the community newspaper for east oahu since 1987

Buy Smart

by CHELSEY KOBATAKE
Sun Correspondent
Archived January 2007 article
There are so many questions floating around about the Hawaii real estate market: Are the prices too high? Is it a smart time to buy? Should we wait until the market and prices go down? The truth is, there is no simple answer to any of those questions and it depends on what your purposes for purchasing are. If you are looking for a quick turnaround with big payoffs, your chances are slim. If you are looking for a principal residence and plan on holding long term, it's never a bad time to buy. Waiting for the "bottom" of the market may not be the smartest decision because there's little accuracy in predicting exactly when it will arrive, how low prices will fall or even what interest rates will be. Instead buyers should make calculated decisions based on their individual situations like finances, disposable income, job security, and home needs.

All prospective buyers should know their price range and have thorough knowledge of their finances. Choosing a loan officer and real estate agent that you trust and getting pre-qualified are the first steps in purchasing and ensuring long-term real estate success.

Know what you can afford monthly. Just because they'll lend it, doesn't mean you should borrow it all. Determine how much you're willing and comfortable to pay for monthly housing expenses like principle, interest, property taxes, homeowners insurance and possibly maintenance fees.

How secure is your job? Ensure that your job and income are secure long term. Keeping low monthly expenses will help alleviate some stress in financial management.

What do you need out of a home? Buyers want the most bang for the buck. Though these are important, there is one other, important factor to consider: location, location, and location. Buying in a good neighborhood and location is worth some sacrifice. Opting for a smaller home or the sacrifice of a few amenities is a great way to get your foot in the door of an established neighborhood. Think of your home as a "home," not an investment or quick way to make money. Find something that makes you happy, that you are comfortable with and excited about and that you can see yourself living in for a while. Along your purchasing journey remember to make smart, long-term decisions and above all, be patient. Everyone can own an expensive, new car but not everyone can own a home.

Chelsey Kobatake grew up in Hawaii Kai, has been practicing real estate since the beginning of 2003. She earned a Bachelor's degree from UH in Journalism with an emphasis in Public Relations and is currently earning her Master's in Business Administration from HPU. Her partner at Kobatake Realty, LLC, Clyde Kobatake (father) has over 25 years of Hawaii real estate experience, earned his Bachelor of Arts in Economics from UH and has a good working knowledge of home construction, repair and maintenance. Kobatake Realty, LLC is a full-service sales and property management company. For more real estate information send emails to Chelsey@kobatakerealty.com or visit, www.kobatakerealty.com.