Saturday 1 November 2008

Large mortgage, big surf, high maintenance

There are several place on the Big Island that I visit when I need to relax - they tend to be the quiet and scenic spots but most are a long way from my house. There is one spot, however, that's only a mile away from my home on Kaloli Point. It may not be the most scenic on my list, but it certainly compares favourably to the places I've lived in before.

It's the start of the whale season in the Hawai`ian islands. The humpbacks are arriving in the waters to breed after spending the winter feeding in the Arctic. This is a great whale watching spot so thought I'd pop down to see if there were any signs they were back. Sadly, I saw no whales although I wonder if the couple above might be pointing to one I missed...

This place has changed over the years though and the baby boomers are arriving, many of them from California. In the last few years this area has become unrecognisable due to all the houses that have been or are being built on the cliffs. Don't get me wrong, these homes are beautiful and I promise to get some close up shots soon, because I'm jealous. What's striking though, having driven past them today, is that nearly every one of them has a "for sale" sign outside. Most are selling for $500,000 to $1 million. I don't even want to think how much the monthly mortgage payment is.

What's worse is that nearly all of these houses were built during the recent housing boom and I suspect cost nearly double their current value to build.

OK, so perhaps these people are rich and it's not a problem, but then why are these houses for sale? Hawai`i always lags the mainland, so I suspect prices will drop further and that's not good. Couple this with what appears to be a beautiful and serene spot...


...as in the photo above (180 degrees from the first picture), I think many people's retirement dreams have been destroyed. Further, I'm not sure the people that have built houses here realise that we do get storms, and even if, touch wood, we haven't had a hurricane in living memory, whatever you build on the cliffs is subject to a drenching from seawater and salt.


The cliffs are typically 15 to 20 feet high. Parts of them disappear every winter when we get high surf but they are high enough to protect the homes from flooding on most occasions. Still, even if your house doesn't get flooded, would you want to deal with the corrosive spray that'll cover your house every winter?

The last picture was taken seven years ago. It's one of my favourites! Most of the houses in the first picture weren't there then. It gives one an idea of how high the cliffs are as this surf had 10-20 foot faces. Forgetting high surf for the moment though, what on earth do you think will happen when the next big tsunami arrives? I don't think typical flood insurance covers that.

3 comments:

alice said...

Living on a cliff above the ocean is my dream home, though I have to admit, I've always pictured being a bit higher above the water than these houses...

Tom said...

The houses at this spot are among the most beautiful I've seen, but you're right, most people would want some higher cliffs. We're overdue a big tsunami and when it finally arrives these houses will be expensive driftwood. I think a big hurricane might do the same. The only saving grace is that the water here is deep so the waves might not be too high, but I wouldn't want to bet on that.

alice said...

Based on that gorgeous bottom photo, I wouldn't bet on it either...