Where Aloha Meets Luxury
Dave Futch

A higher cash portion of the percentage of the purchase price results in lower interest rates and monthly payments.

Absolutely. A Buyer should define the budget to target only the properties that fall within the lender’s maximum loan amount. A Seller will have more confidence that the Buyer can complete the transaction if the Pre-Approval letter accompanies the offer.

Most cash transactions run about 30 days while most financed transactions run about 45–60 days. There is typically a 14-day extension built into the offer, in case it is needed.

Only Hotel Zoned condos are assured to be able to rent on a short-term basis. The current administration is eliminating short-term-rental (STR) for residential properties and Apartment Zoned condominiums in order to lessen the housing shortage for local residents. Licensing is required and it will be difficult to obtain a license.

Most of Haiku is zoned Ag which is entitled to a main house of any size and an auxiliary farm dwelling, aka Cottage, aka Ohana, of up to 1,500 sf of living area plus a covered lanai and garage. Areas that have different zoning, have different entitlements.

There are very few residential properties and a small number of condo complexes that are Leasehold. Essentially, there is a land-owner that owns and leases the land under the complex. The unit owner owns only the unit. If the lease expires, the landlord can legally evict all of the unit owners. This concern caused much lower sale prices but do include the additional monthly expense of the lease rent.

The fees typically cover common-area maintenance, water, sewer, trash, master insurance, landscaping amenities, reserves and management. This will differ from complex to complex for condos and from community to community for residential properties. A Buyer will receive a complete set of documents during escrow to review.

Hawaii may have the lowest property taxes in the nation. The taxes being paid will remain the same at closing as they were for the Seller, if the property is being held in the same manner as the Seller. This includes primary residence which is almost half of the investor ownership. A new owner that intends the property to be their primary residence must file for Homestead Exemption to keep the lower rate.

Insurance guidelines have become more stringent since the wildfires. Make sure that coverage will be possible and confirm the cost early in the escrow process. There are many factors that effect the cost, including the age and type of roof, flood-prone locations, age of the buildings, and so on.

The first inspection is the Home Inspection, you may hire a professional to examine all of the structural, electrical, plumbing, appliances and more. You will receive a complete report with pictures and descriptions of any defects or deficiencies. Other inspections might include septic or cesspool, irrigation system, security system, rain catchment systems, and so on.

You will be able to determine the flood and/or tsunami zone which will indicate the likelihood of a flood to occur after the purchase.

There is a County website that shows all of the permits associated with a property. There will be a Seller’s Disclosure delivered to the Buyer that will reveal the parts of property that have not been permitted.

Distances on the map may be different than the time needed to drive from home to the activity. Think in terms of time rather than mileage.

Confirm if there is an installed County water meter or if the property is served by a rain catchment system. Confirm if the property is served by a Hawaii Electric power source or if the property is served by a photovoltaic system or both. Confirm if the property is served by the County Refuse department and where the pick up is, relative to the property. There are several internet providers, including satellite service providers that service extremely remote locations.