1) How is the Hawaii Real Estate Market?
After a few extraordinary years, prices have softened and sales have slowed to a more normal range in our Hawaii real estate market. Declines in Big Island average home prices are down less than many parts of the United Sates. Hawaii Real Estate Market Report Home Buyer Tax Credit What is a Short Sale? What is a Foreclosure?
Hilo - Hamakua - Puna - Kona - Kohala - Kau
How Much Do Houses Cost in Hawaii?
Maybe it is time to consider the Big Island of Hawaii
Hawaii
$279,000
Kauai
$470,500
Maui
$498
,106Oahu
$575,000
Hawaii Median Home Sale Prices -
Dec 2009 (Year to Date)Source: Hawaii Association of Realtors
2) Volcano, Lava, and Vog: There is very little property for sale in the remote areas near the active lava flow, which border the east side of Volcanoes National Park. Since 1983, the lava flow has covered about 50 square miles and destroyed approximately 190 structures in the Kalapana area. Recent talk about the lava "moving towards Pahoa" has spread more rumor than fact. The Hawaii County Civil Defense put up a website to keep the public informed, however, the "what if" speculations continue to run rampant.
Lava Flow UpdateThe Vog (volcanic vapors) is more common to our Kau and Kona districts, and on occasions it can affect the Kohala, Hilo, Hamakua and Puna districts. Vog generally blows west from the volcanic vents by the trade winds, but can be sometimes be seen as far away as our neighbor islands or Maui and Oahu. A "Voggy" day looks like a smoggy day, but it creates brilliant red sunsets which thrill the tourists. People with pre-existing respiratory conditions are more prone to adverse effects of Vog which may include headaches, breathing difficulties, increased susceptibility to respiratory ailments, watery eyes, and sore throat. If Vog is a concern, then we can focus on properties "upwind" on the east and north-east sides of the Island.
Vog ConditionsIt is true that Hawaii Volcanic Lava Zones 1 and 2 are somewhat more difficult to get mortgage loans on homes, while most everyone can get insurance on homes up to $350,000 through the
Hawaii Property Insurance Association (HPIA). Above that amount you would go with a more expensive than average insurance policy. Yet, many residents love these areas of Puna, Kau, and South Kona because of the weather and scenic beauty. There are ways to reduce risk by keeping your real estate search to volcanic zones 3 or higher in these areas. If "being as far away from the lava as possible" is important, then we areas in the Hilo, Hamakua, and Kohala districts to search for property! Volcanic Lava ZonesLiving near an active volcano is a matter of perspective. Some people see "risk" to be 10 to 25 miles from an active or dormant volcano vent, while others see "opportunity" to have a business to cater to the many visitors who come to see the lava flow. No matter where you live there is risk of a natural disaster: Earthquake, Tornado, Hurricane, Blizzard, Flood, Landslide, Sand Storm, Fire, Volcano... It's a matter of which risk you are willing to live with. Most people who live here don't think much about it. Our volcanoes tend to ooze out a lava creek, they don't explode quite like they can in other parts of the world. And when the lava flows, everyone rushes to the public viewing areas to go see!
Hawaii Volcanoes National Park
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) Koki Frogs, Coqui Frogs or Caribbean Tree Frogs: These small tree frogs are said to have found their way into Hawaii years ago in some tropical plant shipments. I estimate about 25% of the clients I work with HATE them, about 25% LOVE them, and about 50% tell me "we have louder things that than where we are from!" Koki Frog Information4) Rainwater Catchment Systems: Catchment Water is common on our rural Island, where piped county or private well water is in limited supply. Typically you would have a metal roof on your house, and use rain gutters to catch the rain water where it goes into a steel or plastic water tank that kind of looks like an above ground swimming pool. There is then a filter system and water pump to bring the water into the house.
Catchment Water Systems5) Big Island Hawaii Flood Zones: All of Hawaii County is mapped with a flood zone code. However, unless you are near a stream or low elevation shoreline area, chances are your Hawaii property will be located in Flood Zone "X", which is the lowest level of risk area (less than 1% annual risk from stream flooding). Some properties may have localized ponding during a heavy rain, which is not reflected in the flood zone designation.
Big Island Flood Zones Tsunami Evacuation Zones6) What is SSPP? Special Subdivision Project Provision. This is a cost share between HELCO (Hawaiian Electric Light Company) and land owners to bring electricity to some of the rural subdivisions. When you hook up to the electric lines you pay a share of the cost of the power poles. I've seen SSPP range from about $500 to over $5000. Depending on the amount, you may be able to pay it off over a period of time. For specific details you will need a tax map key number of a particular property, then contact HELCO Engineering (808) 969-0311
HELCO7) Hawaii Land Tenure: Fee Simple or Leasehold? Fee Simple is when you buy the land. Leasehold is when you rent the land, usually on a long term lease. For most people, fee simple better fits their long term goals, while for income investors, leasehold is an option worth looking at.
Hawaii Real Estate Title Options
8) What is a Cesspool? Basically it's like a well in the ground.
Cesspools Septic Systems
9) Harpta? Firpta? HARPTA (Hawaii Real Property Tax Law)
allows for Hawaii income tax withholding from the proceeds of a sale, similar to when an employer withholds income tax from your paycheck. The State of Hawaii generally requires that 5% of the sale price be withheld for taxes from an out of state resident Seller. Likewise, the US Government has FIRPTA withholding which requires that 10% be withheld for non-US residents. You get credit for the full amount against any income tax owed on your capital gains when you report them on your Hawaii non-resident income tax return. HARPTA FIRPTA
10) How many square feet are in an acre? 43,560 feet are in one acre. For many people, an acre of land is plenty to take care of. 12,000 sq ft is enough to give you a nice front yard and a back yard, while 8,000 sq ft gives you one or the other.
11) Can I use a Mainland lender to buy property in Hawaii? Yes - BUT! If the off-Island lender does not have personal experience with processing loans for properties on the Big Island, I suggest to add two weeks additional escrow time. Off-Island loan agents may not be familiar with volcanic zones, agriculture zoning, catchment water, or which type of loans work in which districts and subdivisions. I have some recommended local lenders and mortgage brokers on website that you may like to talk with, if just to compare loan options. Whichever lender you chose to work with, I'm glad to help!
Real Estate Referrals12) Where is the best place to live on the Big Island of Hawaii? Well, it all depends on YOU. What I have found is people generally like where they live, and not always the area where someone else lives. Some people like the warmer dryer Southern California like weather of our Kona side, with the nearby golf and beach resorts, condos and timeshares, tourist shops and restaurants. Other people prefer the cooler more tropical weather of the greener Hilo side, with it's sunny mornings and rain in the evenings as the clouds cross over the mountains, the "local Hawaii" small town atmosphere, neighbor gatherings or privacy in the forest. I have had some clients move from one side of the Island to the other saying "it was so different than what everyone told us." What I have learned is the whole Island is wonderful! Rainfall Map
Our County of Hawaii districts include Kona, Kohala, Hilo, Hamakua, Puna and Kau. Hawaii Island (as many of the local residents call our home) is about 4000 square miles and is quite diverse in landscape all over the Island. East Hawaii Photos Hawaii Mileage Chart
Big Island Hawaii Weather Conditions
Hawaii VOG Current Conditions Hawaii Drought Monitor Hawaii Climate Information
Big Island Webcams: Hilo Bay Mauna Kea Puu Oo Vent Big Island Photos
Big Island of Hawaii in the News
Big Island-Big Island Big Island Video News KPUA Hawaii Radio Pacific Business News
Big Island Hawaii Resources
Big Island Information Big Island Drive Times Hawaii County Data Book Hawaii Tax Key Information Prudential Buyers FAQ
Buyers Resources Sellers Resources Hawaii Real Estate Market Report Kevin Lewis - Hawaii Realtor Local Referrals
Recommended Books
Atlas of Hawaii - An excellent map resource for the Hawaiian Islands.
Hawaii: the Big Island Revealed - #1 Big Island Guide book according to my clients.
Hawaii: Big Island (DVD) - Video tour of the Big Island of Hawaii.
Hawaii Map Books - Kona Hilo Puna subdivision and street maps
Living and Retiring in Hawaii - Ideas on how to make a retirement in Hawaii dream come true.
Real Estate Books - Nolo.com Resource Website
Mahalo for visiting my Big Island Hawaii Real Estate Website!
Kevin E. Lewis,
REALTOR® (808) 969-7863 x130 - HiloAgent.com - Prudential Orchid Isle Properties, NOBODY Knows the Big Island Like We Do!™