Be careful not to blink or wait too long on your purchase decision. You probably just missed out on another great property now under contract in just days from hitting the market for sale. Opportunities to purchase a great Hawaii vacation or primary home is way up with great interest rates but the inventory is very low creating a literal frenzy of offers on great properties. This is not an understatement our current local real estate market in the Kailua-Kona and South Kohala Gold Coasts areas are
HOT AS LAVA!
CONDO-TELS AND RESIDENTIAL PROPERTIES WITH STVR IN SHORT SUPPLY FOR BUYERS
Once the State of Hawaii reopened the doors to the visitor industry with the opportunity of no quarantine this is when the mad rush of travelers to Hawaii began. Owners at this time who either had to sell or was talking advantage of a upward climbing market knew this was the time to move whether to sell. Spring break had any available condo or conforming residential vacation rental booked. Visitors were either extending stays onlooking for other accommodation in order to continue their stays. The sheer number of available condos and residential homes with Short Term Vacation Rentals or STVR’s is extremely limited because many owners and or their guests are now using vacation rentals as their primary residence during COVID. This drove the inventory way down and there is no doubt that the upcoming summer season will not be slowing down anytime soon. More than likely the busy season may stick around all the way through the winter season December through April.
There are 16 oceanfront condo and residential listings available in Kailua-Kona
In 2018 the County of Hawaii imposed major changes to any owner wanting to have a vacation rental business int he islands. It was time for more regulation in our industry as many were simply not doing to right thing and the State and County wanted their unpaid tax dollars in the bank. This elicited many illegal vacation rental operators forcing owners to sell the assets that couldn’t be held onto as a long term rental simply because they could not qualify their application to become a new legal vacation rental.
On the other hand if vacation operators were doing the right thing were able to provide the application and retrieve their $500 operation permit. New owners are able to retain the permit as a vacation rental by transferring it with the county. New permits are no longer being issued if the property you are purchasing exits OUTSIDE a permitted VACATION RENTAL ZONE. Most condo complexes along Alii Drive in Kailua-Kona are within the NODE as all the resort properties Mauna Kea, Mauna Lani, Waikoloa Beach Resort, Hualalai Resort, and Kukio. Those owners who own a single family residence with a STVR are considered gold as the county is no longer issuing permits to non-conforming residential areas OUTSIDE the permitted NODES.
When buyers interested in vacation rental properties inquire about the alluring combination of maximum rental income potential also may be interested to have their rental available for personal use. Most of my clients simply want their expenses paid and everything else is cherry or a hot lava cake on the purchase for their needs! Short term rentals allowing for stays less than 30 days fetch considerably more income than those of 30 day minimum stay requirements.
WHAT IS CONSIDERED A PREMIUM VACATION RENTAL?
BUYERS WANTING AN INVESTMENT INCOME PRODUCING VACATION RENTAL PROPERTY CONSIDER THESE PREMIUM AMENITIES:
–2 BEDROOM MINIMUM WITH TWO BATHS
–RESORT TYPE AMENITIES (ADULT AND CHILD)
Its typically not a good idea to pay a premium $$$ for a property that the rental numbers and profit and loss statements don’t justify the purchase. As I always say don’t purchase with your emotions as this leads a Buyer possibly regretting the purchase later. Before purchasing balance the facts and always ask a ton of questions of your Broker to allow yourself your ease of mind in an educated purchase.
Renee H. Kraft Luxury Top performing Hawaii State Broker born and raised on the island of Oahu named one of Hawaii State’s very best Realtors. She brings exceptional service to her clientele. Licensed professional Realtor in Hawaii Real Estate since 1992. She has the experience and tenacity to market effectively, negotiate, and focus with attention to detail every step of the way. Educated 7th – 12th grades at the La Pietra Hawaii School for Girls and the University of Hawaii Manoa campus with a B.A. in Psychology. She strives to continually keep up on the Hawaii economic forecasts and daily market activity. Technology driven Renee understands the importance of keeping her clientele in the loop on current market availablility and knowing the market inventory is 100% key to get her clients what they want. Extraordinary exceptional homes, estates, condominiums, and vacant land are her specialty. Integrity and honesty are just a fraction of what Renee shares with her clients and a very strong work ethic. Putting the client’s needs first utilizing the range of experience and knowledge, combined with a a huge amount of Aloha gives her great satisfaction that she can help her clients make sound and profitable real estate investments. Member Rotary Club of Kona -Accredited Buyers Representative (ABR) -Sellers Representation Specialist (SRS) -Graduate Realtors Instutute (GRI) -Resort and Second Home Property Specialist RSPS).