Archive for the Oahu Information 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.

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.

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.

I am often asked in today’s Oahu marketplace, what is a short sale?

The short answer is…….

Short Sale: Sale of property valued for less than the amount due on the loan.

The long answer is…….

Short sales can be a win/win in a losing situation. Borrowers may be relieved from their debt and Lenders may save the time and costs of a foreclosure. In a short sale, the borrower (Seller) negotiates with the Lender to allow a sale of the property either to a third-party or back to the Lender in lieu of foreclosure, and the Lender will in turn require either a gross, net or minimum payoff.

Examples:

Gross Payoff - Lender is paid the amount the property is sold for and Sellers are responsible for all closing costs.

Net Payoff - Lender is paid the net proceeds after all closing costs are paid.

Minimum Payoff - Lender requires a specified minimum amount of proceeds, and the Seller may be entitled to the surplus proceeds and is usually responsible for all or
a portion of the closing costs, and the Seller may have to bring in money to satisfy the Lender’s minimum payoff requirement.

Transaction Issues
To numerous to mention all of them, but here are a few……Time limitations; property values changing; Buyer needs quick loan approval; Seller should consult tax advisor for tax ramifications of short sale; Seller may be unable to come up with additional closing monies, if needed; and Escrow can’t proceed without payoff and release instructions from seller’s lender.

Bottom line, these types of transactions are complicated and require excellent Realtors, Lenders, and Escrow firms. Thanks to Title Guaranty Hawaii for contributing content for the blog entry.

I am frequently asked by clients in today’s Oahu marketplace about foreclosures….availability, types, etc.

The following paragraphs are general descriptions only; the actual processes are substantially more detailed/complicated. Call me if you have any general questions and please consider contacting an attorney for situation-specific information/guidance.

Foreclosure:
A legal procedure instituted by a mortgage holder to cause the sale of property encumbered by a mortgage to satisfy the debt secured by that mortgage.

Judicial Foreclosure:
Involves a civil action filed and carried out in circuit court.

- Commenced by the filing of a foreclosure complaint;
- A commissioner is appointed by the court to conduct the sale, usually by public auction;
- These public auction sales are almmost always cash only sales;
- The sale must be confirmed by the court, usually free and clear of encumbrances that were subordinate to the mortgage being foreclosed;
- If the sale proceeds are insufficient to satisfy all of the liens against the property, then unsatisfied lienors may seek a deficiency judgment;
- The court may issue a writ of possession against the owners/tenants;
- The entire process usually takes between 6 to 12 months.

Non-Judicial Foreclosure:
Involves a public sale carried out by or on behalf of the mortgage holder pursuant to a power of sale contained in the mortgage. This process does not involve a court action.

- The power of sale remedy must be contained in the mortgage;
- Timely notices must be served as required by the mortgage, and must also be served, posted, and published as required by Chapter 667, Hawaii Revised Statutes;
- No commissioner is appointed; sale is usually conducted by a representative of the mortgage holder;
- Title derived through the sale may be free and clear of encumbrances that were subordinate to the mortgage being foreclosed if proper notices have been served;
- The notice of sale and an affidavit describing the mortgage holder’s actions must be recorded in the Bureau of Conveyances or the Office of the Assistant Registrar of the Land Court within 30 days of the public auction;
- A separate legal action must be filed if possession is an issue;
- Most title companies will require the recordation of a deed to the buyer and the waiver of any deficiency judgment in order to insure title;
- The entire process usually takes between 4 to 8 months.

Bankruptcy Filings:
A timely filing of bankruptcy by the debtor/owner will put a halt to the foreclosure action. In order to proceed, the mortgage holder will need a bankruptcy court order “lifting” the automatic stay. Generally, the mortgage holder must show that the debtor has no equity in the property and that the property is not essential to the rehabilitation of the debtor.

Condominium Association Dues:
A condominium association’s common expenses are generally subordinate to the mortgage being foreclosed. However, it may be possible for the association to make a special assessment and recover up to the lesser of six month’s delinquent common assessments or $1800 from the buyer of the foreclosed property.

Next I will tackle Short Sales……

Here are a few “Red Flags” that suggest mold testing is needed for your home:

1. Moisture:
Mold grows where there is a moist environment. The first indication that you may need to test for mold is the discovery of any water related structural or design problem such as:

a. Evidence of water penetrating the home (stains, moist areas).
b. Evidence of a condition that may allow water into the home (poor grading, bad flashing or gutters).
c. Actual construction defect or deterioration that might allow water in (roof, decks, windows, concrete slab, vapor barriers).
d. Plumbing defects (leaky drains, pipes or toilet seals, missing caulking on sinks or tubs)
e. HVAC problems (dirty, moist filters, poor condensation drainage)
f. Dryer vented indoors; inadequate ventilation for a bath or spa.

2. Sensitivity:
Human senses are a valuable tool for mold detection…..

a. If you or an occupant thinks that there is a musty odor, there is potentially a mold problem
b. If you or an occupant feel a room has a damp atmosphere, there may be conditions for mold to grow.
c. If anyone in the home complains of allergy-like symptoms, which seem to increase while in the home, it is possibly caused by mold.

3. Visible Mold:
(Various colors are possible)

a. Tiny spots
b. “Hairy” covering on the surface. Such as white or green molds seen on fruit or bread.
c. Slimy surface.

Here is an excellent web resource and free PDF regarding mold…… http://www.epa.gov/mold/moldresources.html

A new law that went into effect on July 8, 2008, requires the Hawai’i State Historic Preservation Division (SHPD) to sign off on all building work (renovation, repair, demolition) on any structure over 50 years old. Applicants are required to follow SHPD requirements to document the structure with archival quality black and white photographs as a pre-condition to clearance. County permitting departments cannot issue any permits without this. Currently, The Department of Land and Natural Resources (DLNR) is backlogged with requests, but is in the process of adding additional staff. The Hawaii Association of REALTORS (HAR), along with other building industry professionals, are looking to amend this convoluted law. This law will potentially effect the nearly 50,000 structures over 50 years old on Oahu.

According to a forecast done by the University of Hawai’i Economic Research Organization (UHERO) as part of its quarterly outlook on the state’s economy,the group said prospects for the state’s economy had taken a downturn since it issued a forecast three months ago with the failures of ATA and Aloha Airlines and a surge in oil prices.

“A significant recovery of the local economy will not begin until 2010, making this a relatively shallow but lengthy Hawai’i economic contraction,” said the report, which updated one that projected the state’s economic growth would “grind to a halt.”

“A deeper slowdown could occur if oil prices remain at their current record levels or if the national housing slump worsens more than expected.”

The revised UHERO outlook cut expectations for the eight economic indicators tracked by the group, with new tourism arrival projections calling for a 4.6 percent decline in visitors.

No exact comparisons exist for what the state is going through since the downturn after the Sept. 11 terrorist attacks was sharp but relatively short, Gangnes said. Hawai’i's economic sluggishness of the 1990s lasted years with a succession of negative shocks creating a long stagnant period, he said.

“We don’t think that’s what we’re headed for this time around,” Gangnes said.

The new forecast also projects:

Visitor arrivals from the Mainland will decline 7.1 percent this year and increase 0.7 percent next.

Japanese visitor arrivals will fall by 8 percent.

Payroll jobs will be off 0.2 percent this year and by a similar amount next.

Unemployment will rise to 3.7 percent for the year and increase to 4.2 percent in 2009.

Energy and food costs will contribute to a 5 percent inflation rate this year. It will drop off to 2.2 percent next.

Significant content for this blog item was taken from an article written by Greg Wiles, of the Honolulu Advertiser.

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