Maui Properties

Maui Properties

Maui Properties - FAQ's

Did you know . . .

Maui Properties are currently in buyer's favor due to the Buyer's Market we are in



The following are complimentary basic items I suggest any off island Buyer obtain if interested in purchasing Maui Real Estate:

1. A Sunday Subscription to The Maui News. Friday's edition is also a good one, since they highlight Real Estate. The maui news can be found at http://maui.net/~mauinews/news.html (their email address is mauinews@maui.net)

2. A Maui phone book. This can be purchased by calling 1-800-888-8448.

3. Another great on-line Hawaii source is The Honolulu Star-Bulletin, which can be found at http://www.starbulletin.com

Frequently Asked Questions

 Do you email inventory to anyone who wants it and work with any Buyer?

We are in the "early" stages" of looking right now. Can you tell us everything you can?
Do I have to pay a fee for your representing me as a Buyer?
Can I apply for financing in my home town, rather than use a Maui (Hawaii) lender?
How much is the maintainace fees (common area fees) for a condominium?
How much do vacation rental companies take to manage a condominium unit?
How much down payment do I have to put down?
What are interest rates like?
What are prices like?
Can I buy a property that will have a good positive cash flow?
What is the best deal in a condo we can rent out while away?
What is the cheapest thing we can buy?
What does Fee Simple (FS) and Lease Hold (LH) mean?
What are Property Taxes like?
What is the cost of living like?
How are the schools?
Is there employment for my given line of work on Maui?
Can I get a real steal from a desperate owner?
I am comparing Maui to other islands or other areas for a purchase. Thoughts?
I can't buy right now, but would like to rent long term. What are long term rental rates?
Can you get me a real fixer-upper that I can get into and possibly re-sell to earn a profit?
I am planning on selling my home first, then moving to Maui and buying. Can you help?
I am not really serious about buying, just surfing the internet and was curious.



When Asked : Do you email inventory to anyone, and work with all Buyers?

No. We are in a very good Buyer's Market. The majority of my time is spent with Buyer's who realize this "window" of opportunity, and realize that if they don't take advantage of this market, they may have to wait another 10 years. If you are like many returning Maui visitors who have been waiting for the right time, the bottom of the market is here or very near bottom. I will work 100% with Buyers who......

1. Have a firm reservation booked for travel to Maui. Please provide your dates of arrival, departure, and place of stay so I may schedule you in.

2. Agree to allow me and my years of experience and 100% committment to get a Buyer the best purchase, to exclusively represent them as a Buyer. (No Fee !)

3. Have made financial arrangements for purchase. If requiring financing, a Buyer should be in close contact with a Hawaii lender (I can assist). If purchasing in cash, it is recommended that Buyer show proof of funds confidentially through my office.

4. Agree to meet with me at a set time and place after arrival to Maui to discuss Buyers needs, wants, limitations, expectations, etc. I will require approximately one hour for this meeting. Showings of property to follow and in many cases will require 48 hours advance appointment.

We are in the "early" stages" of looking right now. Can you tell us everything you can?

I am in the business of selling real estate at todays prices, terms, and conditions. Inventory and Sold Prices change from day to day. A Buyer will need to be in a ready position to purchase today.

Do I have to pay a fee for your representing me as a Buyer?

Maui is very, very small. When focusing on a particular area, Maui gets even smaller. If you allow me to represent you as a Buyer, I turn over every leaf in locating the best opportunity. There is no fee as a Buyer. I do ask that you allow me to exclusively represent your purchase. If we agree on this, I will be spending time on you - while giving up other business. Your loyalty is a must! In researching an advertisement, open house, or calling an agent on a listed property, I would expect you to disclose immediately to the other agent that I am representing you as a Buyer. I simply cannot afford to work with Buyers who are not committed to my services.

Can I apply for financing in my home town, rather than use a Maui (Hawaii) lender?

Probably not. Many off island lenders do not have jurisdiction to foreclose on a Hawaii property - a chance that rules out lending immediately! Please try, however, I will be shocked if you succeed. Another stumbling block is getting the appraisal. Banks do not know the appraisal community if in Hawaii and cannot place a level of assurance on the appraisal.

How much is the maintainace fees (common area fees) for a condominium?

For a vacation rental complex, they will generally range from $200 per month to $350 per month for non-oceanfront . Oceanfront will range from $300 per month to over $400 per month, depending on the location. My general rule of thumb is if in a resort area, you will pay the price - and must be happy with all of it's pleasures. If working with a smaller budget, stay away from resort property! Wailea is my personal recommendation as it is the best performing resort area on the entire island.

How much do vacation rental companies take to manage a condominium unit?

Vacation rental companies will take anywhere from 30% to 50% as a general rule. This is only for their managing of the vacation rental activity, and will not cover your normal expenses like maintainance fees, and property taxes.

How much down payment do I have to put down?

Depending on the complex, 20% to 35% down. If non-U.S. citizen, you will be in the 30% to 35% range. If U.S. citizen, you may be eligible for as low as 20% down with a 25% worst cast scenario.

What are interest rates like?

Our rates will run generally a quarter point higher than you can get in you home town. If you have seen anything that contradicts this statement, remember that you may be like many buyers who fall into more investment orientated loans, such as Second Residence Loans, and, more common, Investor Loans. Do not be fooled by what you read in the paper - most of these quotes are "teaser" rates for home occupant loans. To qualify for a owner occpant loan, you must show 2 years of Hawaii Tax Returns, or, prove that your transfer here in employment was consistent in job nature, among other requirements.

What are prices like?

Depending on the market, most condos start at just under $100,000. Homes, $250,000. Land, $150,000.

Can I buy a property that will have a good positive cash flow?

Hawaii is NOT a cash flow kind of a place. In fact, you might want to call it a negative cash flow haven! Surprise! Folks, we are the highest cost of living in the union, and when newcomers move here, they know darn well that they are taking a 20% to 40% cut in pay (in most cases). Why even bother? Perhaps because time & life & health & Aloha Spirit & sunshine & almost no crime, to name a few, are worth more than the all mighty Dollar. If you are looking to get rich in real estate, this is not the cash-flow place to hang your hat unless you time your purchase at the right and catch the appreciation wave that takes place on Maui like a Tsunami at times .

For Condo Properties:

Constants in each property include:
1. Mortgage (generally same down payment, same loan-to-value, same interest rate, etc.)
2. Telephone
3. Electricity
4. Property Taxes


Variables Expenses include:
1. Maintenance Fees
2. Repairs
3. Management Fees for vacation/long term rental


Variables that have a direct impact on Rental Income include:
1. Location of the unit (ocean view?, garden view?)
2. Condition at the time of purchase
3. Repeat clientele (does the guest book reflect strong repeat possibilities?)
4. Rental Management (strong travel agent contacts? Only a front desk?)


What is the best deal in a condo we can rent out while away?

Again, I get asked this a thousand times a day. This is a cash flow question. I will put it this way... if purchasing a property for more than $100,000 - your chances of even breaking even are slim to none. You will more than likely experience a negative cash flow. The greater the purchase beyond $100,000 the greater the exposure to a larger negative cash flow. Owners do not simply release the rental information with a phone call. If interested in looking at the "actual rental income", you must generally place an offer on the priperty first - otherwise, most owners will not release it.

What is the cheapest thing we can buy?

I can get you a condo for as low as $60,000, however, don't count on it being Paradise! In most cases, this would bee for a Leashold property (see FAQ on this subject). If you are looking for a good buy, you must be ready to grab it when it comes, since there are many others waiting, just like you.

What does Fee Simple (FS) and Lease Hold (LH) mean?

Fee simple (FS) in it's simplest form, denotes that you own the land. If in a condominium, you own a proportionate interest in the land. Leasehold (LH) denotes someone else owns the land (landlord) and you (lessee) pay a monthly rent for the use of the land. In a leasehold purchase, some very important issues are length of the lease, years remaining, years to next renegotiation date, what happens at the end of the lease, and if the owner is or has plans to offer the land for purchase. Leasehold property will require a larger down payment over a fee simple property with Hawaii lenders, anywhere to 5% to 10% more, depending on the lease and property.

What are Property Taxes like?

Property Taxes are surprisingly not that bad. Property taxes are based on the usage category you choose (or should fall under). Property taxes are based on the assesed value, as determinded by the County of Maui. The County's assessed values are typically 1-2 years behind the actual market values! Tax rates, proposed to take effect July 31, 2001 are as follows and are assesed per $1,000 of assessed value:

ClassificationLandBuilding
Improved Residential $4.93 $4.93
Apartment $4.93 $4.93
Commercial $6.75 $6.75
Industrial $6.75 $6.75
Agricultural $4.93 $4.93
Conservation $4.93 $4.93
Hotel & Resort $8.30 $8.30
Unimproved Residential $4.93 $4.93
Homeowner $3.63 $3.63


As an example, if you owned a condo unit for vacation rental assesed at $200,000 (Hotel & Resort) your property taxes would be as follows:

Assessed value of the condo unit (Building):   ($80,000 / 1,000) x $8.30 = $664.00
Assessed value of the (FS)land apportioned to the unit (Land):   ($120,000 / 1,000) x $8.30 = $996.00
$664.00 + $996.00 = $1,660.00 Per Year in Property Taxes

What is the cost of living like?

Hawaii is the highest in the country, and Maui is no exception. Anyone making a permanant move understands that salaries generally are 20% to 45% less than what they were previously making.

How are the schools?

Schools are a personal decision. We have both public and private schools in most districts.

Is there employment for my given line of work on Maui?

I am not a specialist in employment. If you have firm plans to travel here and are serious about a purchase, I will be able to accomodate your purchasing needs.

Can I get a real steal from a desperate owner?

Yes, however, you need to be in a ready position. This means having seen the property or being familiar with the property, or, you may elect to purchase sight unseen. Financially, if requiring financing, I suggest being pre-approved up to a given amount. If purchasing in cash, I recommend instruction your bank to authenticate your cash funds on demand when the buy comes.

I am comparing Maui to other islands or other areas for a purchase. Thoughts?

Yes. I frequently have folks comparing property on the Big Island of Hawaii to Maui. There is cheap volcano land on the Big Island and Maui is "No Ka Oe" (number one) for reasons you will clearly see if making island to island comparisons. There is, of course, a higher price to live in Paradise!

I can't buy right now, but would like to rent long term. What are long term rental rates?

Long term rentals are a completely distinct business that I do not choose to specialize in for many reasons. When the time comes to buy on Maui, please contact me then.

Can you get me a real fixer-upper that I can get into and possibly re-sell to earn a profit?

Probably, however, you and everyone else will also be eyeballing this property. You need to be in a high state of readiness to make an offer. This means having seen the property or being familiar with the property, or, you may elect to purchase sight unseen. Financially, if requiring financing, I suggest being pre-approved up to a given amount.

I am planning on selling my home first, then moving to Maui and buying. Can you help?

If you enter a Buyer's Broker Agreement with me, I can begin assisting you now. I recommend not being too conserned about inventory before entering into a formal contract to sell on your home.

I am not really serious about buying, just surfing the internet and was curious.

Aloha and keep surfing alive.


Ready Buyer, Back to Property Request

Mahalo For Viewing.

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