Hawaii, a U.S. state, is an isolated volcanic archipelago in the Central Pacific. Its islands are renowned for their rugged landscapes of cliffs, waterfalls, tropical foliage and beaches with gold, red, black and even green sands.
Of the 6 main islands, Oahu has Hawaii’s only big city, Honolulu, home to crescent Waikiki Beach and the Pearl Harbor memorials.
Hawaii Weather. Weather in Hawaii is very consistent, with only minor changes in temperature throughout the year.
There are really only 2 seasons in Hawaii: summer (called Kau in Hawaiian) from May to October and winter (Hooilo) from November to April.
Hawaiian and English.
There are two types of property ownership in Hawaii – Fee Simple (FS) and Leasehold (LH). Before you buy a property in Hawaii, you should know what the difference between FS and LH is.
Fee Simple (FS): With a fee simple property, you own the land and the structures on it. This is the typical form of ownership that you can find everywhere. In Hawaii, it is possible for foreigners to own land since the late 1800s.
Advantage: You own the land that your home is built on and you don't have to pay a monthly lease.
Disadvantage: Higher purchase price.
Leasehold (LH): Buying a leasehold property means that you own the improvements on the land, but not the land itself. The ground leases are mostly negotiated for a term of 55 years and when the time is up you (or your heir) will have to renegotiate with the property owners, who are not obliged to extend or renegotiate the lease.
Advantage: Initial purchase price mostly lower than with fee simple properties and the lease can be a tax advantage.
Disadvantage: Extra monthly costs through lease and insecurity about future of lease after end of term.
In Hawaii we use title companies and escrow officers to handle the transfer of the property, including the deed. This is different from the process that you are used to in Canada. The escrow officer, in addition to your Realtor, will communicate with you regarding issues of title, signatures, inspection time lines or other issues dealing with ownership and title.
This process can take 45 to 60 days or longer to complete.
There are a variety of fees and taxes that are customary in the US that you may not be used to and are in addition to the purchase price. These may include:
Your Realtor should be able to give you a breakdown and estimate of all the fees that apply to you and your transaction.
Hawaii’s Landlord-Tenant Code allows us to collect only the equivalent of one month’s rent as a security/damage deposit.
Always use a Agent to make sure you are paying the owner of the property
Min term is 6 months to a year
Agents are generally paid by the Landlord
Property managers for long term rentals usually charge a fee of approximately 10%, while short term property managers charge fees from 25%-50% or higher, depending on services provided and how the management company is structured.