Before you invest in anything, you need to learn more about it, and when it comes to real estate, it isn’t any different. There are a few things that you need to know about investing in real estate, especially in Hawaii. Once you figure them out, you’ll have a better chance of making a better investment. Here are the crucial things you need to know about investing in Hawaiian real estate.
1. Get a Realtor
Get in touch with a local realtor as your first step, and they can pick up from there and help you find what you are looking for. It can be a bit of a struggle if you decide to go at it alone. More than 80 percent of all real estate transactions are handled by licensed agents in Hawaii. You need to find an agent who knows the ins and outs of both the industry and the area you would like to buy into.
2. Know the area
You should learn as much about the area of Hawaii in which you plan to invest as possible.
This means knowing:
- The neighborhood and its local schools, businesses, and amenities
- The crime rate
- The demographics
- The climate
- Transportation options
- Local economy and culture
3. Be Prepared for Taxes and Fees
Federal taxes are the same across the country, but Hawaii’s state tax rate is a bit higher: from 1.4% to 11%. The average tax rate on Oahu homes (where most homes in Hawaii are located) is about 6.4%, according to SmartAsset. The government also charges numerous fees for various services, including a property transfer fee of 0.15% of the home value. There’s also a conveyance of tax-paid fee of $1 per $1,000 of assessed value.
4. You’ll Have to Pay Extra for Certain Land Titles
Before you dive in, it’s important to understand the differences between land ownership in Hawaii and other U.S. states. Land titles come with different types of restrictions, including:
- The state of Hawaii’s right to build a road through your land at any time (Public Access Easement)
- A requirement that you use your land only for single-family purposes (Residential)
- The fact that your home could be underwater if sea levels rise (Exclusive Easement Appurtenant). Whatever type of title you’re considering, make sure you know the ins and outs of what exactly you’re buying before closing on the deal.
5. If it Sounds too Good to Be True, it Probably is
If you’re considering buying a property in Hawaii and a deal seems too good to be true, do your research and make sure the transaction is above board. Never pay anyone money or give out personal information on an ad or website that you don’t trust. It never hurts to hire a reputable real estate agent who has experience in the area you’re interested in. When looking into Weaver Hawaii, some of the deals are too good to be true, and they are. If you find them above boar, don’t hesitate to go into it.
Know What Your Getting Before You Invest
If you are going to buy into the Hawaiian real estate market, you need to know what it comes with. Here are some of the crucial things you need to know before you invest.