Purchasing a house in Hawaii may be quite challenging. However, it’s worth it. It attracts people from all over the world with beaches perfect for surfing, the weather that is always sunny, and unique history and culture. So, don’t hesitate to have some research before having a life-changing move. Having research done beforehand will save you time, money, and energy later. We’ll provide you with the best tips for those moving to Hawaii.
First tip: prepare for higher prices
Hawaii is an archipelago removed far from the mainland. Moreover, most islands are small. This causes higher pricing for all house-related expenses. Any home improvement projects will cost a lot more than the same ones on the mainland because cargo delivery is challenging and thus expensive.
Also, be prepared for paying higher prices for smaller homes. As stated before, space may be an issue for some Hawaiian Islands. This, and also a low inventory in the housing market, causes sky-high prices in some cases.
Bear in mind that you may not look for a fixer-upper in Hawaii. Unlike homes on the mainland, this may not be the low-priced option because improving an imperfect house in Hawaii is expensive.
Second tip: work with a seasoned agent that specializes in the Hawaii market
Don’t work with the newbies because the Hawaiian real estate market is one of the most complicated in the USA. For example, you can consult the best realtor in Hawaii list.
Hawaii is a hot market, so you will need an experienced agent who will satisfy your needs and advocate for you in times of negotiation. Also, look for those who know the local market. For example, if you are not into living in towns and want to live in a bigger city, conduct research to find top realtors in Honolulu, HI. Such preparations will save you a ton of time, money, and nerves later, so be sure to do it.
Third tip: try to get a pre-qualification for a mortgage
The Hawaiian property market is hot, so you will need to prepare your finances in advance. The houses are sold extremely fast, so you will have no time for overthinking the commission rates or other factors regarding the deal. So be sure to prepare your finances ahead of time. Don’t count on the possibility of fixing things up later, in this case, this is not an option.
It is best to work with a local Hawaiian bank that will find you the best-suited home loan. You may ask your real estate agent for some advice, again. Don’t even doubt about doing that, because that’s what the agent works for: to serve you and to help you with resolving financial or judicial problems. Local mortgage loan officers know the situation better than mainland ones and provide you with well-suited options. They may also help you to get this very needed pre-qualification for a mortgage. While our agents will help you to acknowledge the mastery of the complicated process of home buying in the state of Hawaii.
Fourth tip: understand the difference between the principles of leasehold and fee simple properties
Most of the properties in the state of Hawaii are Leasehold or Fee Simple. You absolutely need to learn the difference between these terms before purchasing your house in Hawaii. Let this be part of your great preparation-for-a-home-buying program.
A leasehold is a form of owning the building itself, while another landowner owns the land underneath the house. This form of home-owning is uncommon because it causes lots of unpredicted problems and issues of all sorts.
Fee Simple is as simple as its name suggests. It means owning both the building and the land underneath it. It’s the most typical form of land-owning in Hawaii, the same as in the rest of the USA. It is also the best form of property ownership that causes no juridical or financial problems. We highly recommend you choose this exact option.
Fifth tip: don’t forget to consider the other factors
Regardless of the stereotypes, Hawaii is a diverse place. It’s not just tropical forests and beaches with surfers. Hawaii’s got contrasting places: small towns and bigger cities, old-fashioned and modern neighbourhoods. Bear that in mind. Pay attention to those small things now because later, after moving, your life will entirely consist of them.
Moreover, consider the types of amenities you want. For example, if you are young and single during your first purchase in Hawaii, a nice small condo will be enough for you. But if you’ve already got family and kids, don’t forget they need space and friends to grow happily with. That means that you will also need to live near other families like yours and have top-tier schools located nearby. That may raise the price of housing. But in this case, overpaying is worth your kids’ future, isn’t it?
Last, but not the least tip:
Selling your old house is a significant transaction and a big life change that may be difficult. That can feel dreadful, and your feelings about this life event are valid. But it is definitely not the end of the world. Listening to the recommendations of seasoned real estate agents and preparing in advance will save you time, money, and nerves. So be sure to do this.
Don’t skimp your money on the house. It’s a great financial investment, especially in a place with such a hot market, as Hawaii. It’s also a place where you are going to live and where probably your kids are going to grow up. So, make sure you’ve chosen a nice place of residence.
TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.
The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.
However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.
Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.
This report by The Canadian Press was first published Sept. 17,2024.
OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
