Maui Real Estate

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Is it a good time to buy a vacation home in Maui?

1Maui is a haven of beautiful vacation homes. In fact, there are more than a hundred properties in my listings featuring a variety of styles and designs. So now you are asking whether it is a good time to buy a vacation home in Maui. Well, a host of market conditions have come together to make buying a vacation house in Maui, a wise move just about now.

In Maui, low price and less competition is the tip of the ice berg when buying a property. In 2009, home prices were as 25 percent low as sales is concerned. The prices have gone a little bit higher now, but rest assured to have more upscale houses in return. If you think of it, buying a vacation house is a wise investment other than being a wise addition to your valuable assets. As your home value goes up, you get higher returns when you plan of selling it in the future.2

Rental home demand is hiking up

Stiff economy has turned rental homes more expensive than before forcing budget travelers to stick closer to home. Not quite obviously, rental demand exceeds supply in many areas around the country.

Think of this: For a week long vacation, domestic travelers can save on plane ticket, food, and rides. But hotel rentals always stay up on the list as the biggest cut on their getaway bucks.

When you have a vacation home, you get all the comfort you need to feel the vacation without having to worry about the bills piling up. You can get all the comfort you need at a rate less costly than a hotel room. This is especially true if you have an extended family who loves to travel a lot and stay longer than planned.

You don’t have to bid

3Unless you are buying a foreclosed property, you don’t have to bid. Try to skim the listings and take your time. Do your research. Weigh all things that you need to consider such as budget, size of your family, and how often you would want to go back to Maui. Then refine your plan. This time you are not under any pressure to make a quick decision.

Finally, you would want take the stock market.

The fluctuating stock market has pushed people to look for alternative investments, and fortunately real estate has had steady returns so far. Even if your home value is down right now, they can always make a rebound in the future. For example, while you are away you can have your vacation home rented for other tourist. You can surely make a nice profit out of it.maui365184-1

Check the local market at South Maui, Central Maui, North Shore Maui, and Upcountry Maui to make the most informed decision. Let me know when you have any questions.


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How to be wiser when buying a property nearing foreclosure?

aaathinkingladyWell, buying a property that is about to be foreclosed is not your typical kind of resale. Normally, when you plan to buy a house, all you probably need to know is whether the seller has a clean title. But now your friend is trying to sell a property. He bought it for $350,000, however 50% of which is owed to the bank by virtue of mortgage. Since it is mortgage, the bank has an inchoate right over the property, which leads you to think that someday and somehow, it is going to be foreclosed. Would you still want to buy it at its full price of $350,000? Of course not.

So you would want to buy it – probably around $150, 000 subject to the mortgage – that is almost 50% of the purchase price. How do you do it? Would you meet your friend first or the bank?

There are several things you have to do first. First, you need to ascertain how much does your friend owe to the bank. Due to privacy policy, you need to secure an authorization from your friend. If you don’t have a written authorization, the bank would not allow you to look at it.

Next, determine if your friend has debts other than the mortgage, which could possibly put a “cloud” over his title. What is a bankforeclosuresigncloud? Let’s say for example you find out that your friend has owed $100, 000 from another person and he fails to pay. Such situation gives the lender a claim over a portion of his property, therefore exposing it to risk of recovery or attachment. When time comes, this claim can create a confusion or doubt to your ownership. Other than debts, you also need to find out whether your friend has delinquent tax liabilities and other fees. If possible, you can consult a real estate attorney.

After successfully obtaining your friend’s payoff information, you now have two choices. First you can pay your friend’s mortgaged value and enter into a sales contract with your friend. As a rule, property should have clean title and free of encumbrances when conveyed to you. Adding such stipulation in your contract will keep your rights more secure.

The second option is to execute a short sale, which is buying the property less than the owner’s proposed purchase price. What you are going to do is agree with your friend with a purchase price and have him signed a contract. If he has a real estate agent, you have the commissioned stipulated in the contract. As easy as it is.

Here’s one last thing…

Buying a property that is about to be foreclosed isn’t really a bad idea. In fact, many people nowadays would want to first florida-foreclosurelook into listings of properties under mortgaged because they are usually sold at a lesser price. The rationale is this, if after you have bought the property and the bank forecloses the same, you are subrogated to the right of redeeming it at a lesser price.

Why some banks do not foreclose properties? The reason is simple. Oftentimes lenders are the highest bidder. When they get the property, they may end up becoming the owners thereof. As a result they also become obligated to pay real estate taxes and other fees. If it is a condominium, they need to pay the condominium fees.

Nevertheless, buying foreclosure is a bit of a grind. It gives you awesome deals but it takes some going through several listings to get the property that you want.