Why buy now? Why buy in Hamakua?
In these challenging times, advice comes from all directions: There are alarmists who cry out “Don’t buy anything NOW! The future is too uncertain! Its almost 2012, the end of the Mayan Calendar: the end of the world!” And there are those who advise and say “No matter what, you should always do the opposite of what everyone else is doing. When everyone is buying – Sell! If everyone is selling – Buy!”
Fact is: We may never in our lifetimes see interest rates, OR prices this low again. This would seem to be a winning combination for purchasing Real Estate. Many experts feel the best way to preserve the value of your money is to invest in Property. I see their point: If you have money, what else should you do with it? Invest in the Stock market? Buy precious metals? Let the value disappear in inflation? For those who have cash, or those who qualify for a mortgage, now is an excellent time to buy Real Estate.
Real Estate prices are lower all across the US—why buy Real Estate in Hamakua?
I have been very blessed to live in Hamakua for the past 20 years. A friendly community, great weather, enough rainfall to keep everything green, everywhere magnificent views of the ocean; these are some of the reasons that keep me in love with this area of the planet.
If the world gets crazier (which seems likely) living 3,000 miles from any continent, in an environment where you can grow your own food and don’t have to worry about keeping warm (or cool), starts to make a lot of sense.
Right now we have a turn key farm-complete with tractor, cows and chickens as well as a greenhouse so a person can truly grow their own food year round while enjoying 180 degree ocean views-Private and remote yet with high speed internet access so you can get ‘away from it all’ while still having everything you need at your fingertips. Maybe the question shouldn’t be “Why buy in Hamakua? But rather “How soon can you get here?”
Brief Financial Forecast
Just returned from the Hawaii Association of Realtors annual gathering on Oahu. Attended well attended break-out session with Lawrence Yun, Chief Economist for the National Association of Realtors. The joking introduction – Economists predicting the future happened so Astrology could look good. Following that caveat Mr. Yun did his best to let us know what is happening. He had been in many circles in Washington and had impressive connections.
A few highlights-
Home Prices in the next few years should go up slightly. There is still a backlog of foreclosure inventory to come on the market. International Buyers are cashing in on the weak US Dollar and Hawaii is well positioned for this international market and that will help property values stay strong.
Good time to be a landlord as rents are rising and Real Estate is affordable.
Banks have lots of cash. Banks are currently requiring credit scores to be 15 to 20 points higher than any time in the last decade. If Banks were not so tight and made safe loans based on the slightly lower FICO scores, there would be 20 – 25% more sales.
Smart Money Is going into Real Estate. There is broad inflationary pressure. With values on the Stock Market - and even of gold – fluctuating, the low price of Real Estate becomes a very good bet against the inflation.
Over all it’s a Great time to buy.
Hamakua Morning Snapshot
I step out of my home below Kalopa Park with my hat on my head, and carrots in my pocket. I begin to warm up ambling up my short gravel driveway to reach Kalaniai Road. Picking up the step I head down the gentle slope. The day’s breeze is starting to pick up with the rich grassy sent of the surroundings. Past the pasture with some lazy cows glancing up to check me out. Not a car goes past. Some dirt in the road near the well trampled wild pig path crossing Kalaniai is evidence of recent use. As I round the arcing curve of the road, the horizon and vast Pacific open up before me. I continue to Keahua road and look to see which pasture my friend (a horse named Mr. Z) is in today.
Mr. Z sees me and trots over to me, knowing I always have carrots. He nudges my chest for the treat and allows me to rub his neck. We share a brief camaraderie as he munches the carrot and I tell him what a great guy he is.
Then I’m off with a brisk mile long walk to Kalopa State Park. As I head back toward my home, one car comes by and a wave is exchanged. This daily walk with the clean, sweet air filtered by 3 thousand miles of ocean reminds me why I love to live Hamakua.