How Will the Next Recession Affect the Housing Market…
Given the current media buzz of an impending recession, many Americans are fearing the worst and believe a downturn in the real estate market is inevitable. Take a look at the graph below from Keeping Current Matters.
It’s important to note that of the last five recessions in U.S. history, three of them saw increases. Two of those three saw prices appreciate faster than the historical average, and the massive down turn was as a result of loose ethics and loan practices.
What Exactly is a Recession…
According to Websters Dictionary, a recession means a time where the economy dips for a period of 6 months. Considering that we’re in the longest running economic recovery, it’s no surprise that we’re in for a breather. The Maui marketplace is still robust and active with consistent visitors looking to scoop up great properties and the inventory is low – so it’s still busy and still fast paced for those looking to buy.
How Will Maui Be Affected?…
Saying anything is recession-proof is a tough statement to make, but any time you have scarcity in a market, whatever the market is, it sets up your investment for success. Purchasing in a location with limited supply is key to making sure your vacation home investment doesn’t depreciate dramatically in a recession. The rental income opportunity can also provide some insulation from market downturns, and there are other factors, too, that help make certain types of vacation homes less risky investments. Check out the most recent short term rentals in Wailea here.
For the best locations in Hawaii, like the Maui beachfront, the dip in property values at the last turn was only 10% to 12%, the reason being the barrier to entry—the ability to get anything built—is unbelievably tough. It isn’t overbuilt, and people recognized the value here. Selecting the location of your vacation home wisely may not protect you entirely from seeing a drop in value during a recession, but it could mean that the decrease you see is much smaller than it would be elsewhere. Also consider whether a second home will be a long-term investment, and perhaps even someday become your primary residence or legacy. Our listings at Mahana Estates are legacy homes where families are seeing their dreams built before their eyes. I encourage you to reach out and ask questions on how we can paint this picture for you.
Places like Hawaii, Cancun and Mallorca don’t go through seasonal ups and downs. There are low and high seasons, but people are always visiting. People buy a second home and eventually envision living there, so in that sense it’s recession proof. Even in a recession, there are people that still have money, and they’re looking for very specific types of houses, and are very location-driven. As we approach winter, we expect more inventory to come one as usual and we look forward to seeing our friends who return year after year. If you’re curious about a Maui investment, reach out, let’s get your toes in the sand. Aloha!
Understanding Wailea Golf Club Membership can be tricky. As projects were developed and plans were originally being set into place, different programs were approached and devised with the Wailea Community Association. Those qualifying for Wailea Golf Membership have no particular rhyme or reason why, it just “is what it is”. Read below for a clarification on which properties qualify for Wailea Golf Membership or Owner Rates.
WAILEA PROPERTIES THAT QUALIFY FOR GOLF MEMBERSHIP:
Ekahi | Ekolu | Elua | Grand Champions Villas | Wailea Kai | Wailea Kialoa | The Palms at Wailea | Wailea Point | Wailea Fairway Estates | Wailea Golf Estates | Wailea Golf Vistas | Wailea Highlands
NOT ELIGIBLE FOR MEMBERSHIP, BUT QUALIFY FOR PROPERTY OWNER RATE:
Fairway Villas | Hoolei at The Grand Wailea | Papali Wailea | Wailea Pualani Estates
NOT ELIGIBLE FOR MEMBERSHIP OR PROPERTY OWNER RATE
Maluhia | Wailea Beach Villas | Kai Malu | Kanani Wailea
Check out these links for more information and applications on Wailea Golf Membership and benefits. For more details and to schedule a tee time, contact Wailea Golf at 808-875-7450.
The Gold Course – Referred to as ‘ the thinking mans course”, this one is tougher requiring a more strategic approach. and less scenic than its neighboring comrades. At 7,078-yards and created by Robert Trent Jones Jr. this course received accolades from Golf Digest, Golf Magazine, Conde Naste Traveler – just to name a few. Strategy and finesse are important to playing the Gold well, and the course’s intriguing risk-reward choices makes it possible to use every club in your bag.This par-3 beauty has golfers teeing off toward an unbeatable view of the ocean and little Molokini, a crescent shaped islet and one of Maui’s most popular snorkeling spots. Check out more details on the Wailea Gold Golf Course
The Emerald Course – At 6.825 yards, the Emerald Golf Course is the Wailea Blue courses immediate neighbor to the South. Enjoy picturesque over-the-top views for as far as the eye can see. Carpet like fairways, tropical foliage and the fresh breezes ofHawaiian air. This course is known to be ideal for the recreational golfer, rather than the one vying for exact precision and difficulty. Golf for WomenMagazine has coined the Wailea Golf Club a Top Fairways Award for the country’s most women-friendly golf clubs, an honor that has been acknowledged seven times. With 4 to 6 per boxes on every hole, this course is no cakewalk and still geared to cater to any skill level. Comments say that this course is “Challenging enough, certainly not punishing”. More details on the Wailea Emerald Golf Course
The Blue Course is newly serving guests form the pro shop and its brand new location on Wailea Ike – adjacent Manoli’s Pizza Company – which is, by the way… the perfect place for the 19th hole. Meander through the relaxing fairways with outer-island views at the base of the 10,000 ft. dormant volcano, Mt. Haleakala. Lovely tropical florals, a coral lake and classic coral sand bunkers slice up a game of strategy and competition for an avid golfer. Lower winds than other courses on a good day, with scenic views from every holeThis Championship Course is Wailea and South Maui’s perennial favorite and probably the most popular. Check out the map of the Wailea Blue Golf Course
Clinics, tournaments, executive and corporate and fun and family play are always available.
This master planned 1500 acre Resort was thoughtfully designed for both full-time living and vacationers wanting a luxury lifestyle. Whether you are a first-time buyer seeking a popular vacation rental investment, or wanting to purchase your quiet Maui retreat home, Wailea is a terrific place to park your money and watch it grow. With so much growth on Maui, it’s time for you to be a part of it. Maui county was recently named one of the best places to own a home in Hawaii as posted by MauiNow.com
If you’re considering an investment in the Hawaiian Islands, reach out. Let’s get your toes in the sand.
With aloha, Erica
The main runway at Kahului Airport would be extended by about 1,500 feet to 8,530 feet to accommodate fully loaded aircraft with direct reach to the Midwest, according to an update of the Kahului Airport Master Plan.
The update of the state Department of Transportation master plan, forecasts needed improvements to the main airport on Maui through 2035, and was completed in December, following consultations with federal and state aviation and transportation officials, users of the airport and the public.
Prepared by R.M. Towill Corp., the plan lays the foundation for the preparation of a joint federal and state environmental impact statement for most of the first of three phases, which will take three years to prepare, according to state officials.
Other improvements cited in the plan, which would cost $3 billion to complete, include:
- A much needed reconstruction of the current main runway 2-20, which is 6,995 feet
- Planning for a new 7,000-foot-long runway, on the Haleakala side of helicopter, tour and other general aviation facilities
- Expansion and improvements to the terminal.
The plan also calls for moving Shige Yamada’s “Maui Releasing the Sun” statue, situated in 1992 in the area next to the TSA security area, to the baggage claim area where a skylight is located.
Lengthening the runway would mean the closure of the “back road” of Haleakala Highway between Hana Highway and Keolani Place. Past efforts by the Transportation Department to close the road, which is seen by many of us as an alternative route in case of an accident blocking Hana Highway, have faced opposition. The closure is projected in Phase 2, to be completed between 2022 and 2030.
Marvin Moniz, Maui District Airport Manager, said that he is working with transportation officials to keep the road open by building a tunnel. He’d like to save the road an keep it open. The winding road around the airport sits in the area of the main runway expansion and protection zone on the south side toward Hana Highway. The plan said that the 8,530 feet is the maximum runway length without having to redesign Hana Highway and to purchase more land, the plan said. Expanding to the north was not feasible because of “extensive land acquisition” required and the relocation of existing homes and the Kaunoa Senior Center.
The runway extension, projected to cost $96 million and built by 2021, would allow planes such as the Boeing 737-800 and 777-200 to take off at maximum weight for cities such as Chicago, Dallas and Denver, the plan said. Currently, those flights have to take off with reduced fuel that requires a stop in Honolulu to refuel before heading to the Mainland.
The main runway is in need of reconstruction, having been resurfaced five times since it was built in 1942. The last work involved an overlay project in 2006 at a cost of $3.4 million, the plan said.
The runway currently is safe but the constant resurfacing instead of rebuilding has led to cracks and joint deterioration over the years that are generating debris that could damage aircraft, the plan said. This potential danger has made reconstruction of the runway — with a 20-year lifespan — a priority of the state Transportation Department and the Federal Aviation Administration.
The projected cost for the runway reconstruction is $104.3 million.
While the reconstruction work is ongoing — which could last up to 16 weeks — an existing apron taxiway east of the main runway could serve as a temporary runway, the plan said. Closing the main runway without an alternative was not a viable option given the loss of $8.4 million a day to Maui’s economy.
There are no plans to extend the 4,990-long runway, which is mainly used by commuter airlines, the plan said.
Although beyond its scope, the plan recommends building a new 7,000-foot-long, 150-foot-wide parallel runway. The runway would be located 2,500 feet east of the main runway on the Hana Highway side of the helicopter and general aviation facilities. It would have the same operational capabilities as runway 2-20 and serve as an alternative should the main runway be taken out of service, the plan said.
The cost is projected at $768 million with acquisition of old Hawaiian Commercial & Sugar Co. cane land “an essential first step” for the runway, the plan said. The runway would be built beyond the 2035 scope of the plan.
The terminal will need to be expanded to accommodate the increased number of passengers near the 2035 end of the planning period. The number of passengers from the Mainland is expected to grow from 2.9 million to 3.6 million by 2035.
There currently are 13 aircraft parking positions — three for interisland and 10 for Mainland flights — in the terminal. The plan calls for leaving space on the south terminal area for expansion.
The larger north terminal has nine aircraft parking spaces and 22 departure gates. With the relocation of cargo and car rental facilities to the new consolidated rental car facility currently under construction, there could be space for an additional exit to the baggage claim area, additional passenger holding rooms and parking areas for planes.
North terminal expansion is constrained by the runway, relegating the area to aircraft parking and movement and airline operations, the plan said. New gates would be added to the south terminal.
The south terminal has four aircraft parking positions, six holding areas and 16 gates. The holding areas are nearly half the size of those in the north terminal and would be tripled in size by plans to build over an interior roadway and connect with the terminal building on the other side.
Some expansion work for the south terminal has been included in Gov. David Ige’s proposed biennium budget from July 1 to June 30, 2019. The governor has included $39 million in revenue bonds for hold room and gate improvements, said Transportation Department spokesman Tim Sakahara.
Moniz explained that the money would be used to enclose the open walkways in the south terminal to enlarge passenger-holding areas and restrooms, widen gate areas and create a retail concession area. Airport officials also are studying the addition of one more jet bridge.
As part of the larger expansion of the south terminal in the plan, air cargo and alien species inspection facilities will be relocated to lots on the south ramp.
The next step is to prepare a joint federal and state environmental impact statement prior to applying for construction permits. The EIS, which will include most of the plan’s Phase 1, will focus on the main runway expansion and reconstruction, improving taxiways for the temporary runway, installation of navigational aids and lights, taxiway realignment, expansion of south terminal hold rooms, relocating the Maui statue, closing a portion of Haleakala Highway, and adding 500 spaces to cellphone/employee parking lots.
The parking structure is near complete and we anxiously await the next phase. If this kind of growth doesn’t speak volumes for Maui’s development as a whole, I don’t know what will. It’s coming folks, and it’s an excellent time to be living and investing on Maui.
If you’re curious, reach out, let’s talk.
Article Credit: Maui News