Dear Kauai Lovers,

Well it's our first newsletter of the new year. We've been quite busy getting the new year started and the winter market is buzzing with buyers seeking their piece of paradise. Despite the incessant press about the mortgage industry collapse, and the recession we may be in the throws of, investing in property on Kauai is very popular and in these uncertain times, perhaps a good place to park your equity long term.

If you have not yet checked out Ron's blog on the Active Rain network, you will find some of the same articles that appear in the newsletter along with comments from readers and realtors around the country. CHECK OUT MY BLOG HERE

Table of Contents:
1. Coco Palms to become a park?
2. Great new listings
3. Koloa Tree protests
4. What exactly is APR in a mortgage?
5. Trees Lounge - that's one , two, tree...
6. Get Your Market Snapshot HERE
7. Hawai`i chosen as energy model

Coco Palms to become a park?

Coco Palms, the famous Kauai resort which put Kauai on the map, lay dormant for thirteen years after being demolished in Hurrican I`niki. The Coco Palms Resort was once "the" resort to stay in on Kauai. In its heyday it was filled to capacity with honeymooners, repeat visitors and numerous celebrities.

In the summer of 2005, developers, Coco Palms Ventures LLC and the county announced that Coco Palms would be developed into a mixed-use facility that was to feature 200 condominium units, 104 hotel rooms and a spa on the lush 45 acre campus in Wailua. A sales office was built in the Coconut Marketplace and sales and marketing commenced in 2006. Then in Sept. of last year, the developers pulled the plug on the project and placed Coco Palms on the market. According to the developer, the price is negotiable; the company paid $12.3 million for the resort in January 2006. The total project is 32 acres, some of which is land leased from the state that cannot be developed.

In the meantime, community sentiment has been building for the county to turn the former resort site into an eastside park. This week, Senator Gary Hooser, introduced a bill in the Senate requesting an appropriation of $10 million in matching funds to buy Coco Palms Resort. The legislation calls for acquisition of the resort and converting the campus into a public historical park and cultural education center to preserve and benefit native Hawaiian culture.

Original Coco Palms Lobby Site Plan for new Coco Palms, now dead in water Original Coco Palms dining room

It's not likely the state would pay the whole price nor have the resources to manage the facility which is why the bill asks for matching funds. Senator Hooser first introduced this idea of turning the resort into a park five years ago, but the idea never got much support. To read the bill in its entirety CLICK HERE

Great New Listings

We have some great new listings to share with you. The 3 we feature in this article are condos on the east side. The first one includes units 203 & 205 at the Wailua Bay View Resort on the coconut coast. These two quaint one bedroom units are perched right above Wailua Bay and directly across the highway from the old Coco Palms written about in the article above. These units are extremely successful vacation rentals, booked almost 90% of the time. Unit 205 is listed for $669,000 and Unit 203 for $631,000. These units have the lowest maintenance fees on Papaloa Rd., where the condos are right on the ocean. Click to virtual tour of UNIT 203 and UNIT 205 at Wailua Bay View.
View from Wailua Bay View 205's lanai

Just up the road from Wailua Bay View is the elegant and popular complex called Lae Nani. 84 condos on lush tropical grounds with a fantastic view of the ocean, the bay and the mountains on the east side. Unit 316 at Lae Nani is listed for $749,000 with a $10,000 credit for buyer upgrades. This two bedroom unit is spacious with 4 large closets and is just steps from the ocean. View the Virtual tour and Outrigger's site about Lae Nani. This unit is currently managed by Outrigger.

View from Lae Nani 316's lanai

The third condo we want to feature is at a secret little complex cleverly located adjacent to Lydgate Park and it's walking paths and just behind the 13th hole of the Wailua Golf Course. Kaha Lani 116 is now available for $609,000 with a $10,000 credit for buyer upgrades. Many Kauaians and even some real estate agents don't know where this complex is, because it's simply tucked away and so very private. This one bedroom, one and a half bath unit is one building back from the oceanfront and nicely protected from the sometimes blustery tradewinds and rain. View the virtual tour and read about Kaha Lani.
The Kaha Lani Pool with ocean in the distance.

Koloa Tree Protests

It is such a contrast to your standard international news we read daily in USA Today or on cnn.com or latimes.com to see the amount of interest and press gathered for some of our local Kauai issues. One recent issue in our news has to do with the removal of thirty monkey pod trees from an area in Koloa town on the south side of the island. In Koloa, the developers of a project called "The Shops at Koloa" have publicly stated that 30 huge monkey pod trees will need to be removed. There have been a number of protests and demonstrations. Many letters to the editor, from tourists as well as locals, are cries to keep the trees and work around them. Read this article by Kauai's happy camper, Dennis Fujimoto, to learn more about the facts of this story. Juan Wilson also has a feature about the situation and the perspective of Kauai Outdoor Circle, who are committed to keeping Kauai, "clean, green, and beautiful."
Cluster of Monkey Pod trees perhaps about to be destroyed

The large trees certainly add a character and ambience to the area that will clearly be missed by many. I'm hopeful that the developer and the community find a workable solution that leaves no bitter feelings on either side of the table.

What exactly is APR in your mortgage?

Have you ever wondered exactly what what APR, Annual Percentage Rate, means when you see it on your loan estimate? APR is a requirement of the Federal Truth in Lending Act as a means to help regulate the way lenders advertise. It is to notify borrowers of their interest rates as a function of loan amount, total onetime costs and terms

Here's a quick list of fees that are customarily included in the APR: Points (either orginiation or discount), lender fees (underwriting, processing, application, document preparation fees, tax service), mortgage insurance premium, and pre-paid interest. Not all lenders will use the same amount of prepaid interest. There is no rule that says lenders must use a specific number of days of pre-paid interest in their APR calculation. Fifteen days is customary, but not universal.

Of course there are additional fees that are not customarily included in the APR like title fees (title insurance, loan closing fees, endorsements, etc,) and fees that go to other third party vendors such as appraisers or credit reporting agencies.

Generally if you are comparing loans with the exact same interest rate, add up all the fees that each lender is charging and the one with the lower fees should be the better value, keeping in mind that each lender may not include the same fees in the calculation. It's a good idea to ask each lender what fees they included in their APR calculation. If you see origination or discount fees on one "good faith estimate" but not another, be sure to ask if the fee is buying the rate down.

If you are going to lock your rate, always ask how long the "lock" period is for. One lender may offer you a reasonable rate and APR on a 30-day lock, while another may offer a better rate and APR on a 15-day lock. Ask your lender enough questions to know what you are getting. You want a lender who can answer these questions to your satisfaction.
Trees Lounge - that's one, two, tree

A cool new restaurant and lounge has recently opened in Kapa`a, just next to the Islander on the Beach, behind Coconut Marketplace. Tree's Lounge - that's one, two, tree, which is the Pidgin' word for three, is a funky and comfortable atmosphere with great food and features live music nightly. I sat in on drums last Thursday night with Kundala, world beat jazz; a guy from New York ( who played the Chapman Stick,) sat in and blew all our minds. What an unusual and cool instrument.

The food at Trees is great and as you might expect, you can choose from tree (3) different cuisines. We recommend the jerk chicken with breadfruit, fresh fish skewers and the sweet potato fries and of course, the beignets. Those New Orleans style donuts' are absolutely delicious and sweet.

Every time I've stopped by Trees Lounge it's been pretty full of people and I think that Kaua`i residents are hungry for a spot to listen to good music, drink and eat. While Trees is on the south side of Kapa`a, the Polynesia Cafe is on the north side. The Cafe is about to reopen as Polynesia Nites, and will be entering the market for live music, drink and food as well. The Polynesia guys must have been studying the great success of Trees Lounge. Looks like we might actually have a night scene on the East Side of Kauai. As long as I take a nap, I can go out in the evenings to play and enjoy these new venues.


Get Your Kauai Market Snapshot HERE

Gwen and I are happy to introduce a new feature for all our clients and prospects. It's called MARKET SNAPSHOT. Would you like to know:

* What is the supply of unsold homes in a particular Kauai neighborhood?
* How fast are homes selling right now?
* How do actual selling prices compare to listing prices in the area you are interested in?
* How do I get more for the money in a changing market?

Our unique Market Snapshot Provides you up-to-the minute MLS graphical reports - automatically delivered and updated. And you can have them delivered to your email as frequently or infrequently as you wish. Give it a try and let us know what you think.

Hawai`i chosen as energy model

The Associated Press reported on Tuesday that Hawai`i will become an example of how the United States can become energy independent under a unique agreement with the federal government signed on Monday. The deal makes the islands a national model for how power from the sun, wind (we've got lots of that), waves and earth can be harnessed to light homes and fuel cars, officals said. The goal is for Hawai`i to produce at least 70 percent of its own energy by 2030.

Hawaii is the perfect place to test renewable energy technologies because it has abundant natural resources but suffer's the nation's highest gas prices and imports 90 percent of its energy.
Efforts will focus on making smaller islands like Kauai entirely based on renewable energy, improving the stability of electric grids, bulding self-sufficient new military housing and lifting government barriers that block private companies from making natural power work.

Download the full memorandum about this exciting step for the islands.

Hope to see you this year on the Garden Island. Until then, enjoy...

Ron and Gwen Margolis
On Top of The Aloha Beat
Century 21 All Islands
http://www.landinkauai.com
email: ron@landinkauai.com
24 Hour Information Line: 800-582-9585
Cell: 808-346-7095