1) How is the Big Island Real Estate Market?
After a few extraordinary years, prices have come down creating a Buyer's Market opportunity. However, declines in Big Island average home prices have been less than many parts of the United Sates. Hawaii Real Estate Market Report
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
$260,000
Kauai
$440,000
Maui
$469,000
Oahu
$585,000
Hawaii Median Home Sale Prices -
June 2010 (Year to Date)Source: Hawaii Association of Realtors
2) Volcanoes, Lava, and Vog: We don't have much property for sale in the remote areas near the active lava flow, which border the east side of Hawaii Volcanoes National Park. Since 1983, the lava flow has covered about 60 square miles and destroyed approximately 200 structures in the Kalapana area. The Hawaii County Civil Defense has a website to keep the public and tourists informed of current activity and lava viewing areas.
Puna Lava Flow UpdateThe Vog (volcanic vapors) is more common to our Kau, South Kohala and Kona districts, and on occasions affects the North Kohala, Hilo, Hamakua and Puna districts. Vog generally is carried west from the volcanic vents by the trade winds, but can be sometimes be seen as far away as our neighbor islands Maui and Oahu. A "Voggy" day looks like a smoggy day, and creates brilliant red sunsets which thrill the tourists. People with respiratory ailments are more prone to adverse effects of Vog, which can include headaches, breathing difficulties, 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 Big Island.
Big 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 insurance policy, generally through Lloyds of London. Yet, many residents love these areas in 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 have areas in the Hilo, Hamakua, and Kohala districts to search for property! Big Island Lava ZonesLiving near an active volcano is also a matter of perspective. Some people see "risk" to be 10 to 25 miles from a 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 some kind of a natural disaster: Earthquake, Tornado, Hurricane, Blizzard, Flood, Lightning, Landslide, Sand Storm, Fire, Volcano... It's a matter of which risks you are willing to live with. Most people who live over here don't think much about it. Our volcanoes tend to ooze out a lava creek and don't explode quite like they can in other parts of the world. When the lava flows, everyone rushes to the public viewing areas to go see!
Hawaii Volcanoes National Park
3
) 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.
Hawaii 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 Big Island 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
7) 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 just a well in the ground.
Hawaii 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 towards income tax owed on your capital gains when you report them on your Federal or 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. I'm glad to work with whichever lender you chose.
Referral Resources12) 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 for that reason, do not always recommend the area where someone else lives. Some people like the warmer, dry, sun-drenched Southern California like weather of our Kona side, with the nearby golf and beach resorts, condos and timeshares, tourist shops and restaurants. Others prefer the cooler, partly cloudy, 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 of Hilo, or the rural areas or privacy in the forests in Puna. I have talked with people who have moved from one side of the Island to the other saying "it was so different than what everyone told us." The whole Island is wonderful! Big Island Rainfall Map Big Island Mileage Chart
The 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 Recommended Books about Hawaii
Need a Realtor?
If you are thinking to move to the Big Island of Hawaii, and need a friendly Realtor with experience in our local market to help you find your place on the Big Island, please write to me. I'd be glad to help! Kevin E Lewis, Realtor HiloAgent @ Yahoo.com
Please take a look at my current Big Island Real Estate listings for sale
Big Island Hawaii Weather Conditions
Hawaii VOG Current Conditions Hawaii Drought Monitor Hawaii Climate Information
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Big Island of Hawaii in the News Big Island-Big Island Big Island Video News KPUA Hawaii Radio Pacific Business News
Big Island Hawaii Maps
Hawaii Distance Chart
Hawaii District Map
Hawaii Lava Zones
Hawaii Rain Map
Hilo Puna Map
Puna Zip Code Map
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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!™
