How to buy property in Hawaii?

The Hawaiian Islands are known to all people on Earth. But most of us have only seen their beauty in movies or photographs. And only a select few managed to go there on vacation. And among them there is not one who would remain indifferent to the beauty of these islands. Involuntarily a desire arises to stay there forever. Or at least buy a house there and visit Hawaii more often. Is it real? Of course it’s real!

The air temperature in the Hawaiian Islands does not drop below +18 ° C even in summer. Although the islands occasionally suffer from hurricanes and tsunamis, the everlasting summer under the palm trees has made these islands very attractive in the eyes of property buyers. And those who have not lost money even during the crisis now have an excellent opportunity to buy Hawaiian real estate much cheaper than usual. If you check the houses for sale Honolulu, you can see that the price for such homes is very cheap, compared to other states, and this is a big plus that allows any segment of the population to purchase property.

Do you remember that Hawaii is a US territory? This is a strong argument for buying local real estate. In addition, real estate on the islands is attractive for those who love privacy. There is little land here, which means that the number of neighbors will be small. True, this also implies the main disadvantage of Hawaiian real estate – the limited development area leads to the fact that demand is always higher than supply.

But in 2009, the global financial and economic crisis reached Hawaii. Property prices on the Paradise Islands have fallen in value by almost 25%. True, if you compare this drop with the average drop in real estate prices in the United States – more than 60%, then this is not a drop at all, but so-so, a slight pullback …

So, if you hurry, you can also become the owner of a home next to the home of some Hollywood star, famous businessman or politician. True, prestige is expensive. The average home price in Hawaii is $ 500,000. But this price does not bother many. 

The Hawaiian real estate market is no more complicated than the American one. Therefore, if you are already familiar with buying a home in the United States or Western Europe, then nothing difficult awaits you. If you are a beginner and are just planning to invest in overseas property, read on.

When buying real estate in Hawaii, you need to know that there are two types of ownership of the purchase: freehold ownership ( FS ) and leasehold ( LH ), buying real estate on a leasehold basis. In the first case, you own both the land and the buildings on it. In the second case, you only own the buildings, and you rent the land.

Hawaii is building all kinds of housing, not just the palm tree huts you saw in the movies. You can buy a single-family house, a multi-family house, an apartment, a land plot without buildings, and a timeshare.

A house like a cottage or a villa will cost more than $ 500000. But an apartment with a total area of ​​100 square meters can be bought for $ 200000. Which is quite comparable to the price of an apartment in Moscow or a cottage in the Moscow region.

So, you have decided on the type of housing and the type of its ownership, and also figured out the amount that you are ready to spend on this purchase. Now check out examples of real estate properties that Hawaii has to offer online. After that, fly to the islands.

The procedure for buying real estate in Hawaii will take you about one and a half months. Having picked up a property, contact realtors. And do not be embarrassed that the realtor will not be called a “broker”, but a “broker”. He will prepare a quote for you. Basically, this is a model agreement drawn up by one of the state’s real estate associations. It spells out the rights and obligations of the parties and takes into account your interests as much as possible. The realtor will fill out all the papers himself and give them to you for signing. Then he will send them to the seller. The seller will not hesitate, because he is interested in the fastest possible receipt of money from the sale of real estate.

If you do not have enough funds of your own, then theoretically you can contact any American bank and apply for a mortgage. It is possible, but very difficult. Now, after the collapse of the American mortgage system itself, there are very few banks left in the United States that give mortgage loans to foreign citizens. But still, if the bank has agreed to accept your application for a mortgage loan, remember that in the application you must ask for a loan for a finished home. Because you will not be given a loan for the purchase of land or housing under construction because of the very high risks. Also, American banks do not give loans to foreigners for the purchase of commercial real estate. Together with the application, you need to provide the bank with a passport, a certificate from work on a monthly salary and a certificate from your bank about how many accounts you have and money for them. It is better to open an account in advance with one of the US banks and put on it the maximum amount of money possible for you. Only this should not be a one-time fee, but regular transfers. For example, if you want to put on this account$ 120,000, then make 5-10 payments in approximately equal installments during the year. The bank will review your documents within a month (usually twice as fast).

Having bought real estate in Hawaii, remember that the very fact that you are the owner of American real estate does not give you, as a foreigner, any special privileges to stay in the United States. The only thing you can count on is that when you are interviewed for an entry visa, this fact (having your own home in a prestigious area of ​​the United States) will be perceived as proof of a guarantee of your financial stability (that you will not remain in the United States illegally to earn money).

The population of the Hawaiian Islands is now about 1.2 million people. Perhaps soon you will become one of them.


TBN Editor

Time Business News Editor Team