Betty Sakamoto: Aloha and welcome to Betty’s Real Estate Corner, brought to you by Roy and Betty Sakamoto, Coldwell Banker. We’re here today to catch you up on some real estate news and what’s going on in West Maui and Maui in general. Of course, Roy Sakamoto is here to keep us on track.
Roy Sakamoto: Well, we can talk about what’s happening with the fire recovery in Lahaina. There have been great advances over the last month or month and a half, and it’s very noticeable. I think Lahaina and West Maui are on their way to coming back. It’s going to be a slow process, but I believe it will happen—and faster than a lot of people realize.
BS: I don’t quite see the speed picking up, but I sure hope it does. It has been a very slow process.
RS: Yeah. At least the residential areas should be back, I’d say, within the next three or four years for those who want to rebuild. Although I understand they’re having trouble getting contractors, building materials, and so forth, which is understandable because so many homes were destroyed by the fire. It’s going to take a while. But the longer-term issue is how we rebuild downtown Lahaina, the commercial areas, and so on.
And that’s going to be a bit touchy. In fact, may be very touchy when it comes to sentiments, commercial property owners, shop lessees, and so forth. So we’ll see what happens.
BS: I agree with you; it is going to be a slow process, and I think there will be a lot of arguments before it actually gets rebuilt. But hopefully, it will start sooner rather than later. There are so many arguments still going on that I’m not sure “sooner” is going to happen. But I think everyone involved should take a long, hard look and think about it, because the sooner we get it done, the better it will be for the whole island and all of Hawai’i. It’s going to make a major difference in everyone’s life.
RS: Yeah, I think the big plus in rebuilding the commercial areas is that there’s a growing movement to concentrate on the historical aspect of Lahaina—the former capital of Hawai’i and the whaling capital. There’s a lot of history in Lahaina that should be preserved. So hopefully, we stay on that track, and we’ll see.
BS: I agree that being on that track is very important, but I think we also have to protect the business people who have been there for a long time and worked to make Lahaina what it is today. It’s going to be hard to balance those two things and create a happy community.
RS: Yeah, it’s going to be touchy, no question about it. You know, contrary to popular opinion, many of the commercial property owners have been around a long time; they have families and trusts set up. These are probably third, fourth, or fifth-generation property owners from their great-great-great-grandparents who originally owned the property. It’s a little tricky because I’m sure the trust now has perhaps 30, 40, 50, or even 60 heirs.
And that’s going to be a bit messy trying to work through all that. But hopefully, it’ll follow this historical track. I don’t want to see downtown Lahaina rebuilt as a big shopping mall.
BS: No, I agree with that. No shopping mall.
RS: No. Turning Front Street into a walking mall—no cars, no buses, no trucks—would be a great idea.
BS: I think that could be. I agree with you. I think there’s a way to do that and have people be happy. There will have to be some parking structures here and there so that people can park, whether that means parking lots or whatever it takes. But I believe something like that could happen. I can’t say I’m an expert or that I know what it should be, but I think there is potential for something better to come out of this.
RS: You know, a lot of the original construction in Lahaina was wood frame, with whatever commercial enterprise happening on the ground floor and housing on the second floor. I like that idea—having housing on the second and maybe third floors where shopkeepers, employees, and so forth can live right there.
BS: Interesting. I haven’t actually heard anybody else say that, but it’s an interesting thought.
RS: Yeah, I know one of the original structures in Lahaina had apartments above the stores. I think that’s a good way to develop and help with affordable housing.
BS: I’m not so sure that would end up being affordable housing. While I think the idea is very interesting. Very interesting.
RS: You wouldn’t need a car. There are a lot of advantages. You see this happening in many big cities. We had a client who was part of a group that bought a whole block in the Bronx—not sure exactly where in the Bronx—but it was full of slum housing.
They tore everything down, rebuilt storefronts on the ground floor, and added two floors of housing above. It’s now become a model for community development and redevelopment. Something like that could work in Lahaina.
BS: Interesting, because there is such a housing shortage right now. I think that’s a whole other conversation. I believe it should be discussed island-wide, certainly for West Maui, but there’s enough land available. We should have had way more housing by now, and I don’t know what keeps it from happening, really.
And again, I don’t claim to be the expert on it, but I think there’s got to be a way, and there’s no reason we can’t have more housing and more comfortable living for people.
RS: Yeah. Looking back in history, developers were once required to include affordable housing in their residential projects—like 25% or 30% affordable housing for whatever they were doing. Then they moved away from that, and the county started accepting cash waivers in lieu of housing. So most developers just gave cash to the county instead of contributing to a separate fund, and that money went into a general fund. And, where is it now? It’s all gone.
BS: Interesting. Yeah. I don’t quite understand any of that and how it all happened. Well, but again, it’s—
RS: So anyway, now everyone is aware of it. Unfortunately, this has polarized our community a bit. But there’s some good; we can focus on the positives from the fire if there are any. One is that we have a blank slate to redo it and do it right. We may never have another chance to redo downtown Lahaina, but now we do have a blank slate. So we have this one chance to do it, and hopefully, we can do it right.
BS: I think that’s a great statement. If we look at it that way, we have been given a blank slate to rebuild. Finding an agreement on how to do it is going to be very hard. But I think the families involved that you’re describing are probably going to be very sensible about the ideas.
RS: Hopefully, right.
BS: Hopefully.
RS: Yeah. But it’s going to take a lot of community input, and it will be important to get feedback from everyone. So, I hate to see anyone just standing by, saying, “Can you see what they built there?” Well, you had your chance to voice your opinion before it happened. It’s a great opportunity to speak up now.
BS: I think you’re right. No matter what happens or how it ends up, there will be groups that will stand back later and say, “Why did they ever do that? This is pathetic. How could they have done it?” But I think the bottom line is, if someone has something to say, there are enough meetings going on, enough discussions, and enough letters to the editor. I think there are ways to ensure that your thoughts reach someone.
RS: Sure. Absolutely.
BS: So I guess maybe that’s it.
RS: In the meantime, our village project is well underway.
BS: The Kapalua Village project that we talked a lot about in the last show.
RS: These are 50 modular homes being placed on what used to be the first fairway of the old village golf course. We’re nearly finished with construction. Four families have already moved in, and we hope to have three more moves in this coming weekend. We aim to have them all filled by the end of September. We’re currently sorting through applications from employees of the Ritz-Carlton, the Montage, and various restaurants. So we’re processing those applications right now.
BS: The original idea was to provide housing for people who lost their homes. At the time, it was going to be very limited because the golf course employees had enough people who had lost their homes. However, some of them were already situated or had reasons that made this arrangement not work for them.
So they’ve expanded it, which everyone knew could happen for employees of the Ritz-Carlton Hotel, the Montage, or the condominium developments that lost homes in the fires. It will be interesting to see how it unfolds.
RS: As you mentioned, it was originally built for golf course employees who lost their homes. There are a total of 150 employees at the golf courses in Kapalua between the Plantation and the Bay Course, and 47 lost their homes.
BS: So, basically, 50 homes have been built. But again, people already have somewhere to live, and not everyone is ready to make another move right now. Everything has taken longer than anyone expected. From the standpoint of Roy and the people involved in the building, I think it’s spectacular. It couldn’t be better.
RS: Yeah, what a foundation to it. When we first started the project in February, we were hopeful for a July 1st moving date. Well, that didn’t happen; we did our best, but it just didn’t work out. Now it’s September, and hopefully, by the end of this month, we’ll have them all filled.
BS: I’d think that if we reach the end of October, we’d be doing well. But I hope you’re right that September makes it happen.
RS: Yeah. It’s been a little tricky again, getting construction materials and workmen. It’s been tough.
BS: It’s been tough, but there’s no question it looks better than I ever could have imagined. Going into the homes, it feels good now. Nothing’s perfect, and it will be hard because, even since the fires, everybody has started to accumulate things. It’s going to be difficult because they’re small; they refer to them as tiny homes, etc.
RS: Yeah, and storage is limited.
BS: Storage is limited.
RS: It’s a little tough. But you basically have housing for seven years.
BS: That’s right. Do you think the seven years will hold up?
RS: Well, it’s the latest proclamation that these temporary homes are good for seven years.
BS: Well, that could make a big difference for someone.
RS: Yeah, and as these homes are no longer needed, hopefully within seven years everyone will have permanent housing. The idea is to donate these modular homes to the homeless. So there are still uses for the homes instead of just disposing of them.
BS: Well, I think that could again make a major difference. The homeless issue on Maui has existed as long as I’ve been here. There have always been issues like that, and it’s a huge number of people, not just those who have lost a home.
RS: Well, you know, it’s really a worldwide problem. We’re not going to solve anything here on Maui. We’re going to have homelessness no matter what because the weather is too nice. You might not have as many homeless people in Buffalo or somewhere like that because of the severe winters. But anywhere warm, you’re going to have homelessness.
BS: Absolutely. When you think of Buffalo, New York, which is where I happen to have come from.
RS: That’s why I mentioned it.
BS: I know, I know. But Buffalo is a great city. It’s wonderful. However, come November, nobody can be homeless anymore. Whatever is available, people do it—whether they go back home or leave the city. No matter what happens, people have to find housing. If they don’t, they won’t make it through the winter.
You could live through a hundred winters, and you’d be fine. Oh, yeah. It’s amazing to think of it that way, but it’s true. You could live here.
RS: Well, and we do.
BS: And we do. Yeah, and it’s wonderful. Nothing could be greater.
RS: No, absolutely. But having touched on the homeless situation and those displaced by the fire, one charity really comes to mind: the Maui Food Bank. For every dollar, they can prepare meals. So, $10 will supply 40 meals, and I think that’s pretty awesome.
BS: That is amazing, no question. Any contribution to the Maui Food Bank makes a real difference in people’s lives.
RS: No question. Absolutely. It’s horrible to see families, especially children, going hungry; it just turns your stomach. So thank you, Maui Food Bank, for all you do. I know you need more contributions, and for anyone listening, if you can donate food or money, please do.
BS: And if you can donate your time, there’s always a need for people who can be there and be kind. We need to take care of those who are struggling, especially the kids. It’s not their fault—they’re just like everyone else, hungry and looking for a clean restroom, just trying to get enough food to get through one more day. It’s important.
RS: Absolutely. We, as a community, have to help each other. We’re all one big ohana here on Maui.
BS: We should be. We must keep in mind that we are one big ohana and do our best to feel that in our hearts. We need to take care of one another and not look down on anyone. That’s hard. It can be difficult here because some people come because it’s easy for them to get by without working.
They can get through whatever. They don’t have to work, and they can find a way to get around. It’s easy to be angry at those people. But again, keep in mind there are always children involved, and no one should be angry at them—never.
RS: Never. The children and the kupuna. I guess we are kupuna now.
BS: We are definitely kupuna. Yeah, that’s a frightening thought. Do we have to say that?
RS: Yes, we do.
BS: I mean, we are way into it. You kind of forget; you just go along.
RS: Yeah. When younger people refer to us as “auntie” and “uncle,” that’s a sign of endearment.
BS: It is. It’s the sweetest thing of all time, really. It’s respectful, sweet, and wonderful. For me, it brings tears to my eyes because it’s true. We’re fortunate to live in Maui.
RS: When one of these younger kids says, “Let me help you carry that, uncle,” or “Let me get that door for you, uncle,” it’s pretty sweet.
BS: It is sweet. For anyone listening, remember how hard it is to accept help when someone first says, “Let me carry that for you, auntie.” You want to say, “No, it’s fine. I’ve got it, no problem.” But one day, you realize it’s not just about needing help; it’s about their desire to help. Whatever age it is that you realize to step back and accept the help, offering that help is as important as anything. The fact that they care and help you is magic.
RS: Yeah.
BS: It’s absolutely magic.
RS: Totally.
BS: So, do you want to talk about selling any real estate today?
RS: I guess we are Betty’s real estate corner, so we should talk about real estate. It’s interesting—mortgage rates are declining. There are rates now in the 5% range, making it a great time to buy. There’s a fair amount of inventory, even though sales are still fairly brisk. I think it’s still a great time to buy.
That’s going to cost a little bit more in terms of down payment. But for the locals here looking for full-time housing to buy—a good start would be to talk to your local realtor and your local lenders. A good realtor can point you in the right direction. By all means, please call me, Roy, at 808-870-7060 or Betty at 808-870-7062, or look us up on SakamotoProperties.com.
We have had Sakamoto Properties for over 40 years, and through the help of Meyer Computer, we are still at SakamotoProperties.com.
BS: And it does work. The website is great and can provide a lot of information, but call us, and we’ll do our best to help. One of the things sitting in front of me right now—we’ve obviously worked in the high end of the market for a very long time—but if you take a look at some of the properties for sale, there’s one here.
It’s a studio apartment at Maui Lani Terraces, listed at $350,000. Now, for a lot of people, that is affordable. The association or maintenance fee is about $620 a month, and taxes look like they’re probably around $30 a month or so. I could be wrong, but I think it really makes a lot of sense to look into this.
This property is listed by Mihaela Stoops. Her cell phone is 808-357-4000, or you can call Roy, and he will direct you one way or another. I think the price range starts fairly low, and you still have to qualify for a mortgage. However, there are times when, with a relatively small down payment, you might find someone who would carry the financing for you.
That depends. I don’t consider the market to be brisk right now, but hopefully, many of these lower-end properties will sell, and we’ll see more of them. I think we’re also going to see some new products come on the market that will be for the lower end.
RS: Yeah, a good point— a good friend of ours contacted us yesterday. He and his wife are looking to buy a two-bedroom, one-bathroom condominium apartment. It doesn’t have to be forever; it’s a great starter. The project is called Pohailani in West Maui.
These are running about $650,000 to $700,000. It’s a great little community just across the street from the beach, so it’s a great starter for about $650,000. And again, with mortgage rates headed down, it’s a super time. We’ve connected our friend with a mortgage contact, David Browne at Makai Mortgage, who will be able to qualify or pre-qualify them and make their job of finding something a whole lot easier.
BS: And if nothing else, we’re down to the one-minute warning. If you have a lender or a banker, talk to them about what you’re thinking, and sit down with them. They will help you, or David can assist you with your needs.
RS: Or look us up on SakamotoProperties.com.
BS: Absolutely. And we have Danny Couch back.
RS: Aloha.
BS: Aloha.
