I am very pleased to report that there is a new local bank in Hawaii that is now financing resort condo purchases at the Honua Kai Resort and Spa in Maui. Financing in general has been rather difficult to come by the last couple of years, but I am noticing that banks are expanding their product lines once again, and well qualified borrowers are getting exceptional rates and terms.
For the last 24 months, the private banking division at Wells Fargo has had a monopoly for the financing for Honua Kai condo purchases – I have been working with them regularly and they have done a great job, but it never hurts to have another option, and now borrowers have it.
Enjoy views like this from an ocean view 3 bedroom unit at the Konea Tower overlooking the pools and Dukes Beach House Restaurant.
It is important for buyers to understand that financing for resort properties are one of the highest risk type loans for banks, and thus, they will require more substantial down payments and typically the rates are a bit higher.
For buyers looking to purchase units at Honua Kai – expect to put at least 25% down (which will still need to be submitted to underwriting as a special exception condition) and be prepared to put 30% down in the event that this is not granted.
What is really awesome is that Honua Kai is the only resort that I know of that is considered a condotel, or a non-warrantable condo where buyers can get loans with 25% down. Every other condo like Ka’anapali Shores, The Mahana, the Whaler (prominent Ka’anapali resort condos), or any others on Maui will require a 30% down payment.
All Honua Kai units are very tastefully decorated featuring high end finishes and come fully furnished.
Two Important Points about this bank:
- Buyers can get up to 4 different loans on Honua Kai units through this bank.
- Something that this local bank will do, which Wells Fargo does not do, is to offer these programs on investment property loans.
Enjoy beautiful views of the West Maui mountains (and the occasional double rainbow) from the backside of either the Hokulani or the Konea Tower; these units are the most affordable inventory at the resort and make the best sense from a cash on cash return.
Residences at Honua Kai having been flying off the shelves since the developer cut prices on select units up to 45% last summer, read my previous blog post about these price reductions. The developer has been very successful primarily in moving the lower end inventory at the resort ($700K and below). Since last summer, they have closed 59 properties and my sources tell me that they have another 30 or so currently under contract. Last week alone, they put 13 properties under contract.
- This new source of financing at Honua Kai among a myriad of other factors will augment even more sales, especially for buyers looking to purchase Honua Kai condos as investment property.
- We will not see any further price reductions on any units priced below $1 million and I believe that they will have sold all of their inventory under $650K by the end of this summer.
- The developer will eventually need to cut prices of units priced in excess of $1.5 million if they intend to move this real estate in the near future.
- The rental income figures for Honua Kai should continue to improve. Maui is not a strong cash flow market, but Honua Kai has some of the best short term rental income that I have seen in any resort and it is getting better and better every year as many travel sites regard Honua Kai as being the top resort in all of West Maui. I have rental income occupancy rates and income figures that I will provide upon request.
Compare Honua Kai to any other Ka’anapali Resort condo for sale and I think you will be very pleased to see how it stacks up. In this photo, you will see a large vacant land parcel south of the Honua Kai Resort – ask me about the development status of this land.
Here to Help
- I work for you - I do not work for the developer, but I work very closely with them and I have a very strong pulse on what is going on at the resort and where the best buys are. I will do my best to educate you about the process, help you locate and secure the unit(s) that work best for you, and to protect and promote your best interests at all times.
- Video and technology - I regularly use full length videos to help my buyers best understand the real estate (I can get these to you very quickly as I live 2 minutes from Honua Kai) and I have a strategy in place that helps you secure the piece of real estate that works best for you and to come visit the resort during your 30 day recession period to affirm your purchasing decision. Timing is everything in today’s market – as we are seeing many competitive buying situations at Honua Kai and other well priced real estate on Maui.
- Shadow inventory - I have had some recent success in helping buyer clients secure real estate that is not shown on the developer website, or is noted as unavailable – I know how to get to these properties and I have one in contract right now for a very happy buyer. Please understand that I am not guaranteeing success, but I will certainly give you the best shot.
Latest Pricing and Inventory List
I have the most current and up-to-date pricing and inventory lists for Honua Kai. I am here to provide you with this and to be of great assistance to you. Please reach out to me as I firmly believe that Honua Kai is the strongest valued resort property in all of West Maui..Jeremy Stice, R(S) Hawaii Life Real Estate Brokers 808.281.2178 Stice@HawaiiLife.com
Here is my series of blogs that I have written on Honua Kai:
- Honua Kai Market Update January 2012 – My most recent post
- Honua Kai Resort in Kaanapali, Maui — This blog will provide you with a good overview of the resort including video on its location, and its world class amenities and ownership offerings.
- Honua Kai Resort Real Estate For Sale – Kaanapali, Maui Condos For Sale — This post focuses on the inventory actively for sale and where all the units are located.
- Honua Kai Purchase Process – An owner’s perspective of purchasing and experiencing the resort.
- 35% Price Reductions on Condos For Sale at Honua Kai Resort — Read about how the developer dramatically slashed the prices at Honua Kai and where some of the best deals are at.
- Price Reductions on Honua Kai Resort One Bedroom Units — video blog on 1-bedroom units that are Screaming Deals.
- Honua Kai Resort in Kaanapali – Best Two Bedroom Deals — video blog on 2-bedroom units that are Screaming Deals.