One of the more common questions we get from potential investors on the Big Island of Hawaii is “Is it better to buy a house or a condo?” There are several factors to consider when considering which you should buy and we will look at them here.
Why Are You Buying?
The first thing to consider when purchasing in Hawaii is what is the motive. Is it strictly investment? Is it more for personal use?
If it is strictly investment, then a condo that is known for long term rentals may be the best route to go. Currently there is a demand for long term housing so the prices are higher. The tenants pay the utilities, which makes the overhead cost less.
If it is more for personal use, then it really is best to get what you will enjoy. I think that is probably the main point we make to potential buyers. Ultimately get what you want that is within your budget that you will get the most enjoyment out of.
How Involved Do You Want To Be In The Property?
If you do not want to be too involved in the property, condos are typically the best way to go. Overall you are just responsible for the maintenance of the interior of the property and the property management company for the complex handles just about everything on the exterior. With this comes association dues, which over the course of the last few years have risen drastically in many properties.
Houses on the other hand, can be a lot more work. Most Hawaii homes include a pool so you are responsible for finding a pool service company. You then also have landscaping to take care of. One of the probably most unexpected challenges of owning a home in Hawaii is the cost of water. In many areas, the cost of water is a lot and with lava rocks many of the drip lines are easily broken.
All this being said, if you buy a newer home and/or hire a reputable property management company for your home, there is not much more work you have to do than with a condo.
Most Important Advice!!!!
I would say the best advice we give people is to just get what you want and will make you happy. At the end of the day, if your choice is not all about the finances long term you will be most happy purchasing what you want. I can not tell you how many times we have met with people that do not buy the property they want and they end up selling that property to eventually buy what they wanted.
Author: Rob Dalton owns Waikoloa Vacation Rentals and has been in the property management business on the Big Island of Hawaii for over 20 years.