policy through 2014….to the delight of borrowers and stock market investors AND to the dismay of savers and fixed income retirees around the world.

Since 2008, the Fed has cut overnight borrowing costs to practically nil, meaning we will have experienced “emergency” rates for six years by 2014…..One can only hope that the US economy can finally stand on its own feet after such a prolonged period of “emergency” rates.

Regardless, I STRONGLY encourage all homeowners to consider refinancing their home loans if they have not already done so, as the savings can be immense…..and savers/investors, consider diversifying your portfolio with an income generating property in 2012 and borrowing some of the cost to take advantage of the rates…..Just let me know if I can be of assistance…….Aloha, Jon.

O’ahu’s housing market ended 2008 on a surprise up note with a rise in the median sale price for previously owned single-family homes. The median rose 2.7 percent to $626,500 from a year earlier, according to the Honolulu Board of Realtors.

Though the gain was attributed to more sales in a few higher-priced neighborhoods boosting the islandwide median price, it was the first year-over-year growth for any month since October 2007.

Still, the full year recorded a 3 percent decline in the single-family home median price, and there is agreement between local economists and some top real estate brokers that buyers and sellers should anticipate prices will fall this year by a greater, but still moderate, amount.

The University of Hawai’i Economic Research Organization projects the median single-family home price will decline 5.2 percent this year, and 2.6 percent next year.

oahu-home-condo-sales-dec2007-to-dec-2008.gif

Local brokerage firm Prudential Locations anticipates the median price could fall 6 to 10 percent by midyear. It notes that price movements, which vary by neighborhood, could be down more than 15 percent in some areas.

Nationally, the median single-family home price was on pace to drop 9.3 percent last year after slipping 1.4 percent in 2007, according to the National Association of Realtors.

“The Honolulu housing market shows remarkable price resiliency, even with the number of reduced sales,” Sandra “Sam” Bangerter, Honolulu Board of Realtors president, said in a statement.

Bangerter said some Mainland markets have had median price declines of 18 to 30 percent.

One positive trend for housing is interest rates that are falling and acting as a counterweight to poor consumer confidence that has deterred many people from buying property.

Prudential Locations in a recent report said reduced interest rates and other moves by the federal government to stimulate the national housing market could lead more people to buy homes, which increases demand that helps support prices.

“Such loan products would have a tremendous impact on the Hawai’i market, making forecasted price reductions less drastic,” Prudential said in its report.

Prudential also cited efforts to reduce foreclosures, which depress property prices, as another positive prospect for the local housing market this year.

Content provided by Andrew Gomes at agomes@honoluluadvertiser.com.

The Pacific Business News reported this week that in their bleakest assessment yet of the Hawaii economy, University of Hawaii economists say the state is in a recession that started last quarter and will remain “deep and drawn-out” at least through 2009.

Hawaii, is projected to lose about 8,800 jobs next year and have visitor arrivals fall nearly 6 percent next year, according to the quarterly forecast released today by the University of Hawaii Economic Research Organization.

That would mean about 835,000 fewer visitors this year and 385,000 fewer next year.

The report was one of three forecasts released this week, all of which found the state’s economy to be on much shakier footing than even 90 days ago, the result of powerful turbulence from the global financial crisis.

The three forecasts also said Hawaii will not see any meaningful recovery from the downturn until 2010 at the earliest.

“The global financial crisis and widening global downturn have materially worsened prospects for the Hawaii economy,” wrote the authors, UH economists Carl Bonham and Byron Gangnes. “The Hawaii economy is now in recession, and as the downturn continues into 2009 we will see larger job and income losses than we have experienced to date.”

“We really think the fourth quarter of this year is going to be pretty bleak,” Bonham said and the first quarter of 2009 may be even worse, especially for the visitor industry.

“The consumer problems aren’t going to disappear after Christmas,” he said. “We really haven’t seen the full repercussions of a 20 percent drop in visitors.”

Hawaii’s unemployment rate, which had been historically low only a few quarters ago, is forecast to peak at 6.2 percent in the second half of 2009, and then remain above 5 percent through 2011.

My only personal thoughts on this report is that is not a surpise that the economy is in recession and will be for awhile, as anyone trying to make a mortagage payment and feed his family knows, but with that said……I still see the glass as half full……we may have 6% unemployment and 20% fewer visitors, but that means we HAVE 94% employment and 80% of the visitors are still coming to Hawaii…..each of us is responsible for keeping a positive attitude despite challenging times, so I urge you today to overcome the economy with a positive attitude and a smile, and remember, this too shall pass…..Aloha, Jon.

For a limited time, (through July 1, 2009) qualified first time homebuyers may receive a tax credit of up to $7,500 as part of the Housing and Economic Recovery Act of 2008.

Homebuyers must repay the tax credit over a 15-year period. It applies to both newly constructed homes and pre-existing homes. Buyers may qualify for the tax credit as long as the home is their primary residence and they have not owned a home during the past three years. It is available on single-family detached homes, townhomes and condominiums.

Buyers qualify for the full tax credit are single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000.

So put the tax credit to work for you and let’s work together to make the most of this unique opportunity!

In a study released last week, Moody’s Economy.com said recession was widening throught the United States. Hawaii, as well as 29 other states, have all fallen into recession.

Not exactly shocking news for the average consumer. Then again, one of the best ways to overcome a problem, it admitting it exists.

Hawaii is now in a recession, according to Moody’s Economy.com, which has updated its list of states in recession.

Using employment and industrial production data, Moody’s compiles a monthly list gauging whether the nation’s 381 largest metropolitan areas are in expansion, at risk or in recession.

The report determines an area’s status based on a six-month test that compares the six-month moving average in the current period to the six-month moving average in the period six months ago. If the test shows the area is in contraction, it is said to be in recession.

There were 637,550 people in the work force in Hawaii in September. The unemployment rate rose to 4.5 percent and there were 12,050 more people out of work than there were a year ago.

So now that we have admitted that the problem exists, I am going to start looking for signs of receovery…..Just as I mentioned last week in this very blog……..All the market factors are lining up perfectly for the next six to twelve months……Remember, it is as simple as 1, 2, 3.

1. Interest rates are dropping below 6% on residential mortgage loans….

2. Mortgage Money is available…..

3. Inventory, foreclosures and pricing of properties in our Oahu housing market indicate that the signs of a market shift are coming….

I realize I may be in the minority here, given typical media pundiits calling for the end of the economic world, but I feel strongly about where I see this market going from here…….What are your thoughts?

This past week I merged my real estate Sole Proprietorship with Prudential Location LLC because I feel strongly that the time is NOW for Oahu Real Estate. Working with a large firm like Prudential enables me to more easily get the word out that now is a great time to buy Oahu real estate. I feel strongly that this is the type of real estate market that two or three years from now everybody is going to say, “I wish I had bought then”.

All the market factors are lining up perfectly for the next six to twelve months……Let me explain. It is as simple as 1, 2, 3.

1. Interest rates are dropping below 6% on residential mortgage loans. Rates are seldom that low and when they have reachd that level, mortgage loan rates usually do not stay there for long.

2. Mortgage Money is available….that what lenders across the island are telling me. With five percent down or less. Of course, the Buyers DO need to have a steady job, and areasonable credit rating. The days of Buyers needing to prove employment, have cash on hand and credit worthiness have returned for good, hopefully.

3. Inventory, foreclosures and pricing of properties in our Oahu housing market indicate that the signs of a market shift are coming, that is the supply of new home construction and foreclosure homes are beginning to be absorbed by first time buyers, investors and secure homewoners taking advantage of their financial strength and current market weakness. This spring may be the tipping point when the market activity flourishes. I believe it will. This Buyer and investor activity will create its own momentum. as more buyers and investors choose to buy now the demand they will create will stabilize the market and lead to market appreciation. It is simple supply and demand.

Did people who bought at the peak of the Oahu market in late 2005 and 2006 lose equity? In most neighborhoods, yes, and in some neighborhoods they lost a lot. Are Buyer’s who buy over the next year likely to be buying at the (or near the) bottom of the market and benefit from excellent appreciation. Every indication that I see is…..YES!

THEREFORE, I am telling all of my Buyer clients and anyone else who will listen……..what one of the richest men in the world used to say…..(J. Paul Getty)….”I buy when other people are selling.”

First Time Buyers – THE TIME TO BUY IS NOW! Prices and interest rates are down and the federal government is still offering a $7500 tax credit that is scheduled to expire in the Summer of 2009.

Investors – THE TIME TO BUY IS NOW! You still have to carefully analyze occupancy and rental rates, as well as, truly understand your cash flow situation, but the time to buy is in a DOWN market.

So….Get in the Game…..and call me today and I can help you call the plays to make you a winner….Aloha, Jon.

Hawaii’s High Tech REALTOR Joins Forces With Hawaii’s Premier Technology Based Real Estate Company

Just a quick blog entry to announce that I’ve recently merged JON MANN REALTORS, LLC, with PRUDENTIAL LOCATIONS, the largest locally owned and operated real estate firm in Hawaii. The company has a deep understanding of our islands’ unique housing market and extensive knowledge of historical real estate trends that I will be able to share with my clients.

In spite of the recent economic turmoil, It is truly an exciting time for me to be in real estate. Interest rates are still at historically low rates making first time home-buying a realistic and attainable goal for many people. Opportunities also exist for the astute investor to acquire an initial real estate investment, or to trade up to a larger property.

As “Hawaii’s High Tech Real Estate Agent”, joining forces with Hawaii’s premier technology based real estate company was just common sense and good business practice, allowing me to continue to provide excellent customer service and now be armed with unmatched information technology tools, and educational devices for my clients. A win-win combination to be sure.

So continue to look here each week for valuable information on Oahu real estate and if you know of anyone interested in buying, selling, or investing in real estate, I would appreciate your referring them to me. I assure you that I will do my very best in assisting and advising them to enable them to achieve their Hawaii real estate goals. Please call or email me anytime…Mahalo and Aloha, Jon.

Selling a Principal Residence Formerly Used for Investment Purposes? Amendment to IRC §121 May Reduce the $250,000/$500,000 Exclusion.

Internal Revenue Code (“IRC”) §121 allows taxpayers selling a principal residence to exclude $250,000 of gain from taxation (or, $500,000 for married taxpayers, filing jointly) as long as they have lived in the residence for 2 out of the preceding 5 years.

Alternatively, for taxpayers selling investment/rental property, while they may not exclude gain from taxation, they can nonetheless defer payment of taxes by completing their disposition as an exchange under IRC §1031.

While the rules for excluding gain from taxation or deferring payment of taxation may seem fairly straightforward under the above code sections, they become more complicated if the property was used as both a principal residence and for investment/rental purposes.

Fortunately, in February of 2005, the IRS issued Revenue Procedure 2005-14 clarifying that taxpayers are entitled to take advantage of both the §121 capital gains exclusion and the §1031 capital gains deferral. However, Rev. Proc. 2005-14 only addresses situations wherein the property being sold is investment property formerly used as a principal residence; it does not address how to apply §121 to situations when the property being sold is a principal residence formerly used for investment purposes.

Now, pursuant to the Housing Assistance Tax Act of 2008, taxpayers selling a principal residence formerly used for investment purposes, have specific guidance on the application of §121. Specifically, IRC §121 has been amended, effective January 1, 2009. Again, the amendment only affects taxpayers who are selling a principal residence (“qualified use”), which they formerly used for investment (“non-qualified use”). The central point of the §121 amendment is that these taxpayers are not entitled to the full §121 exclusion because the prior investment use is considered “non-qualified” use and any gain allocated to the period of non-qualified use may not be excluded under §121.

How to determine the amount of gain that is not eligible for exclusion:

The period of non-qualified use (period not used as a principal residence) must be divided by the total years of ownership to determine the amount of the gain that is not eligible for exclusion under §121.

Any period of non-qualified use before January 1, 2009 should not be included in the calculation. And, depreciation should also be excluded from the calculation and is simply taxed at the applicable recapture rate.

Summary of the rules under §121 amendment
• Sale of residence that was formerly investment property – the taxpayer is entitled to only a prorated portion of the $250,000/$500,000 exclusion.
• Non-qualified use prior to January 1, 2009 is disregarded, except for purposes of meeting the 5 year rule under HR 4520, if applicable1
• Gain resulting from depreciation is taxed and is disregarded for purposes of determining the prorated amount of the exclusion

Taxpayers selling a principal residence after January 1, 2009, which was formerly used as an investment/rental property should consult with their tax or legal advisors regarding the application of the amendment to §121 to their particular situation.

Significant content for this blog entry was provided compliments of:

Julie Tumbaga
Vice President, Hawaii Regional Manager, Old Republic Exchange Company
733 Bishop Street, Suite 2700 • Honolulu, HI 96813
(877) 591-1031 toll free
jtumbaga@orexco1031.com

Julie would be glad to answer any questions you had about exchanges, so contact her today…Thanks Julie, for the information….Aloha, Jon.