Welcome to 2008's Oahu Real Estate Market! We all know about the crazy things happening in the mainland in the residential housing market. Hawaii's residential market is not doing nearly as bad as the mainland and prices are trying to hold up here. This is due to several reasons, which are all to be written about in upcoming posts.
When it comes to Oahu Farms and Ranches, they do not follow the same appreciating pricing logic as Honolulu residential property. Oahu Farms and Ranches are more like Oahu commercial properties and with commercial properties, their value only increases when the amount of money they throw off month-to-month goes up. If beef prices were way down due to Mad Cow or a Vegetarian Revolution or for whatever reason, the value of a cattle ranch would also drop. The opposite is true if beef prices sharply increase.
There is a line of thought in Real Estate called, "Highest and Best Use." You see it all over Honolulu today. If you have a farm or ranch that is just sitting there being nonproductive, its value as such would be very low. However, what if that open land would be an exc
ellent place for a shopping mall and a couple of High Rise Condominium Buildings? You have just vastly increased the amount of money that that parcel of land can generate month-to-month and therefore, increased its value. You have also applied its Highest and Best Use to it.
This scenario really only holds true if it's really just a farm or ranch. If it has a beautiful Oahu High-End Home on it, where the home might have a value of 2 Million Dollars plus, there is a High End Residential Market in hawaii that operates separately from the normal Honolulu residential market. It is true that there are relatively few buyers in this market, but these buyers come from all over the world to find Hawaii's special properties.
Worldwide buyers for high-end property are a very good thing, especially when the US Dollar (USD) is on sale against most major currencies. This too is a topic for another post.
In the past I have been asked to break up large posts, so I will. Next time, I will give you a list of Investing terms for Real Estate.
Cheers-
Mike
Mike Ramsey Fujita (RA)
(808) 630-1828
Mike@GreatHawaiianHomes.com
Gayle Fujita Ramsey (RA)
(808) 388-1485
gfujita@hawaii.rr.com
Hawaii Real Estate Online
Michael and Gayle,
We have a new publication called Ranch Properties--Great Western edition. We direct-mail it to 40,000 of the most affluent people in the U.S. and get great results for the agents/brokers that we work with currently. I'd be happy to mail you a sample magazine if you'd like to see it.
Thanks,
Pat Kirby
Hi Me...
Here you go...
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720-799 Credit Score A credit score of 720-799 is considered great credit, and will typically result in interest rates and approval rates that a credit score in the range of 800-850+ would yield. The only difference might be a few more pricing incentives at the 800-850+ range, and a more thorough credit check in this range. But all in all, credit scores in this range are considered excellent and you really don’t need to worry if you scores fall in this category. In fact, roughly 27% of the population has a credit score of 750-799 alone.
680-719 Credit Score A score in this range is considered good credit. Although it’s not perfect, you should still be able to qualify for most loans and auto or rental leases, although interest rates may be a little higher than those offered to borrowers with excellent credit. There will be situations where a credit score in this range will prevent you from getting certain types of financing, such as an A-paper mortgage loan or the lowest auto insurance premium, but it’s certainly not bad credit.
620-679 Credit Score Credit scores in this range are still considered “good” or “ok” by many creditors, though you may see further restrictions and fewer approvals when attempting to get a loan, lease, or a mortgage. Scores at this level are fairly common, and no reason for alarm. But it would be wise to evaluate your score and work to improve it. In this range, it is quite probable that you aren’t securing the lowest interest rates, and subsequently losing money as a result.
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500-579 Credit Score Credit scores in this range are just flat out ugly. If you’ve got a credit score in this range, there’s a good chance you have a major derogatory mark on your credit report such as a collection, charge-off, mortgage lates, a foreclosure, or a bankruptcy. There is no question that your credit is in need of serious credit repair. At this level, you must evaluate your credit and act immediately to turn things around. You’re clearly paying higher interest rates and making credit mistakes that will impact your life for years to come.
Below 500 Credit Score Credit scores below 500 are the worst of the worst. To fall into this range, your credit report will definitely contain major derogatory marks, with very little positive data whatsoever. If your credit score is at this level, you may want to consider speaking with a professional about your situation. There’s a good chance you’ve got serious financial problems if your credit score is in this range. Start educating yourself immediately to alleviate your problems.
So now you should have a good idea as to where you stand and what you need to do to improve things, repair things, see a professional, or simply maintain your healthy financial lifestyle.