 |
Property Development...
|
Considering the median sales price for a single-family home on Oahu at $636,000 for the second quarter of 2008... after prices have fallen from record heights in 2007, Hawaii home ownership can be a pretty tricky proposition for us "average" folks! After all, even if you did have $64,000 for a down payment some of us might have some difficulty making the payments on a $500,000 mortgage loan no matter what the interest!
In some cases property development can be an option to purchase Hawaii real estate and really be able to afford it while for some existing homeowners, developing their own properties can be a way to derive an income while keeping their property.
Developing one's own property can be as simple as adding rentable extensions to an existing dwelling or as complex as subdividing or placing the property under a condominium property regime. What stops most folks from pursuing these options is the simple fact of having to balance legal, finance, and construction issues that can easily lead one into trouble.
Obviously, for many of us, buying into Hawaii's real estate market will require a lot more than just an agent who can show properties in a given price range and help put in an offer. An agent that specializes in property development provides insights and possibilities that capitalize on the potential of a property rather than just getting buyers and sellers together.
Here are a few scenarios that might help you buy something in Hawaii or allow your Hawaii property to support you!
• Apartment Conversion Projects - An apartment building with rental units is condominiumized resulting in units being sold individually. Due to the relatively older age of these converted buildings, the units are priced much lower than comparable properties in the area offering some of the best bargains for home ownership.
• Single Property Conversions - A single property is placed under a condominium property regime (CPR) which allows for multi-dwellings on a single property each being treated as a separate real estate entity while sharing common ownership of the land with the other dwellings. This is an excellent way to create income from a property while keeping all or part of the land or adding tremendous value to property owned before selling it.
• Subdivision - The division of a single property into two or more smaller properties each of which becomes a separate and distinct real estate entity. In most reasonably appealing areas, the combined value of two smaller parcels will exceed that of the original undivided parcel.
Hawaii born and raised Abe Lee, principal broker for Abe Lee Realty, has specialized in Hawaii property development for over thirty years and offers that added dimension to his clients in both buying and selling Hawaii real estate.
Regardless of whether you're thinking of selling, looking to buy, or simply wondering about income generating options for your own property, you'll be wise to consult with a broker that's involved with property development as you'll definitely see a dimension in buying, selling, or developing your own property that many brokers aren't even aware of!
Find out about Developing Properties In Hawaii
Return to top of page Property Development
