Aloha!

If you've ever wondered about a 1031 Exchange please see our article below which was featured in the recent edition of the West Maui Neighbors magazine!

It’s tax time – have you considered a 1031 exchange to defer capital gains taxes? 

Asset performance

Are you looking at your portfolio and wondering if your investment property is performing as well as it should or if there is a better use for your cash? Would it make sense to relocate, consolidate or upgrade investment assets? You could also sell one larger asset and replace it with assets in different locations or different types of assets that better suit future family needs.  Deferring your capital gains through a 1031 exchange lets you keep your money if you re-invest in one or more properties of equal or greater value.

Land ownership questions

If you are a landowner, have your goals for that property changed?  Did you inherit the land, purchase it as an investment, for its value and appreciation potential, or to build a future home? Is that property more of a liability than an asset? If you could exchange your vacant land for income producing property and defer any capital gains tax, what could you do with that new-found income? How would that impact you and your family’s life?

Ensuring your family legacy

Did you know that you could help your family with a home by executing a 1031 exchange? Family members can inherit investment property in the future with a stepped-up basis (market value at the time of your demise), which can eliminate deferred capital gains tax on that exchanged property.

Requirements for a successful exchange

You need to know the required steps to achieve a 1031 exchange and work with the team necessary to achieve your goals – your realtor, tax advisor, attorney, qualified intermediary, lender and escrow company. Here are some of the steps to follow for a successful exchange:

• Make sure the numbers allow you to reach your goals
• Prepare your property for sale and price it to sell in the current market
• Simultaneously search for a replacement property
• Carefully handle due diligence of replacement property
• Close on replacement property and defer capital gains
• Watch the timing carefully to stay within IRS guidelines.

You need to adhere to some guidelines for 1031 Exchange:

• You must designate up to 3 replacement properties within 45 calendar days of sale of relinquished investment property or the 200% rule may apply
• The purchase of replacement property must close escrow within 180 days from closing date of relinquished property
• You must select a qualified intermediary before closing escrow on the relinquished property and may not take possession of any cash proceeds from the sale of that property – funds must be handled by that intermediary.

For more information on 1031 exchanges go to Maui1031Exchange.com or register now for our next FREE 1031 Exchange Seminar in Kahului on March 28.

** This is not tax advice – please consult with your tax professional.

With warm aloha,

Barbara and Lee Potts

Aloha,

One of my favorite things about Maui is the consistently breathtaking sunsets; and the view is particularly spectacular from Launiupoko. Located at the base of the West Maui Mountains this neighborhood boasts 360 degree views from most of the homes. This home for sale is no exception! Look out the back and see the expanse of ocean stretched out below you; turn around and the beautiful West Maui Mountains rise up in front of you.  

This Launiupoko property that is listed for sale on Maui just received a price improvement! It is a 3 bedroom, 2.5 bathroom, 1,680 square foot house that opens up to one of the biggest, most beautiful ocean views that you will ever see. You have amazing views from 1,500 square feet of lanais on two levels.

Just imagine sitting on your lanai (after picking some fresh mangos from your yard) watching the whales breach, the sailboats lazily drift by and then the sun sets exploding the sky into brilliant reds and pinks. It would be the house in paradise that you've been dreaming of!

What else is for sale on Maui?

With warm aloha, 

Lee

January 2019

Sales Statistics

The beginning of the New Year brings with it continued and heightened discussions of inventory, interest rates, and a shift in the real estate market. The shift in Maui will be exemplified by fewer sales at the mid and lower price points due to lack of inventory. On a national basis we are also being told there will be a slowdown in the luxury sector. However, given an overabundance of inventory on Maui, creating a buyer's market, and a rumored slowdown, now couldn't be a better time to buy a luxury property on Maui. But, overall, it still looks like a seller's market to me. 

Sales:

Single Family Home Sales declined precipitously in January to the lowest number in the last 2 years. Condo sales remained strong with 130, but it will be difficult to maintain that pace with inventory declining so rapidly.

Pending sales:

Pending sales represent properties that are under contract but have not yet closed. They are a key indicator of future sales.

Although pending sales were below 500 units at the end of January, as of this writing, they are over 500 for the first time in 6 months. While that is somewhat heartening, it is still well below the same month a year ago, when pending were just under 600 units, a decline of just under 17%. But with interest rates still at historically low levels, buyers still want to take advantage of rates and get into the market while rates are low. 

Inventory:

Inventory tells us how many units are available for sale in each category. Inventory for homes had a modest decline of just under 4%, while condo inventory went the other way with an increase of 5%.

While the overall inventory for homes has actually stayed fairly steady, give or take about 20 units every month for the last year, the inventory for condos is down about 14% over this time last year. And the inventory we have for homes is mostly at the pricier end of the market. Less than 20% of the homes currently listed are priced at or below the median selling price. 

Selling Prices: average sold prices

We look at Average and Median prices in all categories. A lot of people like to know the average price; however, we tend to use median for most of our analysis because median is less likely to be skewed by outliers  of a few very high priced or very low priced sales. 

It is worth noting that the average selling price for homes seemed to peak back in October at $1,165,670 after a previous high a year ago in February 2018 of $1,212,000. So, maybe there is some softening at the higher price points in the market. 

The medial price also had a peak back in October. If we look further back at the numbers from the end of 2017 through early 2018, we see that the median price has continued to trend up while inventory remains steady or slightly down.

Condo prices have been trending up since the beginning of the year. Early last year, 2018, the median selling prices were firmly in the mid-$400s after being as low as $400,000 in November of 2017. However, back in November of 2017 there were 624 condos for sale. Today, there are only 560 and even that is an increase from only 500 in November. Perhaps the higher price points could bring some additional properties to market by sellers looking to case in while the market is still favorable. 

Days on Market: (avg-sold listing)

The days on market is the number of days a property has been on the market until close of escrow. That number seems pretty stable. Normal financed sales take 45-60+ days, so on average, homes and condos are on the market up to 100 days before they go into escrow. I believe we are still seeing a downward trend in days on market.

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Get more information and details

To get more information on property and trends, you can search all properties listed for sale at www.alohagroupmaui.com. If you can't find what you're looking for there, send us an email to lee@alohapotts.com and we'll do our best to get an answer for you. As we get more requests for information, we'll add new sections to our website, newsletter or both.

About Aloha Group Maui

Aloha Group Maui was founded by L. Lee Potts, MBA, REALTOR R(B), and Barbara S. Potts, MBA, REALTOR R(B) and former California CPA. We are business people, and we treat our clients with the same care and service attitude that we would like to receive when we do business. We are in business for pleasure and profit. We expect that most of our clients will enjoy the property they own on Maui (pleasure), and it would be nice for everyone if your property performs well for you (profit). Real estate can be highly speculative, and profits are never guaranteed. So fi you are buying property on Maui, it is a good idea to surround yourself with a professional team. 

Lee Potts is the former President of an international software company and former Marketing VP of a publicly traded franchise organization. Lee and Barbara are both licensed under Keller Williams Realty Maui.

Barbara Potts was a CPA with Ernst and Young before joining Apple Computer back with both Steve's were there (Job and Woz). She was also Director of Strategic Marketing for Grass Valley Group, a division of Tektronix, and a business broker in California.

Aloha,

The sun is shining and the birds are chirping; our beautiful weather is back! We are excited to list another condo in our favorite location on Maui, Aina Nalu. 

The highlights of this particular condo are that it is located on the second floor of Aina Nalu, so it boasts vaulted ceilings and creates a lighter, more open feel to the all of the rooms in the condo. Also, because of the configuration of the units in the H building, it has more counter and living area space which makes it a great gathering area for all the friends and family you will have visit!

The grounds of Aina Nalu are beautifully maintained and host an abundance of tropical foliage and palm trees. There are 2 pools, one being an oversized saline pool, cabanas, a hot tub and a pavilion.  

This Aina Nalu condo for sale is all about location, location, location! Located in the heart of Lahaina Town, it is an easy walk to a variety of restaurants, to the beach, the harbor, shopping, etc. The Maui bus is also conveniently located (not that you'll need it...you have everything you could ever need a short stroll away!). 

This 2 bedroom, 1 bath condo is 772 SF and is listed at $510,000. 

With Warm Aloha,

Lahaina Lee

Aloha!

We have an Opukea residential condo for sale in Lahaina! This 2 bedroom, 2 bath condo is located right in the middle of Lahaina, and restaurants, shopping, and entertainment are all easily accessible (many are even within walking distance). 

The seller is the original owner, and this Maui condo is still in prime condition. It has a spacious open floor plan (1,269 SF), which includes an abundance of counter space, a dining area and a generous lanai that is situated so you get plenty of tropical breezes. 

The condo is located in a quiet part of the complex, but is also near the pool, BBQs and the fully-equipped gym. It is near the elevator, so those trips to Costco will be easy to unload. Opukea is also one of the few pet-friendly condos in the Lahaina area. 

The condo is priced at $580,000. Let us know if you have any questions or if you'd like to schedule a showing! Click here for more information. 

With warm aloha,

Lee

Aloha Group Maui - Keller Williams Realty Maui can help you buy, sell or exchange a home or condo - for you to live in full time, part time or as an investment. Learn more about Maui Real Estate in our Maui Real Estate 101 resources section. Stay informed of market trends by reading the Maui Real Estate Advisor. Aloha Group Maui - We Are Your Maui Real Estate Professionals.

Aloha,

Join us on February 28 in Kahului at the American Savings Bank for a free 1031 Exchange seminar. Learn how to increase or upgrade your portfolio and create a financial plan to leave a legacy. We will discuss these topics and much more, so bring your questions and let us help you build your wealth through a 1031 Exchange. 

We hope to see you there! Please RSVP by clicking here or call us at 808.798.5549

Aloha Group Maui - Keller Williams Realty Maui can help you buy, sell or exchange a home or condo - for you to live in full time, part time or as an investment. Learn more about Maui Real Estate in our Maui Real Estate 101 resources section. Stay informed of market trends by reading the Maui Real Estate Advisor. Aloha Group Maui - We Are Your Maui Real Estate Professionals.

Hawaii, and in particular Maui, is the perfect paradise. Here are the top 10 reasons you should move here...

1. Perfect Climate - The average temperature in Maui is about 78 degrees Fahrenheit. ALL. YEAR. LONG.
2. Sunsets and Rainbows - Your Instagram feed will be full of these pictures because each sunset or rainbow will seem better than the one before and you want everyone on the Mainland to experience the beauty.
3. The Ocean - There is a seemingly infinite amount of water activities to try and an infinite amount of sparkling, crystal water in which to try the activities.
4. Beaches - White sand, black sand, red sand. West Side, South Side, East Side. If you get tired of basking in the sun or of the same old whales day after day, try the beach down the road. Again, your Instagram feed will be full of beach pictures, these are particularly pleasant to share November - April to those living in less than perfect weather conditions.
5. Short Commute - No matter where you work or play, nothing is much more than an hour (except maybe if you're going up to Haleakala) and no matter where you're driving, it is bound to be beautiful.
6. Laid Back Lifestyle - Once you move here you quickly realize islandtime is an actual thing. 
7. No Snakes (or bears, or mountain lions) - Okay, not entirely true, there is a Hawaiian Blind Snake. But it is about the same size and holds the same amount of harm as an earthworm.
8. The Food - Fresh caught fish, need I say more?
9. The Drinks - Mai Tais, Lava Flows, Maui Mules, Blue Hawaiis, Pina Coladas and all served with a little umbrella. Paradise in a cup.
10. Aloha Spirit - Love, peace and compassion. Why wouldn't you want to live in a place where this is "law"?

Aloha Group Maui - Keller Williams Realty Maui can help you buy, sell, or exchange a home or condo - for you to live in full time, part time or as an investment. Learn more about Maui Real Estate in our Maui Real Estate 101 resources section. Stay informed of market trends by reading the Maui Real Estate Advisor. We are your Maui Real Estate Professionals.

…according to Aloha Group Maui. Located in the heart of Lahaina Town, one of the benefits of living at Aina Nalu is that you don’t really need to use a car that often (or ever). Groceries, restaurants, beaches, and entertainment are all within walking distance from the Aina Nalu condo complex and if you need some ideas, our top ten (in no particular order) are listed below:

1. Lahaina Historic Walking Tour - Lahaina is a town steeped in a rich and colorful history; it has it all, missionaries, rabble-rousing sailors, and Hawaiian Royalty. There are both self-guided tours (click here for a PDF map) or you can sign up at the Old Lahaina Courthouse for a guided tour. 
2. Entertainment - Warren & Annabelle's Magic! and 'Ulalena at Maui Theater are both worth the time and the ticket price.
3. Sunset Sails - With or without dinner and with or without Marty Dread (on the latter, you definitely want the with...)
4. Total Relaxation or Surfing - Perfect breaks, perfect water temperature and perfect sunsets are just a short stroll away.
5. Luau - The Feast at Lele is a beautiful venue to bring all your friends and family!
6. Shopping, shopping and more shopping - Front Street and the Outlet Mall, need we say more?
7. Fantastic Food - There are so many great restaurants, coffee shops, ice cream shops, shave ice shops, etc., that you could go weeks without having to repeat yourself.
8. Lanai - Take a trip to Lanai for the day or the weekend right from the Harbor.
9. Whale Watching - That's it, just whale watching.
10. ...and the best fish taco in Lahaina that has not yet been determined!

Let us know what your top 10 spots within walking distance of Aina Nalu are and if you don't know, then maybe it is time to move here to find out!

View of Lahaina from out in the harbor

Aloha Group Maui - Keller Williams Realty Maui can help you buy, sell, or exchange a home or condo - for you to live in full time, part time or as an investment. Learn more about Maui Real Estate in our Maui Real Estate 101 resources section. Stay informed of market trends by reading the Maui Real Estate Advisor. We are your Maui Real Estate Professionals.

Aloha,

There is no better place for fresh fish than Maui and there are so many ways to prepare it. One of our favorite ways to eat fish is in fish tacos (this is also a good way to get those who are less inclined to like fish to eat it and enjoy it) and we have had some good tacos, but maybe not the best?! 

Join us on our quest to find the BEST fish taco in Lahaina. The only rule is that it has to be within walking distance from our favorite condo complex, Aina Nalu (which is also right next to our office, so guess what we'll be having for lunch the next few weeks...). Follow us on Instagram and Facebook to find out where we're eating, which tacos we like best and ultimately our favorite fish taco in Lahaina!

With aloha,

LahainaLee

Aloha!

Kaanapali Shores continues to experience strong buyer demand with a low supply of inventory. In the last six months of 2018 there were 18 units sold, and there were only 10 active listings at the end of the year. At that pace, we have a little over 3 months of inventory, which is an indicator of a seller's market. Of the 18 sales, all but one were ocean-view units. 10 were ocean-view one bedroom units, and 2 were leasehold units. The average days on the market for sold units was 134, down from 137 in Q2.

If we compare 2017 to 2018 sales at Kaanapali Shores, here are the statistics:

The number of sales units increased by 37.5% over 2018, and we continue to be constrained by the lack of inventory.

Overall inventory for Maui condos is down 16% from December 2017; sales are down 14%, and median prices are up over 11%. While K.Shores unit sales far outpaced the Maui-wide sales, our price increases lagged, but that was primarily due to a much higher number of leasehold units sold in 2018 over 2017. Our inventory is down now, and we still only have a little more than 3 months of inventory. Not only is demand high, but in spite of increasing interest rates there was a substantial increase in the number of sales that were financed at Kaanapali Shores in 2018. This is evidence that buyers have faith in the future value of the property and the revenue stream from rentals.

With sold prices nearly matching the record highs of 2005 and 2006, this may very well be the time to sell if you've been considering relocating your investment assets or upgrading your investment. We're here to help!