Questions & Answers

Q. I just moved to Maui and I wonder whether I should buy a place or rent.

A. One of the advantages to renting is not having to worry about maintenance and other financial obligations of property ownership including the cash outlay that you must initially make when you purchase. However, when you buy a home there is the possibility that you could sell it later for more than you bought it. This possibility of course, depends on the market appreciation at the time when you decide to sell. If you cannot time your sale when you want to, you may have to sell your property at a loss. Home ownership also brings with it maintenance headaches and loan costs beyond what renting costs. But unlike renting, home owners who obtain a fixed-rate loan can establish their monthly housing costs and do some wise financial planning. As home owners know, owning your own property brings a lot of satisfaction and enjoyment. Before any home investment is made, however, a thorough consideration must be made of the community where the home is located and the needs of the family who will live there.

Q. My home that I bought a few years ago has become too small for my family. Should I add on or look for a new house?

A. There are always homes on the market that will tempt you to move to a new home to satisfy the growing needs of your family. The major considerations as to what route you take depend on the following:

How much money is available to you either with a home improvement loan or cash
• Will the building ordinances allow you to add on to your present home as you would like
• Would the structure and design of the present home allow for the desired expansion
• By adding on to the home are you creating a value that is beyond that which can be obtained if you decide to sell it
• Are there other properties available that will fulfill the increasing needs of your family located in neighborhoods that will accommodate your work, school and recreation considerations

Once you answer these questions you will be better able to make a decision as to whether you can in fact remodel and satisfy the growing needs of your family or whether you should look for a new home.

Q. We have just started to look for a home and most of the houses that we see are so tiny and not what I had in mind at all when we moved to Maui. My husband says that we have to start somewhere. Is he right?

A. Getting started by buying a home smaller than you had in mind may be a good way to take the first step into home ownership as long as you keep in mind the basics. Is the home in a community where you want to live and convenient to your needs: schools, shopping, commute, and so on? How much will it cost to make the house livable to your standards? How does the price of this home compare to other homes that are like it in the neighborhood? For most people their first home will not be their last but rather, a stepping stone to their dream home. An experienced real estate professional can show you homes in your price range and through careful research, you can make a wise choice.

Q. How important is a home inspection when I am purchasing a home on Maui?

A. Without a doubt a home inspection is one of the most important things that you should have done before you make a decision as to whether you are going to purchase the home that you have selected. A professional home inspection is an objective visual examination of the physical structure and systems of a house, from the roof to the foundation. Through the inspector’s report you can find out whether there are repairs needed and what maintenance is required to keep the property in good shape. This will give you the confidence to make the decision about buying the property. In Hawaii, if you request it, you have an opportunity to ask for a Home Inspection and make a decision after a thorough inspection of the property whether to continue with your purchase or cancel the purchase.

Q. Where I come from there are hardly any condominiums but in Hawaii I notice that there are many. I have always lived in a house and never in an apartment. What should I consider if I decide that I might want to buy a condominium?

A. If you have only lived in a house and not in an apartment living in a condominium is quite an adjustment. Depending on the size of the condominium development, you may be living very close to hundreds of strangers and sharing a common wall with another family potentially dissimilar from yours. On the other hand, in a place like Hawaii where land is so limited and views and oceanfront property so desirable, you maximize your chances of being able to capture those amenities if you elect to purchase a condominium. Be sure that you read through your rights as an owner of a condominium before you purchase by reviewing all the condo documents including the Declaration, CC&R’s, By Laws and House Rules, among others. You ask for these when you make an offer to purchase a condo. You should decide whether you are going to live there all the time or whether you want to rent it out and stay in it on vacations in Hawaii. There are strict zoning laws that govern what can be done where. You will rely on your real estate professional to inform you as to what is allowed where you intend to purchase. Be sure that you consider the maintenance fee which is also charged by a condominium for the upkeep of the common elements. You should add that as a cost to your mortgage and property taxes of payments that you must make when buying a condominium.

Q. How do I know how much I can afford to pay for a house?

A. You should talk to a lender whom you trust. Ask your Realtor ® to take you to see a lender who can look at your income and expenses as well as how you handle credit and prequalify you for a loan or even pre approve you for a loan before you even go out to look at property. There are other factors which enter into how much of a loan you qualify for but these are the most important.


Carol Ball Inc. dba
Carol Ball and Associates
RB 11347
Maui Mall
70 E Kaahumanu Ave Ste A6
Kahului, HI 96732-2176

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