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
649884 CND ACTIVE 27 DOM $199,0003-7-5-21-7-52 LEASEHOLD GEM IN ALII VILLAS Alii Villas #218615
647968 CND ACTIVE 42 DOM $289,000 3-7-5-21-4-70 LEASEHOLD 2 bed condo with large wraparound lanai Kona Makai #4201
648967 CND ACTIVE 20 DOM $300,000n3-7-5-21-7-45 LEASEHOLD OCEANFRONT COMPLEX-VACATION RENTAL Alii Villas
647956 CND ACTIVE 76 DOM $389,000 3-7-5-20-11-40 FEE SIMPLE Kona Isle C-25
650006 CND A 16 DOM $525,000 3-7-5-18-71-130 FEE SIMPLE Beautiful top floor unit with ocean views and STVR Permit Kona Reef
649357 CND ACTIVE 38 DOM $550,000 3-7-5-19-3-58 FEE SIMPLE Almost ocean front 2/2 condo with stunning ocean views Sea Village #3207854
646173 CND ACTIVE 6 DOM $299,500 3-7-6-15-23-3 FS KONA BALI KAI 1-BR Kona Bali Kai #227586
649349 CND ACTIVE 24 DOM $549,500 3-7-6-15-23-27 FS ABSOLUTE OCEANFRONT 1-BR CONDO ON ALII DRIVE!Kona Bali Kai #216586
642512CND ACTIVE 241 DOM $459,000 3-7-8-20-28-33 FS TURNKEY VACATION RENTAL WITH GOLF COURSE VIEWS Kanaloa At Kona #803
645199 COM, LND, MTF, RES ACTIVE 165 DOM $5,250,000 3-7-7-4-25 FEE SIMPLE Iconic Lyman’s Point Oceanfront77-6300 ALII DR33,979
632322 RES ACTIVE 629 DOM $1,995,000 3-7-7-10-8 FS Classic Beach House – Right on the Ocean!77-6580 ALII DR
650382 RES ACTIVE 13 DOM $2,200,000 3-7-7-4-40 FS Oceanfront Alii Drive just north of White Sands Beach77-6414 ALII DR7,500 sqft 2,018
650068 RES ACTIVE 7 DOM $3,975,000 3-7-8-14-50 FS Stunning Oceanfront Estate In Kona!78-6616 ALII DRIVE
640616 RES ACTIVE 304 DOM $5,999,000 3-7-8-12-41 FEE SIMPLE Rare He’eia Cove Ocean Front 78-109-A HOLUA RD
649077 RES ACTIVE 46 DOM $29,425,0003-7-8-12-51 FEE SIMPLE Private Residential Estate and Family Compound in Kona Hawaii
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).
Liked your article …we are selling 32 room hotel on beach California ( inn at Avila beach by San Luis Obispo) we taking have net cash other half doing 1031 exchange 4,5 m .
We looking at one of properties we buying be in hawaii, , ( rest somewhere more sane as long term rentals)
so we have halfway point meet with our California based kids .( our home is in in New Zealand . And winter in Rarotonga Cook Islands ,
it will be all cash so no debt ,but still want some income above costs… and hopefully appreciate. Long term… So looking properties up 1.5 m three bedrooms 2 bath.
Do you recommend single residence ,or condos?
I’m sure everyone wants house produce $100 k yr rentals .. we seen two but in lava zones bit scary even for California kid grew up earthquakes and fires 🔥
We may only use house once year with family .. kids maybe more ..
I’ll google your realty listings been looking at Zillow etc.
Aloha Michael-thank you for your comments. I sent you an email this afternoon to help you with your questions. Much Aloha-Renee Kraft