Most of the buildings and homes in Oahu were built in the booming period during the 60's and 70's, which means just about everything in Oahu needs to be rebuilt now. 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 has now opened their biggest store in America in Kapahulu, which is an old neighborhood just outside of Waikiki, and just west of Diamond Head. They tore down a big lot of basically junk buildings, and the new shopping center is beautiful, with the most modern amenities. It gives the entire neighborhood a much better feel. I think most people in the Diamond Head, Kaimuki, and Kapahulu areas are very pleased because now they have a brand Safeway and a brand new Whole Foods just a couple miles away. 

As storefronts, buildings, and 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 and in low end condos.

The new Safeway is just a sign of what's happening everywhere. I recently 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 one million dollars, 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 more than you put in.  So as you can see, the profit potential is huge.  People tell me they want a fixer upper in Hawaii Kai or Diamond Head, and the thing is under about $1 million 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.