East Oahu real estate's secret Gem

Last year I moved from Hawaii Kai to Aina Haina and bought a home that needed serious renovation. Aina Haina is renowned for having a great elementary school, one of the best schools in Oahu year after year. Also, it's about 15 minutes closer to town (Honolulu) than Hawaii Kai, and as a bonus, we have great surf just across the street.

Aina Haina real estate was built mostly in the 1950's and 1960's, which was a little bit before Hawaii Kai, so much of it is looking old, but on every street there is renovation and rebuilding happening right now.

In fact, not long after I bought my house in Aina Haina, another home was sold and then torn down so that the owner could build a new home there. One street over from me, a long time owner tore down his 50 year old house and has now put up a 4500sqft house, complete with all the most contemporary ammenities.

It's easy to drive right past Aina Haina from Diamond Head on the way to Hawaii Kai, especially since you get an ocean view along the highway here and there. (Aina Haina is technically in the Diamond Head region.) But Aina Haina is a wonderful little neighborhood with several hundred homes, many with ocean views. The valley consists of large 10,000 foot lots in the flat land, and smaller ocean view lots up in the top of the valley.

For ocean views, and especially for a renovation opportunity, Aina Haina may be East Oahu's best kept secret.

Oahu real estate continues to be renovated, now has the biggest Safeway in America

Most of the buildings and homes in Oahu were built in the 60's and 70's, which means just about everything in Oahu is ready to be rebuilt. As I view homes with people looking to buy Oahu real estate, the thing that is most obvious is how run down so many of the homes and buildings are.




Believe it or not, that creates a buying opportunity. It's now time in the history of Oahu for everything to be renovated or rebuilt (big difference.) While many homes and buildings are being renovated, some are choosing to rebuild completely.





Safeway is now opening their biggest store in America in Kapahulu, which is an old neighborhood just outside of Waikiki, and just west of Diamond Head. The new Safeway shopping center is beautiful and massive, with the most modern amenities. It gives the entire neighborhood a much better feel. I think most people in the entire Diamond Head area are very pleased because now they have a brand Safeway, and next year they'll have a brand new Whole Foods. Pretty great combo!



As storefronts, buildings, and of course homes, are renovated, it is an opportunity to buy real estate before it appreciates more. People in Hawaii have been buying real estate that wasn't top quality because there was nothing else available, but now people are seeing that there is opportunity for profit in renovation, and it's going on everywhere. In high end homes, in low end condos.

The new Safeway is just a sign of what's happening everywhere. Yesterday I viewed several homes in Hawaii Loa Ridge and Na Pali Haweo in Hawaii Kai, and found that many of the homes, while only about 25 years old, are looking really old and tired. For about $1.5million, you get an old run down house that needs new floors, paint, windows, fixtures, and usually bathrooms and kitchens.

The cost of doing all that may be $200k, but in the end you have a home that is worth way over $2million. So as you can see, the profit potential is huge over about a year's time. People tell me they want a fixer upper in Hawaii Kai or Diamond Head, and the thing is under about $2million almost everything is a fixer upper. It sounds crazy, but hey it's Hawaii and everyone wants to live here.

So thanks Safeway, you're keeping the renovation trend going.