Aloha Friday Hawaii Real Estate Q&A on-demand for 1/7/22

all right all right all right happy new
year aloha kakahiaka everyone i’m your
host peter k and you are in the pre-game
show of the aloha friday hawaii real
estate show welcome everybody let’s get
my let’s let’s warm up this uh let’s
warm up this bad boy here uh and get my
get my friends online here today uh
we’re with uh heidi for those of you for
the show regulars heidi is out sick
today and we wish her well and i told
her to make sure that she gets rest and
recovers but i am here with with my with
my buds over here i got uh
we’ve got there we go we got dylan
nanaka here who’s actually on location
in a cool spot and we got scott uh dil
nanaka from the big on and scott starts
mid from oahu dillon uh why don’t you
get us why don’t you warm us up over
here and uh you i see a nice bat uh your
background is you and scott have
competing backgrounds now so where
what’s going on buddy
yeah i wish i wish it was even uh
lighting’s always an issue right with
like doing these shows but um i’m at a
seven million dollar
no reserve auction property it’s this
amazing estate it’s got eleven bedrooms
it’s like eight thousand square feet
under the road it’s insane and uh so i’m
sitting on a little gazebo where they
got like a little yoga and meditation
area and then
the ocean’s back there you can’t really
see it because the lighting is blowing
it out but you got this beautiful garden
and then there’s coffee all around it
there’s an infinity pool over here to
this side i mean and then sweeping ocean
views of the kona coastline so amazing
spot
i’ll be looking forward to uh to seeing
that because i’m sure you’ll be
featuring that on our diamonds and deals
uh before we do that we have to give a
shout out here to to jim our buddy jim
stevenson welcome back jim jim jin jim
threw a quick message on a half hour ago
just to make just to get his first
position back
jim you have you have reclaimed
you have you have re you have sir you
have reclaimed your position as the as
the first guy in line for our group uh
welcome jim welcome back to the ohana
and uh we got chris longley uh chris
aloha kakahiaka
makahiki ho everybody for those of you
that don’t know how oli makahikiho is
the hawaiian word for happy new year i
think it’d be kind of good to get like
an exact translation of what that means
like makahiki is like the makahiki
festivals like a a whole bunch of
festivals whole is like do it again
or cycle happy new year i know what how
oly means i’ll be interested i don’t
know if anyone knows what that is uh uh
joan joan valentine uh a alumni of the
islander ohana happy new year everyone
happy new year joan we are so glad you
are here this is so much i you know this
is one of my favorite parts scott i’m
we’re going to get to you in a quick
second this is my favorite part because
like i love kind of like the the group
all comes together again the regulars
tom tom’s back although everyone hope
you had happy holidays yeah i had a
fabulous uh christmas have famous and
quick
fabulous and glorious christmas season
uh patrick gallaher happy new year from
raleigh north carolina all kinds of cool
icons there you’re freezing your butt
off apparently uh so scott we’re we’re
going down our line over here for our
friends scott to give us the uh how’s
how’s things going on oahu over there
you’ve got a nice background what’s
what’s happening things are awesome uh
yeah
i mean it’s a new year i felt like it
was like a month of rain and we just
kind of washed it all away and now
now we got bright skies probably in the
last two days it was pretty heavy rain
but not it’s awesome i got a new haircut
i got a new computer we got a new year
new opportunities
the only thing that’s not new is this
aloha shirt and i may have to have dylan
send me one for next year we’ll start
that for next year yeah that you know
that’s what the
you know being being of course guys we
we don’t get we’re not good gift givers
or good gift uh kind of creative side uh
so that would have been a good one scott
you know like one of us should like send
the other guys aloha shirts maybe we can
kind of do that but we can get that
embroidery a lot of friday show
embroidery on it there you go no now
we’re talking we got that uh that cool
shaka sign that uh that one of our
islander ohana alumni kelly has put
together for us and we have of course
auntie joyce who is with us felice
ano nuovo to all uh welcome auntie joyce
thank you so much for being here and uh
kenaya uh one of our earliest islander
alumni members uh greetings from austin
how are things in austin canada we are
looking forward to your your visit uh
back to the island soon i had the
pleasure of meeting kenaya in person at
one of our islander ohana meetups tom is
back tom happy new year tom been plowing
and shoveling six inches of snow high 30
low high 30 low tonight 18 degrees we
didn’t move soon enough it’s all right
tom one more winter one more winter
buddy you will you will you will be you
will be you two will will be here you
two will be living in paradise soon yeah
it’s good fun right the um you scott
mentioned the uh the weather it was it
was oh you know what it’s ten o’clock
why don’t we why don’t we get started
just a perfect time let’s get let’s roll
into the show i think we’ve all warmed
up here correctly and uh properly uh say
hello to a few more folks over here
there’s there’s jessica hey jessica
welcome back jessica morris uh uh jess
and wes uh our uh islander ohana uh
alumni uh we had a great time we had a
really cool thing we we got together at
the uh at the makapuu lighthouse uh um
lighthouse the uh a couple weeks ago was
awesome it was this fantastic moment we
had we saw a killer sun we went up to uh
on the way to makapula house we stopped
we went up the hill there’s like a first
place like a resting spot we all stopped
up there and gathered and from that
point we saw this amazing sunset and
then just a few minutes later we saw
this amazing full moon rising was
fantastic you know everyone’s kind of
saying hi over here so we’re going to go
down before we uh we’re going to delay
just a little bit to say hi to everybody
and
vishali is is it bashali or vash
vaishali by shali murthy murthy uh
vaishali you uh we we had a little bit
of correspondence with email welcome
welcome to the show uh everyone of
vaishali is new happy new year everyone
happy to be joining the show where we
are glad that you’re here charlie uh
patrick mckenna is back good evening
from germany how hopeful uh hope things
are are going good in germany patrick
it’s great to see you again uh spencer
from our hello from new york city
welcome spencer how’s the weather out in
new york city how are you guys doing
with covid and canaya says just found
out from scott email scott’s email that
my dream home in
is pending pending for you is it pending
for you kanaya oh no pending
can i you know what that just means that
just means you gotta just do it again
and get another one that’s that’s what
that means jim is back uh peter means
happiness joy gladness happiness
anything pleasant oh very good so jim
thank you for uh jim did the um
did the old google search to to do our
hawaiian word uh and hauoli uh the word
the hawaiian word oli is what that means
happen is gladness that says so
therefore happy new year uh uh mark is
back mark is also an alumni of the owner
ohana aloha everyone welcome back man
this is this is like so much fun i’m
having just a blast saying hi to
everybody um bobby is back bobby another
alumni of the honor ohana aloha guys
bobby where where are you at buddy give
us a uh
i can’t post one of your questions
obviously
bobby’s here on the the big island we
got his house in escrow a little bit of
delays due to appraisal issues yeah with
the but he’s uh he’ll be he’ll be a
homeowner here soon oh man awesome
that’s fantastic news glad glad to hear
bobby uh bobby was we yeah but bobby was
and our eleanor cohort means was great
judy is back uh judy also is an alumni
it’s like the whole family is showing me
this is so great i really enjoy this
part and and the the comments are still
coming so the great everyone’s here
about the happy new year so sherry is
back uh sherry aloha and happy new year
happy uh sherry from california just
came back from the big on sherry how was
the big on what did you think of it was
your favorite place uh and there’s
there’s kelly kelly hobby who was the
one that uh the the artist behind the
the shaka logo uh welcome back holly
also a uh islander ohana alumni uh and
uh and and jim uh no google i’m learning
hawaiian awesome man jim i am impressed
i need to hear your hawaiian next time
buddy that’s that’s the uh that’s going
to be your your graduation access all
right look
i got to get going over here for oh guys
trav travis aloha lived on o’ahu for
four years looking to retire on the big
on in nine years well travis you’re in
the right place because you’re hanging
out with the with the best of the best
over here my good friends dylan from
who’s on the big on right now and scott
who’s on oahu all right let’s get this
party started over here i got some fun
news to kind of share with you all uh so
let’s roll over here okay so first of
all happy new year everybody this is our
first show of the new year and i’m
totally stoked that everybody’s here uh
a couple fun things going on so maui has
if you’re gonna be going to maui and
you’re gonna be going to indoor
restaurants you gotta have your booster
shot so uh the maui county will require
people eligible for booster shots to get
them to be considered fully vaccinate so
in maui if you’re going indoors or
there’s a fully vaccinated requirement
you got to have your booster shot so
that means you got to plan your trip
just like i mean no matter where you’re
going these days you got to plan your
trip right i mean my wife and i were
thinking about going on a cruise and
then we got all this stuff about cruises
that are put on hold and not going on it
it’s a mess speaking of cruises uh
cruises may be returning to hawaii it
looks like a it’s it’s a signal um
hasn’t started yet
but the hawaii department of
transportation has signed port
agreements with cruise liners uh with
new rules of kovid and all that kind of
stuff so it’s a sign a cruise cruise
ships ain’t lining up just yet uh but uh
it’s a it’s a sign by the way though the
the hawaii cruise i’ve done it several
times it’s really awesome it is
phenomenal you get on a seven-day cruise
you go to all the islands you do you do
activities there’s great activities on
each of the islands it’s a well it’s a
fantastic trip and they it’s got the
most amazing um
a lava of view they they bring you with
this you’re at this ginormous cruise
ship and we came you know fairly close
uh to where active lava was pouring into
the ocean it was absolutely amazing
because the water is pretty deep off of
there okay um honolulu uh we’re getting
you know if you look at the graph over
here let me pull this up here
so you look at the graph over here gang
we are we two are getting whacked by
cove it’s just insane the numbers
compared to previous numbers of cases so
you look at that that the tail end of
that graph on top here the number of
cases and it’s like spiking big time in
fact we’re hitting like i think
yesterday we had like 4 000 cases which
if you look at historically that’s just
an insane number thankfully though well
we’ll see so far but like everywhere
else around the world uh that doesn’t
seem that hospital cases and
fatalities are falling thank goodness
that being said uh honolulu did put on a
cap i don’t i don’t know if it’s going
to affect many things but it’s a cap if
there is a um a an event of over a
thousand people uh they’re bringing it
down to a 50 capacity uh everything else
is unchanged so um that’s kind of like a
plus of mine and finally finally finally
finally we’re number three where that
where one there’s nothing to brag about
but there’s an important topic uh we are
the top one in the top three exodus
states in the country um i believe the
uh uh
new york uh illinois um illinois new
york i think it’s illinois new york and
hawaii are the top three states where as
a percentage of per capita percentage of
the of the population people are leaving
net leaving the state yes people are net
leaving the state this is why we have
the islander ohana because we don’t want
that to happen to you if hawaii is right
for you we’re going to figure out a way
to make it right if it’s not right if
you figure it out ahead of time so you
can save yourself the agony but that is
the that is a statistic uh and as scott
had mentioned if you look over here i
got some weather we had some really
nasty weather the past week it was um
unfortunately i had some uh some family
that that was visiting us and of course
they came at the beginning of the rainy
sea uh the beginning of this two weeks
of rain and of course they had a
two-week vacation so they left uh but
they were good troopers they managed to
get themselves out anyway so all right
everybody so that’s that’s that’s the
quick update so why don’t we do um uh
you know what let’s let’s kind of blend
a couple of things in here well first of
all is there any kind of there’s an
important real estate topic that we’re
that we’re going to bring up and we’re
going to talk about that but before we
do that is there any kind of news that
you guys want to bring out non-real
estate news dylan why don’t we go
clockwise let’s go dylan and then scott
any real estate news uh no non-real
estate news you have that’s happened
over the past few weeks that’s notable
big island and then oahu dylan go ahead
yeah the biggest news was the storm i
mean that was something that caused uh
it island-wide there was a lot of issues
but in kona in particular because i
always brag on the show we have like the
best weather in the whole world and so
we don’t ever get really windy weather
in kona but when those winds came
through because we don’t have normal
windy weather there’s massive damage so
trees fell all over the place telephone
poles went down um there was a lot of a
lot of a lot of destruction after a
couple of days of wind but surprisingly
enough the the public utilities were you
know we’re back on in most places you
know within a few
10 hours 12 hours you know some places
really rural areas there’s out you know
a day or two but really impressed by um
the power company and the public
utilities getting everything back online
but it was a little bit traumatic there
for a couple of days but you know that’s
like once every 10 years we get a storm
like that that scoops up underneath the
islands and then comes up along the west
side because normally that stuff gets
blocked by mauna loa on the you know it
stays on the east side of the island or
goes around
yeah the these uh these winds as you
mentioned we’re coming they’re kona wins
meaning they’re coming out of this out
of the south they normally come out of
the northeast these were coming out of
the south southwest southeast uh
southwest um and you know so that the
different sides of the house got wet you
know parts that you normally never get
wet you know that were like soaking uh
scott how did you fare through through
the storms and what other kind of things
you want to report on as far as oahu
goes yeah i was amazed at the storms
because it wasn’t just rain it was
coming down in buckets and i even just
walked like 20 or i ran 20 yards to to
get to my car one day to go in an
appointment by the time i got to my car
it was completely soaked from from head
to toe so it’s just a massive amount of
rain all at kind of one time and it
would it would come in spurts and in
waves and it went on for about a month
it’s interesting because i had an aha
moment the last show that you guys had i
was actually in portland
and portland’s known especially this
time of year for
wet cold weather and it was it was
interesting because it was in the 30s
and it was raining heavier than that
kind of pacific northwest misty kind of
style and i was fine with it in the
beginning because it was a change of
scenery change of pace i was layered in
thermals because i can’t handle you know
30 to 40 degree temperatures i’m all
layered up then you got the jacket i got
the beanie on i got the gloves on and by
day four i was over it i loved my trip
to portland but i was just like oh my
god i’m tired it’s it’s exhausting
putting on that much wearing it and then
trying to go out you i felt like i was
trying wanting to be more sedentary at
that point and when i landed back here
and came home and it was raining the
first thing i wanted to do shirt and
shorts and that was it and i felt it
felt so amazing and it just made me
really appreciate the weather that we
have here all year round even with the
rain
i’m totally comfortable here fine let it
rain outside i don’t care i’m totally
comfortable you know in this environment
and it made it still enjoyable
it didn’t feel like i was stuck indoors
still you know it it is absolutely
remarkable uh that one thing we so take
for granted which is the weather right
and you know it’s not like oh it’s just
the weather no it’s something that you
live with every single minute of every
single day every single minute of every
single day is the one thing that you are
always with you’re always in the
atmosphere and
i’m with you scott i’m with you but hey
hey folks how about you you got any uh
who’s who out there is like i can’t i
can’t handle the cold and that’s me so
who else is out there throw it on the
comments i i want to hear about it uh uh
kelly uh no sun for two weeks not so
good for off-grid upgrading system now
you know kelly uh that’s a very good
point i um i well we i mean i’m not off
grid um but i i did we did implement a
um
a battery based uh solar system etc so
we can kind of for the most part live
off the grid but you know what kelly
uh solar panels don’t do so hot when
there’s no sun uh they don’t work in
fact they don’t work at all and we had
to pull power from the grid now we’re
not off grid we pull power from the grid
uh but if you’re going to be doing an
upgrade
like dylan said this is a once in a 10
year scott right this is like a 10 year
once in a 10 year thing this is i was
telling them you know so it’s kind of
funny i was telling new members of the
islander ohana who moved to oahu uh at
our gathering at makabu lives we’re
talking about that um
and i told them on our private facebook
group i said hey gang this is not a
normal winter this is not a normal
winter for hawaii uh it’s once in a
10-year deal so kelly you could do it
you could do your upgrade but uh you’re
going to be doing it sort of a once in a
10-year thing scott wanted to send you
one sec yeah we you might be the one
that we blame for this rain because you
were the show before it started raining
you said oh this is an odd winter it’s
been kind of dry and then all of a
sudden we got rain for a month so it was
easy either i brought it back from
portland or you you you created it
as somebody did man somebody jinxed it
yes i was saying it was it wasn’t
unseasonably it was an unseasonally dry
and warm fall
but it is now an unseasonably cold and
wet winter so i guess that’s the way it
kind of goes right uh
let’s see who who’s who’s got a couple
of comments over here yeah jones says
yeah i’ll take the rain over snow yeah
you joan you i’m with you i will take
joan how about this i will take sunny i
will take sunny tropical weather over
anything uh even over rain or snow um
we got and then christopher my wife and
i are getting tired of the cold winter
for sure yeah you know christopher i it
just
i can’t do it i can’t do it uh uh judy
me freezing here in colorado it was
minus four the other morning uh you know
you know judy i’m from the midwest uh
from chicago and we say minus four you
know we’re we’re we’re washing our cars
at minus four piece of cake you want
minus 50 with the windchill uh when when
you’re in in chicago um and sherry uh
sherry got totally good with scott
regarding the cold weather that’s why my
husband and i like hawaii one season
we’re living in southern california
which has two seasons southern county
you’re not going wrong with that uh
joyce totally solar and chris watching
uses daily it is what it is yeah i mean
you know we we try to do it but you know
we
we still need base load power baseball
powers that power that that’s going to
come no matter what that’s uh that would
i made a facebook post about that and uh
totally over the wacky texas weather was
29 degrees this morning but we had
record-breaking christmas day yeah it’s
it’s just it’s one of those those things
portland more rain and
fun times
candace my heart goes out to you
hopefully you’ll survive the rain and
flooding it’s it’s not it’s not fun uh
but actually today is a gorgeous drop
dead gorgeous day of course once the
family goes back to the mainland the
weather goes back it’s fantastic uh tom
says we’re lucky if it’s only two weeks
without the sun here in uk uh yeah well
there you go buddy i think that there
you go my car doors got frozen shut okay
judy i think yeah that’s a i had one
time judy when my it was so cold that my
engine wouldn’t turn over and it was
because my it was not because my battery
was was was dead or weak the battery was
fine but because the oil had frozen over
i was using kind of a higher viscosity
or the oil had frozen over and the motor
was not turning over
all right all right gang so let’s let’s
get on to our other topic over here that
i’ve been waiting to to talk about
uh uh record-breaking heat well you know
can i you go from a record-breaking cold
to a record-breaking heat that’s the way
it is right in texas uh you know there’s
an old saying in chicago if you don’t
like the weather just wait it’s going to
change all right um
and on the real estate market side
there’s a there’s a topic i kind of
wanted to hone in on that came in um and
this can and we’ll use this as the basis
for our discussion here which are from
adam who’s in rainier washington
assuming he’s also suffering from the
rain right now adam i hope that you’re
here but you put a great question to us
and the question is
when will the market begin to chill out
or will it take several years while
supply catches up with demand now we’ve
had this question a variety of ways uh
but i thought it was a good one because
uh
we had kind of an offline conversation
before the the show between uh scott and
dylan
and heidi uh about the market so why
don’t we kind of roll that one in let’s
go counterclockwise uh scott uh you know
give us an update on what you know it
went through anything about what’s going
on on oahu but you know let’s kind of
hit this one you know when will the
market chill out will supply catch up
with demand will take several years
what’s your what’s your take on this
scott
yeah so let me give you a quick market
update we uh we actually just got the
market stats
last night so i was diving digging in
through that and that’s for so i was
able to look at the entire year which
was good and man i mean it’s amazing i
even we got on that text thread last
night i hit dylan dylan and heidi and
peter up and was like hey man this is
what i’m seeing over here what you got
you know it was it was a fun little
conversation we had via text message to
kind of understand the differences in
the island but for
for oahu
nothing has changed there’s three main
points that that you got to get out of
oahu here our median home price is a
million fifty
that’s pretty much been steady for the
last couple of months doing that condo
prices are at median prices about 485
but the three big things are there’s
record low inventory there’s still a lot
of people buyers in the market so
heavy demand low supply
and um and and the speed of sale is at
record pace too so they’re moving
quickly which is
let’s see
two out of three homes are selling for
more than the list price four out of ten
condos are selling for more than the
list price so the main thing you got to
understand here is if you’re a seller
great time to sell call me up let’s
let’s talk strategy because you you know
you’ll do real really well in this
market if you’re a buyer you better be
prepared you need to get your ducks in a
row you need to have a strategy
especially in this market and be working
with the right people
expect competition expect that you’re
probably going to have to be paying over
market price
and keep an eye on interest rates
because they’re starting to creep up but
i don’t the the crazy thing is is
we were trending at
number of active listings for homes at
around 4 30 to 4 50. the holiday months
dried that up even more where
i think we’re at like three
315 315 homes actively on the market
right now
now that’s going to speed up now that we
get in the new year but that’s
ridiculously low it’s half what we were
at at the last at the height of the last
market in 2006. so there’s just very
little inventory and a lot of buyers in
the market i mean that number i mean
dylan’s going to give us some real
context of that number of 300 uh really
going to help us out with it but just
think about this i mean at just a
armchair clueless guy level like me 300
listings that means there’s 300 homes
for sale
in an urban area of a million people
a million people 300 that’s the context
dylan uh give us the give us the the
some more context and and how do you
respond to that that question that you
know when will the market chill out so
what now what’s going to be interesting
uh uh before dylan is going to be how
the interest rates are going to curb
that back right because interest rates
by definition will be raising prices but
anyway so dylan what’s going on on the
big island and what’s your take on when
the market’s going to chill what’s been
happening same same as everywhere else
it is not chilling out at all um but for
context this is this is interesting
right less than 400 homes on oahu
available there are 406 homes give or
take around 400 any given day on the big
island so we have more homes on the big
island with
20 percent the population that oahu has
and so that’s
it’s crazy for us but it’s even crazier
to think about that putting that into
perspective with oahu we only have 54
condos on the market right now and
that’s usually in the 300 range and so
context-wise there’s usually over a
thousand homes on the market so we’re
extremely low inventory that has
continued we saw at the latter part of
last year inventory go up a little bit
but um it’s it’s it’s pretty much
bumped up a little bit and then stayed
kind of around 400 450 for homes any
given time and those include a lot of
you know we have our our funky market in
kona the the rural areas where they’re
unpermitted homes and things like that
so those aren’t even that’s not even
really representative of like actual
homes and then there’s also we have that
super high-end luxury market where
you’re talking like 5 million plus and a
big chunk of those you know 25 of those
homes are in that in that market so the
regular home market is extremely
constrained on any given day in the kona
market
there’s less than 10 sometimes there’s
six homes on the market that are under a
million dollars so
i don’t know when you know we were
talking about supply catching up with
demand
the only real supply we have on the big
island anyway is resale right we have
very little new development outside of
the the luxury market and so
the only way you’re going to have more
supply is if more people start putting
their homes on the market and if people
don’t decide not to do that they’re just
gonna sit in their homes and they don’t
wanna move um
i don’t know when that supply catches
back up and we’re so far behind right
now it literally could take years you
know pen
unless there’s some crazy catastrophe in
the economy or something which nobody
can predict but under normal
circumstances you know going forward
i don’t see any end in sight right now
so so here’s the here’s the funny part
here’s the you know you know in your on
your on your catastrophe thing i was you
know i was just like a plague you know
like a plague if there’s a place like a
plague you mean like you mean like like
a crazy virus that makes everybody sick
and like shuts down the whole economy
you’re like around the world and
everything comes to a grinding halt then
no that’s the part see that’s the part
the part is that and there’s a there’s a
story here that um
uh hawaii is reporting that they’re
gonna have record uh record tax receipts
uh like something eight billion dollars
in tax receipts or something like that
you know the most they’ve ever gotten
it’s gonna it’s projected for uh 20

and my point was like man if we
could bounce back that fast after you
know basically an asteroid hitting the
planet essentially right with this thing
you know dylan i i don’t think that
a catastrophic world event i mean this
is really bringing up something very
interesting right this is really exactly
this is really bringing up a very
interesting aspect about perhaps hawaii
uh but it’s been going on on the
mainland too i don’t know
scott i mean what do you think i mean
here the interest rates going up is
gonna have some effect it’s gonna have
some effect it’s gonna maybe taper off
pricing
go ahead here here’s the problem with
that in the short run and here’s where i
see this and dylan’s mentioned this
before and i totally we’re all on the
same mindset of this is like if this if
the state is not going to allow
more more development uh to open up more
development lanes because i think if
dylan can correct me on this but i think
you mentioned it’s like five percent of
the the state’s land is actually
developed and and a lot of it is
preservation conservation land uh that’s
untouchable so
we either have to open up more new
construction supply or we have that
resale issue so we have a supply demand
issue we either we’re either going to
have to increase the supply which that’s
not yeah you got to do it by a ton for
the the demand that’s here or something
has the affect the demand side interest
rates will do it but what my thought is
and i’m seeing this i had seven buyer
appointments last week i have four this
week um which is not normal for this
time of the year usually it’s a little
slower i think people are going to see
one prices have gone up they’re going to
continue to go up i expect them to go up
20
this year because of where we are in the
inventory side oh and interest rates are
going to go up too i better get in now
so i actually think the interest rates
moving up will force more people to move
in now oh it’s better than weight i see
at least in the short run right in the
short run the the threat in other words
the the threat of interest rates going
up is like boy if you’re gonna buy now
you better do it you’re gonna get a
double whammy prices are gonna be higher
your interest rate’s gonna be higher if
you wait it’s gon and if you’re getting
a mortgage it’s gonna cost you more in
the monthly payment and people buy based
on the monthly payment they base buy
based on cash flow you know that’s a
really good point it’s almost like
basically what i’m getting out of this
is that the the
the the threat so to speak or the
forecast well the market already has the
market is already pricing in the
increase in interest rates you saw that
with uh with the sell-off um is is
basically telling everyone hey look
prices are guaranteed to go up they’re
guaranteed it’s guaranteed it’s
guaranteed to be more expensive for you
to own that home guaranteed so you’re
going to have to make a decision uh tom
put up a good question has the exodus
state result translated to more
inventory or not so much
no
so when that popped up when you said
that that we’re the third biggest exodus
i’m going well they’re not any more
homes on the market for sale so who are
these people that are moving are they
renters
good question i you know it didn’t give
an analysis it just basically said that
we’re the um and
tom put that in context i think what
they’re saying is because we did have
over the last 10 years a net increase in
population but everywhere there’s a net
increase in population it’s a matter of
what what is how big is your net right
in terms of our population growth we we
have
the largest amount of people leaving
because they’re not we’re not replacing
them with new with new kids right is
basically what’s happening so so um
birth rates are down and people move
away there is a net increase over time
like we went you know we added 150 000
people over the last um 10 years but
that’s much slower in comparison to
other states yeah i mean i think there’s
there’s there’s a couple of mixed
there’s a couple of mixed things on that
so so then you are correct i mean there
was a there has been a net increase
right when when uh you know when i moved
here for nearly 40 years ago the
population was like about a million i
think now it’s like 1.4 one point three
four five yeah one four okay so you know
there has been an increase just on a raw
numbers i and and however in the last
few years the last few years not like i
think last three years or something
we’ve had a net population drop which is
the first time it’s ever occurred in but
that’s very very very very recent um it
used to be where the birth rate would
offset the exodus part it used to be
that the birth rate but that’s even
that’s kind of changing as well um so
yeah so but but tom i think the the the
the excess result i think the other part
about these are this is not the first
time that this has been occurring this
is we’ve been like in the top three x’s
for the past few years so
you know that’s already been sort of
like priced in priced into the into the
model uh sherry’s got a theory here uh
more second home buyers could be sherry
could be i mean um there’s gonna be you
know what’s what’s interesting is that
there’s gonna be some legislation i
think it’s already well they’ve been
rumored scott wouldn’t know scott isn’t
there something going on about but
besides just the vacation rental part
there’s gonna also be there’s talk of of
of having a different real estate tax
for an unoccupied home there’s a lot of
condos in kakaako if i’m not mistaken uh
which is the urban area of honolulu that
are gorgeous multi-million dollar condos
but they’re empty and they’re not even
being rented scott you want to throw
anything on that
um yeah i’m hoping that one doesn’t get
passed through either because the
because the rationale behind it was hey
we need more affordable housing i’m like
okay so that six million dollar yeah a
condo that’s sitting vacant is gonna
become affordable housing no it’s a
money grab and and every time they go
for the tax
side over here who are you going to go
after it’s the the non-voting base which
is the off island second home buyer
right
or second home owner
yeah i mean uh it’s it’s gonna be
interesting to see what’s what’s going
on with it uh tom uh tom said
and it goes back to right that’s one of
those things how do you enforce that are
you gonna have is is the county
department of taxation gonna go have
police that’s gonna go and knock on
people’s doors and see if they’re
actually living there or not i mean it’s
just like one of those things where it’s
such a crazy idea where it’s totally
unenforceable so
you know and the funny part and it’s
like and it’s like the it’s like the
vacation run allah what i’m seeing now
is now that it’s been in effect for a
couple of years people are just
disregarding they’re just they’re just
going back to putting their stuff on
airbnb and taking taking the chance
because they know there’s nobody
enforcing it and you know unless
somebody directly complains about them
nobody ever knows that their vacation
rented it so you know i’ll tell you and
that’s that’s but you know look i i i
can i can give you a direct experience
direct experience i was uh i was i was
the chair of a neighborhood board uh for
east east oahu and uh so i saw these
things coming for before the board and
we had a we had several cases where
blatant violation i mean just beyond the
pale violation of uh of of of uh
occupancy laws vacation rental loss et
cetera blatant violation and the the the
back then uh the uh there was zero
enforcement absolutely zero enforcement
it just it’s beyond ridiculous so if
that continues people are just gonna you
know shy away from the whole thing and
joan brings up the the one of the big
core issues in kakaako they keep putting
up more building more big buildings much
to my dismay how are they getting the
okay to do that well jones right off the
bat there’s a pres there’s a process
there’s a permitting it’s it’s
extraordinarily extensive and it takes
you know decades to get a permit so
they’re there it’s legal but joan brings
up the issue which is the overall the
overall conflict what do we want do we
want more affordable housing or do we
want less homes if you can’t have them
both dylan you’ve said this many many
times right you can’t have both you
can’t have more affordable homes and
have less homes on the market that’s
those are those are you know unless
you’re going to somehow define the laws
of physics uh we all get it
and the short answer to that question is
money when you when you’re a developer
that wants to build multi-million dollar
homes guess who you’ve got money to give
away to the guys who make the decisions
on whether or not you can build
high-rise condos so with enough money
you can do anything
so so so the answer to jones question
how are they getting the okay to do that
because they’re writing big checks
that’s how they’re getting the okay to
do that joan they’re writing big checks
and those big checks which is why
um housing is so expensive because all
that cost is built in it’s not just the
cost of bribes so to speak not that not
anyone’s bribing i’m not accusing the
bribes but the political kind and it’s
not it’s not just a direct contributions
it’s it’s the overall political
structure right like who builds those
condos
union construction workers right who
holds a lot of power in political
circles union bosses and so there’s all
it’s it’s a cycle right that you have to
support the economy and those people pay
taxes and so there’s a lot of incentive
to allow people to do that if especially
if they’re going to be spending a lot of
money those aren’t cheap condos to put
up those are really high-end condos that
need skilled workers and
and high quality materials so and all
that gets money
money’s always the answer all that gets
built into the cost yeah so joan none of
these are affordable no joan some are
there is some mandates of affordable
there is a there is a scott you want to
speak that at all about the the
affordable housing thing on that yeah i
mean ulana right now for ward village so
ward village is the 60 acre master
planned community so i’ve kind of
written about it it’s on my website but
um they’re taking so for every tower
that gets built you have to have a
certain number that are dedicated to
reserve housing or affordable housing
and ward is basically moving all those
credits into certain particular
buildings where they’re all all that
ulana which is the next one that’s going
to be released they’re actually taking
their applications through the end of
this month so if anybody needs help i
can help with that that’s all reserved
housing affordable housing right in
kakaako there’s another tower that just
announced two days ago that they’re
starting to take the affordable housing
applications there’s another one back in
ala moana that’s being built that a
certain percentage of them they’re
they’re getting ready to release their
affordable housing components so they do
blend it and there’s there are some
requirements um it’s not all luxury top
you know luxury units
so let me let me comment on that too
though this is this is an issue with
these
government mandated affordable housing
projects because we deal with that here
on a big island too if you want to do
like a luxury development you have to do
affordable housing credits there’s stuff
in the county code that requires that
and what we’re seeing people run into
right now especially in this market is
if you bought into one of those maybe
five years ago you have all these deed
restrictions on resale and how much
profits you can make and how much you
can resell it for and if not you gotta
put it back into the pool there’s all
these things so you’re really doing
people a disservice in terms of the
american dream of home ownership because
you buy into this thing and you’re not
going to benefit from the appreciation
that you got you’re paying a mortgage
like you would a regular house and and
you have ownership but
how are you supposed to upgrade if now
your family has grown or you want to
move or whatever it is and if you want
to move away to a different market you
cannot sell your house here your
affordable house that you bought because
the restrictions cash out on the equity
and then transfer that into an upgrade
or your next property and so there’s
there’s a there’s there’s problems with
it too when they when they do um
implement those programs
there’s always you know uh there you
know in the in the in the words of my of
my my favorite economist that i got
introduced to when i was in high school
milton friedman there’s no such thing as
a free lunch there’s always a price to
pay there’s always con it’s always a
compromise it’s always trade-offs you
can’t do one thing without having an
effect
but you know back to the the prices and
and the increase in the market i i’ve
had this conversation had this aha
moment this this this uh this week where
i was talking to some past clients that
had bought you know six months ago that
felt like it was the height of the
market and now they think they’re a
genius because they got you know 10
equity in their house in six months
right so
i think with real estate you always feel
like you’re buying at the height of the
market until a week later when you’re
not at the head of the market anymore
right so it’s one of those things where
it’s just a matter of perspective
whether you’re thinking i’m gonna wait
and save money or you know the folks
that bought in 2020 i mean man what a
smart move that was to to take a risk
during a time when you know the world
was shut down and falling apart and doom
and gloom and you know they i i’ve seen
people that bought
condos you know that literally have made
33 40 equity in two years so
look man there was you know i mean we
had a lot of people saying i i’m gonna
wait for this thing to crash this thing
is gonna crash i’m gonna wait i’m gonna
clean up there’s no way this thing’s you
know there’s all kinds of so so everyone
you know everyone took a risk you know
it’s funny doing that that you mentioned
that though right so like okay so we’ve
been living in our home now for 20 some
odd years right so we bought you know
and we bought uh i forgot what in i
think we bought in 98 or something like
that
well back then you know it’s just you
and you hear the story all the time
right so back then this is a single
family home
and we and we paid at that time we paid
335 000
and out of the market
right so expensive
and we were like oh my god how are we
going to afford this this i mean man
this is like oh my god can we are we
going to do this and make this make this
kind of happen and you know we kind of
went through all kinds of freakouts and
you know all the median prices scott
mentioned the median price on oahu is
1.1 million something so uh you know you
so that’s why i think you know and you
guys have mentioned this a bunch of
times
buy the home to live in it you know i
mean if you’re an investor that’s
another story but buy the home to live
in it and and kind of don’t look at the
price i mean obviously you have to look
at the price if you can afford it but
don’t try to be a market investor timer
kind of thing because it doesn’t matter
it doesn’t matter because you’re buying
it to live in it you’re not buying it to
kind of do anything else again if you’re
buying for an investment or vacation
rental you’ve got all kinds of other
spreadsheets you have to kind of deal
with and that becomes problematic but if
you’re buying it to live in it just just
buy the home and live in it and enjoy it
auntie joyce any comments on supply
chain waited almost one month for a
toaster from california was told unload
what ship stuck in harbor on o’ahu my
new year’s resolution only use m prime
amazon prime and sadly we don’t own any
amazon stock you know i’ve not um
the the last story i saw anti-joyce was
that there’s no backing up in honolulu
harbor there’s no backing over there now
that’s not to say i don’t know what the
backing up is from honolulu to the big
island i don’t know what that kind of
backup is at all but i think you said it
best just buy from amazon prime you’d be
done with it and that’s that’s you know
dylan or scott i don’t know if you guys
have gotten anything on the lace there’s
a normal delays but not not once it’s at
harbor it’s to get here but once it’s
here it’s fine yeah i haven’t really
dealt too much with delays other than um
uh but i did have someone that reached
out to me the other day who’s actually
was being transferred by amazon over
here for the the new distribution center
that they’re building out by the airport
so it was interesting that okay they’re
already moving employees in some kind of
fashion for this project that they’re
building that’s going to be a huge
distribution center so it’s going to get
even it’ll get even better for people in
hawaii we don’t have to wait two days at
that point two three days
yeah uh uh um
jessica we’ve been following jessica’s
furniture uh odyssey of uh she’s been
here for they’ve been here for how long
has it been not jess uh it’s been for a
while anyway they just got another piece
of furniture she was sending us photos
it was kind of cute she was sending us
photos when they had first moved into
their place they were they were living
on patio furniture uh which was kind of
fun uh just got another piece of
furniture but have three more we bought
in august that got pushed back to march
there you go since june june okay so
you’ve had your you’ve had your six
month anniversary good uh god god god
bless
uh ray threw a comment here we bought a
resort
zone condo in waikiki and closed july
2020 awesome ray uh scary at the time
due to covid but exactly what dylan said
great move a year and a half later yeah
in hindsight right right in hindsight i
was like oh yeah i was like dylan says i
was a genius but i didn’t know i was a
genius and scott if i’m not mistaken you
were mentioning uh during the pandemic
that you know the condo market in in
waikiki was was was iffy it was getting
kind of crushed because all the vacation
rentals were trying to sell and this it
was a good time you were mentioning it
was a good time to buy a condo in
waikiki at the time has that that’s
obviously changed now it has changed
yeah i mean i i wrote an offer not too
long ago for 100 grand over asking price
in waikiki
so the the inventory even in waikiki now
is just
it’s it’s disappeared on us so uh yeah
that that hold up i just checked my
records i think i think scott said that
75 times in 2020.
i said where’s the deal you want a deal
go waikiki buy the condo
and uh and
ray took your advice and uh and and he’s
got his uh his resort zone condo uh in
waikiki awesome and can i add it’s still
the place to buy because the
international buyers not back and when
they do come back it’s going to go up in
price even more yeah those
you know it’s really going to be there’s
a lot of interesting parts about this
whole so it’s it’s a it’s a fun thing
but again if you kind of stick with the
fundamentals work with some experts like
dylan like scott uh and and get your
thing you can you can kind of set up the
right way all right let’s let’s move on
i’m gonna take a quick a quick station
break over here so
if you’re if you’re here and you’re
joining us i’m glad that you’re here if
you haven’t already if you’ve not gotten
this invite from the newsletter from
livinginhawaii.com make sure you go to
livinginhawaii.com a thing’s going to
pop up after if you’re there for a few
seconds or click on the subscribe and
put your email on the list make sure you
get on the newsletter we send out new
content every week and of course you’re
going to get your direct invite to the
show so i urge all of you to get on all
right let’s let’s well first of all
before we continue before we continue so
i want to kind of give a thing for
everyone so we’re 38 minutes after the
hour uh we’re going to close the show uh
on top of the hour we had about 20
minutes left if you got any questions
anything you want to know
whatever it is whatever question or
comment you got put it in the comments
now so we can kind of get to it we’re
going to take your questions first if
there’s anything else you’d like to ask
just this is the time we’ve got to move
on i’ve got a couple of slides we’ve got
some stuff that we want to go over
but i just want to give everybody a
quick a quick station notification put
your comments in now if you want us to
to get them all right uh let’s let’s hit
our our big topic here so here’s one
that came in i think it’s kind of
interesting to to discuss
um and this came in from mina from
houston said i’m a single mom making
about a hundred thousand a year what
sort of lifestyle can i afford for my
family what sort of housing neighborhood
which island would stretch my money the
most and provide a solid education
opportunities for my daughter private
schools included so this is a i think
this is kind of like a a typical kind of
question that we get in it comes in a
variety of ways uh but these are the
parameters over here so i like to kind
of get sort of a perspective on that and
also you know we have a lot of uh we
have a lot of islander ohana
alumni on the channel with us you know
how would you guys answer this uh to to
meena uh you’ve all like for example uh
jess you folks uh moved here from from
texas you’ve been here since since june
what’s your take on it uh auntie joyce
uh you’re you’re well on your way to
kamaina status over here what’s what
what’s your take love to get you guys a
perspective on in addition to uh to
dylan’s and scott’s so
you know
my first crack at this is i say uh mina
right off the bat if you’re talking
about you know if you’re if we’re
talking about the money thing which is
what the majority of your post is about
uh i’d say right off the bat the simple
easy answer is it’s a 50 reduction in
lifestyle quality uh because you’re
sticking we’re talking strictly money
it’s strictly material uh it’s it’s half
you’re gonna you’re gonna be half as
good as where you’re at now and why
because things in hawaii cost twice as
much on a purely financial basis on a
purely materialistic financial basis
it’s cut you’re gonna do a 50 cut in
lifestyle according to material thinks
that’s my quick answer uh let’s go let’s
do it let’s go dylan and then let’s go
scott dylan what’s your how would you
respond to uh mina how far what’s the
best island private schools is possible
making 100 grand a year uh apparently
she has one one daughter so it’s her and
her daughter what’s your take
yeah one island is hard because you know
it depends on where you live on the
island i mean
if you live on the big island you can
you can buy cheap right you can buy two
or three hundred thousand dollar house
but you can also buy a three million
dollar house so it kind of depends on
where you want to be there’s not a lot
of private school opportunities but i
think if you’re just gonna average
things out or you talk about private
school that’s gonna be 30k a year
probably at least right so you can take
that off the top
wise you’re talking 30 to 40k a year for
housing whether you’re paying a mortgage
or you’re paying rent so there’s you
know not now you’re now you’re 60 to 70
000 into it so let me stop you right
there you’re 60 or 70 000 into it and if
you’re making a hundred grand
if you take out taxes you’re left with

so you’re at zero right now and
you’ve just paid for all you paid for
it’s a private school and a roof over
your head no groceries no gas no
transportation sorry go ahead then
i’m done there you go that’s the easy
math
so so even so so i mean and i i don’t
mean to make to to to make fun of this
i’m not it but it’s just funny when you
kind of do all that right so so think of
it this way folks you’re earning a
hundred thousand a year
right it’s you and your daughter you’re
earning a hundred grand a year if you’ve
got private school and a reasonable home
to live in that’s that’s it right there
that’s as far as 100 grand goes we’re
not talking groceries car
nothing just so in that in a sense in a
sense media which is kind of crazy a
hundred grand is almost like a poverty
life almost right it’s very hard i mean
in general it’s very hard to live off of
a single regular income you know and 100
000 may seem like a lot but that’s kind
of a regular
income here and we see that you know i
see that anecdotally all the time with
like my wife my wife my wife’s young
teacher friends they move here to live
the dream and live in hawaii and you
know they might make 55 60 000 a year
but they don’t last very long because
you can never you know yet you have to
be renting a you know a room with a
roommate or you know renting a
downstairs unit you can’t get a house of
your own
really you’re priced out to ever buy
anything and so
even if you have a pretty good career
and a solid job it’s really hard to make
it here on a single income
i think as soon as you throw in a thank
you sherry sharia says waimea big on may
be good for you in good school great
waimea’s got a fantastic one of the best
schools but like dylan says you’re
looking at 30 grand a year if you can
get in
and any and any house in white meal is a
million plus right now and any house in
one minute it’s a million plus so yeah
maybe you know you might be able to rent
the closet uh uh in in that and that’s
about that not again not to make fun of
this but this is just the reality of the
situation scott what’s your uh how do
you respond uh to uh to meena’s question
yeah i think the biggest complexity here
is the private school component because
it is so expensive oahu has some of the
best private schools but like dylan said
you’re roughly around 30 000 for every
one of those 25
plus right so if you don’t have to go to
the private school i think it’s much
more doable depending on your lifestyle
from a rental standpoint let me just
break this down for a second 100 grand a
year is 8 500 a month roughly from if
you’re going to rent
how they would qualify a renter is 30 of
what their that income is coming in so
you’re looking at 25 2700 a month and
that you would qualify for for a rental
and that’s too doable you can get a two
bedroom one get bath condo you can get a
a smaller older home and that two
bedroom one bath condo you can even get
that in diamond head you can get that in
some some nice areas makiki punch ball
easily
so it’s doable um and then
but but that’s going to take the bulk of
the cost right there that that component
and heidi had mentioned this on a past
episode your lifestyle what you spend on
your your lifestyle component changes
here we’ve all discussed this you know
you’re not buying the winter clothes
you’re not having as much storage the
transportation’s more affordable a lot
of the things you do are free because
they’re outdoor and nature based and
things so
yes it’s a
lifestyle adjustment like you said peter
if you’re trying to buy a home it’s
going to cost you more it’s probably
going to take half that income to be
able to get into a quality place that
you want two bedroom and and more yeah i
think that i think the it’s the the the
private like you said scott i think you
know the the
um
uh the the answer to mina is mina you’re
gonna have to give a private school
you’re you as we kind of show you the
numbers just kind of you know back of
the napping kind of numbers and you know
is it a number one is it is it a 100k
net or is it a 100k gross that makes a
big difference because um i don’t know
what the tax rates are in texas but i
know that the income tax rates in hawaii
are among the highest in the country so
you’re going to be
dishing out for that um
but yeah i think private school’s out
it’s essentially if if you kind of want
to do the 100k lifestyle is with private
schools out uh the kenai has kicked in
uh public school is going to be our
reality unless we hit the lottery we’ll
supplement their education throughout
through everyday life and i think that’s
the thing i can i i mean that’s what
we’re seeing a lot of actually these
days so a lot of parents are doing the
homeschool thing dylan go ahead
yeah i want to address the public school
thing because i mean i think there’s
they must i don’t you know certainly
research the public schools in hawaii
online but there must be a lot of bad
stuff online because i get this question
all the time i just met with one of the
the watchers of the show who was here
kind of doing a scouting trip to see if
they want to make the move and a lot of
concerns about the public schools and i
don’t i mean my kids go to public school
my wife’s a public school teacher are
they great you know maybe not but i mean
they’re not terrible and and really it
comes down to the family right i mean if
the kids if your
parents take school
seriously the kids will take school
seriously if there’s accountability the
kids will learn and you can put them in
ap programs there’s all kinds of great
um programs right now where in high
school you can graduate with an
associate’s degree and go right into
your two years of college and get your
bachelor’s i mean there’s all kinds of
really good things in public school so i
wouldn’t be afraid of it necessarily or
discount it but i think what you read
online is probably not representative of
what this public school system actually
looks like do we have schools that are
rough absolutely but in most cases the
school reflects the demographics of the
community that are there so if you live
in a nicer community schools are going
to be better you know kids that are
going to go in there are going to be
from a different socioeconomic class so
yeah don’t i would i wouldn’t discount
our public schools at all we have tons
of kids that achieve amazing things
every year that come out of our public
schools and so it’s not like this
feeling crazy system
yeah i think that thank you dylan for
giving us that sort of dose of reality i
think you know to put it in in other
words your actual mileage may vary right
your actual management may vary there’s
a lot of factors it’s not a universal
thing look uh uh one of my daughters i
mean i put both of my my daughters
mostly through private school but my my
younger daughter she didn’t want she
didn’t like the private school
experience in high school um you know we
went to we went to two different public
high schools and very very different
experiences in those two high schools
very very very different night and day
night and day uh one was great one was
not so great but it wasn’t necessarily
the school’s issue uh anyway uh i can
now you through a quick comment here uh
public schools in hawaii are ranked
higher than texas well there you go so
okay now if you’re moving if you’re if
you’re moving if you’re in public school
in texas and you’re moving to hawaii
you’re technically uh getting a little
bit of an upgrade um
so uh uh and and auntie joyce kicks in
as an auntie to dylan and monica’s boys
that’s monica’s dylan’s wife i can
attest to the fact that the boys are
really well-rounded and very bright you
know auntie joyce i would expect nothing
less from dylan’s kids i just would
expect nothing less from dylan kids okay
we have a we have a go ahead scott one
last thing i’ve had and i think this is
a part of the plan and the preparation
if you’re looking at moving over here
the question is are what are the schools
like are they good i’ve had several
people that have come over here on a i
don’t want to say a house hunting trip
kind of get familiar trip where they
take some time and they go and they they
walk to schools they talk to people they
interview people so that they can see if
they’re comfortable with those schools
or not and that is on the public school
side so if there are questions do your
due diligence
right
yeah that’s what it’s all about i mean
we have a thing in the islander ohana
through the what we call the hawaii
transformation program a structured
program this is the uh we have a in fact
our our next cohort starts next week uh
we have a cohort of like 15 people that
go through this process one it’s a
structured process we meet every other
week
and one of the things that we talk about
is i call it the on vacation you take an
vacation to hawaii it’s not a vacation
it’s an on vacation where you have to
kind of simulate the the reality of it
and that’s uh that’s one of the things
that we do um yeah so i think this is
this is a really interesting piece of
that there’s a you know in on a strictly
financial basis 100k just strictly
talking numbers you have to drop private
school go to public school therefore do
your research uh you’re going to do your
research anyway like dylan says what
district are you going to live in on the
big island you’re going to live in the
in the kind of like the middle of
nowhere where you can get a home for for
200 000 but you’ll be living off-grid
which means that you know if you’ve got
you have to if if there’s two weeks of
no rain you’re gonna have to live you
know without electricity or anything for
a little while or are you going to live
in kind of a modern society that has um
uh uh the the creature comforts that we
all come to rely on like sewage uh water
uh sewer electricity power phone etc um
jessica’s got a thing here uh live on 50
of your income in texas save the other
50 towards a bigger down payment on the
hawaii home and have a lower mortgage
than you already have used to living on
less
i’m going to read that again that’s a
great sentence uh that’s that’s like the
whole plan in one shot so jessica has
summed it all up for us live on fifty
percent of your income in texas
save the other fifty percent towards a
bigger down payment on the hawaii home
and have a lower mortgage than you’re
already used to living on less
boom there you go right there jessica
you got it that’s exactly correct uh
great advice uh excellent excellent
excellent all right before we move on
i’ve got got a good one from charlene
charlene is also a uh one of the
earliest alumni of the honor ohana
charlene uh they’re uh uh great great
family i’ve met them and they’re they’re
really cool uh charlene says
aloha and happy new year all questioned
with the issues at red hill and the
board of water supply shutting down a
few shafts will there be an impact on
the market for homes along that
distribution line so everybody just to
get everybody up the data on what’s
going on over here there’s been um
there one of the one of the uh water
wells on oahu uh is there’s some concern
the uh the navy has a fuel tanks uh
nearby and it is suspected uh that
there’s been some leakage of the fuel
into the water supply now this has shown
up
in a bunch of homes on a military base
so a bunch of homes on the navy military
base have been literally shut down and
there’s been some uh other places on the
military base that have been shut down
due to tainted water so there is some
concern a big concern and there’s all
kinds of things going on back and forth
for example the hawaii department of
health has asked the has asked the navy
to do basically pull all the fuel out of
those tanks and there’s some back and
forth going on with that so there is
some concern the board of water supply
has stopped pumping water from wells
that are near that area so all these
things have occurred i think the
question that charlene’s got is you know
is that going to affect the market for
homes along that distribution line scott
what have you heard about this
um i mean
you basically said it it’s only
affecting the military housing right now
there hasn’t been any on the public side
that i know that i’m aware of so
there isn’t an effect at this point
yeah there’s no effect right now now
what effect there may be in the future i
think
charlene you know this is one of these
these things that we cannot foretell um
that well that that that well
fundamentally that water table there
supplies a water if i’m not mistaken to
like three-fourths of the island so it
ain’t if if that thing gets shut down
you know like really really shut down
like totally shut down where we don’t
pull any water from that area we’re all
screwed we’re all screwed we’re going to
live with dylan yeah we’re going to go
live with dylan pull his water no i mean
we’re like it’s gonna plenty of water
we’ve got plenty of time
and and you know gang look i’m i’m sorry
i i take that back i say no we’re
screwed that’s that’s overly that’s
that’s overly sensationalistic that’s
i’m gonna take that back it’s gonna have
it’s going to have a potentially large
effect i don’t think it’s going to be
that bad but we don’t know what it’s
going to be we don’t know at this point
right we cannot say with certainty
what’s going to happen in the future i’m
going to hope it’s not that bad there’s
been a bunch of stories that for example
the the navy has said look you know
there yes there was uh there was a
contamination of of the water but it’s
not been from the wells it’s been
through some other source there was a
contamination that came from something
else it’s not like the well is fine
things like that that has not been
verified so we don’t really it’s still
kind of a a story that’s in the middle
of of of development but to directly
speaking right now uh scott does not
scott you have not seen an impact on the
real estate market right as of right now
no because there’s no impact on the
public side yet yeah there’s no impact
on yeah because there’s no impact on the
public now as soon as you hear the news
charlene that you know neighborhood x uh
on and it won’t be neighborhood x it’s
going to be like half of oahu because i
mean a huge part of the water comes from
that area so you won’t get like you know
neighborhood x got affected it’s going
to be like huge so
pray
pray uh that’s what i got to say is pray
travis are there issues with having
modular or manufactured homes in hawaii
my plan has always been to buy the land
then close to retirement get on get the
modular or manufactured home on the land
you know we’ve talked about that a bunch
of times uh travis and i think that the
general rule of thumb that everyone has
always said i’m gonna i’m gonna answer
this quickly because we’re running out
of time uh look the the the long and
short of this travis is that uh it’s
always better to buy a home on the land
buying raw land and then hoping to
develop his gut is fraught with problems
you’re probably not going to save a lot
of money there’s a whole bunch of
unknowns that you’re going to have to
deal with if you’re looking to live and
buy a home you know buying land with a
model home probably not going to be a
cheaper way to do it probably much
better much more reliable to buy the
home at you know as is or whatever but
buy a piece of property with a home on
it you fix the house you could turn the
house down and rebuild it but do not not
do not but generally speaking um and i’m
gonna let my friends chime in you know
what the time has been flying with a lot
of feedback of it let’s we need to move
on over here let’s let’s move on to our
diamonds and deal section where dylan
has been as at this cool property of his
let’s let’s pull this up here where are
we we are
right
i believe this is the one dylan going to
throw this he’s on location i mean sorry
about this dylan we’re gonna folks we’re
gonna go a little bit over this is the
first year of the first show of the year
you’ve all had some great comments we’re
gonna go a little bit over our time uh
dylan
fill us in what’s going on where are you
at give us the give us the full scoop
here
you can see that you can see that big
tree behind me on the on the upper left
that’s i’m sitting in that gazebo out uh
right below that tree but okay hold on a
second so so that that big tree just
just to have some fun here so that big
tree on the upper left-hand part here
right yep that’s right behind me that
big tree is the one that’s right behind
you okay so we know that so that’s
that’s how we you have authenticated
that you are on location fill us in
yeah this is just a massive estate uh
you know nine bedrooms nine baths
um
just beautiful that that pool overlooks
the kona coastline just open concept
that that the walkway you walk through
the front door and opens right up into
this huge living room and kitchen and
the pool right outside and this is a
unique property because it’s going to be
on an auction so um peter could probably
share the link in the in the uh this
description or contact me if um if you
need representation because you can’t
have a realtor in the auction and so um
the auction i believe starts on the 24th
this month they’re just basically
holding an open house every day i got my
whole team here looking at it today and
marketing for these guys but unique
opportunity where you know this thing is
listed for 7.7 million it’s probably
worth somewhere in that neighborhood but
you could get it for a lot less if
they’re you know if there aren’t bidders
so hey why not why not come in with 5
million if you got 5 million to spend
somebody just won two people just won
the powerball so uh there’s definitely
two people out there that have some cash
to spend
and
you know i i would love to know what the
current because it now here’s what let
me throw the property on here while
we’re talking so this is a no reserve
auction right correct
and and i looked i i just posted the
link to link to the comments so folks
can take a look at it they did not post
what the current bid is so
i believe i believe they released that
on the 24th so the way it works is you
you submit a bid a starting bid and you
do have to submit a deposit and then on
the 24th i believe the auction begins
and then you’ll see what the highest bid
is and if you want to rebid you can
got it got it you know what so put in a
bin so put folks put in a bid for a
hundred grand
[Laughter]
give it a shot it’s no reserve right put
in a bid for it for a hundred grand or
you know put in a bid for what you’re
what would you be here here
let’s do this right now dylan let’s have
some fun okay so so folks let’s let’s
let’s do this real real quick let’s just
pretend that you’re going to buy this
house and let’s try to pretend i don’t
want any personal financial disclosures
or whatever but put in a bid like in the
comments right now it’s not an official
bid we’re just having fun we’re we’re
doing a fake mock bid put in a bid what
would you what would you be willing to
pay for this property right now
right if you were if i would say look
you could have it right it’s if if the
bidding was just between us right put in
the number
a number that you know you could you
could kind of make work right a number
that you can make work put the number in
let’s see how
let’s see how high we could get the
bidding that’s fun
dylan is there anything else you want to
tell us about this property it’s it’s
amazing
no that’s it there’s plenty information
online if you’re if you’re interested
but okay you know these are nice these
are these are unique opportunities
people people are looking looking for
like the foreclosure opportunity or the
short sale opportunity which is not a
lot of right now and even if there are
it’s very easily get outbid by somebody
you know with cash but these are these
are opportunities to get a deal because
you never know right i mean there’s not
a lot of demand for these type of
properties i mean there’s a lot of
people looking for a nine-bedroom uh
estate but it’s an opportunity for a
good deal okay well we got our first bid
at 1.5 which which quickly got outbid by
kenai at three so we’re at three can i
put it in man if you guys can do it go
for it you might you never know there’s
you know sometimes sometimes these
auctions you never know you never know
what happens i do believe you got to
have a hundred thousand liquid to to put
the deposit down that’s refundable if
you don’t win but you do have to put a
hundred thousand into escrow to have
your bid considered put a hundred grand
into escrow and get a get a seven
million dollar property for three
million and then then you know you can
flip it and sell it for five and make it
make a bundle uh
joyce is correct i bet you this thing is
you know two or three thousand a month
in landscape oh my god the maintenance
is gonna be insane
in insane insane uh kenai you know
having to kidnap your rich
brother-in-law small price to pay small
small small price to pay uh patrick says
five patrick do it man uh maybe do it uh
peter maybe the ohana courthouse could
pool our funds and keep it for our
meetings
joan my god could you imagine going here
for oh yeah we’re going to have a meet
up
here
at a nine bedroom nine bath well we can
fit nine we could fit 18 cohort members
assuming two per two per bedroom uh we
have a lot of fun and the cohorts are

that that’d be a lot of fun oh my
god this is too much fun gang here let’s
let’s talk about scott who’s not to be
out done here with a north shore with a
uh unbelievable what scott what in the
heck is this
yes so it’s actually kind of funny we
don’t talk about what we post in here
what we select and i happen to pick a
nine bedroom nine bath house on mine for
as well so
dylan can get one powerball winner i’ll
take the other powerball winner and
we’ll call it good um this is
so i picked this i wanted to go for
broke you know it’s the start of a new
year let’s go big or go home right this
is
17.8 million we actually sold this
estate back in 2005
and it’s now back on the market for sale
somebody else has it listed but this is
an iconic property it’s the sullivan
estate on the north shore if you’re
familiar with the north shore it
overlooks that miracle seven mile area
you’re up above pupukea right on the
edge but it’s five over five acres of
land you have basically 8 500 square
feet of home there’s the main residence
that’s out front with the pools and
things but you have all these other pods
that you can do things with it’s
stunning if you drive the north shore
and you look up from pupukea you’ll see
these three
flagpoles with flags that are flying out
there that’s the sullivan estate that’s
what this property is but it’s just
incredible when you get out there in
that pool deck here and you look you can
see all the way down to kiyana point and
because sound travels up when the waves
are pumping and you’re looking right
down on pipe and sunset and waimea all
the noise and the sound and all that sea
spray that comes up in the air is just
it’s stunning but yet very quiet very
private
but quite the compound so maybe we buy
dillons for the cohort and this went and
we just go back and forth
who is the sullivan family so foodland
family right
so the food land is uh
so funny
this place was built by um the merrell’s
merrell construction and then they’re on
the big
development all over the big island and
some of the islands too so yeah
this was their personal residence prior
to them selling it
oh really okay so this so so so there’s
some interesting history behind this
problem
i’ll do the picture so there’s some
interesting history behind this property
so first of all uh so folks who uh we
don’t know the the the sullivan family
is the family that that uh maurice i
believe this was was the the founder’s
name maurice sullivan i think it was uh
he started uh the food land grocery
chain in hawaii which is an iconic
food lineus you know is is hawaii’s uh
supermarket basically uh and all
throughout the state uh and so that was
that and that’s that is the sullivan
family and now dylan now you said the
merrell family was here first they built
it they they built this property and
then apparently they must have sold it
the family that owned merrell realty
they were the richards with their name
but this was their personal residence
they built and that’s why it’s enormous
and and they have you know i mean the
construction is very meryl-esque and it
was designed by lucky bennett who was a
very
famous hawaii architect
so so funny story the merrell family
actually if you look right out here used
to own this property on diamond head
circle as well that they built so okay
everybody gets a little history tour of
real estate we
dylan and i have been in the business
for so long we could kind of tell you
old stories who live what where
it’s fun sometimes it makes me think of
that uh that george clooney movie uh the
hawaii george i forgot that with the
name of that hawaii quick trivia what’s
the hawaii george
descendants descendants descendants
thank you yeah uh kind of makes me think
of that kind of you know there there’s
like a history behind the whole thing um
auntie joyce says wishing you all a say
a sunny safe and happy two weeks until
next time yes auntie joyce we’ll see you
we will see you next time and lynn
walker says thanks everyone have a great
weekend yeah again uh good fun uh we’re
gonna bring this one to a close over
here with uh with some of our uh closing
thoughts uh why don’t we why don’t we do
is uh scott and then dylan and then i’ll
find us a closing thought uh scott give
us your closing thought for for this
week
yeah i’m back at a thousand miles an
hour already i was up at like 4 30 this
morning cranking going going at it which
is a little out of the normal end and i
was thinking back about um
my times playing soccer i played soccer
in college and stuff in it and growing
up as a kid and this shaped me for who i
am but somebody said um practice makes
permanent
perfect practice makes perfect and i i
could like everything i try to do
whether i’m learning or whatever i’m
trying to do my best in the background
when i’m learning so that when i’m out
executing whatever it is i’m doing
it’s not difficult it’s you know you run
that way and then you find i don’t want
to call it perfection but you work
towards mastery and that’s one of the
the big things i live by and i
constantly push and i love rolling up my
sleeves and getting dirty and working
hard
good one man excellent we got some
comments over here from christopher have
an amazing week and see you all in two
weeks same bath time same bad channel
buddy and ray ray welcome back home
great show good seeing you guys good
seeing you ray welcome back uh dylan
witcher what’s your closing thought of
the day today
so so new year and you know me i’m a big
mindset guys so what you believe is what
you perceive and eventually you will
receive
so what do you mean
it’s super important
it would say that that’s a good can you
repeat that again
what you believe
is what you will perceive and eventually
you will receive
that is that is a that is a good one man
that is that is an excellent so tom i’m
a hollow everyone good to be back good
to have you back uh good to see you back
uh and uh yeah excellent excellent
thought yeah very good very good closing
thoughts i’m gonna close with one i i i
don’t get them all the time but i found
i found a good one on proverbs that i i
really enjoy it says and this is for
kinaya actually kanai i thought about
you hope deferred makes the heart sick
but a desire fulfilled is a tree of life
hope deferred makes the heart sick but
the desire fulfilled is a tree of life
yeah and that’s what it that is what
it’s all about there so we own a home in
kailua we own a home okay that’s it
god bless let’s close it all very cool
mark says working today but listening
with one ear good to see you all again
mark i’m so glad that you’re back and
patrick mahalo mahalo to you all right
folks we’re gonna all say goodbye to it
we’re gonna see y’all and we’re gonna
see all in a couple weeks uh we’ll be
back in the same same back time same bat
time same batch yeah can i thought that
you would enjoy that uh let’s let’s
let’s say goodbye counterclockwise scott
and dylan uh than me say goodbye folks
happy new year and aloha everybody
everybody
happy birthday folks happy new year
folks allah have a great one see you all
in two weeks

Aloha Friday Hawaii Real Estate Q&A on-demand for 1/7/22

Ready To Live The Dream?

Get the Newsletter

Is Hawaii Right For You?

Editor’s Picks

Aloha Friday Hawaii Real Estate Q&A on-demand for 1/7/22

The big discussion from experts from across the state of Hawaii featured on this show included:

Here’s what we covered at this show – click any link and go directly to that segment

Got a question about buying a home?

Show Transcript

Share This Story, Choose Your Platform!

About the Author: Peter Kay

What do you think?Cancel reply

Ready To Live The Dream?

Get the Newsletter

Is Hawaii Right For You?

Editor’s Picks