Here are ten things I didn’t get for Christmas, but am still hoping for.  I want the President to….

1.  Take responsibility and stop blaming Bush.  You’ve been on the job a year now and it’s time to take ownership of the economy, national security, etc.

2.  Profile the enemy.  It may not be politically correct, but the President’s job is to save American lives.  Have the courage to admit that a 23 year-old Muslim man is a greater security risk than a 58 year-old grandmother.  You’re in the business of saving lives and common sense is required.

3.  Tell us you get it.  Admit that our Islamist enemies want to kill us and that they won’t stop, no matter how much you try to make them like us.

4.  Agree with and act on Charles Krauthammer’s statement:  “Whenever a jihadist volunteers for martyrdom, we should grant his wish”.

5.  Stop the double-talk and use the word “terrorist”.  The American people realize that someone who walks into an abortion clinic and shoots the doctor is an extremist (the President’s favorite euphemism).  71% of Americans very clearly recognize that someone who boards a plane and attempts to kill all 300 civilians aboard is a terrorist.

6.  Treat terrorists as unlawful combatants; not as common criminals due all rights and privileges of an American citizen.

7.  Keep Guantanamo Bay open.  Recognize that 75% of Americans don’t want prisoners transferred to the continental United States or returned to their homeland where they can resume their jihad to kill more Americans.  Also, publicly admit that if Guantanamo Bay was miraculously closed tomorrow that Al-Qaida’s recruiting efforts would not end.

8.  Tell us he has accepted the resignations of Attorney General Eric Holder because he is not meeting our national security needs and Secretary of Homeland Security Janet Napolitano because she is not qualified for her position.

9.  Stop apologizing to the entire world.  Enough is enough and it’s time to publicly express pride in the many great things America has accomplished during its history.

10.  Stop trying to spend this country into bankruptcy.  Come to your senses and realize we cannot spend 10% more than we make every year without ruining the economy.

 
Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Robert Crandall, former CEO of American Airlines, was interviewed by Neil Cavuto on Fox News today.  In a discussion about Secretary of Homeland Security Janet Napolitano’s performance, Crandall said:

“Why do we continually put politicians in jobs they know nothing about?”

Summary
Take a look at the chart below.  The Capitol Place market has undergone a dramatic shift in the last nine months.  The inventory of apartments for sale is down 72% and look at those sales…red hot.  This leaves little for buyers to choose from.  One bedroom apartments have been a popular choice this year, but as I write, none are for sale.  The small inventory and lack of choice may set the stage for stronger prices in the coming year.  However, that may not come to pass if the economy continues to worsen or if the market is flooded by several owners trying to sell at the same time.

Capitol Place Condominium
1200 Queen Emma Street, Honolulu, HI 96813
Built: 2008

Schools
Elementary:  Royal
Middle:  Central
High:  McKinley 

Availability
Apartments in the building:  394
Apartments available for sale:  7
Average days on market to date:  108
Apartments listed for sale in the last 30 days:  0
Months of inventory available:  2.0 

Sales
Apartments under contract in escrow:  2
Apartments sold in the last 90 days:  11
Average days on market:  115
Sales Price / List Price:  97% 

What else would you like to know about Capitol Place?  Please visit my web site to view Honolulu condos for sale or request free reports for buyers or sellers.  If you’re thinking of selling your home, contact Michael Zimmerman for a no obligation consultation.

Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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In the second week of December, the Federal Reserve (Fed) reiterated that their Mortgage Backed Security purchase program will end on March 31, 2010.  This program helped keep home loan rates low in 2009.

History has shown that when the Fed keeps rates too low for an extended period of time, this usually leads to higher inflation.  If the accommodation is removed too early, it can derail an already fragile recovery.  The Fed continues to walk this fine line, trying to get it just right.

Why is this Fed decision significant?  Let’s look at a few numbers to get an idea.  The Fed will purchase an average of $11.5 billion of securities each week through the end of the buying program.  This is less than half of what the Fed was buying regularly throughout 2009 and a third less than the Fed has been buying in recent weeks.

It’s a matter of simple economics.  When there is abundant supply and diminishing demand, the price of an item (in this case, it’s Mortgage Backed Securities) will subsequently go down.  When Bond prices start to decrease from the Fed’s diminished demand, home loan rates will likely rise.

 
Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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A few more flood insurance questions are discussed below.

How much will flood insurance cost?

Flood insurance premiums vary, depending upon the date the building was constructed and the degree of risk of flooding.  To get a quote, please contact your insurance agent.  If you don’t have an agent, you can contact the National Flood Insurance Program for a referral at 1-800-427-4661.

When is the best time to buy flood insurance coverage?

Now.  There is a 30-day waiting period for flood insurance coverage to become effective.  If flood insurance is purchased in connection with a mortgage loan, there is no waiting period.

What is a Special Flood Hazard Area (SFHA)?

These are the areas with the highest risk for flooding, shown on the Flood Insurance Rate Maps as Zones A or V.

Over a 30-year mortgage, homes in these zones have a 26% chance of being flooded.

How will I know if my home is in an SFHA?

Check with your local community or to order copies of maps of your area, call 1-800-358-9616.

Lenders will notify borrowers if flood insurance is required as a condition of the mortgage loan (National Flood Insurance Reform Act of 1994).

For more information about the National Flood Insurance Program and flood insurance, visit FloodSmat.gov or contact your insurance company or agent.

Read Part 1

Disclaimer: The discussion above is based on FEMA’s publication titled Questions & Answers About Flood Insurance for Real Estate Professionals.

Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Are you looking for a special place to take your sweetie for a nice relaxing lunch?  Well, I’ve got just the place!

Tea at 1024
1024 Nuuanu Ave.
Honolulu, HI 96817

Michele Henry is the owner and she is always so friendly.

I take my wife to Tea at 1024 on a “date” three to four times a year and we thoroughly enjoy it every time.  We’ve been to afternoon tea at Neiman Marcus’ Mariposa and the Royal Hawaiian, but we get the most enjoyment at Tea at 1024 by far.

This place is different.  Everyone gets to choose their own tea cup to drink from.  There are Victorian hats and feather boas available for the women.  The decor was redone in 2009, is bright and is very relaxing.

Tea Service begins with your choice of tea and a house salad (usually spinach) lightly dressed with Vidalia onion vinaigrette dressing and feta cheese.  This is followed by chicken curry, egg salad, cheddar cheese & tomato and crab & olive tea sandwiches (they’re all outstanding).  Homemade scones with clotted cream & strawberry jam and assorted pastries complete this tasty meal.  My wife and I always leave with a full stomach and the price is right.

Tea at 1024 is great for a private get together, small parties or even wedding showers.  They are open Tuesday through Saturday.  Space is limited, so make a reservation at 808-521-9596, especially if you want to go on the weekend.

 
Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Michael Zimmerman just sold the One Waterfront Towers condominium with this stunning view after receiving several offers.

Sold for $505,000 Fee Simple

Two words:  SIMPLY SENSATIONAL

One Waterfront Towers Condominium
425 South Street Mauka/2302
Honolulu, HI 96813
MLS #2913492

View the 4-page Home Brochure

Relax and enjoy stunning sapphire and turquoise blue ocean views from this serene, elegant home.  The private lanai is perfect for entertaining your guests, unwinding while reading or enjoying the evening sunset.  The impeccable apartment features a wide range of upgrades and is ready for immediate move in.

This magnificent apartment is in impeccable condition and features several upgrades such as granite countertops in the kitchen and bathroom, refreshed kitchen appliances, front loading washer and dryer, enclosed shower, tiled floors, closet organizers and more.

• Stunning sapphire and turquoise blue ocean views
• Scenic views of the harbor, mountains and downtown
• Dine at sunset on your private lanai
• Grand open living space
• Floor to ceiling windows
• Exquisite tiled floors
• Dining area bar may be used as an eating area
• Ample in-home storage
• Living area approximately 804 square feet
• Lanai approximately 130 square feet
• One covered, assigned parking stall
• Includes one year Home Warranty

Are you looking for your very own high floor condo with a spectacular view?  Contact Michael Zimmerman or visit my web site to perform your own specific Honolulu condo search.

Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Why is flood insurance important?

Homeowner’s insurance policies do not cover flooding, so you may be required to purchase flood insurance separately.  If your home is in a designated Special Flood Hazard Area (high risk), the mortgage lender must, by law, require you to buy flood insurance as a condition for receiving a Federally backed loan.

But, even if you are not required by law to buy flood insurance, you should consider it because you do not need to live near water to be flooded.  In Hawaii, floods are caused by storms, hurricanes, and water backup due to inadequate or overloaded drainage systems, dam or levee failure, new construction, etc.

It is not just high-risk areas that are flooded.  Nearly 25 percent of all flood insurance claims come from medium- or low-risk flood areas.

Relying on Federal disaster assistance is not the answer.  Federal disaster assistance is available only if the President declares a disaster.  Even then, disaster assistance is often a loan that must be repaid, with interest, in addition to mortgages, other loans, and credit card debts.  Flood insurance pays even if a disaster is not declared.

Who can purchase flood insurance?

Anyone in a community that participates in the National Flood Insurance Program can purchase building and/or contents coverage, with a few exceptions.  Coastal Barrier Resources System (CBRS) areas, Otherwise Protected Areas (OPAs) and buildings principally below ground or entirely over water are not eligible for National Flood Insurance.

How do you obtain a flood insurance policy?

You can purchase National Flood Insurance from private insurance companies and agents.  Currently, there are over 100 insurance companies that sell National Flood Insurance coverage, in addition to some 60,000 independent insurance agents.

If the seller of the property has flood insurance coverage on the building, it’s possible that policy can be assigned to the buyer at the time of closing.

If the mortgage company requires flood insurance as a condition of the loan, the lender may escrow flood insurance premiums.

For more information about the National Flood Insurance Program and flood insurance, visit FloodSmat.gov  or contact your insurance company or agent.

Read Part 2

Disclaimer:  The discussion above is based on FEMA’s publication titled Questions & Answers About Flood Insurance for Real Estate Professionals.

Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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If you are considering selling your Honolulu home, it may be prudent to complete a home inspection before putting your home on the market.

A home inspection may identify problems such as faulty plumbing, wiring, cooling issues, the need for roof replacement, etc.  Since we know most buyers will conduct a home inspection before closing, identifying and correcting problems ahead of time can lessen the pain that surprise issues bring.

In any market, you increase your chances of attracting and retaining a buyer by maintaining your home in top-notch condition.  Your home should look good, but also function well.  Bottom line, if you find and correct problems before selling, you set yourself up for a smoother closing process.

For more information on home inspections and locating a home inspector, visit the website for the American Society of Home Inspectors web site.

 
Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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My wife and I have lived in the Kakaako area for three and a half years and we love it.  Here are the top 10 reasons we think you should consider living here too.

1.  Several diverse living choices ranging from new to more established luxury condominium buildings.  Examples include Hawaiki Tower, Hokua At 1288 Ala Moana, Ko’olani, Moana Pacific, Nauru Tower and One Waterfront Towers.

2.  Several health care providers are close by such as Straub Hospital, Kapiolani Medical Center and Queen’s Medical Center.

3.  Healthy recreation areas at your doorstep include Ala Moana Beach Park, Magic Island and Kakaako Waterfront Park.

4.  Easy and convenient access to H-1 (both east and west directions) and major bus lines.

5.  Wonderful restaurant choices range from fine dining to local mom & pop eateries.  Additionally, terrific shopping is available at the Ala Moana Shopping Center, Ward Centers and the Nordstrom store located on Kapiolani Blvd.

6.  Great beach and surfing access at nearby Ala Moana and Waikiki beaches.

7.  Entertainment and the arts are here.  The Blaisdell Center, Concert Hall, Exhibition Center, Honolulu Academy of Arts and Ward 16 Theaters are just minutes away.

8.  Many interesting adjacent neighborhoods to explore include Chinatown, Downtown, Makiki, McCully and Waikiki.

9.  Controlled growth.  The Hawaii Community Development Authority is developing the Ward Neighborhood Master Plan.

10.  Majestic mauka to makai views include Diamond Head, Punchbowl and the Ko’olaus to Honolulu Harbor and the Waikiki shore.

Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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The 25th Honolulu City Lights will open this Saturday, December 5, 2009.  Over the last 24 years, the month-long event has expanded considerably, but has always included a lighted 50-foot Christmas tree.  The holiday tree connects lighted Christmas trees and buildings spread out over a “corridor of Christmas lights” through Chinatown, Downtown, the Capitol District and the Civic Center area.

The Opening Night Celebration occurs on the first Saturday in December.  Thousands attend the opening night festivities featuring the popular Electric Light Parade, a holiday concert, decorated Christmas trees and wreaths in the Honolulu Hale courtyard and the traditional lighting of the huge City Christmas tree.

For more, please visit the Honolulu City Lights homepage.

 
Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.michael-zimmerman.com
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Ordinarily, one would expect most home purchase contracts to be completed.  After all, the buyer and seller have negotiated several contract terms and a final price.  However, many sales are not completed in today’s market and when that happens, for whatever reason, escrow must be cancelled.

Why would someone cancel escrow?  Given the unstable financial environment and constantly changing loan guidelines, many contracts are not fulfilled because buyers are unable to obtain financing.  Another simple example is where a buyer conducts a home inspection as a condition of the purchase contract.  If the buyer is not satisfied with the inspection findings, he/she may cancel the purchase contract and thus, cancel escrow.

Here are some rules regarding cancelling escrow:

1.  The escrow company does not determine whether a party has defaulted on the purchase contract or whether any provision has been breached.

2.  The escrow company requires mutual, written instructions to cancel an escrow; including agreement on how to disburse funds on deposit and how to satisfy outstanding invoices (examples include cost of a survey or termite inspection).

3.  The escrow company is neutral and will not take sides or interpret the purchase contract.

4.  If funds are deposited with the Court in an interpleader action, those funds may be used to pay the escrow company’s attorney fees to file the interpleader action.

5.  The escrow company cannot open a second escrow on a property if escrow has a contract for the sale of that property unless there are clear written instructions that the second sale is subject to cancellation of the first sale contract.

6.  The escrow company cannot close the sale of a second escrow on a property if escrow has a prior contract for the sale of that property that has not been cancelled.

7.  The escrow company may close the sale of a property if another escrow company has an escrow on that property unless a notice of pendency of action (lis pendens) is recorded against the property, but the seller may have obligations to disclose the fact that the prior escrow is not cancelled.

8.  The escrow company may cancel an escrow where there is a dispute as to how to disburse funds, but there must be clear written instructions signed by the parties to cancel and hold funds pending resolution of the dispute.

DISCLAIMER:  this is general information and should not be relied upon for any legal, business, economic or tax decision.  It is not intended to provide legal or business advice.  Before making any decision regarding this matter, you should consult with an attorney.

Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.michael-zimmerman.com
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Summary
The sales trend at Hawaiki Tower is very similar to that of other Kakaako condominiums; a rising number of sales coupled with a corresponding drop in the number of apartments for sale.  Should this continue, we may return to a seller’s market as buyers have much less inventory to choose from.  With just four Hawaiki Tower apartments for sale, the choices are already limited.  For example, there are no 1-bedroom and no 3-bedroom apartments for sale.  However, the 2-bedrooms apartments available are spread from low floors to high floors and offer Diamond Head or Ewa views.  One of these is a highly sought after 2-bedroom ‘09 floor plan with 1400 sq. ft. on the 19th floor.

The chart above shows the number of sales recorded each month vs. the number of apartments available for sale at the end of each month.  As you can see, the number of apartments for sale dramatically decreased in the last seven months.  In the last six months, 10 Hawaiki Tower apartments sold and if that pace continues, it will take just 2.4 months to sell the 4 apartments on the market now.

Availability
Apartments in the building:  422
Apartments available for sale:  4
Average days on market to date:  68
Apartments listed for sale in the last 30 days:  2
Months of inventory available:  2.4

Sales
Apartments under contract in escrow:  1
Apartments sold in the last 90 days:  4
Average days on market:  68
Sales Price / List Price:  93%

Contact Michael Zimmerman if you have a specific question about Hawaiki Tower.  Please visit my web site to view Hawaiki apartments for sale, conduct your own Honolulu condo search or request special reports for home buyers or sellers.

Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.michael-zimmerman.com
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Michael Zimmerman just listed a large Moana Pacific storage unit for sale.

Moana Pacific Condominium
1296 Kapiolani Blvd. S317
Honolulu, HI 96814
MLS # 2914844

Sale of storage unit only.  Large walk-in storage unit located on the third floor of the Moana Pacific East Tower.  Approximately 168 square feet.

Very few storage units have been sold since Moana Pacific opened in 2007, so don’t miss this unique opportunity to purchase this ideal storage. 

Please contact Michael Zimmerman if you have a specific question or visit my Featured Properties web page to learn more about this storage unit.

This information is provided as a courtesy, is not a warranty and should be independently investigated by Buyers. This information is deemed reliable, but not guaranteed.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.michael-zimmerman.com
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Summary
I am very excited by what I see in the chart below.  The number of apartments offered for sale is just half of what it was six months ago and despite a weak economy, sales have picked up dramatically.  The number of months of inventory determines whether we are experiencing a buyer’s or seller’s market.  If the inventory is six months or less, it’s a seller’s market and we are very close to reaching that point (6.5 months of inventory as I write).  This is the lowest number of Hokua apartments for sale I’ve seen since I began writing posts dating back to March 2008.

The chart above shows the number of sales recorded each month vs. the number of apartments available for sale at the end of each month.  The building experienced a four month dry spell in the spring/summer months where no apartments sold, but sales have turned around in a big way!  In the last six months, Hokua averaged five sales every three months.  If that pace continues, it will take 6.5 months to sell the 12 apartments available.  Specific sales statistics are listed below.

Hokua at 1288 Ala Moana Condominium
1288 Ala Moana Blvd., Honolulu, HI 96814
Built: 2006

Schools
Elementary School:  Kaahumanu
Middle School:  Central
High School:  McKinley

Location
Conveniently located one block from Ward Centers and just a few blocks from the Ala Moana Shopping Center and Nordstrom located on Kapiolani Blvd.

Features
P.F. Chang’s China Bistro and the Tango Contemporary Café are located on the bottom floor.

Availability
Apartments in the building:  246
Apartments available for sale:  12
Average days on market to date:  85
Apartments listed for sale in the last 30 days:  3
Months of inventory available:  6.5

Sales
Apartments under contract in escrow:  2
Apartments sold in the last 90 days:  10
Average days on market:  156
Sales Price / List Price:  90%

Are you interested in learning more about Hokua at 1288 Ala Moana?  If so, contact Michael Zimmerman for a no obligation consultation.  Please visit my web site to view Hokua apartments for sale, order special reports for buyers and sellers or conduct your own Honolulu condo search.

• First-time home buyers* who purchase homes between November 7, 2009 and April 30, 2010**.
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010**, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

*To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

**Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until June 30, 2010 to close the sale.

What is the credit amount?

The maximum credit for first-time home buyers is $8,000 and the maximum credit for current homeowners is $6,500.

How is the amount determined?

Each home buyer’s tax credit is determined by two additional factors:   the price of the home and the buyer’s income.

• Price – Credit may only be awarded on homes purchased for $800,000 or less.
• Income – Effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000 may receive the maximum tax credit.

Does the Tax Credit have to be repaid?

The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more.  However, if the property is sold during this three-year period, the full credit amount will be recouped on the sale.

Read the Home Buyer Tax Credit FAQ

Read the Home Buyer Tax Credit Change Summary


Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
http://www.michael-zimmerman.com
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The quotes below were taken from Ralph Peters‘ article “Blood for nothing” that appeared in the New York Post on October 28, 2009.

Quote 1:  “AFGHANISTAN isn’t completely hopeless, just useless.”

Quote 2:  “Apart from the curious notion that sending more Infantrymen is the way to win hearts and minds, the hearts and minds of Afghans not only can’t be won, but aren’t worth winning.”

Quote 3:  “The generals refuse to recognize that, from the local viewpoint, the Taliban are the patriots.  We’re the Redcoats.”

Quote 4:  “So our troops hold their fire and die to protect Afghan villagers who back the Taliban and to protect an Afghan government the people despise.  How, exactly, does this advance our national security?” 

Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
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The President promised change.  The question is; change to what?  If you haven’t asked that question, and millions of Americans haven’t, you’re doing yourself and your family a disservice.  Change for the pure sake of change is foolish.

Reform means different things to different people and the House and Senate continue their quest to “reform health care.”  We may be nearing the point of no return on this issue.  If the House and Senate leaders pass anything resembling the 2,000 page (that’s 4 reams of paper and sits over 8 inches high) bill currently being discussed, it will dramatically change the way Americans receive their medical care, probably forever.

I urge everyone to read the following four thought-provoking articles, written by Stanford University economist Thomas Sowell.  He has common sense, he’s not a politician and he writes in plain English.  These articles should make you think twice before trusting the House and Senate to alter the American health care system.

The “Costs” of Medical Care

The “Costs” of Medical Care:  Part II

The “Costs” of Medical Care:  Part III

The “Costs” of Medical Care:  Part IV

Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
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