Kona Kohala Blog

In talks with Bank of America it was said that more foreclosures are on the horizon.  Currently, B of A has about 63 REO's (Real Estate Owned, lender term for bank owned properties) spread from Hawi to Na'alehu including South Kona, and quite a few in North Kona and South Kohala.  These are mainly investor properties found in Waikoloa Beach Resort, Mauna Lani Resort and the Kailua Kona area.

The source, speaking anonymously, stated that there would be between 180 and 200 new REO's coming on the market from now until January, 2010.  Instead of being investor homes, these will be homes belonging to people living full time on Hawaii Island that have run into financial problems.

Many of these owners are working couples with one or both working at resorts like Hualalai Resort, Kukio Resort or the Mauna Lani and Mauna Kea.  A lot of them had jobs in construction which has dropped off dramatically with the declining economy.  The service industry has also been hit hard as fewer people vacation in Hawaii.

To entice people to make Hawaii a vacation destination, our idiotic legislature decided to raise the Transient Accommodation Tax, TAT that's charged for hotel rooms, a full percentage point this year and another point next year.

Yes, this is the socialist state of Hawaii run by democrats who think the answer to every budget problem is, "raise taxes".  I read today that the only difference between democrats and republicans is that when democrats run things they share the pain with the taxpayers.  Where's Ronald Reagan when we need him?  It's time for tax cuts, not increases!