Are you active duty military and think owning a home for 3-4 years isn’t long enough to get a good return on your investment? In many markets it might be a gamble, but Hawaii presents some great opportunities for military families to invest while on assignment in paradise.
Here is an example: Take an E6 with Dependents. As of April 2018, the BAH rate for Oahu would be $3,015.00 per month. Over the course of a three year tour a member could pay up to $108,540 in PPV or rental fees while stationed on Oahu. This monthly BAH rate generally equates to approximately $500,000-$550,000 (not including COLA or BAS) in buying power for the typical E6 with dependents.
Why not make that money work for you? According to the Honolulu Board of Realtors, over the past 33 years average sales price of a single family home and condominium increased at 4.84% and 4.62% respectively. With these general averages a home purchased for $500,000 could expect to grow up to $572,000 in three years-time. Combine that with the amount you’ll pay down over your tour…it’s some serious cash! This is a very basic example of how leveraging your BAH can work for you while stationed in Hawaii.
How do I know about this? I’ve done it myself! Six PCS moves, numerous deployments, three cross country moves over the past 27 years as the spouse of an active duty military member. I take great pride in assisting families who are in the life of military service. The key is to find out more about what opportunities are available to YOU. I work with several lenders who can present a variety of options before you even start looking at potential homes. So if you’re thinking about becoming a homeowner while on assignment in Hawaii, feel free to contact me. Not on island yet? No worries – I’m also a certified “Military Relocation Professional” so you don’t need to be here on Island to start the process for your NextHome.
Every military members financial situation is unique, these numbers are based on facts and figures from the sources below. If you have any questions I would love to discuss your personal options with you.
Sources: All numbers are based on information available in April 2018:
One might think buying a new home is as easy as viewing model homes, selecting your color scheme and moving in, but it’s usually not that smooth. Why not hire a professional to be your advocate through the entire process? Here are the top five reasons you need a Realtor to represent you as the Buyer of a new build home:
Fiduciary Duty: Agents who work directly for and represent the builders will always have their first priority as – making the builder the most money. A buyer needs to have a Real Estate Agent who represents them and looks after their best interests throughout the entire transaction.
Contract Knowledge: An experienced Buyers Agent will be there to assist you through the entire purchase process. Ensuring all contractual obligations are met, staying on top of deadlines and the timeline for completion, as well as explaining everything along the way.
Negotiating: Every market is different. Having a Buyers Agent who knows the local market & can negotiate with the builders on your behalf can sometimes result in quite a savings for the Buyer, including upgrades or reduced closing costs.
Financing: While Developers usually have in house financing and will most always encourage buyers to use them by offering credits. Having an agent that represents you the buyer, can guide you to shop around and check to see if there are better financing options available.
Agent Commissions: Lastly, the Builder/developer pays the Buyers Agent commission not the Buyer. So you get the benefit of an agent without it costing you anything out of your pocket.
These are just some of the reasons why having an Agent is important when purchasing a new build property. Contact me to find out more about what steps you can take prior to starting the search for your NextHome.
At the beginning of 2017, I wasn’t looking for a national real estate franchise. By accident I came across NextHome and my world began to change. I liked the logo and my morbid curiosity made me Google the company. The NextHome corporate website was clean, simple, professional and compelling. NextHome’s CEO James Dwiggins offers an introduction video at the NextHome.com and at the end of that short video it I felt as though he had summarized the way I’ve always thought a real estate company should be operated. The more I researched the company, the more I liked it. Then I looked into buying the franchise.
Charis Moreno is in charge of NextHome franchise sales, our initial conversation led me to want more information and she put me in contact with a number of current franchise owners. All of these real estate brokers were like me, successful and former owners of other national real estate franchises, all of them couldn’t think of one bad thing to say about NextHome.
It was time to get my wife involved and for me to present the case for considering owning a NextHome franchise. In the initial information gathering stages, I was hesitant to share it with her without having all of my own concerns addressed. Now that I was on board I wanted her former CPA mind to play devils advocate to my optimism. Guess what, she thought it was a fantastic opportunity! Charis made a comment regarding the type of person NextHome wanted as a franchisee that closed us on moving forward, she said “We don’t want and okole’s!” Call me if you want an explanation of okole.
Well, it has been 4 months since the decision was made and August 1st marked the transition from KU Realty, LLC to NextHome KU Realty. As I see it, NextHome KU Realty brings the best of KU Realty and adds a quantum step up in technology services, branding and support. After selling real estate since 1983, it is amazing to feel the energy this new opportunity brings to me, my clients, associates and Honolulu’s real estate market. I am excited to see the vision of a very special real estate come to fruition. Saddle up, buckle up, hang on and watch this grow!