Betty Sakamoto
Aloha! Welcome to Betty’s Real Estate Corner, brought to you by Coldwell Banker Sakamoto Properties. Once again, we’re enjoying Danny Couch singing “I Love Hawaii.” I returned last night from a short trip, and it reminded me of just how much I love Hawaii. It was actually six nights, which is the longest I’ve been away in a long time. But being home here, there’s nothing like landing back on Maui. I am the happiest person in the world.
Roy Sakamoto
That was a special occasion, though.
BS: It was. Julie, my daughter, Ahu Flynn, now Sakamoto, her daughter who graduated…
RS: Sherlock.
BS: Oh, she’s Sherlock now. I got that wrong again. Anyway, her daughter, Alexandra Elizabeth Sherlock, graduated from San Diego State and is going to be going on to UCLA in — what’s her final?
RS: Public Health.
BS: Public Health and Epidemiology.
RS: Yeah.
BS: It’s an exciting time. The graduation was spectacular, and the party was even more so. We had a lot of fun in the backyard at the house. Tom’s Tacos provided a taco vendor, and I think people ate as many tacos as they wanted. Someone did get sick that night, but not at our house—somewhere else.
Anyway, it’s interesting— you really can’t eat ten tacos, but that’s beside the point. Here we are. We’re going to cover a range of topics. I made a list of a few important things, Roy, while we were driving over. We should provide an update on the Kapalua Village project and discuss general Lahaina recovery efforts. Additionally, we could touch on the current status of the market, our opinions, and the $30 million property. There’s a lot to cover.
RS: Well, we are kind of a real estate show.
BS: We try to be.
RS: Yes, the Kapalua Village project involves 50 modular homes at Kapalua. We’ve discussed it before. The TY Management, and the owner of the golf courses at Kapalua, are underwriting the cost of the 50 homes. Construction is underway, and while we were initially aiming for a move-in date of July 1st, due to various delays, we are now looking at mid to late August for completion.
BS: Oh, what a shame. That’s a shame for everybody.
RS: It is, but it’s happening. On August 13th, we’re going to have a grand opening with the governor, the mayor, and two other dignitaries, and it should be a fun event.
BS: Excuse me. On that date, will they really be moving in on the 13th?
RS: Fingers crossed.
BS: Well, that’ll be great because, as we’ve mentioned before, the people renting these homes will primarily be those who work for the golf course and have lost their homes.
RS: Right.
BS: Then it’ll go on. We’re not sure exactly what’s going to happen next.
RS: Yeah, there are 50 homes: 22 have one bedroom, 15 have three bedrooms, and 15 have four bedrooms. Hopefully, we’ll be able to provide more permanent housing for 200 to 250 displaced residents.
BS: It’s pretty spectacular. I know they’re small, but when I look at them, I kind of know when I was first here, and we were looking for a place to live. We lived in a variety of smaller places, but it was fine. You know, you can do it. I know a lot of them have kids, which will make it harder.
But I still have that picture in my mind—I’ve been saying “Sunday Morning” for some reason, but really, any morning will do. You get up, have a cup of coffee, take your little ones outside, and you’ll find that they will get to know all the other kids in this small neighborhood. The parents will get to know each other as well. It’s a significant change for us. It feels like being on a fair-weather golf course with great things happening all around.
RS: Yeah, and I think it’s going to be a nice little community. Each house will have parking stalls, and they come fully furnished with a washer, dryer, kitchen, and air conditioning—so there are many big pluses. We’re looking forward to having some displaced residents, those affected by the fire, move in August.
BS: Hopefully, it will be an exciting day for everyone. When they move in, the homes will be fully furnished, including a washer, dryer, and all necessary appliances. Essentially, they’ll be moving into a ready-made home. I know it’s tough for people who lost almost everything in the fires, and they’re in the process of accumulating new things, so it will still be challenging. But I believe they’ll find the homes charming and hopeful. Even though they seem small, I think everyone will be happy.
RS: I think so. This is just one small step; other projects are planned. FEMA is planning a large project, with between 150 and 200 homes. Additionally, there is another significant project planned above the Civic Center and Hawaiian Homeland, with 400 to 500 homes. Slowly, Lahaina is recovering.
BS: What is the one above the Civic Center? What project is that? What are they calling that?
RS: The name escapes me right now.
BS: Do you think it’s 400?
RS: Yeah.
BS: That’s pretty great by itself. That’ll be going for everybody or for people who lost their homes.
RS: People who lost their homes.
BS: Well, that’ll be great.
RS: Yeah, so things are gradually coming back. I know there has been a big controversy. FEMA has been renting a lot of properties in Central Maui, South Maui, Kihei, and so forth, but these apartments have been sitting empty because Lahaina residents don’t want to move to Kihei, Wailuku, or Kahului. It’s understandable, but it’s a shame.
BS: They shouldn’t have done it. They really should have reconsidered. I guess, I’m not supposed to say that, but it does seem tragic to be paying for empty places while no one stays there. I wouldn’t blame anyone for not wanting to work here, say, at Kapalua or Kaanapali, and have to commute from Kihei, Wailea, Wailuku, or Upcountry. You’d almost need to leave an hour and a half early every day just to be on time.
RS: Yeah.
BS: And you could get stopped.
RS: Right. Of course, this has led to the lifting of the mandatory ruling that condominium apartments and apartments with land cannot be rented out for vacations. This is certainly controversial, and we could easily spend five hours discussing it. We won’t delve into it today, but perhaps we can cover it in more detail on a future show.
BS: We probably should address this, because I don’t think it benefits anyone, and it certainly isn’t working for the property owners. To some extent, they bought the property with the expectation that they could use it, but then they were given these restrictions. Whenever we sold one, I believe we were fairly clear, but probably not clear enough to prevent them from thinking that the entire Minatoya Act might be abolished, allowing them to use the property as they wished.
RS: We were in a unique position in real estate when the Minatoya ruling first came out, as it clarified many of the questions people had about buying properties in apartment zones. However, with the proposed lifting of that ruling, we’ll have to wait and see.
BS: We’ll see what happens.
RS: There will probably be a lawsuit. The situation will be quite controversial. Plus, there’s a lot of lost revenue due to the lowering of property tax.
BS: The county, the state of Hawaii will be losing a lot of revenue also.
RS: Absolutely.
BS: That’s right.
RS: Additionally, many people are employed as housekeepers, maintenance workers, and property managers for vacation rentals. If these jobs are affected, there will be a significant impact as these individuals will be looking for new employment.
BS: Yeah, I think you’re right. I hadn’t considered that before, but it will be huge. Absolutely huge. You know, the other thing to consider is what you think about the general recovery of Lahaina. I know you’re still expecting it to take five years or more.
RS: Well, they say they’re going to be issuing building permits in the near future.
BS: For residential homes.
RS: For the rebuilding of homes, hopefully, that will happen. I’ve heard some people say that while building permits can be issued if the infrastructure—such as water and sewer—isn’t ready, you can build your home but won’t be able to connect to essential services. This presents another issue. So, we’ll see. Hopefully, this gets clarified soon, as there are a lot of questions out there.
For the Lahaina residents, try to attend as many of the Wednesday evening meetings as possible. I know they were canceled yesterday. Hopefully, they’ll resume next Wednesday. The community meetings at the Civic Center are a great source of information.
BS: I think that’s a good idea. We should go back to one, just because we went to some early meetings. I think it would be good just to see how it’s going.
RS: Akaku has also generously cleared some air time for these. You can tune in to Akaku to hear the program.
BS: I think there are many ways people can stay informed about what’s happening. It’s important to check various sources, including different news stations. I believe newspapers, like the Maui News, provide daily updates that are valuable for keeping track of current events.
RS: Yes.
BS: We still read the Maui News every morning, though we’re one day behind and end up reading the previous day’s edition. Despite this, we keep up with it. We enjoy it with our coffee and breakfast. Although the newspaper has less content these days, we still love it.
RS: The newspapers have closed all over.
BS: I don’t know, though. Maybe we’re just the old folks in Hawaii now.
RS: I love reading a newspaper.
BS: I do. I find something every time that I never would have known.
RS: I know when we travel, we always get a newspaper.
BS: We do. Although we don’t travel much anymore, whenever we’re in a new city, we pick up the local newspaper. It’s enjoyable to have it and see what’s going on, including the advertisements. I believe people still appreciate it, though not everyone does—perhaps the next generation may not. But overall, I think it’s great.
RS: Absolutely. Absolutely.
BS: So, what about this? Do we have a call-in? Oh, it looks like Dr. Norm Estin is calling in, and he’s going to update us on a lot of what’s going on. Dr. Norm, are you there?
Dr. Norm: Aloha, Betty, and Roy. It’s Norm from the Doctors on-call.
BS: Yes. How are you?
Dr. Norm: Doing great, wonderfully. Spend a couple of minutes on a late spring and early summer update on what’s happening with vaccinations for all of us here on Maui.
First, flu season is over. We got through it pretty well, and there’s no need for any more flu shots or vaccinations at the moment. The next flu vaccine will be available in August or September. For those who need one or two more doses, please check with your pharmacy.
As for COVID, cases are very mild. We have a few cases reported in the afternoons, but the numbers are down significantly. For those of us over 65, it’s worth getting a booster if we haven’t had one since last summer or fall, or if we are immunocompromised. That’s the official recommendation for COVID boosters for those over 65 or immunocompromised.
BS: When we’re 65, we should get it then.
Dr. Norm: Correct. We’ll probably see a new version of the vaccine in the fall, which may or may not be combined with the flu vaccine. Hopefully, it will be, but who knows? The third virus we’ve heard about is RSV, which stands for Respiratory Syncytial Virus. It primarily affects the lungs and sinuses and is preventable with the vaccine we currently have. We’ve had several people who’ve had it, and anyone over 60 should get that vaccine again; it’s free and available at any pharmacy.
The fourth topic I want to address is the bird flu, or avian flu, which is starting to be reported in the news. This virus has been around for a while and primarily affects animals. However, viruses can cross over from one type of animal to another and occasionally to humans. This is similar to what happened with swine flu and, naturally, with coronavirus, which crossed over from bats.
Currently, we have a strain of bird flu known as H5N1. It has been reported worldwide, except in the Pacific, including Oceania, and the islands around Australia. As of now, we haven’t seen it in animals in Hawaii. However, 40 types of mammals globally have contracted it, and it has significantly impacted bird populations in Europe. It has also been found in dairy cows on the mainland.
The virus is spreading, and with transportation and global warming, we may see more cases in zoos and among animals. The key concern is whether it will be transmitted to humans. So far, there have only been two cases globally where it has infected humans: one was a man in Vietnam who worked with sick birds, and another case involved a person in Texas who worked with dairy cows. The latter recovered with mild flu-like symptoms, including some aches and pains.
So far, there is no evidence of human-to-human transmission, which is crucial since that was a major issue with COVID-19. We hope it doesn’t develop into such a problem. For now, there’s no need for significant concern, as the virus is treated with standard antivirals and anti-flu medication. While we will continue to hear about it, there is no specific vaccine for it at this time.
BS: That’s interesting.
Dr. Norm: The last thing I want to talk about is masks. Currently, masks are not indicated for any specific situation. However, I encourage everyone to use common sense: if you’re sick and coughing or have a lot of mucus coming from your sinuses, it might be considerate to wear a mask to avoid exposing others to illness.
If you see someone wearing a mask, it usually indicates they may have a respiratory infection, so it might be wise to keep your distance. At present, there is no guidance or mandate requiring masks in any particular situation.
BS: You’re saying people should use their own judgment on this at this point.
Dr. Norm: Right. That’s what the official line is right now.
BS: Okay. It surely makes sense. No matter where you are, if you think you’ve got something, you probably don’t want to pass it on to your family. We all have plenty of masks left from COVID, so let’s use them if you’re coughing.
Dr. Norm: We all have to be thinking of other people other than ourselves. As you mentioned, this includes our family, close friends, business associates, and anyone we come into contact with. Think about how you would like to be treated by them. It’s essentially the golden rule all over again.
BS: You’re right. That does make a big difference for everyone.
Dr. Norm: Does anyone have any questions? If you do, feel free to call us again. It’s Doctors on Call. We have offices on both sides of the islands and are happy to see anyone or answer any questions.
BS: What’s the best phone number, if you don’t mind?
Dr. Norm: On the West Side, 808-667-7676. South Side, 808-875-7676.
BS: Good.
Dr. Norm: The people can walk in anytime.
BS: Yeah.
Dr. Norm: Thank you so much.
BS: Thank you. Thanks for calling, Dr. Norm. We’ll see you soon, hopefully. Aloha.
Dr. Norm: Aloha.
RS: Thanks, Dr. Norm. Aloha.
BS: So, let’s return to where we left off. We’ve covered the update on the golf course, but we didn’t quite get to the general real estate market. What do you think will happen with the market in the big picture? There’s a lot of conversation about it. You and I have had differing views in the past, so I’m curious about your thoughts.
RS: Well, all indications suggest that interest rates may decrease in the near future. We have connections with our mortgage company and our Coldwell Banker-affiliated mortgage branch. Currently, there are some conforming mortgages still available with fixed rates in the sixes. However, there are a few requirements to meet for conforming loans. For more information, feel free to call your favorite realtor or contact me, Roy, at 808-870-7060, or Betty at…
BS: 808-870-7062.
RS: Yeah, we may not have all the answers when it comes to real estate, but we’ve been around the block a few times. If you don’t know the answers, we can certainly guide you and point you in the right direction.
BS: It is interesting. We saw the market reach double-digit mortgage rates, which was very challenging for people at the time. Despite the difficulties, many chose short-term mortgages, knowing that rates would fluctuate. Although they were concerned that rates might continue to rise, it turned out to be a winning strategy in the long run.
RS: Yeah. For those of us who remember the days of 2%, 2.5%, or 3% mortgages, it’s hard to imagine seeing those rates again. If mortgage rates can stabilize in the 6-5% range, they are still quite favorable. You should take advantage of any opportunities within that rate range.
BS: Especially if you’re looking to buy something right now, whether you need a home or you’ve been watching a property for a long time and the price is finally right, it’s time to act. Step up and make the move. Talk to your realtor and come up with a plan. Even if it means setting a target, such as buying a Kapalua golf villa for a specific price, let them know.
If you have a property like that, whether it’s a condo or something else, you might consider waiting it out. Ideally, you could write off the interest against any income you’re earning from it.
RS: Yeah. Paying rent only means you’re not building any equity and gaining nothing in the long run. Consider buying something, whether it’s a studio, a one-bedroom, a small two-bedroom home, or even a one-bedroom house. Investing in real estate is worthwhile—there are no excuses not to.
BS: Oh, and right now, rents are extremely high for everyone. So if you’re buying something, it might be one of the best decisions you’ll ever make. We’ve seen a few people recently who bought when interest rates were through the roof, bit the bullet, and now have sold their properties for close to four times what they originally paid.
RS: Yeah. If you’re still hoping for lower interest rates, consider getting an adjustable-rate mortgage. These are usually fixed for at least five years and typically offer a lower rate than a fixed-rate mortgage at the moment. For example, you might find an adjustable-rate mortgage at 6%, which could be a great option.
BS: Yeah, we just received the two-minute warning. I’m not sure if you saw that come through, but do you have any final thoughts for the day?
RS: Buy real estate. Again, feel free to call me, Roy, at 808-870-7060.
BS: Or call me, Betty, at 808-870-7062.
RS: Or check our website.
BS: SakamotoProperties.com. Then go to the Wednesday meeting at the Civic Center.
BS: I think it helps everyone. Aloha. We’ll have Danny Couch now.
RS: Aloha.
