Kona Kohala Blog

Before getting into the depressing part let's look at the really good news, fall out from the bad market.  As we see the market continue it's correction direction, that's down, there are really great opportunities being created for people looking for property.  These people are the smart ones, the wise ones who didn't refinanced at every opportunity or use their home as an ATM machine.  These are the frugal ones who lived below their means, who continued to save money even as those around them went on spending sprees with all their new found wealth.  These are the people who were raised to save a little bit of every pay check, people who never bought into the "get rich quick" way of thinking but knew you had to work long and hard in order to live well at some date in the future.

These opportunities are now in the form of million dollar homes for $800,000 or $800,000 homes for $500,000.  Looking at todays MLS offerings reveals a wide selection of high quality, newer homes with many amenities for rock bottom prices.  As prices continue to come down we see more and more people coming out to buy up what they consider to be a good deal.  It's been said that they may be "frugality fatigued", tired of working so hard for so long and now ready to enjoy some of the fruits of their labors, not all but some.

I have quite a few clients who are thinking of either retiring or drastically reworking their current job routines allowing them more time off and with family and friends or maybe more time for a hobby.  Our world of technology offers us this remote work opportunity and despite the onslaught of bad news about the economy, there are plenty of people who have maintained their financial health through these bad times.

Makalei Estates is aa development located north of Kailua town on the slopes of Hualalai mountain.  The cooler 2,000' elevation offers an ideal climate for coffee and cacao among many other fruits and vegetables.  Most lots here are 3 acres on gently sloping land.  The homes that have been built are for the most part, in excess of 2,000 square feet with luxurious finishes and amenities.  Most would be considered million or multimillion dollar homes but today, many can be purchased for well under that mark.  How about a 3 bedroom, 2.5 bath home with 2,256 sq.ft. of living area and about 2 acres of Kona coffee and cacao.  Makalei Estates is a gated community and most homes are protected by at least one more gate after getting in.

This is the best in gated privacy and at the right elevation for comfortable year around living.  What was well over one million a couple of years ago can be purchased today for $895,000.  This isn't the only home like this, there are lot's of them so if you're interested in this price range and the thought of living in a luxury home in Hawaii at less than luxury prices, then shake off your frugality fatigue and call me, 808-896-0661 or email me Robert@FerrariPacificRealty.com.

Now, Freddie Mac and Fannie Mae.  Why these two wasteful giants continue to live I do not know.  These monstrosities have been bleeding tax payer money for far too long and if it weren't for all the good buddy relationships between lawmakers and the numerous CEO's and other high paid executives that move in and out of both entities taking hugh amounts of money with them, they both would have been shuttered a long time ago.

What person in their right mind would continue to operate a business that just in the last quarter lost $11.5 BILLION, Fannie Mae, and is now asking for more tax payer money, an additional $8.4 BILLION.  Little brother Freddie Mac is right behind having lost $8 BILLION and is asking for $10.6 BILLION of yours and my tax money.

This disaster was begun by Slick Willy aka President Bill Clinton, not dealt with by the pretend to be conservative, George W. Bush then bolstered by our current silver tongued rascal, Barry Obama.  I don't know if being a long time partner (that's how we say shack up in PC language) of Elmer aka Barney Frank, Fudd has slowed the dismantling of the agencies but having a boy toy in the U.S. Congress can't hurt when it comes to raping the American people.

There has been much clamor and noise making about all that's wrong but no one on either side of the congress is doing anything about it.  Sen. McCain attempted some lame legislation that was shot down by the majority democrats and so it goes on.  The Federal Housing Finance Agency when asked about the high salaries being paid to the heads of these failing companies said, "Compensation must be sufficiently high to attract and retain top talent."  Humm, where's the top talent we're paying for?

Daniel Mudd was the CEO when the federal government stepped in and seized the company.  We don't seize companies that are doing well and being run by "top talent", we seize the ones who are oh so obviously being run by less than top talent even though Mr. Mudd was paid $12.2M most of which was tax payer money.  Does this seem right?  People burning through BILLIONS of tax payer dollars, being paid MILLIONS of tax payer dollars and the companies being run further and further into the ground.  Obama's answer this year is to remove the $400 MILLION cap on bail out money and instead, allow Fannie and Freddie to ask for and to receive, any amount they think they need.

Now that's fiscal responsibility.