Kona Kohala Blog

I was looking at some homes for sale today in a very nice gated community, homes that had been over a million dollars a very few years ago.

These two in particular, two I'm very familiar with and both of which had extensive remodels after their purchase, were each sold at around $1.17M.  Today they are both on the market, one at $709,900, a foreclosure, and the other at $890,000, not a foreclosure.

What a great time to have money to invest in Hawaii real estate.  Cash is good but if you have a 720+ credit score, 20% down and want to live in the house there is money out there under 5%.  It's been a long, long time since we saw rates like that and they're not going to last.  Banks are making it hard to borrow now but wait until all that money gets pumped back into the market.

Interest in real estate is going to take off again because people will have money again.  Interest rates will move up as requirements to borrow move down, again.  Expect a big jump in interest rates in the near future and an easing of prerequisits to borrow as the banks start moving all that money that was "given" to them by the feds.  They are going to love loaning money at 7% or more.  Now is the time if you are planning on buying in the next 12 months.  For more information, call or email us.  aloha