| FREQUENTLY ASKED QUESTIONS 1. Q: What are the annual maintenance fees per 1/6th interval? How often are they paid? Are there any other fees I don't know about? A: The regular annual fees will be $2200 per interval for the first year. The amount may change when there are changes in the actual costs of the property. As an owner, you will be part of the process of determining costs for future years or appointing someone to do this. The types of expenses and expected expenses for the first and expected future years are all listed on the Fees Schedule for the Project which is part of the sales package you receive. Also, each owner will pay a one-time non-refundable $500.00 set-up fee, regardless of how many intervals the owner purchases. Each owner will have their own account set up for expenses, rental income and all other communications and management concerns. The only additional charges you may see are for things that are not known now, including increases for increased taxes, insurance premiums, Island on the Beach condominium maintenance fees, damages not covered by insurance and similar expenses. If an owner or their guest damages the property there may be additional expense to repair the damage. These are the same types of expenses you would incur in any type of property ownership. 2. Q: What do the fees pay for? A: The $2200.00 estimated fee pays for: monthly condo maintenance fees for grounds maintenance, utilities, project management, common area property taxes, if any, group Insurance, building maintenance, common area utilities, TV cable, reserve accounts created to pay for future furniture and building replacement. 3. Q: Are there any other member fees? A: No; however, when units are occupied by members or owners or guests, each one pays a check-in fee of $35.00; this minimum charge covers a-one time key and maid service charge. If requested there is a daily maid service and that charge $15.00 per cleaning. 4. Q: What are the different Interval periods and how many RCI points will I have? Does the amount of points change depending on the time of year I get to use? Is it up to me whether I am in RCI? Where can I go with my points? A: The RCI Points for every interval have been established by RCI, which has thousands of resorts across the world. You can use your points anywhere in the world where in an RCI property with an RCI points exchange available. The points can be used for a wide variety of travel services, not just hotel or resort stays. It is easier to book properties by asking as early as possible. The value of the points pretty much follows the popularity of the time year for vacationers to Hawaii. You will notice that the highest numbers of points are in the summer vacation period and in some very cold late winter and spring periods when people in very cold areas are looking for an escape. However, there is no low period in Hawaii, as people want to come here 365 days a year. It is up to you whether you put any weeks in RCI. You can put anywhere from no weeks to all of your weeks in the RCI plan, and you can make deposits every year and change your weeks as often as you want, so long as you honor the weeks you already deposited.
5. Q: What Financing is available to buy an interval in this Project? Can I get my own financing? A: Our lender is allowing us to sell intervals with promissory notes and mortgages set at U.S. Bank Prime Interest Rate +2.5% per annum. You must put 20% or more down with approved credit, but as little as 10% down depending on underwriting guidelines. If you have strong credit and good banking relationships you may be able to get a better rate than we offer, which you are welcome to do. Not very many lenders are currently in the fractional lending market and we expect it may take a year or two for more lenders to get into these loans, so our lender may be the best option for you. 6. Q: Can I look at a price sheet for all of the units available for sale. A: Absolutely, you are welcome to review all prices on available intervals. Not all units will be available at any particular time, and some intervals may already be sold and waiting for closing. See the Interval Price Chart and Calendar. 7. Q: When you buy do you become a member of one or more associations? Why? A: YES, There are two associations, one for the Condominium project and one for the Fractional Ownership project. Each one takes care of the things that are the unique concern of either the entire condo project or just the group of fractional owners. (1) Islander on the Beach Owners Association for the condominium. This association takes care of the physical plant of the Islander on the Beach resort, including buildings, pool, lobby area, parking lots, all the grounds and operation of the project in general. This Association also hires the resort manager for the project. (2) Oceanfront Properties Islander on the Beach Fractional Owners Association. This Association takes care of the interior furnishings of the units in the Plan, pays taxes and insurance on the contents of Unit in which you will be an owner, evaluates the current and expected costs of operating the plan and hires any people needed to care for the units in the Plan. 8. Q: Who is the manager at Resort Quest Islander on the Beach and what is his phone number? A: Clinton Owen, General Manager of Aston Resort Quest at the Islander on the Beach. His phone number is 808.822.7417 9. Q: Can I rent my own Suite out? A: Yes, you can rent out the suite yourself or you can use the hotel’s rental program with Resort Quest as the property management company. However you cannot do both at the same time. If too many people decide to do their own rentals Resort Quest may cancel the management arrangement. With Resort Quest there is a 50/50 split of rental proceeds. Resort Quest will have a separate contract for this service and you should read it carefully. 10. Q: Is it mandatory that I have join RCI? A: No, it's optional but if you do desire to join a three year membership is included at the Seller's expense. 11. Q: Can I trade my weeks with other owners in the fractional Oceanfront Properties Islander on the Beach Fractional Interest Ownership Plan? A: Yes, part of the ownership plan includes the right to trade time within our plan members. 12.
Q: Am I responsible for any kind room tax? 13. Q: How are the property taxes paid on the units? A: All taxes are collected annually from the interval owners and paid by the Plan Manager or through the Oceanfront Properties Islander on the Beach Fractional Ownership Plan. Each owner will receive a copy of tax bill showing the total and the calculation of the individual 1/6th tax portion each interval must pay. 14. Q: How is my share determined and paid? A: Each interval pays one-sixth of all shared expenses of the Unit in which you are an owner. Depending on how many units participate in the Plan, there can be some savings from dividing management costs between as many as seventy-two intervals rather than the six in a single condominium unit. All taxes are determined in November of each year and billed to the owners. Payments are made from the Oceanfront Properties Islander on the Beach Fractional Interest Ownership Plan accounts. Since we pay all expenses in advance there is little or no risk of penalties for late payment of any Plan expenses. 15. Q: The property qualifies for a 1031 exchange? How about a second home for tax purposes? A: Generally speaking, any investment property can be used in a 1031 exchange. You could view this property as either an investment or a second home. The rules are different, and depending on your plans and your actual use of the property the answer might change. Each transaction is evaluated with a combination of factors, and you must consult with your tax professional on your personal situation. It is safe say in general that buying an interest in a Hawaii oceanfront condominium is an appropriate investment and could also be a second home. (General questions can be directed to Ms. Julie Tumbaga at Orexco; her telephone number is 808-524-6737.) 16. Q: What year was the property built? A: The hotel building was originally built in 1969 and has been completely refurbished in a process that was completed in the latter part of 2005. 17. Q: Are there on-site laundry facilities? A: Yes, it is coin operated. 18.
Q: What are the various features and amenities of the
property? Property Features
Building Amenities
Unit Features
Recent Renovations
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