Waikiki real estate?

Hawaii's real estate crash affected everyone. However, the Trump name is what keeps the place going and prices high. As an investment, are you planning to leave it in the hotel pool or will you keep it empty?

Here's a listing of current units for sale at Trump. Trump Tower Waikiki, 220 Beach Walk, Honolulu, Hawaii 96815

Another place is the Kahala Beach Apts, next door to the Kahala Resort, and across from Waialae Country Club. The complex is right on Kahala beach and is very comfortable. The downside is the property is leasehold and the lease rent is quite high. However, that also makes the buy in price very reasonable.

Kahala Beach, 4999 Kahala Ave, Honolulu, Hawaii 96816

 

Ala Moana can get you a decent income stream, but the area isn't that good. On the ocean side you have the shopping center, but on the mountain side there are strip bars and massage parlors. You look east and you have the convention center and other condos. On the west you have a strip mall, a few luxury condos, and some small businesses and nightclubs.

At Trump, once they bought up all the small walkups, the area improved. Also, since it is in Waikiki, you have a lot more police cruising around to make sure everyone is safe.

 

If you leave it in the rental pool read the contract...

No modifications... None of your own furniture... Forced renovations every 5-10 years to match the hotel rooms. I don't see any money there. You are giving them a free hotel room to rent out... With no risk...

Bo

 

Stay away from the Ala Moana; I've stayed there, and while it's ok(not great), as mentioned above, it just doesn't fit the criteria of what one would want to own/rent out.

I've also noticed what someone posting above alluded to, which is that there's a lot of tired property in this area. Probably a result of 1960's-1980's development, which is getting a bit old these days. All that salt & moisture sure doesn't sit well with buildings...

As for Trump, best to keep two(at least) things in mind:

* Trump ain't no dummy, so assume that -everything- is setup in -his- favor and not in -yours-. No way is he gonna offer up something that's a real money-maker for you.

* Trump ain't gettin' any younger, and once he fades into the sunset/woodwork/ground, the lack of his mouth blaring forth can only mean that the 'luster'(if you can call it that) of Trump-ness will only fade. Now, it may take a while to do so, but it doesn't look like any of the kids are out there being as loud and obnoxious as he is, so who's gonna replace him?

I'm curious way down the road how long the family biz holds together after he's gone. Be interesting to see if any of the kiddos decide to cash out of the biz once they're free to do so.

One thing I learned the hard way from a timeshare deal I unfortunately got into several years ago was to check around online before parting with $cash$. You can get a realistic pic of the real estate situation by the number of resale offerings and prices. Too much stuff being dumped on the market is a red flag, for example. Also see if you find some postings from people who've jumped in ahead of you. You can learn a lot from other people's experiences(good & bad). Could be it's a good deal, but if so, I'd wanna see some reviews backing up that point.

 

What about just buying a condo and renting it out? Unfortunately, when you come here, you'll need to get a hotel room, but at least you are producing income. A new condo is coming up on the other side of Ala Moana SC, Real Estate - Homes for Sale in Hawaii | Waihonua at Kewalo.

Above Nordstrom's is a new development by Howard Hughes Corp., One Ala Moana. They are supposedly sold out, but who knows. Condos for Sale in Honolulu | ONE Ala Moana

 

The condotel market is kind of hard to predict. A friend had a unit in Waikiki and another one in the Ala Moana. He told me sometimes he'd clear $1500 in the AM, other months much less. A lot of it depends on which tower your unit is in. The Kona St tower typically rents for less because there is no ocean view. The view you have is of the mountain and the commercial areas on Kapiolani Blvd.

The biggest key is to know the hotel management and ask them how they rent out units. Is there a certain criteria for preferential rental (ocean view, even or odd floor number, high or low floor...)?

For a rental home/condo, it has to be leased for a minimum term of 6 months, due to our Transient Accommodations Tax law. If is is leased out, your typical hands off rental property is 10% commission. There are some that will manage for 8% commission. Just be careful regarding repairs and what you get charged.