Luxury Home Magazine

SINGLE FAMILY RESIDENCE 2012 Median Price 2013 Median Price Median Price % CHANGE 2012 Median Price 2013 Median Price Median Price % CHANGE %91 005,732$ 000,002$ %31 062,514$ 005,663$ lartneC %0 0$ 0$ %9- 005,795$ 000,066$ ukiaH %2 000,574$ 000,564$ %94 005,127$ 000,584$ anaH %55 004,767$ 009,494$ %6- 000,061,1$ 000,032,1$ ilapanaaK %0 0$ 0$ %84- 051,314$ 009,997$ aolukahaK %66 005,739$ 000,665$ %9 675,031,3$ 000,088,2$ aulapaK %0 0$ 0$ A/N 005,964$ 0$ eanaeK %42 000,513$$ 005,452$ %91 005,735$ 057,054$ iehiK %0 0$ 0$ A/N 0$ 0$ uluhapiK Kula/Ulupalakua/Kanaio $567,500 $595,000 5% $0 $0 0% %1 005,953$ 005,753$ %81 000,006$ 005,705$ aniahaL %28- 000,69$ 000,425$ %06 005,213$ 000,591$ ianaL %61 000,523$ 000,182$ %0 0$ 0$ aealaaM Makawao/Olinda/Haliimaile $338,000 $426,000 26% $0 $0 0% Maui Meadows $810,250 $1,225,000 51% $0 $0 0% %9 054,89$ 000,09$ %94 005,083$ 000,552$ iakoloM %0 0$ 0$ %001- 0$ 991,532$ ukihaN Napili/Kahana/Honokowai $620,000 $811,000 31% $295,000 $381,250 29% %0 0$ 0$ %2 000,571,1$ 000,051,1$ ulawolO %51 000,054$ 000,093$ %8 000,725$ 000,094$ inalakuP Sprecklesville/Paia/Kuau $408,000 $589,000 44% $260,000 $294,000 13% Wailea/Makena $1,253,100 $2,462,500 97% $738,000 $999,375 35% MAUI SUMMARY $465,000 $532,500 15% $350,000 $375,000 7% CONDOMINIUM SINGLE FAMILY RESIDENCE 2012 Median Price 2013 Median Price Median Price % CHANGE 2012 Median Price 2013 Median Price Median Price % CHANGE %0 0$ 0$ %31 005,461$ 000,541$ anuP %52- 005,69$ 000,921$ %81 000,282$ 000,042$ oliH htuoS %0 0$ 0$ %5- 000,582$ 000,003$ oliH htroN %0 0$ 0$ %62 000,033$ 000,262$ aukamaH North Kohala $455,000 $449,000 -1% $0 $0 0% South Kohala $334,500 $406,771 22% $413,500 $435,000 5% %22 000,032$ 000,981$ %31 000,054$ 005,993$ anoK htroN %81- 105,031$ 000,061$ %12 005,263$ 000,992$ anoK htuoS %27 000,571$ 000,201$ %54 000,941$ 005,201$ u'aK BIG ISLAND SUMMARY $255,000 $295,000 16% $247,000 $255,000 3% CONDOMINIUM (continued from page 54) 3. Elect under IRC § 761(a) not to be treated as a partnership for tax purposes; 4. Execute the purchase and sale contract as tenants in common; 5. Make sure the proceeds are distributed to the tenant in common owners; 6. Make sure TIC owners participate in all income and expenses associated with the property; and 7. Consult with your tax professional well in advance of a proposed sale to determine if any of the above suggestions are suitable for your situation. TWO ALTERNATIVE STRATEGIES TO THE DROP AND SWAP RISK: 1. Partners wishing to exchange purchase the departing partner’s partnership interests for cash and reconfigure the partnership to exclude the departing partner. The partnership then proceeds with the exchange. 2. The partnership negotiates to sell the property, but requires the buyer to provide – as part of the purchase price – an installment note in an amount equivalent to the departing partner’s(s’) interest. Thereafter, the partnership as- signs the note to the departing partner(s) before any payments are made. Taxpayers should keep in mind that these types of transactions are inherently risky and are therefore often subject to scrutiny. As such, they can be re-characterized by the IRS under the step or substance over form doctrines as the sale of a partnership interest, which is precluded from tax deferral treatment under IRC § 1031. Taxpayers should therefore always consult their tax advisor well in advance of their contemplated transaction. Julie Tumbaga, VP Hawaii Regional Manager 900 Fort Street Mall, Suite 1900 Honolulu, Hawaii 96813 (808) 524-6737 (877) 591-1031 Toll Free Jtumbaga@orexco1031.com www.orexco1031.com Jenni Lee | Account Executive | 808.430.3022 | JenniL@ortc.com Reta Chin-Chiarella | Business Development | 808.268.6554 | rchinchiarella@ortc.com MAUI BIG ISLAND Year to Date Median Sales Prices By Island As of October 2013 www.ortc.com Our Promise "We increase the value of real estate transactions for all participants by identifying, underwriting and managing each transaction with the highest standards of technical skill, client service and professional integrity" All information taken from Hawaii Information Services. MLS Sales Data information shown herein, while not guaranteed, is derived from sources deemed reliable. All information taken from the Realtors Association of Maui. MLS Sales Data information shown herein, while not guaranteed, is derived from sources deemed reliable.