Purchasing a home in Hawaii can be an exciting experience as the city has a vibrant culture with natural beauty. Whether it is a full-time residence or vacation retreat, it is a location that attracts all! When people decide to buy a house on this island, many questions like “How to buy a house in Hawaii?” haunt everyone’s mind.
Despite having a lot of questions on their minds, most realtors say that buyers do not ask the right questions. Let us try to answer some of your questions to remove doubts about buying a home in Hawaii. These answers will help you, irrespective of whether you are from the mainland or a local buyer.
Is it okay for a non-US citizen to buy real estate property in Hawaii?
Yes, Of course, non-US citizens can own real estate in Hawaii. Foreigners can very well own property in Hawaii. Nevertheless, they should register with the Taxation Department of Hawaii and file certain tax documents to buy real estate there. These are extra requirements if a non-US citizen buys real estate in Hawaii.
What is the Zoning of property?
Check whether the property is close to a tsunami-prone area or a flood evacuation area before buying land in Hawaii. Local buyers are curious to know the ocean water level rise and its impact on their property. Will my property be inundated with a rising water level that restricts my intention to pass on my property to my children?
Freehold property Vs. Leased-out property?
The main difference between fee-simple and leasehold property is if you own fee-simple property, you own both the land and property. On the flip side, if you own a leasehold property, you own only the building and you rent the land. You pay an amount as rent to the land owner subject to revision when there is a rise in the market rate. Understand the lease terms before buying a leasehold property.
After Purchasing a Condo, Can I Rent It Out?
Many people come back to Hawaii from the mainland for vacation to Hawaii frequently. So, they want to own a home in this beautiful place. When they don’t use it, they want to rent the condo. A local guide would help you with the local laws regarding rental laws. It would help you decide if you would like to invest in Hawaii or not.
What Are the Property Taxes in Hawaii?
Like most of the states, although Hawaii has low property taxes, the rates change according to those of the other states based on the counties and types of property. The taxing authority is the county government. The value of both land and improvements decides taxes in Hawaii. The tax rates can run from approximately 0.25 to about 0.5% of the assessed value rate, depending on the county. Enquire these things before deciding, how to buy a house in Hawaii.
Do You Need to be Wary Of Environmental Factors Before Buying a House?
Of course, factors related to the environment should not be undermined when purchasing a home in Hawaii. The tropical climate and geographical location of the islands expose them to certain risks that a potential homeowner should recognize. Hawaii lies in a hurricane, flood-prone zone. Soil Erosion and rising sea levels also pose a serious threat to property here. Think long and hard about how environmental factors stack up against the durability of your investment, impacting its value over time.
Bottomline:
Buying a home in Hawaii is a rewarding experience, but you need to understand the intricacies of the buying process in detail. You need to know the local laws, environmental factors, financing options, and life goals. These factors will answer your questions about how to buy a house in Hawaii.