Ouch! Health Care Hurts Real Estate!

Ouch! Beginning January 1, 2013, a new 3.8 percent tax on some investment income will take effect.  This new tax was passed by Congress in 2010 with the intent of generating an estimated $210 billion to help fund President Barack Obama’s health care and Medicare overhaul plans. 

And you thought health care would be free?  Consider this:

If you live in something other that a tent on the beach, this plan may impact you.  Do you rent? The landlord may adjust your rent UP to compensate for more taxes (ie: hidden costs) that they may have to pay. 

Do you own property? Do you receive interest, dividends or rents? 

The new tax will affect some real estate transactions, it is important for to clearly understand the tax and how it could impact you when you sell your property. It’s a very complicated tax.  See your tax professional for advice.  If you would like to have the National Association of Realtors brochure, please e-mail me, and I'll send you a copy with a broad explanation of the tax with examples.

This tax takes effect in 2013. Do you remember how fast 2010 went by?  Well, this new tax is only 24 months away. Don't be caught unprepared....do your homework and decide what will be best for you with your unique tax situation. 

 Don't say I didn't warn ya!

Kudomatsu

The kudomatsu is a nice New Year's tradition that we received from Japan. Around town you will notice these arrangements on many doorsteps.  The message that they bring is explained below.

This photo is of the Kudomatsu in our office Lobby-magnificant!

The kudomatsu or "gate-pine" is an arrangement of pine, bamboo, and sometimes plum blossom. The arrangement is placed on either side of the front entrance to the house to ward off evil dominance and invoke fertility, growth, and the power to resist adversity and old age. The pine represents strength, longivity and youthful optimism. The bamboo, which is straight and unbending, symbolizes resilience, uprightness, rapid growth and finial piety; it leans with the wind, but does not break.

Something's Fishy about the New Year in Honolulu.

Hau'oli Makahiki Hou!  Happy New Year!

Sashimi lovers unite!  It's a holiday tradition in Hawaii to have ahi on New Years Day!  Ahi is the Hawaiian name for yellowfin tuna, and it is ono'licious!

Because of the snow blanketing the mainland, shipping routes were clogged, and the best ahi stayed on island.  We have an ample supply of delicious ahi for the New Year, and shoppers were flocking to the grocery stores and fish markets.

Many folks planned ahead and had the opportunity to choose from their choice of sashimi grade premium ahi, sold by the pound.  Others decided that some spicy ahi poke would be just right.

Of course, it's not New Years unless we have fireworks too, lots...

....and lots...and lots of fireworks!

As for Walt and I, we're all set, and ready for 2011!

Happy New Years everyone!

Your question of the day: Do you have a favorite New Year's day tradition?

It's Swell at Sunset Beach!

Aloha Everyone,

Surfing is one of the biggest activities all year around on Oahu. But in the winter time everyone keeps one eye out for the surf reports from the north shore area.  Storm conditions can whip up some gigantic waves that only the bravest surfers want to tackle. If big surf is reported, locals try to get a very, very early morning start to beat the traffic.  The two lane road quickly clogs up with traffic because it seems everyone on the island wants to see the surf.

Todays surf report is below, nothing to gigantic, but still plenty challenging.

WNW swell down a bit from its peak yesterday but some nice surf still rolling in. Most spots are in the shoulder to head high range with some larger sets. Light easterly winds will make select locations offshore and other spots sideshore. Watch for Sunset to have great rights early in the day before the wind messes it up.

WEATHER:

Partly sunny. Isolated showers in the morning, then scattered showers in the afternoon. Highs 77 to 84. East winds around 10 mph until mid morning becoming light. Chance of rain 30 percent.

Mahalo to Kekoa for this surf report!

Currently there are 121 oceanfront properties listed for sale on Oahu. If you are interested in searching the multiple listing service for properties please go to:  http://www.coastalhawaii.com/

The question of the day: Would you rather have an oceanfront home or a home on a hill with an ocean view?

Obama party stays in private home taxed at $300.00 annually.

    

 The absentee owner of a multimillion-dollar home being used by President Barack Obama's visiting entourage gets one of the biggest residential property tax breaks on Oahu.

Kevin Comcowich, the Houston investment executive who purchased the nearly 5,000-square-foot home for $9 million in January 2008, was charged $300 in property taxes this year....snip...

Comcowich got the huge break because he was granted a 10-year property tax exemption by the city for his historic residence, built in the 1940s by Harold Castle, a key figure in the development of Kailua. The exemption is designed to encourage the preservation of historic homes.

Like last year, friends of the president are using the Comcowich home while they are vacationing here. Obama and his family are staying in a home next door.

Those who get full exemptions on Oahu pay only $300 annually in property taxes — regardless of the value of the residence. The flat rate, raised from $100 last year, is believed to be one of the most generous property tax breaks for historic homes in the country.

Critics of the program cite the Comcowich case as the latest and, with the president's visit, highest-profile example of the program's unfairness.

They say the exemptions disproportionately benefit the rich and provide an excessive break, without taking into account the value of the homes, how much is spent on maintenance, whether the owners live there.

 To read the full story click here:  http://tinyurl.com/2ebbey2

The question of the day:  Should a historic home owned by an individual for their private use, and the use of their guests be given this tax exemption?

Post your comments below.

Presidential Sweet

The President is in town. He and his family are staying in an Oahu community called Kailua.  The specific location is Beachside. Beachside home prices range from 6 million to 14 million dollars.

This sure beats the snow in Washington DC, doesn't it?

The question of the day: Does it matter where the President of the United States of America is on any given day, considering our digital age communication?