We noticed that you're using an unsupported browser. The TripAdvisor website may not display properly.We support the following browsers:
Windows: Internet Explorer, Mozilla Firefox, Google Chrome. Mac: Safari.

Where to buy a house or condo on the Big Island?

San Francisco
Level Contributor
39 posts
1 review
Save Topic
Where to buy a house or condo on the Big Island?

Hi,

We vacationed at the Big Island during Thanksgiving weekend and my dad loved it. He is thinking about buying a house/condo there for our family to use and possibly rent out. We like the Keauhou area, or South of Kona area. Also liked the Waikoloa area. Any suggestions or pros and cons with these areas?

thanks

cotejr

Henderson, NV
1 post
Save Reply
1. Re: Where to buy a house or condo on the Big Island?

We recently purchased a condo at Na Hale O Keauhou. We had purchased a condo from this same builder in Maui and can say nothing but positive things about the quality of what he does. This development in Keauhou is very nice, and just wait until it's all finished. Na Hale O Keauhou will definitely be a good investment too...You are allowed to rent these units out, and they should do very well once the development is all finished and people find out how wonderful this development and location is. Hope this helps you as you look around.

Palm Springs...
Level Contributor
11,440 posts
103 reviews
Save Reply
2. Re: Where to buy a house or condo on the Big Island?

better buy quick as the MARKET here in a holding pattern... it has been rising at 18 to 36% depending on your location.

Kona and Keauhou are the older areas built in the 70's rentals run from 75 to 250 a night on condos and the ouccpancy hoovers at 40 to 60%..... the weather is hotter and the beaches better. The rental clients are younger and more economy minded. Few families in this area rent. A lot of time sheres down here.

In Kohala resorts things are newer late 80's to present, all in resort areas. rentals start at 175 in the off season and ouccpancy is in the 70 to 90% range as more FAMILIES seek the total resort and up-scale atmosphere

My suggestion is if you are seeking a place to rent out is to go to trip advisor hotel section ans see what the most popular places are..... thoes places will have the highest rentals.......makes sence to me and I live here and went through the same quandry years ago.........

San Francisco
Level Contributor
39 posts
1 review
Save Reply
3. Re: Where to buy a house or condo on the Big Island?

Thanks for the info. I am researching Na Hale O Keauhou and so far it looks great. Would like to buy new rather than older property. The Kolea in Waikoloa looks good too but do not know the prices. The property is more for family and friends, but will rent out to vacationers if needed.

Any more thoughts and info?

Palm Springs...
Level Contributor
11,440 posts
103 reviews
Save Reply
4. Re: Where to buy a house or condo on the Big Island?

Kolea is pricy....a 2 bed condo runs about 1.4 to 2 mill. a 3 bed runs 2.5. assocation dues will be at $1700 a month for a 2 bed. Being new you will spend another 25 to 50K on up-grades.

This is the crux here , the assocation dues for the condo which all owners pay and it ranges from $ 350 to 2000 a month. Your task is to find one with low dues.

Another consideration is that of your repair bill. If you are on the beach..ocean front, expect your stove, tv, ac, micro-wave, stero, etc to last about 24 to 30 months due to salt water in the air. if you buy furnished ask the age of the furn....and plan on it lasting no more than 3 years....

If you are buying the unit to use most of the year for yourself and dont need the rental or tax break a rental offers then buy what you can afford..

If you expect some income be aware that the older units in Kona and Keauhou have lower rental prices and also lower occupancy too. many are wood construction that require constant fumigation and maint. Try for a concrete block rather than wood. You will habe the time-share condos selling against you and that will keep rentals low.

Waikoloa beach has the hottest rental market the Shores and the Colony Villa are the leaders in rental.This is the most popular area on the island.Except for Kolea, cndos here run $475K for a one bed to 698k for a 2 bed . the avg is about 630K

Homes near the beach will run in the low 800 to 900K, ON the beach from about 2.5mil in Kona to 6to 8 mil in Waikoloa.

Keauhou has a lot on nice homes...3 bed 1600 sq ft for under a mill.

When you get a loan you need to know the loan rate will be 1.5% higher than the present rate at loans for "condo-hotels" run a premium. Don't assume a low rate....the lenders over here will drop that one on you at closing, a cheap trick but done lots.

Also if you rent it you will need a managment company... current rates are between 30% and 48% of your take.... THe higher rates give good service the lower oned do not... ti pays to get the best.

San Francisco
Level Contributor
39 posts
1 review
Save Reply
5. Re: Where to buy a house or condo on the Big Island?

HD you are weath of information.

Thanks for taking time to answer my question and everyone elses.

carmel
Level Contributor
609 posts
Save Reply
6. Re: Where to buy a house or condo on the Big Island?

Aloha cotejr, get a good realtor come over and look. TMI from HD on this topic. Some of his facts are questionable.