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Hawaii Damon October newsletter discussing hawaii real estate and related economic topics
Contact Damon Rhys: 808-358-2331 / E-mail: damon@hawaiidamon.com

This is a free Hawaii Real Estate Newsletter so please do not hesitate to pass along to any friends or family who could benefit from getting great advice and tips for buying or selling property in Hawaii, Aloha! - Damon
Sign-up for free here: 
Hawaii Damon Real Estate Newsletter

Best Schools on Oahu - Private vs Public & Property Values | Great Value Luxury Props + Video | Interest Rates, Advice, Stats & More! | By Damon Rhys

Kaiser High School, International Baccalaureate Accredited


Aloha & Happy Valentine's <<First Name>>! 

Knowledge is Wealth!
So are schools, especially exceptional ones, and if you happen to live near one the value of that learning institution is no doubt built into the price of your home. Think of Manoa, near the University of Hawaii which boasts of some of the oldest standing homes on Oahu and with a median sales price of $1,249,000 (data: Manoa, Upper, Lower neighborhoods, sold over the last 1 year period as of the date of this newsletter). For the parents of most children, having a great school nearby where they reside can save enormous amounts of transport time over a 12 year period (Kindergarten thru 10th grade when most start driving would make it 11 years of transportation) - not to mention having school friends nearby in the same neighborhood also has a lot of benefits. Again, most educational institutions are older so the value of having a good educational institution nearby is most likely already priced in to your home's value. However, when schools go through a dramatic educational platform change - with the right mix of properties and demographics in the neighborhoods around such schools - it could profoundly affect the demand and thereby value of the homes within the immediate vicinity. This phenomenon is actually occurring right here in a certain area of Oahu and most of the lucky parents who are currently sending their children to these schools (hint: they are public) do not realize it. For families intending to move in the near future, this information is absolutely invaluable. To "learn" more (pun intended) please read on!

Oahu Private Schools
First let's briefly talk about private schools in Hawaii and, specifically, Oahu. Hands down Oahu has some of the best private schools in the country that money has to offer. If your family is fortunate enough to have abundant financial resources then sending your child to one of these schools will give him/her one of the best educations along with also providing an all but sure gateway to a first rate University. Though not intended to be a comprehensive review of private schools on Oahu, here is a brief summary on the big 3 and a few others: (if the school your son or daughter attends is not shown here, please do not take offence, there are many others - too long to review in this brief newsletter, the purpose of which is to merely compare with some exceptional public schools which I will delve into later.*):

The Big Three:
1) Punahou School (K thru 12)- It has 3,750 plus students and is the largest single campus private school in the US. An education here is exceptionally first rate and boasts of having former US President Obama as its most famous alumni. Current tuition for 2017-2018 year is $23,850.
2) Iolani School (K thru 12) - This is the biggest rival of Punahou, also provides an exceptionally first rate education. Most graduating from Iolani go on to continue their educations at the best universities. It is about half the size of Punahou with around 1,800 students. Current tuition for 2017-2018 year is $22,550.
3) Kamehameha Schools (PreK thru 12) - Also offers a fantastic education and has various campuses. Tuition varies depending on campus location and school boarding; $4,374 - $9,551. Financial aid is available. Entry is limited to children with at least some Hawaiian ancestry.


Some examples of other great private schools: (there are many others, this is not meant to be a comprehensive list)
1) Mid-Pacific Institute (Manoa, COED Grades PreK thru 12). Excellent school rivaling the big 3 with 1,570 students. Education platform is the IB (International Baccalaureate), focusing on developing the skills required to succeed in a future global and diverse economy. Tuition is $23,185.
2)
Le Jardin Academy (Kailua, COED Grades PreK thru 12). A smaller version of Mid-Pac with 824 students. Tuition is $20,875. It is also an IB (International Baccalaureate) accredited school focusing on developing the skills required to succeed in a future global and diverse economy (same as Mid-Pacific).
3)
Damien Memorial School (Kalihi, COED Grades 6 thru 12). Tuition is $13,625. Religious affiliation is Roman Catholic, Edmund Rice Christian Brother Education. Most students continue to higher education. 
4)
La Pietra (Diamond Head, Girls Grades 6 thru 12). Tuition is $18,900 with no religious affiliation. First rate with most young women graduating from here continuing on to the best universities.


Not including Kamehameha Schools, the average yearly tuition of one of the above mentioned schools is in upwards of $20K per year. Over a K thru 12 educational period (13 years) not including inflation, this would equal $260,000 per child, just over the cost of a median priced home outside of Hawaii (Oahu current median price $750K - see stats, last article of this newsletter). No doubt a first rate par excellence education - with a formidable price tag!

Why Do Many Parents Choose Private Schools? 
The main reason most parents with abundant financial resources will say they send their children to private schools is to assure their children of a first rate education allowing them to further their education also at a first rate college or university. This is most often the key to a successful and financially sound future for their own future family. In so many different words, the basic principle being professed is "Knowledge is Wealth" and to that ends a private school education is the sure bet means. Let's now look at some very good public schools.

Oahu Public Schools Revolution in Hawaii Kai** 
Now enter the IB (International Baccalaureate) curriculum / teaching system having arrived relatively recently at public schools in Hawaii Kai**. The IB System itself has been evolving now for 50 years leading to spectacular results in over 150 countries around the world that have implemented the system. Note that two of the well known private schools listed above are also IB accredited schools. Jeffrey Shitaoka, Principle of Koko Head Elementary in Hawaii Kai explained the accreditation from IB World Schools as being a rigorous process. Schools can take years to go thru the whole process from initial planning to conversion and implementation and then to final recognition (accreditation). In a previous newsletter I wrote more about the curriculum / teaching system which can be found both here  IB (International Baccalaureate) and at the IB Organization Website itself so will not delve into it too much here other than repeating what I wrote in the descriptions of the 2 above mentioned private schools. The IB Education platform focuses on developing the skills required to succeed in a future global and diverse economy. Here is a list of Hawaii Kai schools that have already received IB accreditation and or are expected to receive it this year:

1) Hahaione Elementary School (IB accredited)
2) Kamiloiki Elementary School (IB accredited)
3) Koko Head Elementary School (IB implemented but not yet received accreditation - visit by IB World School Officials to take place in April 2018, expectation to be IB accredited by start of next school year, August 2018)
4) Niu Valley Middle School (IB accredited)
5) Kaiser High School (IB accredited)


Will these Hawaii Kai schools really be on the same level as the more expensive private schools?
At a tuition of $20K plus per student at private schools whilst these public schools are being funded (for the most part) by tax dollars, it is hard to imagine how a public school such as Koko Head Elementary could compete with, say, Punahou K thru 6. However, Principal Jeffrey Shitaoka of Koko Head Elementary states, "My primary purpose is providing the best possible education for Koko Head Elementary students." By really focusing on the core subjects and implementing the IB System, to a very competitive degree, it allows these public schools to compete on a pure scholastic level with the private schools. Enthusiastic teachers combined with an excellent IB Curriculum and loving encouragement from parents are the keys to a successful education in this public school system. Get this combination right and the sky is the limit for any hard working student going thru this public school IB System who has his or her sites focused on higher education in the best universities and colleges.

Though these public IB schools could be considered somewhat "spartan" compared to their private counterparts lacking in extra-curriculum programs and activities, private groups are helping to fill the gap. Friends of Koko Head is one such fund raising group (donations mostly from parents of children at Koko Head Elementary) helping to pay for many of these extra-curriculum items that help provide for a well rounded school experience. This particular school, Koko Head Elementary, located near the wealthy luxury home neighborhood of Portlock, no doubt has many children whose parents could easily afford a private school education. However, by sending their children to this nearby public school (as opposed to spending 1 hour plus daily commute times to private schools in town) they are at least guaranteed a first rate core education. The savings in tuition allows for quite a lot of "a la carte" outside of school classes i.e. private tutoring, piano, swim, language lessons etc.




How could this affect property prices in Hawaii Kai?
The public school revolution occurring in Hawaii Kai could still be considered a secret. This author actually has a 6 year old in Kindergarten at one of these schools and can testify that most parents he has spoken with did not know anything about the fundamental benefits of the public school adopting the IB System. To answer the above question, there is no doubt that the IB System in the schools in Hawaii Kai will create higher housing demand for the area which will add pressure on prices.  In the median priced neighborhoods of Hawaii Kai such as Koko Head Terrace and Hahaione one would expect homes there to sell as quickly as, say, Aina Haina which is closer to town. This not being the case could very well change in the coming years. For the luxury home areas of Hawaii Kai such as Portlock, Koko Kai, Triangle and Napali Haweo - as an active realtor in these areas - I can say we are seeing more interest from families that normally would have not considered Hawaii Kai being further away from town than the other luxury home neighborhoods such as Kahala, Diamond Head and Hawaii Loa Ridge. However, now with the option of sending their children to a local public school with the first rate IB System instead of commuting to a private school in town, it changes the whole equation to giving some serious thought about the public school option and living in Hawaii Kai.
 
The Take Away - It is possible now to send your children to an IB accredited public school in Hawaii Kai** and expect a first rate education. Albeit the parents will no doubt have to also put in more effort in the form of extra-curriculum planning and the help in funding such activities. Whilst the private schools should be considered an almost "turn-key" educational program, these public IB schools, though not "turn-key," should be able to provide an excellent core education. Extras will have to be "a la carte." 

Conclusion - Be it a first time home buyer, family relocating, trading up or down, or as an investor - it is really a great time to be in the Hawaii Real Estate Market. Interest rates are still historically low. If you are a family and are considering educational options I am sure this article will provide a lot of food for thought, having options are always good. If now considering Hawaii Kai, it is a big area and there are a lot of choices for families ranging from generously sized 2 bedroom condos in the $500K range to multi million dollar homes in the prestigious luxury home areas (Portlock etc.). The above mentioned school, Koko Head Elementary, straddles several neighborhoods in Hawaii Kai including West Marina (~600K condos) and Koko Head Terrace (single family homes in ~800K plus range) on one side of Kalanianaole and Portlock, Koko Kai (luxury home neighborhoods) on the other.  Please do not hesitate to contact me for any details regarding these areas (please check out the 120 Hanohano and 123 Anahola 60 Second Open House Videos - both of these homes are in Hawaii Kai!)

Finally, if you are currently in a median neighborhood in Hawaii (Sellers' Market) and are thinking of trading up to a luxury neighborhood (Buyers' Market), it does not get any better than this. If you are an off-shore buyer, Hawaii is an investment paradise. If you have any questions regarding real estate strategy please do not hesitate to contact me as it would be my pleasure to serve you in your Hawaii Real Estate needs. Please pass this newsletter along to any friends and family or they/you can sign (them) up here.
 
Interest Rates - I strongly feel that we have moved into a new economic paradigm of lower interest rates and lower inflation for reasons which I mostly covered in my September Hawaii Damon Newsletter (Quantitative Tightening). The FED will continue to slowly increase the FED Funds rate in the next year or few (maybe 3 increases in 2018 by only .25% each time) and there is no doubt that in the long term the FED Funds rate carries mortgage interest rates with it.  However, short and medium term (as mentioned in previous newsletters) it is all about the 10 Year Treasuries (Bonds) and specifically their yields (interest rates) which compete with the home mortgage rates (the 30 yr rate is for the most part, a premium % on top of the 10 year treasury yields). Here is the most recent graph courtesy of FRED:

At the end of 2016 we saw it jump by around 1% coinciding with Trump's election and the bond market speculating on tax reform (leading to a higher GDP growth %) and inflation. In 2017 we can see the 10 Year Treasury yield leveling out and now increasing again coinciding with the expectations of tax reform coming to fruition. Rates are historically low still and I will continue to make updates in upcoming newsletters. As a general rule, currently add about 1.6% to the 10 Yr treasury (if treasury yield is 2.5% then add 1.6% = 4.1%) to get the approx. 30 year mortgage rate. Then depending on your credit rating negotiate the best deal possible with your bank /mortgage lender! As of this writing Myers Capital Hawaii shows a 30 Yr Fixed rate of APR 4.024%.


Happy Valentine's Day!

I'll leave you with an excerpt from my previous month's newsletter (along with links to all the 2017 Hawaii Damon Monthly (mostly) Newsletters) which can also be found on the blog section of my website: www.hawaiidamon.com/blog

12/24/2017 - Tax Reform vis-a-vis Hawaii Property Prices & Your Financial Bottom Line | Great Value Luxury Props + Video | Interest Rates, Advice, Stats & More!

11/01/2017 - The Latest Buyers/Sellers Market Inventory Data on Many East Oahu Neighborhoods | Great Value Luxury Props | Advice, Stats, Video & More! | Damon Rhys
 
10/01/2017 - Hawaii Real Estate: QT is Here! | What is your investment CAP Rate? |Best Value Properties | Latest Oahu Stats | 60 Sec Open House & More! |Damon Rhys
 
08/26/2017 - Hawaii Real Estate: Ward Village Condo Development |Great Value Properties | Latest Oahu Stats | 60 Sec Open House Video | Advice & More! |Damon Rhys
 
07/29/2017 - Hawaii Real Estate: Market Strategies for Buyers & Sellers II | Best Value Properties | Latest Oahu Stats | 60 Sec Open House Video & Info| Damon Rhys
 
06/25/2017 - Hawaii Real Estate: Market Strategies for Buyers & Sellers | Best Value Properties | Latest Oahu Stats | 60 Sec Open House Video & Info| Damon Rhys
 
05/20/2017 - Hawaii Real Estate: Should I Renovate or Move? By the Numbers | Good Value Luxury Home & Condo | Investor Guide | Open House Info & Video | Damon Rhys
 
04/22/2017 - Hawaii Real Estate: Kakaako Rising & Interest Rates Falling! | Great Value Luxury Property | Investor Guide | Open House Info & Video | By Damon Rhys
 
03/17/2017 - Hawaii Real Estate: Air vs Dirt - Lifetime Investment Challenge | Great Value Luxury Properties | Investor Guide | Open House Info & More | Damon Rhys
 
02/19/2017 - Is Trumponomics Inflation Coming? | Protect Your Wealth | Great Value Luxury Real Estate | Investors' Guide | Open House Info & More! | By Damon Rhys
 
01/21/2017 - Hawaii Overseas Investors' Guide | Are The Europeans Coming To Hawaii? | Great Value Luxury Properties | Open House Info & More! | By Damon Rhys

(QT is Here! - September):
Excerpt - Perhaps one could expand on the sailing and Columbus navigation analogy described above to a jet threading a needle needing to get the pitch, roll and yaw just right to make it thru without crashing - the economy.  Seat belts strapped in, hang on tight and stay tuned to the Hawaii Damon newsletter as I'll be giving updates on how flight QT is coming along!


Aloha!
Damon


*A comprehensive private school guide can be found here: Honolulu Magazine)
**Two schools not in Hawaii Kai have also implemented the IB, James Campbell High School and Iroquois Point Elementary both located in Ewa.

 
An impassioned recommendation video by Damon's Buyer clients!
Contact Damon Rhys: 808-358-2331 / E-mail: damon@hawaiidamon.com

This is a free Real Estate Newsletter so please do not let any friends or family miss out on getting great tips for buying or selling property in Hawaii! 
Sign-up for free here: 
Hawaii Damon Real Estate Newsletter
Hawaii Real Estate,  June 2017 Statistics, Median Prices Increasing

Aloha! Here are the January 2019 (December Data) Oahu Hawaii Real Estate housing statistics courtesy of the Honolulu Board of Realtors – Hawaii Housing Stats, Jan-2018. In 2017 we witnessed the housing market on Oahu break some records. In June we saw the median price for single family homes reach $795,000 and in July for condos it reached $425,000. In the same month we also saw record breaking DOMs (Days-On-Market) breach a fast paced 12 and 13 days respectively for homes and condos. Surprisingly, in Dec 2017, we saw a 12.2% decrease in condo sales but this should be tempered by the fact that Dec 2016 saw a leap of 24% (an anomaly) from the previous year's Dec (2015) numbers. Higher single family home prices are continuing to drive the sales of alternatively more affordable condos. In Summary:

Overall Oahu Real Estate Sales have increased by 5.9% and in December for Single Family Homes while decreasing by 2.2% for Condos compared to the same month last year. The YTD (Year-To-Date) data shows an overall sales increase of 6.3% for Single Family Homes along with an increase by 6.9% for Condos compared to last year. The overall combined trend is upward.
 
Median Oahu Real Estate Prices have increased by 2.7% and 3.8% respectively for Single Family Homes and Condos compared to the same month last year while YTD median prices have also increased by 2.7% and 3.8% respectively. The overall trend is upward (the notable exception would be the Hawaii luxury homes areas).

 
Oahu Real Estate DOM (Days on Market) YTD (Year-To-Date) indicator decreased for Single Family Homes averaging 16 days vs 17 for the same month last year. YTD DOM for Condos has decreased to 17 days compared to 19 for last year. We are also seeing double digit YTD increases in pending sales (in escrow) for both homes and condos compared to the previous year.(Note that Luxury Home areas are still experiencing large inventories - avg. 13.9 months but dropping from 15.6 months a year ago for homes over $1.9M - though definitely and finally decreasing, we are still in extreme Buyers’ Market territory for some of these Oahu Luxury Home neighborhoods).


For the detailed report with a breakdown by neighborhood please see: Oahu Neighborhoods Real Estate Statistics (Dec 2017 Data). Please note that the overall stats for Luxury Homes in Hawaii are very different from that of the Median Home Areas whereas Luxury Home inventory - though coming down- is still high pushing downward pressure on prices in those neighborhoods i.e. Buyers’ Market (Median Home areas are Sellers’ Markets).

DISCLAIMER: This is a personal blog/newsletter/post. I disclaim liability for any damages or losses, direct or indirect that may result from use of, or reliance on, any information contained in this blog/newsletter/post, or for the accuracy of comments or opinions expressed by visitors to my blog/post. The information contained herein is deemed reliable but is not guaranteed, and the opinions expressed are mine only and not that of my brokerage firm. Any unauthorized use, modification or copying without written consent is prohibited.  Posting or re-posting in entirety on any social media is hereby authorized and encouraged.
Great Value Luxury Property in Kahala - Single Story Hawaiian Ranch Style Home on Quiet Corner Lot!
価値ある高級物件 ダイアモンドヘッド
お見逃しなく!
(Japanese/日本語)
Great Value Luxury Property on Diamond Head! See this video!
(English)
60 Second Open House Video - Maunalani Heights 3719 Lurline Dr (English)
60 Second Open House Video - 禅の森のなかの家 (Japanese/日本語)
Hawai Great Value Luxury Real Estate, Home on Napali Haweo Ridge and Condo in Waikiki

Welcome to the January 2018 edition of our Great Value Hawaii Luxury Real Estate! We feature both Homes & Condos which we think offer especially great value for potential Buyers. Presently most of the luxury home neighborhoods on Oahu are experiencing Buyers’ Markets (defined as having more than 5 months of inventory currently on the market) with average inventory levels at 13.9 months for homes over $1.9M in Oahu luxury home neighborhoods (see Latest Oahu Hawaii Real Estate Statistics). Prices are decreasing (final sales prices for luxury homes are on average approximately 8% less than the last listed MLS asking prices*) making it a great time for Buyers to find good value properties in these neighborhoods. This month's two properties are in the semi-luxury category with the emphasis on great value.

The first property we showcase is a semi-luxury home in Napali Haweo.  As of this writing there are approximately 9 months of inventory on this particular luxury home ridge putting it in Buyers' Market territory (neutral is about 5 to 6 months, below that would be Sellers' Market).  Of the 5 homes currently on the market there, 2 - including the home showcased here - are under tax assessed value (tax assessed values tend to be a year or more behind fair market values). The other property 
120 Hanohano was covered in the Feb 2017 Great Value Luxury Properties edition. It is now on the market for $500K less than originally reported in Feb 2017! 

The second property showcased here is the conveniently located and semi-luxury Waikiki Park Heights building in Waikiki.  The building allows short term vacation rentals making it a lucrative buy as an investment property. Recently unit #1107 which was remodeled for resale sold for $457K (co-listed by me, Damon Rhys, Sachi Hawaii).  
Unit #1802 in mostly original condition (not remodeled) just came on the market for $400K making this a good value proposition property for a remodel and investment.investment.


Napali Haweo Home View of Koko Marina and Diamond Head

Napali Haweo Luxury Home: (In Escrow now but still showing)
1258 Kamehame Dr
Value Features:

  • Price $1,550,000 (tax assessed value is $1,792,000), down from original listing price of $1,750,000
  • Ocean views of both Diamond & Koko Heads
  • Built in 1997 and in very good condition.
  • 3 Bedrooms but also has an extra area that could easily be enclosed to form a Den or Office.
  • Approximately 3000 SQF Living incl. Lanai & 13,507 SQF Land on a flag lot
  • Home is near Kamiloiki Elementary which now has - along with all Hawaii Kai Public Schools - implemented the "IB" (International Baccalaureate) Program (same as many of the well known private schools in town)
  • Just minutes drive to Hawaii Kai shopping centers and 30 minutes drive to town.
  • Low maintenance yard

This unpolished gem of a home and at this price represents a good opportunity for an entry level home in the prestigious Napali Haweo luxury home neighborhood.  With some moderate work this home could be transformed into the gem it is destined to become!

Waikiki Park Heights View of Queen's Surf Spot

Waikiki Semi Luxury Condos:
Waikiki Park Heights
Value Features:

  • Corridor ocean views from many of the units, watch the surf action at renown Queen's surf spot from your lanai.
  • Building allows short term vacation rentals making it a good investment property for investors.
  • Within about 2 minutes walking distance of Waikiki Beach.
  • Conveniently located in the heart of Waikiki nearby a plethora of dining and entertainment venues.
  • Waikiki Park Heights is where the surf meets the urban dynamic lifestyle  
  • Includes one covered parking stall

With some manageable upgrades this unit could be transformed into an awesome semi-luxury condo for urban-beach living or a great investment for the savvy investor.

If you would like to know more about these properties please contact me (Damon Rhys) for more information. Disclosure: Some properties in this section may be listed by the brokerage firm I work with, Sachi Hawaii. My goal is to give my unbiased opinion on great value Hawaii Real Estate for all brokerage firms on Oahu. In this month neither of the properties featured here are listed by Sachi Hawaii.

Please check out this site’s easy to use Search Tool to find current listings of Hawaii Real Estate now on the market. Homes for sale in Oahu and Condos for sale in Honolulu (Waikiki, Ala Moana, Kakaako, Hawaii Kai etc.) can all be found here using the Hawaii Condo Search or Hawaii Home Search Tools.

 
(Sunday Open House Info Below)
60 Second Open House Video is Here!

Please check out the new Hawaii Damon YouTube page where we have started to create video for our Open Houses. We try to keep each one down to around 60 Seconds first explaining the features of the home and then shooting video of the most interesting parts of the home. Many videos featured are in both English and Japanese. In the first videos (above the Great Value Luxury column) we first showcase a Hawaiiana Ranch style home in Kahala followed by a Great Value Luxury Property on Diamond Head and a beautiful Zen Forest Retreat home on Maunalani Heights - English and Japanese versions. In the 2nd set of videos (just below this column) we have first have the gorgeous 120 Hanohano home on Napali Haweo in both English and Japanese. In the 3rd video (below this column) I give some good tips and guidance for potential Hawaii Luxury Home Buyers (English only).  The 4th one, in Japanese, is for a home on Hawaii Loa Ridge that just closed escrow followed by the 123 Anahola video, in English, in the lovely Triangle neighborhood. Finally, below the main Tax Reform article I include a video from some very satisfied clients.  Please enjoy them all!
 
Oahu Sunday Open House Information  - Posted every Friday after 8PM, Please bookmark this link!
120 Hanohano - Napali Haweo - きれいな海を望めるお家 - 日本語/Japanese
120 Hanohano - Napali Haweo - Gorgeous Ocean Views - English
Here is a short video offering some advice for Hawaii Single Family Luxury Home Buyers.
60 Second Open House - 875 Ikena Circle | This one is in Japanese / 日本語!
60 Second Open House - 123 Anahola in the Triangle Neighborhood (next to Portlock)
Copyright © 2018 Damon Hawaii Pacific International Properties LLC, All rights reserved.


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