What I Wish I Knew Before Buying a Condo in Hawaii

My wife and I bought our first townhome back in 2013. We both thought it would be our "one-and-done" home purchase that we would grow old and die in, and that single-family home ownership would never be within reach. But in the 8 or so years that we owned our place, the value of our townhouse appreciated +$250K over what we originally paid for it, and it just made sense to sell. We ended up moving out west where homes are more affordable, but we finally ended up with a great single-family home.

High rise condos are a trap in every city in America as it relates to increasing HOA fees. High rise buildings are expensive to maintain.

I've lived on Oahu all my life minus my 4 years on the mainland for college. Returned to buy a small condo that needed fixing every week. But then I ended up renting it at a negative hoping i could live there later. This was in the early 90s. Things changed, and I ended up with renting a condo in Waikiki and loved the setting and proximity to everything. But then we had kids and too many stories of babies falling out of buildings. We bought a fixer upper in Manoa which seemed like a dream, but single wall construction was always in disrepair. But the key to this is that my wife and I did better, we earned more, our investments did better and now we live in a dream home. The lesson is similar to that of minimum wage. Yes, you want a living wage, but if you get too settled, then everything passes you by and things get expensive around you. Without motivation to do better, you are stuck. I know this may sound elitist, but it is human nature to want more and it can happen. I'm sure YouTube income helps as your side gig. BTW, all our housing purchases ended up with seeing an opportunity to rent a bifurcated unit. Rent helps big time. Lastly, if you are in a condo, join the board. I have worked with condos for over 20 years and I find too many board members are retirees that kick the can on maintenance. Increase maintenance fees gradually to avoid special assessments and use the 20 year replacement schedule as a map for savings.

this "condo trap" doesn't only apply to Condos, it applies to Townhome, and houses as well, the market overall is just too expensive

After I bought our two bedroom condo was thinking of moving to mililani as kids getting bigger. However commute was not good. We just kept condo. Kids manage. Space was an issue but also paid private school tuition. Somehow we survived

At least you made the first move with your condo buy. Gotta start somewhere. After getting married in 1978 and paying $135.00/month rent for a two bedroom walkup in Moiliili, we bought a 1 Bedroom condo near Punahou and paying $900.00/month mortgage. Eventually upgraded to our present home in Village Park where we have lived for the past 40 years.

Biggest problem is the HOA fees.

Thanks for the video. This is a real situation everywhere.

Such a good video topic ! More people need to talk about this

The new Honolulu condo area is primarily for two types: 1) Young professionals with no kids who can afford it and want the convenience and lifestyle of the area, and 2) retired folks who can afford it and want the convenience and lifestyle as well. Growing young families will need more space to grow and a quieter area for the kids that cannot be found in a Ward Village or Kakaako. I plan to retire in a place like Ward Village because I no longer want to do yard work, worry about fixing this and that around the house, want to drive less for simple conveniences like food & entertainment, desire to be around similar people with similar lifestyles, etc. And as I get older, money becomes less valuable while time becomes more precious…so the rising HOA fees will simply be the cost of having a life that maximizes my time. My vision of a typical day is to work out at the condo gym in the morning, get some bfast at home or a nearby restaurant, go play at the beach or pickleball or whatever nearby, grab lunch, spend the afternoon doing relaxing things nearby, grab dinner in the area, watch a movie or other entertainment, then go back to relax and sleep at home. Driving will become rare and chores to fix the house a forgotten nightmare…

awesome Video Brotha!!

And once again you're so on point great review and so true

With starting a family in mind, my main priority was to find a house where there were good schools. I did have 2 hrs of daily commute.

So, a perspective from someone who lived on Oahu in the 70's and now lives in Colorado. Our daughter bought this 1980's modular home set on a concrete foundation on foreclosure a about 15 years ago for $224,000. It is now assessed at $850,000!!! Yes, we have a nice location in the foothills near a lake, but that is crazy - consider the property taxes that doubled this year. Makes no sense. We could sell it, but couldn't buy a comparable property that could house a multi-generational family including retired folks on a fixed income, so yes, we have equity, but what does that really mean? Housing in this country, and many others, is just nonsensical. We don't have a lot of income, but are managing to hang on due to the original price and a refinanced mortgage when the rates were low a few years ago. I don't know how young families without a really healthy income actually get into the market now without sacrificing everything else. We raised our kids in rural NY in a 150 yr. old house with no insulation, one bathroom, ancient heating, no AC, a kitchen with ice-cold floors in the winter. But we managed. In Hawaii, just before kids, we lived in single-walled plantation styled homes with no AC, small rooms and yards, in Waipahu and Wahiawa, my husband working at Pearl and me at the hospital in Wahiawa. But I still miss that so much (Hawaii). Unfortunately, I fear those houses are now ridiculously priced and unaffordable for young families. Sorry, this is so rambling. You really have to do your research these days and consider the value of the home, the community, the schools, the commute and the ohana that you can build where you live. Good luck with your decisions. It is not easy.

Very good info!

Your videos are so great mahalo 🤙🏽

I hate to tell you this, but the same topic has been discussed over and over again since the 1970s when Honolulu started building high-rises. It's nothing new and that's how we got Mililani, Hawaii kai and Ewa town houses. Somehow you'll survive and figure out your own path. And once the children are out of the house, then you go back to condo life again.

I appreciate you sharing your experience- I have often fantasized about owning a condo in HI

Don't buy a single family home. Buy a duplex or even better 3 to 4 units. You live in one and the rent from the other units will cover 80%+ of your mortgage. A single family unit does not put money in your pocket every month.

My friend's HOA went from 250 per month to 500 per month, and she lives in an old condo building. Other places are even much worse. Most new communities being built now, especially on the west side, all have HOAs and maintenance fees. Buy land and building on your own is best, but costly here in Hawaii. This is another reason why I chose to move to the mainland, to look for land and build my own home with no HOA or maintenance dues.