Empty nesters find 'good life' in town

 

HONOLULU ADVERTISER   November 25, 2006

 

BY LISA SCONTRAS

 

Custom Publishing Group

 

More are trading homes for condos.

 

Bigger is not always better. Just ask the growing cadre of homeowners who have found that trading their single-family home for an upscale condo allows them to downsize and upgrade — all at the same time.

 

John Hayama, partner at Prudential Locations LLC and a sales manager at 909 Kapiolani, says he’s seen buyers of all ages turning to condo buying for various reasons.

“Some are getting away from long commutes to work, some are getting away from the maintenance of their single family home, and others are downsizing in general,” he says. “Some are buying as a retirement home and others are buying in advance of retirement — as an investment until they’re ready to retire.”

In each case, they are upgrading some facet of their lifestyle. And there are financial considerations as well.

Capital gains tax lifetime exemptions — of $250,000 if you’re single and $500,000 if you’re married — is also fueling the trend to downsize, according to Hayama.

“In the past, in order to defer (capital gains) taxes owed, you needed to make a purchase that was equal to or more than your selling price,” says Hayama. “Now you can sell a $700,000 unit and purchase a $500,000 unit and that’s OK — and you don’t pay any capital gains (as long as you meet the criteria established for living in the home long enough).”

Jim and Helen Mao, empty-nesters, decided after 24 years in the suburbs to move into a condo in Waikiki. With all their children away at college, the Mao’s said they wanted a change.

“We wanted to be in the thick of things,” Jim Mao says. “I’ve lived in a quiet house for many years. I’m not looking for ‘quiet’ anymore ... I’m looking for action.”

Jim, a Realtor at Prudential Locations with 22 years in the business, had helped a number of clients move back into town, and finally decided to take some of his own advice.

“One of our favorite parts about living in a condo is the convenience of just locking up the door to go on a trip,” he says. “We’ve also made two real good friends just by going up and down the elevator — it’s just like we’re still in college dorms except with more money.”

Mao says he thinks it’s the simplified lifestyle and convenience that appeals to buyers. That together with the fact that the high price of single-family homes makes condo buying more realistic for many buyers.

“I do see baby boomers giving up their homes for condos,” says Mao.“But I am really seeing more 40-somethings with young children who are jealous of my lifestyle.”

Hayama says new-home projects and retirement communities like Kahala Nui and some of the new high rises currently under construction in town are filling the growing need for more condos.

“I think it is a trend,” says Hayama, who recently helped some clients sell their home of 40 years to move into Kahala Nui. “People are living longer. And the number of people in Hawaii who are living longer is creating a marketplace and giving folks a lot more options.”

Buyers at 909 Kapiolani — scheduled for completion in early fall — were motivated to buy for two main reasons. They liked the convenient location — close to the beach, Ward Warehouse, the Honolulu Club, downtown — and they were looking for new construction.

“They like that they don’t have to replace appliances, there are up-to-date finishes including porcelain tiles and granite ... and they don’t have to worry about asbestos,” says Hayama. “They can bring their toothbrush and move right in."

 

 

 

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