As experienced buyer’s agents, the Ellisons know how important are
communication and attention to details in every transaction, especially
if you are purchasing from off-island. There are many differences and
challenges when purchasing real estate in Hawaii. It is important to have
professional representation to protect your interests. Steven and Lauralynn
have helped countless clients purchase property in Hawaii and want to
extend their personal services to you.
Over the past decade their business has continued to grow thanks to the
many personal referrals from their satisfied clients. After using their
services, they are confident that you will want to refer them to your
friends and family as well. You are invited to browse through their Client
letters and testimonials to ensure that you have made the right choice
for your investment.
Ellisons' expertise and services:
Finding the best property available for the client
Extensive market knowledge
Advice on current trends in real estate
Protect your interests through contract negotiations
Communication and personal attention throughout purchase
Assistance and knowledge in loan processing and financing
The following is a list of frequently asked questions related to purchasing
property in Hawaii:
Buyer’s Answers: What do Leasehold and Fee
Simple mean?
If you purchase a fee simple property, you own the land and the improvements
on it. This represents the majority of real estate you will probably encounter.
If you purchase a leasehold property, you are buying a lease for land
and, usually, you own the improvements, such as a house. Residential and
land leases are usually set to expire on a specific date. Banks, when
lending on leasehold property, require a minimum number of years left
on a lease. The typical term of loan would be to five years before the
year the lease expires. For example, if there are 30 years remaining on
a lease, the banks would probably only allow a 25-year loan term.
Why would anyone want to buy leasehold property? It is often less expensive
to purchase and often depreciable, which may hold tax advantages.
What is the property tax rate?
The improved residential property tax rate is $9.10 per $1,000 of assessed
value for non-owner occupants and $5.55 per $1,000 of assessed value for
owner occupants. You might also receive additional exemptions for owner
occupant status and age. Hawaii property taxes are paid on a semi-annual
basis.
How do I handle pet quarantine?
When bringing in common household animals and pets to the islands, they
must first go through the quarantine process. The typical quarantine period
is 30 days. There is a kennel on the east side of the Big Island that
allows frequent visits. The amount of money and time you are willing to
spend will determine the length of time in quarantine. It is best to visit
the website below and talk to your veterinarian for advice. http://www.hawaiiag.org/hdoa/ai_aqs.htm
What about schools for my children?
Public schools are in or around most communities on the island. There
are also several private schools. As with any community, there are preferences
to both. A popular district among public schools is the Holualoa School
District because of its smaller class sizes and academics.
If you prefer a private school you have a choice between the following:
Hawaii Preparitory Academy (HPA)
Woldorf Schools
Hualalai Academy
Where are medical facilities located?
The Island of Hawaii has hospitals in Kona, Kamuela, Hilo, Kohala and
Kau. There are many specialty offices throughout these communities as
well.
How do I ship my personal belongings?
You will need to contact a local shipping company for quotes. They will
generally charge based upon a preset volume. You may also have a choice
as to which port your belongings and car will arrive. There are tow ports
on the island, one in Hilo and the other in Kawaihae. You may also need
to arrange transfer from the dock to your residence. Please remember that
you will probably get what you pay for, so try to use a company that someone
can recommend. The least expensive may not always be the best. Generally
shipping will take anywhere from 2 to 3 weeks. Costs will vary.
How do utility costs compare with the Mainland?
Since temperatures in Hawaii can range between 70 and 88 degrees year
round, you will probably not need any form of heating. However, if you
prefer the comfort of air-conditioning, you can expect to pay a higher
electric bill than normal. Your main utilities are electric, water, phone,
sewer (if applicable) and cable. Natural gas is not provided on the island.
People who prefer gas install propane tanks on their property. Solar,
of course, is a great alternative for heating water and saves money in
the long run. The following are estimates of what you may pay for utilities
for a 2- to 3-bedroom home with 2 to 3 occupants. These numbers will ultimately
be determined by habits and usage.
Electricity - (Your largest expense) $100-200/mo (no A/C)
Water - $50-$150/for 2 mo. (Varies with the amount of irrigation)
Phone - $25-$35/ mo. for basic service, no extras
Sewer - $45-$65/mo.
Cable - $15-$85/mo. (Digital is currently available)
Should I ship my car?
Prior to shipping your vehicle to Hawaii, you may wish to compare costs
with new and used vehicles on the island. Shipping from the West Coast
for an automobile can start at about $900 per vehicle. You may wish to
contact Matson Navigation Company for further information.
www.matson.com/matsonsite/autoship.html
Steven J. Ellison, Realtor(S)
&
Lauralynn Ellison, Realtor(S)
Cell: 808.936.3000 info@kona-realestate.com
