Home Buying in Kailua Kona>Question Details

Miniluvs, Home Buyer in Kailua Kona, HI

Which condo complex in Kona is the strongest financially and best maintained? I'm interested in purchasing a condo in Kona in a desirable

Asked by Miniluvs, Kailua Kona, HI Sun Nov 15, 2009

complex. Due to the high rate of foreclosures and short sales, I am interested in those condo complexes that are doing well and have very low rates of foreclosures/short sales.

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Answers

12
Hi Miniluvs,

That's an excellent question. The rate of short sales and foreclosures has very little to do with the financial management of the complex. They are two separate things, but related in one way.

The AOAO, or association keeps a budget each year, to include capital improvements, utilities, staff payroll, building maintenance, etc. Based on that, they decide what amount, if any, to raise the maintenance fees for the following year. It is based in part, on how many people are behind on maintenance fees. The more that is due, the more that everyone else has to pay, if the short sale or foreclosure owners don't pay. In that way they are related. When those owners get behind, it hurts the other owners. The AOAO can collect some of the funds in a foreclosure, but it is sometimes limited.

Some of the best maintained complexes still have high rates of foreclsoures, however. Those are dependent on the individual owners, whether they took out risky loans or overextended themselves.

The best way to determine how well an AOAO is doing is to order the financial statements. Those can be obtained from the company that manages them.

If you have further questions, please let me know.

Aloha,


Frank Diaz, MBA (RA), e-PRO
808.723.0900
East Oahu Realty
2 votes Thank Flag Link Mon Nov 16, 2009
Excellent point Roxy.
The best buys (subjective of course) are now generally found in the complexes with the most problems. The complexes that are well managed, low turnover and a low delinquency rate tend to be priced higher. In effect, the risk associated with the poorer performing complexes is reflected by the lower prices.

Frank
1 vote Thank Flag Link Wed Mar 24, 2010
Although the situation is constantly changing 3 complexes come to mind. On the low to medium end: Alii Villas. These are great units, especially the oceanfront units. The buildings are concrete which is a plus for oceanfront. Helps keep maintenance fees down. Medium to deluxe I recommend Kona By the Sea, another well managed and maintained complex. Finally on the high end: The Kona Onenalo can't be beat.

Erik Hinshaw R(S)
Hawaii Life Real Estate Services
(808) 333-6217
1 vote Thank Flag Link Mon Nov 16, 2009
If buying a condo for investment purposes, you may want to check to see how the market is with rentals. Many rental management companies will give you a lot of information on revenue of some of the long term and vacation rentals. Some condos can pay for themselves!
0 votes Thank Flag Link Sat Aug 18, 2012
Great question. Things have certainly changed rapidly over a few years.
Mahalo Juliez.
0 votes Thank Flag Link Mon May 21, 2012
Keauhou Resort, a block up from Keauhou Bay is doing very well with sales. Recent new roofs, landscaping, and reconstruction of lanai's. Great place to live and vacation!
0 votes Thank Flag Link Mon May 21, 2012
Aloha --

You are a very smart Buyer to be thinking in these terms. Be sure to review those RR105c forms and the financial statements during your document review contingency timeframe; that will give you a good picture of the overall "health" of the AOAO. If you want to get a handle on various communities BEFORE starting your search, select an experienced agent that has a proven track record and has lived in the community for many years.

Aloha,
Special Agent Julie Ching, R(B)
2011 Hawaii Island Realtor of the Year
0 votes Thank Flag Link Tue Jan 10, 2012
Aloha, Do I hear you asking which condos may have budget problems because of uncollected fees? Most association management firms provide reports containing number of or percentage of delinquent fees. the reports contain a lot of other information you might find helpful tool. We access those reports one property at a time, which can be time consuming and cumbersome for both of us. By eliminating properties that hold no attraction for you, the process will move more smoothly. Contact me. We'll select some properties that may fulfill your needs. Then I can provide the data you need to help you decide where you would feel most comfortable buying.
Mahalo,
Broker@JoyceMurphyRealtor.com
0 votes Thank Flag Link Wed Jun 23, 2010
I'm seeing that the condominium projects that are newer and have low maintenance fees are those that my buyers have been the most interested in this year. They are also the ones that have lower inventory right now and it appears that their bottom line prices were in 4th quarter of 2009.

I'm not sure why you think though that buying in a complex that hasn't had any short sales or foreclosures is the best buy. What I am seeing is that the complexes which have a high turnover in sales (generally larger complexes) tend to reflect the market quicker in listing prices than complexes which didn't have any or very few listings in 2008-2009. Larger # of sales probably means they have had some foreclosures in the complex just because of number of units.
0 votes Thank Flag Link Wed Mar 24, 2010
Aloha Miniluvs,

As an alternative to a condo option, have you considered a Great Ocean Home at Kahalu`u-Kona?

Compared to the prices of most comparable ocean going homes in Kona, this is an awesome value at under $1 million for a Hawaii Beach Cottage. For more details check out:

http://web07.hawaiiinformation.com/REsearch/HIS/Search/displ…

Links are valid for only 30 days.


Thanks,
Andrew Meislin
President

Lauhala Mortgage
74-5620 Palani Court; Suite 208
Kailua Kona, HI 96740

Phone: (808) 331-0585
Fax: (808) 331-0583
Email: Andrew@LauhalaMortgage.com
Web-Site: http://www.LauhalaMortgage.com
0 votes Thank Flag Link Tue Feb 9, 2010
My dad lives in the Alii-Banyan Condos on Alii Drive and loves them. It is a mix of owners and renters and is maintained very well. There are only 10 units so it is very quaint.
0 votes Thank Flag Link Tue Dec 29, 2009
Candidly, most condo projects in Kona are impaired by the changes in the economy. There is generally a direct relationship to the number of foreclosures/short sales and the number of condo units owned by second home owners and/or investors. Closely related to foreclosures/short sales, are condo projects who are suffering from delinquencies association dues.

On the flip side, if you are looking for condo projects that have a high percentage of owners who live in the units as their primary residence, you will most likely find the condo project to have a lower level of foreclosures/short sales.

Before suggesting any particular condo project; what is the price range you are willing to spend?

Thanks,
Andrew Meislin
President

Lauhala Mortgage
74-5620 Palani Court; Suite 208
Kailua Kona, HI 96740

Phone: (808) 331-0585
Fax: (808) 331-0583
Cell: (808) 990-2710
Email: Andrew@LauhalaMortgage.com
Web-Site: http://www.LauhalaMortgage.com
0 votes Thank Flag Link Thu Dec 3, 2009
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