The Hansen Ohana wants you to know:

First-Time Homebuyer Credit 

Updated Nov. 6, 2009, to reflect new legislation — more to be added soon 

New Legislation 

New legislation, the Worker, Homeownership and Business Assistance Act of 

2009, which was signed into law on Nov. 6, 2009, extends and expands the 

first-time homebuyer credit allowed by previous Acts. The new law: 

• Extends deadlines for purchasing and closing on a home. 

• Authorizes the credit for long-time homeowners buying a replacement 

principal residence. 

• Raises the income limitations for homeowners claiming the credit. 

Under the new law, an eligible taxpayer must buy, or enter into a binding 

contract to buy, a principal residence on or before April 30, 2010 and close on 

the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have 

the option of claiming the credit on either their 2009 or 2010 return. 

For the first time, long-time homeowners who buy a replacement principal 

residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for 

a married individual filing separately). They must have lived in the same 

principal residence for any five-consecutive year period during the eight-year 

period that ended on the date the replacement home is purchased. 

People with higher incomes can now qualify for the credit. The new law raises 

the income limits for homes purchased after Nov. 6, 2009. The credit phases 

out for individual taxpayers with modified adjusted gross income (MAGI) 

between $125,000 and $145,000 or between $225,000 and $245,000 for joint 

filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to 

$170,000 for joint filers still apply to purchases on or before Nov. 6, 2009. 

General Information 

Homebuyers who purchased a home in 2008 or 2009 may be able to take 

advantage of the first-time homebuyer credit. The credit: 

• Applies only to homes used as a taxpayer’s principal residence. 

• Reduces a taxpayer’s tax bill or increases his or her refund, dollar for 

dollar. 

• Is fully refundable, meaning the credit will be paid out to eligible 

taxpayers, even if they owe no tax or the credit is more than the tax 

owed. 

The credit is claimed using Form 5405, which you file with your original or 

amended tax return. 

South Maui best located/best priced condos)
                                                                                
 
                                                     Price           BR      Comment                   
North Kihei:
1.  Kihei Villages 57-201              149,900       2          (short sale) Price!                    
2.  Kauhale Makai 127                     179,000       1          (short sale) Oceanfront Vac Rental!
3.  Haleakala Gardens 4E(New)   199,000         3          (short sale) Price & Nice Interior!
4.  Koa Resort 4C                         220,000       1          (short sale) Price, Nice, Vac Rental!
5.  Hale Kai o Kihei       A217         359,000       1          No short so easy, direct ocean front        
5.  Kai Makani 38-201                 389,000       2          (short sale) Price!
6.  Luana Kai D304                      400,000       2          (short sale) Oceanfront Vac Rental!
7.  Menehune Shores 225             449,000       2          Price, Nice Oceanfront VACRental!     
8.  Kauhale Makai 433                 449,000       2          Price, Nice Oceanfront Vac Rental!     
9.  Sugar Beach 212                     474,500       1          Beautiful Oceanfront Vac Rental!
 
South Kihei:
1.  Maui Vista 3219                      199,000       1          (short sale) Price & Vac Rental!
2.  Keonekai Vill 27-203              199,000       2          (short sale) Price & Location!
3.  Kihei Akahi D112   (New)      289,000       1          Nice, Price, & Vacation Rental!
4.  Kamaole Sands 4-213             290,000       1          (short sale) Price & Vac Rental!
5.  Maui Banyan G506 (New)      299,000       1          (short sale) Price, Nice, Vac Rental!
6.  Kihei Akahi D210                   311,900       1          (REO) Price, Views & Vac Rental!
7.  Kai Ani Village 1-202              329,900       2          Price, New, & Includes Garage!
8.  Royal Mauian 508                   795,000       1          Beautiful Oceanfront Vac Rental!
9.  Hokulani Golf Villa 32             799,000       2          New Residential Condo!
10 Hale Pau Hana 15                   999,000       1          Direct Oceanfront Vac Rental!
 
Wailea/Makena-Vacation Rental Resorts:
1.  Grand Champions104(New) 510,000          1          Upstairs & On Golf Course!
2.  Wailea Ekolu 304 (New)         670,000       1          Upstairs GC & Oceanviews!
3.  Wailea Ekahi 17F (New)         675,000       1          Oceanfront & Oceanviews!
4.  Wailea Ekolu 1405 (New)       695,000       2          Price, Quiet & Oceanviews!
5.  Grand Champions (New)         795,000       3          Large & On Golf Course!
6.  Wailea Elua 2011 (New)     1,400,000       1          Nice, Oceanfront, Oceanviews!
7.  Wailea Elua 2110                1,695,000       2          Oceanviews & Oceanfront!
8.  Hoolei T-6                          1,800,000       3          New, Large & Great Price!                 
 
Wailea/Makena- Non Vacation Rental Resorts:
1.  Wailea Fairway Villas P103    650,000        2          On Golf Course & Oceanviews!
2.  Kai Malu 21B                          879,000      3          (short sale) Wailea Res Condo!
3.  Kanani Wailea 11                     939,500      3          Almost New Wailea Res Condo!
 
          SUPER LOW PRICES AND INTEREST RATES!
 

South Maui best located/best priced condos)
                                                                                
 
                                                     Price           BR      Comment                   
North Kihei:
1.  Kihei Villages 57-201              149,900       2          (short sale) Price!                    
2.  Kauhale Makai 127                     179,000       1          (short sale) Oceanfront Vac Rental!
3.  Haleakala Gardens 4E(New)   199,000         3          (short sale) Price & Nice Interior!
4.  Koa Resort 4C                         220,000       1          (short sale) Price, Nice, Vac Rental!
5.  Hale Kai o Kihei       A217         359,000       1          No short so easy, direct ocean front        
5.  Kai Makani 38-201                 389,000       2          (short sale) Price!
6.  Luana Kai D304                      400,000       2          (short sale) Oceanfront Vac Rental!
7.  Menehune Shores 225             449,000       2          Price, Nice Oceanfront VACRental!     
8.  Kauhale Makai 433                 449,000       2          Price, Nice Oceanfront Vac Rental!     
9.  Sugar Beach 212                     474,500       1          Beautiful Oceanfront Vac Rental!
 
South Kihei:
1.  Maui Vista 3219                      199,000       1          (short sale) Price & Vac Rental!
2.  Keonekai Vill 27-203              199,000       2          (short sale) Price & Location!
3.  Kihei Akahi D112   (New)      289,000       1          Nice, Price, & Vacation Rental!
4.  Kamaole Sands 4-213             290,000       1          (short sale) Price & Vac Rental!
5.  Maui Banyan G506 (New)      299,000       1          (short sale) Price, Nice, Vac Rental!
6.  Kihei Akahi D210                   311,900       1          (REO) Price, Views & Vac Rental!
7.  Kai Ani Village 1-202              329,900       2          Price, New, & Includes Garage!
8.  Royal Mauian 508                   795,000       1          Beautiful Oceanfront Vac Rental!
9.  Hokulani Golf Villa 32             799,000       2          New Residential Condo!
10 Hale Pau Hana 15                   999,000       1          Direct Oceanfront Vac Rental!
 
Wailea/Makena-Vacation Rental Resorts:
1.  Grand Champions104(New) 510,000          1          Upstairs & On Golf Course!
2.  Wailea Ekolu 304 (New)         670,000       1          Upstairs GC & Oceanviews!
3.  Wailea Ekahi 17F (New)         675,000       1          Oceanfront & Oceanviews!
4.  Wailea Ekolu 1405 (New)       695,000       2          Price, Quiet & Oceanviews!
5.  Grand Champions (New)         795,000       3          Large & On Golf Course!
6.  Wailea Elua 2011 (New)     1,400,000       1          Nice, Oceanfront, Oceanviews!
7.  Wailea Elua 2110                1,695,000       2          Oceanviews & Oceanfront!
8.  Hoolei T-6                          1,800,000       3          New, Large & Great Price!                 
 
Wailea/Makena- Non Vacation Rental Resorts:
1.  Wailea Fairway Villas P103    650,000        2          On Golf Course & Oceanviews!
2.  Kai Malu 21B                          879,000      3          (short sale) Wailea Res Condo!
3.  Kanani Wailea 11                     939,500      3          Almost New Wailea Res Condo!
 
          SUPER LOW PRICES AND INTEREST RATES!
 

Economic Summary from Paul Brewbaker 

October, 2009 

• Macroeconomic conditions stabilized over the summer, and recovery in the national economy seems to be emerging. Hawaii may be slower to recover, with construction still falling into a 2011 trough, and with tourism receipts still falling despite steady visitor arrivals. Economic policies may also exert drag: after nearly two years of recession, governments in Hawaii are only just now adjusting public payrolls downward to reflect fiscal constraints. Legislators are still talking about “exacting” affordable housing and other developer concessions from a construction industry in freefall. Tax increases in Hawaii cannot be ruled out. Recovery, if any, in Hawaii will seem elusive to many whose anecdotal experience doesn’t jive with the data. 

• Hawaii’s unemployment rates remained unchanged on a seasonally-adjusted basis through late summer, after settling a peak in the spring. Oahu’s 5.5 percent unemployment rate blends with 9.5 percent Neighbor Island rates – in round numbers after unofficial seasonal adjustment – producing a 7.5 percent statewide rate. Both Hawaii and national unemployment rates have risen five percentage points, to just under 10 percent nationwide since 2007, and will be sticky well into 2011. Part-time employment trends do not provide information on the cyclical component of unemployment (levels do not vary much over the cycle), but all measures of unemployment, including those tracking those working part-time for economic reasons, have risen by the same increment. Still, Hawaii unemployment rates compare well to lows in the Dakotas (4.5 percent) and the high end of the range in Michigan (15 percent), Nevada (13 percent) and California (12 percent). 

• Hawaii housing market statistics showed a mix of positive trends and possibly unsustainable trends through third quarter 2009. Sales have risen. Inventory has shrunk. Price declines are moderating. Seasonally adjusted Oahu existing home sales rose during the first nine months of 2009. Sales trends are more ambiguous for the Neighbor Islands for two reasons. First, foreclosures comprise a larger share of Neighbor Islands’ total than Oahu’s (statewide foreclosures are lower than nationwide). Second, Neighbor Island volumes are more volatile and less amenable to seasonal adjustment; their improvement remains murky. 

• Existing home sales prices began to stabilize in the single-family segment on Oahu, continued drifting lower in the condominium segment, and remained pressured on the Neighbor Islands where trends are less clear. It remains to be seen how much of the real estate recovery is a bounce-back from a post-Lehman “overshoot.” New home sales incentives, low interest rates, and rebounding stock prices all have provided positive influence. Existing home inventories have fallen from more than 12 months remaining to less than 6 months, at current sales rates. (During the peak of the 1990s cycle, nearly 24 months of inventory remained.) 

• Domestic tourism volumes have recovered over the last 5 quarters at rates consistent with the gradual increase in scheduled seats but, adjusted for transitory H1N1 virus effects last spring, international visitor counts have continued declining along the long-established trend back to the mid-1990s. While total visitor counts have been largely unchanged on a seasonally-adjusted basis for more than a year, constant-dollar real visitor expenditure has fallen all through the year. The drop in real visitor outlays contrasts with a stabilization in nationwide retail sales that began in the spring, with a recent uptick attributable to the Cash-for-Clunkers program of tax credits for older vehicle trade-ins. Evidence now suggests that the program produced a net increase in vehicular production—as opposed to time-shifting. Encouraging signs of a recovery also are emerging in non-motor vehicular consumer spending categories. Still, as a long-haul leisure destination it seems likely that Hawaii will be one of the followers rather than leaders in that chain of improvements. 

• Federal Reserve policymakers have been increasingly open about the sequence and pace of their exit strategy from credit easing, while encouraging market participants not to get too hung up on timetables. Bond markets seem comfortable with interest rates rising slowly to levels consistent with steady-state economic growth. Gradualism seems to be the dominant economic policy theme.