The saying, “You don’t know, what you don’t know” has been around a long time, and it may not be truer than here in Hawai`i. This is just a special place and as such what happens here doesn’t happen in most parts of the country. So, let’s look at some topics that a lot of people coming from the mainland don’t know or don’t understand, but when you’re done reading this article, you will.
1. Homeowners Association (HOA) Fees. A lot of people looking to purchase here in Hawai`i have sticker shock when they see what condominium complexes are charging for HOA dues. Let’s use an example of a condominium complex that I know of which charges around $1,500 per month in HOA’s for a two-bedroom condo. That $1,500 a month includes water, sewer, trash, security, insurance (exterior of the building), all the amenities, like the pool and tennis courts, as well as exterior pest control, and a big one called common ground maintenance. Now $1,500 a month sounds more like a mortgage payment than HOA dues. And it may not seem like a bargain but let me tell you why it is.
I own a single-family home on a little more than an acre with a ton of fruit trees. When you live in Hawai`i, the common ground maintenance is never ending. It is a forever cycle of cutting, trimming, spraying, and hauling. In fact, to maintain my property without including stuff, like water, sewer, trash, security, and insurance, I’m paying about $1,500 a month with different vendors. Plus, I must manage the vendors who service my property, which means I’m doing the hiring and firing. Every time somebody doesn’t show up, every time somebody quits, guess who gets the job back? Yep, me! Until I find somebody else to take over the position. And I don’t even have a pool or tennis courts. Here’s the bottom line. When the kids leave and go off to college, I will have no problem selling this little one-acre farm of ours and moving into a condominium. And I would gladly pay $1,500 a month to never lift another finger or ever say the words “yardwork” again. Oh, and if you’re living on the mainland, trying to manage a property from afar, the $1,500 a month is a bargain. I would pay that any day and twice on Sunday to not have to manage any more vendors.
2. Ocean View vs Living on the Ocean. When people come to Hawai`i or are thinking about making a purchase here, it’s everybody’s dream to live right on the ocean. It’s amazing to look at, and it’s even better to fall asleep to the crashing waves. However, there are some serious downsides. For instance, one of my clients lived directly on the ocean for many years. You could literally spit off the lānai and hit the water. This woman had a spectacular two-story condo with sweeping views, but she never ever opened the windows or a sliding glass door. Why? Because what she knows about living directly on the ocean is that you are constantly fighting dampness in your condominium. The salt air, and the spray, not only leaves your place constantly damp, but creates mold, mildew, and corrosion. The salt air is deadly on electronics and wiring. So, I regularly tell my clients, “I know it’s your dream to have a property directly on the ocean but trust me if you buy something just a little further back with an ocean view, you’re going to thank me.”
3. Building or Remodeling.I don’t want to be a killjoy here but if you’re thinking about building here, or you’re thinking about doing a remodel, I would really like to try to persuade you not to. When I say, it’s really, really, difficult to build here or do remodeling I am not exaggerating. I’ve experienced it myself firsthand. I heard people talk about it and tell me what a miserable process it was going to be, but I really didn’t believe them until I experienced it myself. Two years ago, I built a guest house on my property and when I was done, I swore not only would I never do it again, but I would try to save my clients from falling into the same pit. Zoning, permits, and regulations here are just off the charts. I can’t even explain in this paragraph how difficult the state and the county make it to build on this island. In fact, I think it was last year that one of the magazines voted Hawai`i County, the most difficult place in the country to build new construction. Some of the reasons you can guess, like the fact that we live on an island and all the materials need to be shipped in. Or that there is a labor shortage not only in the U.S., but even more so on the island. Combine all those factors and you have a recipe for disaster. Just the other day, I had a client call me and say, “Dan, I absolutely, positively should’ve listened to you. I should have never ever gone into this remodel and the minute this remodel is done I want you to put the house up for sale.” I’m not kidding, it’s literally that miserable of an experience.
So those are my top three things you need to know, that you don’t know. Are there more? Yes! Is this the exhaustive list? By no means, there are more; but we can save those for another column and another conversation. If you’d like to know more about what it’s like to work, live and play here on the Big Island of Hawai`i please contact us here at The Hawai`i Team. Aloha.
Dan Polimino is the owner of the Hawai`i Team in Kailua-Kona, Hawai`i. He and his team are the luxury residential experts for the Big Island. If you are thinking about buying or selling in Hawai’i, then please reach out to us at team@thehawaiiteam.com or call 808-913-0899.
