Wednesday, March 12, 2008

Oahu North Shore beachfront homes

North Shore - Homes on the North Shore of Oahu offer great beachfronts, with wide white sand beaches and famous surf. From Mokuleia to Laie, the houses on the beach on Oahu’s North Shore can vary greatly.

Starting in Mokuleia, this quiet part of the North Shore has many older homes sitting right on their own little white sand beaches, with great water for swimming most of the year. Waves come in the winter, but not close enough to shore to be a problem. You can get a beautiful beachfront home for just a few million, and have a lot of privacy. You’ll hardly ever see anyone on these secluded beaches. North Shore beachfront doesn’t always mean huge surf and lots of tourists and pro surfers. In Mokuleia, it usually means uncrowded beaches and mostly residents.

Over in Waialua the beaches can also be fantastic, although sometimes you get some brown water from the river runoff. Houses in Waialua tend to be very old and often run down, though some people have begun to renovate. You can buy an old tear down on the beach for $1million, or get a renovated house on the beach for $2-4million. Oceanfront real estate in Waialua is usually very peaceful, and you’ll hardly ever see anyone else on the beach. You just have to be careful to know where the river is.

Haleiwa real estate is one of the most popular areas, simply because there is a bunch of tourist stuff there. Homes in Haleiwa are usually older, so you can get a nice piece of land and renovate the house for $1.5million, or you can buy a nice renovated home on beach for $2-5million. If you live in Haleiwa, you’re going to see a lot of tourists and surfers, and also you can get some great rents during the surf season. Waves are larger, and the harbor is right there so you can have your own boat.

Moving East, Kawailoa is a great strip of beachfront homes between Haleiwa and Waimea. With only a small strip of beach, it Kawailoa isn’t the best place to sit on the sand, but it does have nice calm water. A tear down will cost about $1.5million on the beach, and up to $4million for a home in great condition. It’s easy to drive by this area and miss it, but if you’re looking for beachfront homes in Hawaii, don’t forget Kawailoa.

The Sunset Area is the next neighborhood East on the coast, with a lot more sand and much nicer beaches as a result. Oceanfront homes in Sunset range from $2million for a near tear down to $15million for a new home of 4000sqft or so. The Sunset area is famous for surfing and the real estate there is fantastic. Many large estates sit on the beachfront, offering a lifestyle that can’t be matched anywhere.

One hidden little gem of North Shore real estate is Kawela Bay. Just next to Turtle Bay resort, Kawela is like a private island within an island. There isn’t much surrounding it, so you’ll have to drive 15 minutes to a grocery store, but the seclusion and privacy is exactly what some people are looking for. Kawela bay has calm water year round, with nice waves on the outside if you are willing to do a little paddling. The homes in Kawela are older, but it’s only about $2million for a beachfront lot with beautiful sand and safe swimming year round. Plus you can go next door to the resort and enjoy their restaurant and amenities.

Laie has both cliff side and flat land homes on the water, and some great beaches too. It’s far from everything, which means peaceful secluded beaches all to yourself. Homes here are smaller and older, and with the price being lower than other areas, they offer the opportunity to tear down and build your own dream home.

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Oahu Beachfront homes - Waimanalo

Waimanalo - You don't hear about Waimanalo very often, but it has beautiful beaches and a quiet old Hawaii feel. Many of the residents have lived there for generations. Homes on the beach in Waimanalo tend to be older and cheaper, around $2-3million. The beach and the water in Waimanalo is beautiful, and buying real estate there can be a really bargain compared to other areas. You'll likely have to drive to Kailua for groceries and everything else, but that's only a 10-15 minute drive.

Life in Waimanalo is a throw back to the Hawaii of 50 years ago. The pace of life is slow, and the town is just a tiny strip of small stores that is very easy to miss as you drive by. But ocean front real estate in Waimanalo is a great option if you like the slow small town feel of it.

You can buy beachfront homes in Waimanalo for a fraction of the cost of other areas like Diamond head, and you’re only a few minutes drive into Kailua town, which is probably where you will spend most of your time.

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Kaneohe Waterfront Homes

The beach in Kaneohe can mean a lot of different things. First there is the bay, which is calm somewhat dark water that is best for boating and not swimming or surfing. There are many beautiful real estate overlooking and sitting on Kaneohe bay, ranging from about $2million to $7million. Homes in Kaneohe are anywhere from 1 day to 60 years old, so you have to see them in person to know what you're getting.

It's a little cheaper to buy a home on Kaneohe bay than Kailua, simply because the town is not quite a "cute" and there isn't really any sand to sit on anywhere for real estate on Kaneohe bay. However, that's not to say there isn't any sand at all in Kaneohe real estate...

Go up the shore just a few miles and you get some of the best secluded beaches in Oahu. From Kaaawa to Laie, there are several great beaches with great real estate, including Malaekahana, a beautiful beach park and camping spot where you can own an acre of beachfront property for about $3million. The beach there is just as good as any home in Kailua, and the reason it's cheaper is that it takes about 30 minutes to get from there to a decent sized town. But for many retirees and vacationers, seclusion is just fine!
The beaches in the North end of Kaneohe are second to none, and if you're looking for beachfront real estate that's a bit off the beaten path, I highly recommend this area, since you can save yourself a couple million dollars just by driving 30 extra minutes from the central part of Kaneohe.

Just remember that Kaneohe waterfront doesn't necessarily mean the bay. It can also mean beautiful white sand beaches stretched out across old Hawaiian tropical lands. You can get a beautiful cottage up on the North End of Kaneohe, a great little niche in Oahu beachfront real estate that you really can't get anywhere else in Oahu.

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Kailua beachfront homes

Kailua Beachfront homes offer something that many can only dream of: a sort of paradise on earth. For $5million you can get a small home on the beach that may need some updating, and for $10million you can get something perfect, something world class. The beaches in Kailua are incredible, with white sand, crystal clear water, and nice gentle waves that are great for surfing. Nearly all Kailua luxury homes are on the beach, with many new homes that have been built in the last 10 years. Kailua real estate is arguably the best place in America to own a beachfront home.

Down in Lanikai you get a quiet secluded beach with hardly a wave ever, and up at the Kalama end you get nice waves most of the year, but a lot more wind and waves. In the middle, around the beach parks, the sand is beautiful and the water is perfect too. Beachfront Kailua homes means allow you to enjoy year round ocean breezes and great water for swimming.

People love Kailua real estate not only for the beaches and houses but for the town. Kailua town is a quaint little beach town that is really fun to walk around and live in. If you have $5million and you want to live on the beach, let me recommend Kailua first of all.

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Hawaii Kai waterfront homes

Buying Waterfront real estate in Hawaii Kai means either Portlock or Koko Kai.

Portlock offers large homes on the flat part of the shore, with hardly any waves breaking near shore, and small strips of beach here and there. The Portlock homes tend to be newer, built in the 80's and 90's, and there is even some new construction in Portlock real estate right now. They are all individually built of course. Portlock has a very upscale feel to it, though the streets are relatively narrow for such a high end area. A nice newer home on the water in Portlock will cost between $4million and $15million. Portlock real estate is one of Oahu's finest areas.

Koko Kai is the neighborhood built on far end of the natural geographical feature which is actually known as Portlock. I know, it's very confusing. Koko Kai was built on a slightly elevated cliff, just 20-50 feet up. The homes in this area are amazing, and even more palatial than Portlock. Ocean front in Koko Kai means spending $7-10million on a house that is very large and very nice. Or you can buy a house that needs a total renovation for around $5million.

Koko Kai is a little quieter simply because it's farther from the highway, but you really have to make the decision based on each house you're considering, because there are some houses in Portlock that are absolutely word class, unbeatable.

For the wealthy in Oahu who can afford waterfront, Portlock and Koko Kai are great options, especially if you're not the type to go in the water a lot. If you would rather enjoy the view from the shore than jump in the water, Hawaii Kai is a great area, simply because there is a lot of reef, a lot of rock, and not a lot of sand. However, there are some great beginner surf spots in Hawaii Kai.

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Diamond Head Beachfront Homes

Beachfront homes in Diamond Head start at about $3million for a vacant lot of around 10k square feet. It will cost maybe $300-$500/ft to build a nice quality home, so you're looking at around $5million total, minimum. The nicest Diamond Head homes can be $20million, and of course for that price you get prime beach frontage and a beautiful quality home. Diamond Head has some of the best real estate in Oahu.

You can have a high cliff side home overlooking the ocean, or you can live down on the flat parts of Diamond Head, including Kahala. This area tends to be the most expensive Oahu beachfront real estate, simply because it's close to Honolulu town.

Then on the east end of Diamond Head you have Niu Beach, Wailupe, and Paiko lagoon. These areas are very different from Diamond Head proper. It's flatter, there is only a little sand, and the waves are farther out. There is a large reef that protects the houses from waves, so the water near the shore is very calm, hardly any waves at all. Homes in these areas of Oahu are usually older single story, though there have been some rebuilds and renovations lately.

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Tuesday, March 11, 2008

$6million Oahu beachfront home sells

A few months ago I showed a beautiful home on Lanikai beach to some clients. The house just sold this week for $6million. It was the house belonging to Don Ho.

It has a great spot on Lanikai beach with a direct view of the Moks. Lanikai has a great sandy beach (most of it does) and of course calm clear water. You can swim or kayak out to the Moks if you are in shape, and enjoy a little walk around them.

Lanikai is a great little neighborhood, very quiet, with only one way in and one way out. That can be both good and bad, but generally it's very peaceful there. The rich and famous have enjoyed living in Lanikai, and so have average people just trying to find a secluded spot on the sand.

The house that just sold for $6million was nearly a tear down. It had nothing usuable inside, just a shell. That's just how much Oahu beachfront homes cost now, especially in Lanikai.

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Oahu real estate median price drops 12.5%

It's a buyer's market in Oahu real estate, though not everyone seems to understand that. With our low level of inventory still hardly changed since a year ago, a lot of people are in denial that it's a buyer's market, or that it's time to buy.

I've finally come around, and now I see that the only statistic I really need is the median price. Less than a year ago the median price was $685k, and now it's $599k, a drop of 12.5%. I'm asked almost every day if it's a good time to buy, and if the Oahu real estate market has actually dropped.

Yes it has. The price of Oahu real estate is now 12.5% discounted compared to last year, so what more could you ask for? How about low rates? Today 30yr fixed rates are about 6%, which is historically very low.

How about some motivated sellers? Oahu Homes are now averaging over 2 months on the market, which means sellers are getting motivated. Add to that the very small number of homes that sold in February, and you get a combination that amounts to a buyer's market for sure.

In the long run, Oahu real estate is bound to go up again, a lot. With millions of baby boomers retiring and looking for a place to move to, Oahu is definitey a prime choice for those with money, and that is great for the Hawaii real estate market.

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