With the vast majority of people moving to Hawaii for its beautiful scenery and year-round warm weather, many are considering buying a unit in a condomiuim complex in Hawaii. One thing that you will need to know before making this decision is to make sure you budget for the HOA fees. The HOA fee is a mandatory monthly payment that is issued by the homeowners association and the fee cover things like landscaping, security systems, and maintenance costs on common areas. If you’re unsure about whether or not this type of lifestyle is right for you, then take a moment to learn more about HOAs in Hawaii!.
*If you are getting a loan, you need to partner with someone who fully understands how the complex works in terms of financing. If you need me to connect you with a great local lender who wont delay your closing, just email me at discoverthebigisland@gmail.com
I think it’s important to have a local Hawaii lender that is knowledgeable about these associations and expenses. The lender may approve a certain loan amount, but if they are not aware of the possible additional expense, it can be an issue down the road. It is always best to have a clear understanding with the lender on exactly what property might be purchased. If there is an additional expense, the lender needs to know so that they can approve this monthly amount on top of the mortgage expense.
What Do The Fees Cover?
The fees from associations can vary greatly from almost nothing to large expenses monthly or yearly. It is not uncommon to have the same association manage different projects in the same area and the properties can have very different expenses. ( Hawaiian Properties LTD manages many of the properties here in Kona) Some of these associations really give you a lot of buying power for the charges. They might include cable, water, internet, and common area expenses that, when you break down the charges, make sense. Other times, the association might be projecting for major repairs or replacements and this can increase the expenses and not provide much tangible value. It is important to research the charges and understand what the money is going towards. You also need to be aware if the association is healthy and has enough money in the reserves or that there are no future assesments that can impact your maintenance fees.
What Are The Rules?
In addition to the monetary expense, the association might have rules and covenants. This might include small items such as what types of plants they allow to larger rules on bbq restrictions and parking.
Rule of thumb – wheather you are exploring making any imporvements to your unit or if the improvements can be seen by anyone in the complex – CHECK WITH MANAGEMENT to make sure that you are on the clear. Most likely you might need approval by the board. Same goes if you are planning on renting your place. Some condo complexes have very strict restrictions on rental.
They also might have some serious rules on pets. This can include allowing or not allowing them, breed and weight restrictions, or number of pets. The parking can be a huge issue in Hawaii as well. Is your space compact? Would it fit your car? Is there street parking? Will they tow your car? Do you have an assigned parking space? These are all questions that need to be addressed in order to make sure that the new property and the possibility of rules match your lifestyle. Usually, you will not win if there is a dispute and issues can turn into a legal mess if it escalates. Thats why it pays 10 fold to have a realtor by your side to guide you throough all of this!
As a buyer, you really need to communicate your needs properly to your agent and do your research to make sure that the area fits you and your needs.
I am more than happy to help research and advise about each HOA/Association so that a good decision can be made early in the buying process.
