Saturday, January 16, 2016

Successful Purchase for Buyer in High Demand Building

The recent sales activity in the Punahou Gardens Apts building has shown a tremendous demand by buyers in the marketplace. Low maintenance fees, convenient location and a well maintained building are draws to the investor buyer or someone looking to step into home ownership with a starter studio.

When representing a buyer client on a property that is proven to be high in demand, it can be challenging for everyone to make decisions that will get the buyer client into the property that they desire. Lower priced properties are especially difficult because they are already difficult to come by on the entire island and when they are located in a highly desirable area and the property is in good condition, it makes it even more attractive to a broader audience.

Punahou Gardens Apts has its location putting it on many investors' radars because it is relatively near the University area while also being convenient to the Beretania and Keeaumoku areas. The building is comprised of studio units of approximately 360 square feet and they feel spacious with a roomy bathroom. The common areas of the building are well maintained, secured lobby and laundry area, pool and onsite rental parking that is available through the building's association are what make the attractive.

When it comes to affordability, Punahou Gardens Apts' maintenance fee is what makes this building stand out. Currently at about $286 per month, the fee covers the apartment's electricity, gas, water and sewer fees. This monthly fee is significantly lower than most other building's fees while also covering those utility costs. It makes it simple for an investor to see how their return will be once considering what the market rent should be. It also makes it easy for a potential owner-occupant buyer to figure out their budget.

Makiki-Moiliili Area Statistics from December 2015 
Located in an area where the median price of condominium real estate reached $340,000 in December 2015, up 14% from 2014 when it was $299,500, Fee Simple units around $200,000 will be difficult to come by. This is what has been driving the price for the studios at Punahou Gardens Apts upward. 

My client was able to acquire the latest unit that came on the market at Punahou Gardens Apts. There were 6 competing offers of which 3, I am told, were all cash. The unit was nicely renovated with granite counter tops, wooden cabinetry and new appliances, making it stand out from previous recent listings in the building. Our experience and knowledge of how many interested buyers were in the market for the previously listed units there helped judge the competition we would be facing and in the end allowed my client to successfully purchase this renovated unit in the building that was desired.

With the median price of condos on Oahu up to $386,250 in December of 2015, I am sure we will continue to see high competition for buyers, especially for units priced well under that median price. It is always a pleasure for me to be able to help a client acquire the property that they desire, especially when it is one so high in demand!

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