The next lottery release for Ilima at Hoopili has been announced! 

DR Horton has announced the next release for the Ilima community at Hoopili. Ilima will be townhomes with their own private fenced yard. This is perfect for those looking for a bit more space than your typical condo living or maybe those that want to downsize from a large single family home while still having some usable yard space. Also great for pet-owners! These homes will range between 935 sqft to 1,399 sqft and will have a minimum of two parking spaces. These homes will also have smart home features as well as DR Horton's 10-Year Limited Structural Warranty.

Ilima will be located near various community amenities within Hoopili such as commercial/retail spaces and parks. It will convenient to get to schools, malls, and the upcoming rail station. 

Prices for this release is between $597,510 FS for a 3 bed/2.5 bath/1,397 sqft to $615,640 FS for a 3 bed/2.5 bath/1,399 sqft. Homes will be built and available around May/June of 2020.

Application Deadline: Friday, February 28, 2020 by 5:00 PM

Lottery Date: Saturday, February 29, 2020 at 10:00 AM

Make sure you have a Buyers Agent!

* I do not represent the developer nor am I part of the sales team. I make no representations on their behalf. If you want information directly from the sales office I urge you to contact them directly. If you would like me to help represent you as your real estate professional I would be happy to meet with you. 

Introducing DR Horton’s newest community for Hoopili: Olena. Olena will have 30 contemporary multi-generational residences comprising of 4 distinct layouts of 3- and 4-bedrooms, with 2 or 3 master suites. They will have 2-car attached garages that are both PV and EV ready. Homes will also have urban gardens that feature edible landscapes. This first release has pricing starting at $837,000 fee simple and will be built in summer 2020.

More info to be added soon! 

Application deadline: Saturday, February 15, 2020 by 5pm 

Lottery: Sunday, Februry 16, 2020 at 10am.

Message us if you have any interest about these homes.

Make sure you have a Buyers Agent!

* I do not represent the developer nor am I part of the sales team. I make no representations on their behalf. If you want information directly from the sales office I urge you to contact them directly. If you would like me to help represent you as your real estate professional I would be happy to meet with you. 

This past week on 1/23/2020, we were invited to a special broker event to Ililani's sales gallery. We were able to meet the developers and get reintroduced to Ililani again. They had new pricing for the market-priced units as well as new renderings for us to view. 

Ililani Market-Pricing, 1/23/2020

New Renderings

Ililani Lobby

Ililani E-Lounge

Ililani Multi-Purpose Room

Ililani Community Garden

Ililani Rec Deck

Make sure you have a Buyers Agent!

* I do not represent the developer nor am I part of the sales team. I make no representations on their behalf. If you want information directly from the sales office I urge you to contact them directly. If you would like me to help represent you as your real estate professional I would be happy to meet with you. 

Honolulu Affordable Housing

There have been many affordable housing projects in the Honolulu area but affordable housing is still in high demand. With each new affordable project there are hundreds, if not thousands of buyers waiting to apply. The Ala Moana & Kakaako neighborhoods will see several new projects developed over the next few years with some sort of affordable housing piece, either through rentals or units for sale.

The affordable housing program is not the same as the reserved housing program which you will see in the Kakaako and Ward Village Areas. The reserved housing program is overseen by the HCDA (Hawaii Community Development Authority) which is another government agency that oversees all development in the Kakaako neighborhood. Both programs share similar eligibility guidelines but the programs are very different.

Below are some FAQ’s and information related to affordable housing:

What is HHFDC?

The HHFDC or Hawaii Housing Finance and Development Corporation is the state agency that oversees all of the affordable housing in Hawaii. They also oversee the financing and development of the actual affordable housing units as well.

What are the benefits of HHFDC's Affordable Housing Program?

•             The program allows eligible and qualified applicants to purchase units at below market pricing

•             The program also offers the opportunity to own and live in a new construction project in town

What are the income limits for Affordable Housing?

Affordable housing will have some sort of income requirement. Every project is different and the income requirement is based on household size and income. Some projects require a minimum of 80% of the AMI (Area Median Income) and most projects have a maximum of 140% of the AMI. Please see the table below for the 2019 Honolulu AMI figures.

Are you eligible for Affordable Housing?

Every affordable project will have different requirements. Some will be set forth by the HHFDC and others will be put in place by the developer.

In the end it is up to the HHFDC to determine a buyer’s eligibility. Some of the basic requirements are:

1.            U.S. citizen or permanent resident alien with a valid government issued ID.

2.            At least 18 yeas old.

3.            Resident of the State of Hawaii and currently residing in the State of Hawaii.

4.            Shall physically occupy the unit.

5.            Does not own a majority interest in a fee simple or leasehold property anywhere in the world.

6.            Has sufficient gross income to qualify for a loan to finance the purchase of a unit.

As stated above the guidelines from project to project may be different, which is why buyers should work with an agent who can understand the differences. Most recently The Central Ala Moana’s affordable housing program required a minimum income of 80% AMI, when the developer’s first project Kapiolani Residence did not have a minimum AMI requirement.

Is there a deposit required?

Some affordable projects require a 10%, while others only require 5%. Please keep in mind this is only what the developer requires, your loan officer may require a larger down payment in order to qualify you for your loan. Most projects will split the deposits up, typically one deposit due at the signing of the contract and another deposit required after a 30 day recession period to review the project documents.

What are the restrictions on the unit?

Typically there are two programs imposed on all new HHFDC Affordable Units, which are a Buyback period & SAE (Shared Appreciation Equity).

What is the buyback?

The buyback program requires the owner to occupy the unit as their primary residence typically for 10 years or the duration of the program (every project is subject to a different length). The buyback program allows the HHFDC the first right to purchase the unit back in the event the owner can no longer occupy the unit or chooses to sell or transfer unit in the first 10 years of ownership. At the end of the 10 year period, the buyback program no longer applies.

If an owner needs to sell within the first 10 years they must notify the HHFDC and they have the first right to buy your unit back from you at a price determined by the affordable housing guidelines. If the HHFDC does not buyback your unit then they will allow you to sell but also determine the price using the affordable housing guidelines and taking to account the costs to sell.

What is the SAE?

The SAE or Shared Appreciation Equity is designed to help fund future HHFDC affordable housing projects. The affordable housing program gives buyers the opportunity to purchase a unit at below market prices. To help the program grow and to ensure affordable housing projects in the future a percentage of your profit will be returned back to the state when you sell.

How is the SAE amount calculated?

Every project is different. Typically the shared appreciation is a calculation based on the purchase price and fair market value of the property. Before contracting buyers should be provided an example of how the SAE is calculated, when it can be paid off, and other information regarding the SAE program for that building.

Other affordable units such as at Ho’opili in Ewa Beach do not have Shared Appreciation Equity.

What is the next step?

Please feel free to contact me and I’d be happy to help walk you through the process. The next projects with affordable housing will be SKY Ala Moana and Ililani in Kakaako. There are other affordable housing units which will be ongoing developments such as Ho’opili and Koa Ridge.

The first step is to get in touch with a real estate agent that can show you your options as well as get you in touch with a lender familiar with affordable housing projects (most projects have approved/preferred lenders).

* I do not represent the developer of any new affordable projects nor am I part of any sales teams. I make no representations on their behalf. If you want information directly from a sales office I urge you to contact them directly. If you would like me to help represent you as your real estate professional I would be happy to meet with you.

The HBR just released their monthly market stats for September and it was another strong month. Closed sales and median sales prices were up for both single family homes and condos from last year. Days on market trended down for condos and single family which signals a more competitive market overthis time last year.

The Median for single family homes was $760,000, which is slightly down from last month. The Median sales price for condos was $425,000which ties the record high. Demand is high for this price range and many millennial and baby boomer buyers are looking for their 1st home or to downsize into this price range.

I have been dealing with more and more first time home buyers. It's more important than ever to get pre-qualified with a great lender before looking for properties and submitting offers. Knowing exactly the types of loans available will allow your realtor to write the strongest offer for you.

The Ho'opili sales office moved to their new location at the Ho'opili site back in July. Since then they have had several releases of both Single Family Homes at Ha'akea and Townhomes at Haloa. Today I joined a handful of agents from several of the Better Homes and Gardens Real Estate Advantage Realty offices to tour both the sales office and model homes. 

Ho'opili is D.R. Horton’s new master planned community. For those that have not heard of Ho’opili, this will be a large 11,750 home development in the area between Ewa Beach and Kapolei. (From Fort Weaver Road to Kualakai Pkwy).This development will take over 20 years to build. 

Ha’akea – Consisting of non-CPR single family homes starting in the low $600,00s. (No maintenance fees. Estimated master association fee of $59/month)

Haloa – Consisting of 2 and 3 bedroom Townhouses and “Flex” homes. (Estimated maintenance fees between #249.74 to $374.81 per month & estimated master association fee of $59/month)

Affordable Townhomes starting from $330,000 and market townhomes starting around $500,000.

Ha'akea will be moving to a lottery based sales system with Haloa using a first come first serve sales system.

Make sure you have a Buyers Agent!

* I do not represent the developer nor am I part of the sales team. I make no representations on their behalf. If you want information directly from the sales office I urge you to contact them directly. If you would like me to help represent you as your real estate professional I would be happy to meet with you. 

If you live on Oahu, own and occupy the property where you reside, you may be eligible for an $80,000 or $120,000 Property Tax Exemption. The Home Owner’s Exemption lowers the amount of property taxes you are required to pay. Here’s how:

In this example, the City and County of Honolulu has determined that your home is valued at $980,000 and will use this figure for your real property tax, this is known as a tax assessed value. If you own and occupy this property you can qualify for an $80,000 home exemption.  Instead of paying taxes on the $980,000 value of your property, you can lower the taxable value to $900,000. Here’s how your tax would be calculated with an $80,000 Home Exemption:

For homeowners over the age of 65, the benefit is $120,000 compared to $80,000. For the same property, a homeowner age 65 or older would be responsible for $3,010 annually for a savings of $420 annually.

The deadline to file for this exemption is September 30^th. You will not need to refile annually. Once your exemption is filed it will remain in place as that property is your primary residence. 

To file for your Home Exemption visit www.realpropertyhonolulu.com

 * Consult your CPA or accountant to ensure your property tax exemption is in place. 

The HBR just released their monthly market stats for June and it was another solid month. Closed sales and sales prices were up for single family homes while condos took a slight dip Days on market trended down as well signaling even more competition for new listings.

The dip in condo prices and closed sales signals an even more drastic need for supply. With less listings properties are very competitive and listings do not stay on the market long.

I have been dealing with more and more young families lately looking for their first homes. It's more important than ever to get pre-qualified with a great lender before looking for properties and submitting offers. Knowing exactly the types of loans available will allow your realtor to write the strongest offer for you.

Howard Hughes's latest Ward Village Project A'ali'i will be starting sales soon and many home buyers are eagerly awaiting.

If you’re in the market to buy and need info on how to become a stronger buyer, feel free to Contact Me.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate Program was authorized by Congress in the 1984 Tax Reform Act as a means of providing housing assistance to families of low and moderate income. The Hawaii Housing Finance and Development Corporation (HHFDC) is an issuer of Mortgage Credit Certificates.

The Mortgage Credit Certificate (MCC) reduces the amount of federal income tax you pay, thus giving you more available income to qualify for a mortgage loan and assist you with mortgage payments. The MCC is available to homebuyers who meet household income and home purchase price limits established for the MCC Program as well as federal eligibility regulations.

The MCC credit takes the mortgage interest you pay per year and gives you a credit for 20% of the annual interest. The remaining 80% can be taken as the normal tax deduction. The credit can also be used to help qualify for your mortgage as it can be quantified into a monthly amount and counted towards you income. (Please consult your loan originator and/or CPA for advice)

Example:

Type of Loan: 30 year fixed

Loan amount: $300,000

Interest rate: 4%

Total mortgage interest in year 1: $12,190.60

MCC benefit for year 1: $2,438.12 ( 20% of $12,190.60)

How Long Does the MCC Last? 
The MCC will remain in effect for the life of your mortgage loan, so
long as the home remains your principal residence. The amount of
your annual mortgage credit will be calculated on the basis of 20%
of the total interest paid on your mortgage loan for that year.

What are the Requirements?
• The home you buy must be used as your principal residence
after you obtain your mortgage. If it stops being your principal
residence, your MCC will be automatically revoked and you will
no longer be entitled to claim the mortgage credit.

• You cannot have an ownership interest in a principal residence at
any time in the last three years.

• The mortgage loan must be a new loan. (Purchase, not refinance)

• The federal government considers the MCC tax credit to be a
subsidy. As such, you may be subject to federal “recapture tax”
if (1) you sell your home within nine years of purchase, (2) you
sell your home at a gain, and (3) your income increases above a
specified level. (The amount of income you are allowed to make increases each year in the first 9 years)

• A $25 Application Fee and a fee of $400 will be charged for the
processing of your MCC application. Loans must be closed within
90 days of issuance of a MCC Conditional Commitment.

You can find the current MCC brochure Here along with a list of participating MCC Lenders.

* Consult with an mortgage loan originator at a participating lender to obtain the current MCC guidelines.

Homeowners are tapping into their equity at the fastest rate in eight years. Millennials are the ones leading the pack of those who are cashing in.

In 2016, the number of homeowners with potentially “tappable” equity rose to 39.5 million—those are borrowers who have at least 20 percent equity in their homes,according to Black Knight Financial Services.

Millennials, in particular, are turning to HELOCs (Home Equity Line of Credit) more so than Generation X members or baby boomers, according to a recent survey by TD Bank. More than a third of millennials say they’re considering applying for a HELOC in the next 18 months. That is more than double the rate than Generation X and nine times higher than baby boomers. HELOCs are a great shorter term mortgageoption for borrowers. If the plan is to upgrade and sell your home within 3-8years a HELOC might be a better option than a 30-year cash out refinance.

Indeed,remodeling was the number one motivation for taking out a HELOC last year,according to the TD Bank survey (debt consolidation was number two). Millennials are entering the housing market slower than previous generations.When they do buy, they often are purchasing lower-cost, fixer-upper homes. For first time home buyers in Hawaii this has become a common as move-in ready listings are very competitive and listings needing updating may offer a good opportunity for 1st time buyers.“We are a little surprised about that,” Mike Kinane, general manager of home equity products at TD Bank, told CNBC. “I think millennials are taking a more conservative approach, but they recognize that HELOCs have a good purpose, especially for remodeling.”

Read More: Tips for buying a property with 5% Down Payment

As home prices rise, millennials are pulling out equity from their home to remodel. They say their main motivation to renovate is to increase the value of their home, according to the TD Bank survey.

Source: “Homeowners Are Pulling Cash Out Again; This Time It’s the Millennials,” CNBC (April 3, 2017)