Maui – Lowest Property Taxes in the State of Hawaii
“Lucky we live Maui” is a phrase that is often heard on the island of Maui. That phrase is especially relevant when looking at our property taxes. For the past 11 years I’ve represented home buyers who are often surprised and delighted to discover Maui’s low property tax rates. In fact, we have some of the lowest property tax rates in all of the Hawaiian Islands, especially for homeowner/occupants.
For an example, let’s take a nice round number of $500,000 as the assessed value of a home or condo you purchased in Maui county (Maui county includes the island of Maui, Lanai and Molokai). If you live in the home full-time, you get to take an owner-occupant exemption of $200,000, or $2/thousand. This makes the annual owner tax on a home with an assessed value of $500,000 a total of only $400.
Perhaps you plan to purchase your Maui home/condo as an investment to lease to long-term tenants, or leave unoccupied, the taxes are still relatively low! The same assessed value on a property owned by a non-owner occupant would be taxed at $4.85/thousand, (with no owner-occupant exemption) for a total of $2,425 in annual real property taxes. Still low when compared to the mainland!
And if you purchase a condo that is rented out in a resort vacation-rental pool, the annual real property tax is now $4,100 on an annual basis. The time share tax rate is even higher at $14/thousand, for an annual real property tax of $7,000 for your $500,000 purchase.
Effective July 1, 2009, the Maui County real property tax rates per one thousand dollars of net taxable assessed valuation for each class of property is:
• Homeowner: $2 per $1,000 of assessed value
• Improved Residential: $4.85 per $1,000 of assessed value
• Apartment: $4.55 per $1,000 of assessed value
• Commercial: $6.25 per $1,000 of assessed value
• Agricultural: $4.50 per $1,000 of assessed value
• Conservation: $4.75 per $1,000 of assessed value
• Unimproved Residential: $5.35 per $1,000 of assessed value
• Hotel: $8.20 per $1,000 of assessed value
• Timeshare: $14 per $1,000 of assessed value
Any way you choose to purchase; as an investment, as your retirement home or a Maui vacation rental, Maui is one of the best deals around for real property taxes.
Gary Bland is a real estate expert enjoying low property taxes, living on the beautiful island of Maui.
June 2009 Maui Real Estate Market Update
Maui Residential Home Sales declined (-41%), average sold price = $761,252 (-14%), median price = $510,000 (-14%).
| Maui home Sales June 2008 vs. 2009 | |||||
| # Sold – Median $ | |||||
| Neighborhood | 2008 | 2009 | 2008 2009 | ||
| Haiku | 5 | 2 | $730,000 | $390,000 | |
| Kaanapali | 1 | 2 | $1,225,000 | $2,012,500 | |
| Kihei | 9 | 14 | $810,000 | $446,000 | |
| Lahaina | 1 | 3 | $990,000 | $560,000 | |
| Makawao/Olinda/Halimaile | 2 | 5 | $335,030 | $452,500 | |
| Maui Meadows | 2 | 1 | $912,500 | $1,320,000 | |
| Napali / Kahana | 1 | 0 | $1,000,000 | $ 0 | |
| Pukalani | 1 | 3 | $710,000 | $520,000 | |
| Sprecklesville / Paia/ Kuau | 2 | 1 | $810,000 | $1,850,000 | |
| Wailea Makena | 2 | 3 | $1,262,250 | $1,735,000 | |
| Island of Maui | 76 | 62 | $606,000 | $499,053 | |
Maui Condo Unit sales declined (-46%), average sold price = $685,584 (-29%) and Land sales median price was $800,000, up 14%.
| Maui Condo Sales June 2008 vs. 2009 | |||||
| # Sold – Median $ | |||||
| Neighborhood | 2008 | 2009 | 2008 2009 | ||
| Central | 3 | 3 | $319,000 | $245,000 | |
| Kaanapali | 3 | 2 | $1,650,000 | $1,005,250 | |
| Kihei | 20 | 19 | $292,500 | $310,000 | |
| Lahaina | 0 | 1 | $ 0 | $1,300,000 | |
| Maalaea | 4 | 0 | $490,000 | $ 0 | |
| Molokai | 0 | 1 | $ 0 | $ 650,000 | |
| Napali / Kahana | 9 | 7 | $575,000 | $400,000 | |
| Pukalani | 1 | 0 | $580,000 | $ 0 | |
| Kapalua | 2 | 1 | $852,500 | $1,065,000 | |
| Wailea Makena | 13 | 8 | $2,885,000 | $1,745,000 | |
| Island of Maui | 56 | 45 | $577,500 | $520,000 | |
There are definately a lot of bargains on the island of Maui with such a decline in prices. We are here to answer any questions you may have about the Maui market and investing on our great island. You can also search all Maui real estate properties on our property search emailed to you daily or weekly. You can also get new listings as they hit the market. Information on June sales on the island of Maui was provided by Gary Bland a Maui real estate expert.
June Big Island Hawaii Real Estate Market Update
For the month of June, the median sales price for a Big Island SFR home decreased about 13% compared to June ‘08. The number of homes sold also decreased from 102 compared to 109 June ‘08. There was a slight increases in units sold on the Kohala Coast and in Kailua-Kona, as some buyer’s seem to be returning to the market and taking advantage of the lower prices and interest rates.
| Big Island Hawaii home Sales June 2008 vs. 2009 |
|||||
| Homes Sold | |||||
| Neighborhood | 2008 | 2009 | Median Sale Prices | ||
North Kohala |
1 | 1 | $ 345,000 | $1,850,000 | |
Kohala Coast |
13 | 15 | $ 485,000 | $ 350,000 | |
Kailua – Kona |
22 | 27 | $ 502,500 | $ 435,000 | |
South Kona |
1 | 2 | $ 525,000 | $ 301,750 | |
| Kau | 3 | 3 | $ 165,000 | $ 206,000 | |
| Hamakua Coast |
6 | 1 | $ 397,000 | $ 325,000 | |
North Hilo |
1 | 1 | $ 297,900 | $ 575,000 | |
| Hilo | 21 | 13 | $ 280,000 | $ 280,000 | |
| Puna | 41 | 39 | $ 230,000 | $ 165,000 | |
| Big Island of Hawaii | 109 | 102 | $ 329,285 | $ 285,000 | |
The number of Big Island Condo units sold were down 12% for June, but the median price rose about 3% for June ’09 vs. June ‘08. Most of the condo buying activity is located on the Kohala/Kona
Coast and when we compare the Monthly June ‘08 to ‘09 units sold (-12%) vs. the YTD June ‘08 to ‘09 units sold (-36%), we see a slight improvement in the data. We’ll need to watch this over
time and see if it’s a trend, which may indicate we’re nearing the bottom of the market.
| Big Island Hawaii Condo Sales June 2008 vs. 2009 |
|||||
| Condos Sold | |||||
| Neighborhood | 2008 | 2009 | Median Sale Prices | ||
North Kohala |
0 | 0 | $ 0 | $ 0 | |
Kohala Coast |
9 | 9 | $ 420,000 | $ 450,000 | |
Kailua – Kona |
18 | 13 | $ 407,500 | $ 249,000 | |
South Kona |
0 | 0 | $ 0 | $ 0 | |
| Kau | 0 | 0 | $ 0 | $ 0 | |
| Hamakua Coast |
0 | 0 | $ 0 | $ 0 | |
North Hilo |
0 | 0 | $ 0 | $ 0 | |
| Hilo | 5 | 6 | $ 157,500 | $ 70,000 | |
| Puna | 0 | 0 | $ 0 | $ 0 | |
| Big Island of Hawaii | 32 | 28 | $ 301,702 | $ 310,500 | |
Our Current Market Conditions… There are 622 Single Family Homes on the market for the Kona/Kohala Coast, 101 homes in escrow and 42 homes sold during June. We still have a 15 month supply of homes.
For Kona/Kohala Coast Condos, there are currently 688 on the market for sale, 50 in escrow and 22 sold in the past month. That’s about a 31 month supply of condos, which slightly lower than our
last report. A balanced is considered to be a 6 month supply of pre-existing inventory.
Information on June sales for the Big Island of Hawaii was provided by , Big Island real estate experts. Kurt & Kirsten Carlson
June 2009 Kauai Real Estate Market Update
June 2009 compared to 2008 Kauai homes saw a decrease in volume of sale of 25% and a decrease in the median price range of 27%.
| Kauai home Sales June 2008 vs. 2009 | |||||
| #Sales & $Median | |||||
| Neighborhood | 2008 | 2009 | 2008 2009 | ||
| Waimea | 1 | 3 | $ 352,500 | $ 341,000 | |
| Koloa | 9 | 4 | $ 900,000 | $ 684,500 | |
| Lihue | 3 | 3 | $ 410,000 | $ 390,000 | |
| Kawaihau | 8 | 2 | $ 467,500 | $ 370,000 | |
| Hanalei | 7 | 9 | $ 900,000 | $ 608,050 | |
| Island of Kauai | 28 | 21 | $ 705,000 | $ 600,000 | |
June 2009 compared to 2008 Kauai Condos saw a decrease in volume of sale of 37.5% and a decrease in the median price range of 46%
| Kauai Condo Sales June 2008 vs. 2009 | |||||
| #Sales & $Median | |||||
| Neighborhood | 2008 | 2009 | 2008 2009 | ||
| Waimea | 0 | 0 | $ 0 | $ 0 | |
| Koloa | 4 | 1 | $ 782,000 | $ 599,000 | |
| Lihue | 5 | 7 | $ 240,000 | $ 185,000 | |
| Kawaihau | 2 | 1 | $ 380,000 | $ 105,000 | |
| Hanalei | 13 | 6 | $ 830,380 | $ 575,000 | |
| Island of Kauai | 24 | 15 | $ 695,000 | $ 375,000 | |
Information on June sales on the island of Kauai was provided by Russell Tucker
Lessons Learned About Maui Real Estate Market
Maui’s Real Estate Market – Lessons Learned
“Maui investors and first-time home buyers, are now in the right place, at the right time.”
In the eleven years I’ve spent on Maui, I’ve seen the real estate market climb, fall, hold steady, rise to unrealistic heights and now – we’re nearly at the bottom of the latest trend. What lessons have I learned from Maui’s real estate market? I know that finding the right realtor, an experienced realtor, one who knows the local market and can help find the property with the best value is your key to obtaining a great investment.
I feel that we are near the bottom of the Maui real estate market. There are some incredible deals out there. I haven’t seen prices this low since 1999/2000. That was right after the Japanese yen declined. Many Japanese buyers pulled out of the Hawaii real estate market causing a minor bubble burst. I sold many homes during that era that came completely furnished, top-to-bottom with, not only furniture but golf clubs, silverware and computer/fax office equipment. Some homes even came with a car as part of the package! All included in the purchase price.
As a former engineer, I’m a numbers guy. Interest rate fluctuations and unemployment rates have traditionally been the markers of a real estate rise and fall. Here on Maui we’re experiencing low home prices – not from high interest rates (they’re low!), but from unemployment and de-valued foreclosed homes and condos.
I’m not just referring to properties where the owner has foreclosed and is now priced low in pre-foreclosure or bank-owned situation. There are some great deals on foreclosures but that is not, believe it or not, where some of the best buys are! Sellers who own their properties outright, who have never been in trouble with their Read more
June Oahu Market Update of Property Sales
There is some good news. Oahu saw a 9.5% increase in the number of sales for June 2009 compared to June of 2008 for single family homes. The median property price dropped by 9% for the same time periods. More buyers are starting to take advantage of the lower prices and historic low interest rates. If this keeps up it should stablize prices.
| Oahu Home Sales June 2008 vs. 2009 | |||||
| # Sales & Median $$ | |||||
| Neighborhood | 2008 | 2009 | 2008 2009 | ||
| Honolulu | 9 | 12 | $ 494,000 | $ 600,000 | |
| Waialae-Kahala | 8 | 7 | $1,445,400 | $ 1,387,500 | |
| Kapahulu-Diamond Head | 9 | 15 | $ 790,000 | $ 780,000 | |
| Hawaii Kai | 15 | 15 | $ 870,000 | $ 750,000 | |
| Aina Haina-Kuliouou | 3 | 3 | $ 760,000 | $ 1,246,500 | |
| Kailua-Waimanalo | 32 | 20 | $ 752,500 | $ 712,500 | |
| Kaneohe | 8 | 7 | $ 644,000 | $ 619,000 | |
| Moanalua-Kalihi | 14 | 11 | $ 494,000 | $ 600,000 | |
| North Shore | 2 | 7 | $1,937,500 | $ 873,000 | |
| Wahiawa | 3 | 4 | $ 352,500 | $ 345,000 | |
| Mililani | 28 | 17 | $ 626,800 | $ 570,000 | |
| Makaha-Nanakuli | 12 | 18 | $ 416,000 | $ 282,000 | |
| Ewa-Kapolei-Ko Olina | 44 | 49 | $ 443,500 | $ 4588,000 | |
| Makakilo | 4 | 10 | $ 690,000 | $ 487,500 | |
| Waipahu | 14 | 27 | $ 577,500 | $ 520,000 | |
| Pearl City-Aiea | 17 | 12 | $ 678,000 | $ 555,000 | |
The condo sales were not as good as the home sales. The number of condo sales dropped by 17.5% in June of 2009 compared to June of 2008. The prices were down 5.3% compared to last June. Not as big a drecrease as single family homes.
| Oahu Condo Sales June 2008 vs. 2009 | |||||
| # Sales & Median $$ | |||||
| Neighborhood | 2008 | 2009 | 2008 2009 | ||
| Waikiki | 76 | 43 | $ 300,000 | $ 247,000 | |
| Downtown -Nuuanu | 24 | 25 | $ 468,000 | $ 340,000 | |
| Kapahulu-Kuliouou | 10 | 11 | $ 406,000 | $ 435,000 | |
| Hawaii Kai | 13 | 19 | $ 600,000 | $ 426,000 | |
| Maikiki – Moiliili | 54 | 41 | $ 301,000 | $ 320,000 | |
| Kailua-Waimanalo | 10 | 10 | $ 507,500 | $ 392,500 | |
| Kaneohe | 11 | 13 | $ 398,000 | $ 365,000 | |
| Moanalua-Salt Lake | 17 | 13 | $ 300,000 | $ 247,000 | |
| North Shore | 3 | 2 | $ 300,000 | $ 217,500 | |
| Wahiawa | 0 | 0 | $ 0 | $ 0 | |
| Mililani | 27 | 29 | $ 365,000 | $ 280,000 | |
| Makaha-Nanakuli | 4 | 5 | $ 161,000 | $ 122,000 | |
| Ewa-Kapolei-Ko Olina | 16 | 17 | $ 281,200 | $ 270,000 | |
| Makakilo | 7 | 4 | $ 302,000 | $ 212,500 | |
| Waipahu | 24 | 17 | $ 282,800 | $ 235,000 | |
| Pearl City-Aiea | 27 | 20 | $ 285,000 | $ 283,500 | |
3.5% Down FHA Loans are a good option in Hawaii
For those who are looking for a home loan you may have heard it can be difficult without a down payment of 20% or more. That is true but only in the traditional, conventional loan market. The good news for today’s home buyers is that The Federal Housing Authority (FHA) provides loan programs requiring as little as 3.5% down.
FHA is a loan program that has been around since the 1930’s but had fallen out of favor. Now however it has become the loan of choice with many advantages versus conventional loans. What are the advantages of an FHA loan?
- FHA requires only 3.5% down payment
- Unlike conventional loans, the entire down payment may come from a family gift. Family members can help the buyer qualify too.
- Your FICO credit score has a minimal impact on qualification
- The FHA interest rates are very competitive versus conventional financing
- FHA approvals are easier to get
- The loan limits are very high … In Hawaii, FHA loans can be as high as $793,750!
- No prepayment penalties
- FHA loans are assumable
FHA loans may be obtained through FHA approved banks, mortgage companies, and mortgage brokers. Contact Alan Fentriss with Platinum Mortgage Partners at 808-927-3401. I’d be happy to help you with the loan to fit your needs, whether it’s FHA, VA, or Conventional financing.