When you look at the neighbor islands and rewind to 2008 and 2009, they were disproportionately affected by that economic downturn. Prices really dropped. Sales dropped off.

The good news is, on each of the neighbor islands you’re seeing broader recovery both in prices and in sales. Similar to Oahu, we’re seeing that the neighbor island real estate markets of Maui, Kauai and the Big Island are picking up—limited inventory on Maui is boosting one in seven homes over asking price, and one in 12 condos are being bid-up over asking price thus far in 2013.

The wind’s blowing in your hair and you’re going as fast as you possibly can. What a feeling!

It was all part of the fun at the box car racing event sponsored by Locations Foundation, supported by Prudential Locations, LLC, for Child and Family Services of Hawaii. This event, held at American Box Car Racing International recently, is a great way for siblings living in different foster homes to reconnect with family and each other in a fun and safe environment.

A big mahalo goes out to the host of Prudential Locations' staff and REALTORS® who participated in the event, including Tom Presler, Joe Segal, Jodee Farm, Stephanie Chan, Eric Uyeda, Cheri Ambard, Fred Ushijima, Jessica Chiu, Lindsey Itamoto, Annie McCrea, Jo Ann Foulkes from Prudential Locations and Luana Holi (from Property Management). In addition to the many children and families, volunteers and staff members from Child and Family Services also attended.

A yummy lunch accompanied by many happy and smiling faces concluded the event, and we look forward to another great event next year with the kids!

There are some truly spectacular homes here on Oahu - from CEO villas to celebrity estates, the assembly of luxury homes in our corner of the world is nothing short of spectacular. So if you are in the market for a new home, and have a few million dollars extra kicking around, here’s a few homes to choose from right now.

210 N Kalaheo Avenue - Kailua, HI 96734

MLS #: 1212126

$24,950,000 

• 8 Bedrooms
• 8 Full baths
• 3 Half baths
• 10,344 SQ FT
• Land Area: 65,140 SQ FT

Truly a resort within itself! This stunning Kailua beachfront estate spans from street to Pacific Ocean with over 65,000-plus SQ FT of tropical grounds. An exquisite residence with over 10,000 SQ FT of lavish living space plus a gorgeous separate three bedroom guest house. Fashioned by renowned designers Kerr-Michaels and expert craftsmen, this home is about elegant detail with rich hardwoods and pocketing glass walls that open to sandy shores and turquoise waters. Your own private paradise! Property listed by Coldwell Banker Pacific Property. 

As of January 1 this year, a 3.8 percent Medicare tax on investment income went into effect. However, it only applies to those who exceed the following adjusted gross income (AGI) levels, a figure that currently excludes about 96 percent of all U.S. households.

• Singles - $200,000 or greater AGI
• Married, filing a separate return - $125,000 or greater AGI
• Couples - $250,000 or greater AGI

The Medicare tax is not a sales tax, nor does it apply to all real estate transactions. Moreover, it’s a tax on investment incomes (which may or may not derive from the sale of a property) and typically won’t include capital gains resulting from the sale of a home, providing that home is a principal residence, and as we stated above, only for individuals or couples with AGIs above their thresholds.

The capital gains tax exclusion rule for sales of a principal residence ($250,000 for individuals, and $500,000 for couples) remains in effect. So, if the profits from the sale of the home don’t exceed these capital gains, they’re not tacked onto the net-investment income tally. Therefore, the 3.8 percent Medicare tax wouldn’t apply.