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.
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
May 2009 Big Island Market Update
The Big Island saw a decrease of about 27% in the median price for single family homes, but saw almost a 7% increase in sales volume for the month of May 2009 compared to 2008.
| Big Island home Sales May 2008 vs. 2009 | |||||
| Homes Sold | |||||
| Neighborhood | 2008 | 2009 | Median Sale Prices | ||
| North Kohala | 4 | 1 | $ 609,500 | $1,850,000 | |
| Kohala Coast | 15 | 10 | $ 485,000 | $ 488,000 | |
| Kailua – Kona | 28 | 28 | $ 599,036 | $ 360,000 | |
| South Kona | 3 | 3 | $ 775,000 | $ 634,000 | |
| Kau | 5 | 5 | $ 225,000 | $ 140,000 | |
| Hamakua Coast | 2 | 2 | $ 494,000 | $ 355,300 | |
| North Hilo | 0 | 1 | $ 0 | $ 365,000 | |
| Hilo | 15 | 19 | $ 339,000 | $ 262,500 | |
| Puna | 35 | 32 | $ 207,000 | $ 200,000 | |
| Big Island of Hawaii | 107 | 103 | $ 415,000 | $ 301,000 | |
Condos were down nearly 38% for sales volume and down about 33% in median price for May ’09 vs. May ‘08. Although the numbers are down, it actually indicates a slight improvement when compared to the YTD sales volume for May ‘09 to May ‘08, which is down 56%. This may be a signal that buyers are making purchases with the low prices and continued low interest rates.
| Big Island Condo Sales May 2008 vs. 2009 | |||||
| Homes Sold | |||||
| Neighborhood | 2008 | 2009 | Median Sale Prices | ||
| North Kohala | 0 | 0 | $ 0 | $ 0 | |
| Kohala Coast | 16 | 11 | $ 605,000 | $ 400,000 | |
| Kailua – Kona | 21 | 15 | $ 355,900 | $ 350,000 | |
| South Kona | 0 | 2 | $ 0 | $ - | |
| Kau | 0 | 0 | $ 0 | $ 0 | |
| Hamakua Coast | 0 | 0 | $ 0 | $ 0 | |
| North Hilo | 0 | 0 | $ 0 | $ 0 | |
| Hilo | 2 | 5 | $ 203,000 | $ 699,999 | |
| Puna | 0 | 0 | $ 0 | $ 0 | |
| Big Island of Hawaii | 39 | 31 | $ 450,000 | $ 309,000 | |
Focusing on Single Family Homes for the Kona/Kohala Coast, there are currently 631 active listings for sale, 99 homes in escrow and 41 sold homes during the past month. At the present buying rate, we have a 15 month supply of homes. For Kona/Kohala Coast Condo, there are currently 690 on the market for sale, 54 in escrow and 21 sold in the past month. That’s about a 33 month supply of condos.
Information on May sales for the Big Island of Hawaii was provided by Kurt & Kirsten Carlson, Big Island real estate experts.
Don’t Cheat Yourself On Your Search
Over the past few years technology has change drastically, and the internet has become the information highway for everything. Searching for Hawaii properties has become a real treat for prospective buyers whether it is late at night or taking a sneak peak at work it has become quick and easy to look for properties wherever you might be in the world.
If you are actively searching for a property and have graduated out of the “Looky Lou browsing stage” working directly with an agent is a must. Most buyers do not realize the great importance and value and not to mention the countless hours of your time that can be saved by utilizing an agent’s knowledge.
Most buyers know what they want in a property, but sometimes there are unknowns about a property or the surrounding area that might not be contained within the information given for that particular listing that might change your mind on making that purchase. To get down to the point of it all, there are so many variable when searching for a property it is always best to speak to an agent for assistance.
Here are some key points that might be over looked if you have not utilized an agent.
Homes
- What type of condition are the surrounding homes in
- Are vacation rental allowed in this location?
- There might be a perfect property listed higher in price just out of your price search but the seller is very motivated and might accept an offer that falls in your price range.
- Do the pictures do this property justice? Sometimes pictures can mirror imperfections and make a property that needs a remodel look very livable.
- “What Climate do you prefer” Hawaii has many micro-climates that vary from very rainy to very dry areas.
- Is this a short sale property, some short sales never get approved by the lenders and are not currently eligible for a purchase.
- There might be a property that is a perfect match and available but is not listed on the MLS or is temporarily off the market.
- Are there swimming beaches nearby?
- Is this the best property for my needs?
Condos
- What are the Maintenance fees?
- Are the maintenance fees for the condo association about to increase a large percentage for any work needed?
- Are vacation rentals allowed in this location?
- Does this come furnished?
- Is this the best property for my needs?
By Russull Tucker – Kauai Specialist
Hawaii Foreclosures Surge in May
Foreclosures in Hawaii increased by five times in May compared to the same month a year ago, setting a new high in filings. The number topped the previous month of March’s 724 that were reported. Economists and attorneys that handle foreclosures blame the increase filings on the recession’s effects due to job losses and a decrease on wages.
The decline in property prices have made it hard for home owners to refinance or sell their homes. The Hawaiian Islands now have the 15th highest foreclosure rate in the nation with 1 in every 621 households. Hawaii is still no where near the highest states like Nevada, California or Florida.
It is definitely looking a lot more attractive if you are looking to buy a home or making an investment here in the Hawaiian Islands. You can search for all the bank owned foreclosures in Hawaii on our website and sign up to get new listings emailed as they become available. Feel free to contact us if you would like to know about what opportunities are available on all the islands.
Hawaii Foreclosure Rates Rise and Buyers Benefit
Quick market update: The amount of Hawaii foreclosures rose 340 percent compared to last September. Hawaii is now in the top 20 of all states for amount of foreclosure filings. Prices have steadily been dropping the past two years and this is going to create some great buying opportunities in the months to come.
Both the banks that have to sell these foreclosures and the sellers that actually have to sell their home are going to be competing for the smaller buyer pool we have. This will give buyers more power and leverage when negotiating the price for their new home purchase. Mortgage rates are still at an all time low creating a great time to get a loan as well.
Feel free to contact us to help you find a great property that fits your needs.
Is Denver Colorado a Good Investment
Yesterday, I spoke with Larry Hotz who has been selling Denver Real Estate on the south side since 1978. He is a broker with The Kentwood Company which is Denver’s largest independently owned and operated real estate company. I wanted to know how that city is weathering the downturn in home sales and if it is a good prospect for real estate investment.
Larry says home prices have held about even since the first of the year in the better neighborhoods. But, rents for houses for rent have increased over 10% in the last year. Evidently, Denver is experiencing a net gain in population because the economy is healthy and major companies are transferring employees into the market. Still, sales are down about 8% from the year ago period. So, not everyone who moves there is buying a home. Many are going into rentals.
Now, investors can actually expect positive cash flow with 10-20% down payment on single family homes in good neighborhoods. Most investment homes are rented as soon as a sign is posted in the yard. So, vacancy is not a cash flow issue there.
The bottom line is that Denver might be an attractive market for real estate investment so long as Denver relocation by major companies continues.
Florida Real Estate Investing
Investing in Florida real estate used to be a great way to invest your money but the softening Florida market is in a state of flux right now. Read more
San Diego Real Estate Investments
There are many areas across the country depreciating. The big question is: When is the right time to jump in and invest? “Analysts say housing prices in San Diego County held fairly steady last month, but home sales fell to the lowest level in ten years From June of 2006 to last month, home prices for San Diego real estate were down nearly 2%, though the new numbers from Data Quick show an increase for May to June of about $3,400 to a new median price of $494,500. With sales down to just over 3,999 last month, it was the slowest homes sales month in San Diego County since 1997.” Some real estate experts say we are getting close to the bottom, but there are a few that say we still have a ways to go before the real estate in San Diego hits bottom. Only time will tell. The best thing to do is contact a local San Diego Realtor and depend on their area expertise.
If you do plan to go buy a San Diego real estate investment you may want to consider checking out San Diego vacation rentals to stay in while you are house hunting.