Effective February 1, 2013 the HOA fees at the Honua Kai Resort and Spa in Ka’anapali, Maui will be increasing by 10%. The fees will increase from $1.20/sq.ft. of interior living area to $1.33/sq.ft. of interior living area.
Please keep in mind that you are not assessed on the covered lanai portion of your unit (just interior square footage) Honua Kai is in strong fiscal condition and there are no pending assessments – the reason for the increase in the HOA fees is to account for escalating utility costs, several capital improvement projects, and to purchase new pool furniture for the resort.
Now that Honua Kai is a couple years old (Hokulani finished in ’08 and Konea in ’09) it’s time for some new pool chairs and umbrellas at this fantastic resort
What Do HOA Fees Cover at Honua Kai?
The HOA fees at Honua Kai cover the insurance and maintenance of the common elements at the resort, refuse collection, water, and on-site security. The AOAO at Honua Kai is in very strong fiscal condition at this time with healthy reserves and with a rather affluent ownership community; I do not have concerns about owning at Honua Kai.
What Other Expenses Should I Budget for Owning at Honua Kai?
- Owners need to budget for annual property taxes paid in two separate installments (keep in mind that there are different tax rates based on how you utilize your unit, most owners are at the Hotel rate of $9.75 per $1,000 of assessed value, or roughly 1% annually). The County of Maui has an interesting way of calculating assessed values and it has very little correlation to current market values, so please do keep this in mind.
- Management fees for renting the unit out – These fees will fluctuate based on different companies offering these services and the tier of service that you require, which usually depends on how involved you want to be in the rental process. These management services range from 10%-45% of the rental revenue. I have excellent relationships with local property management companies and can help you determine what type of program is best for your needs and the type of real estate that you own.
- Electric, cable, internet, and phone service. The communication packages will usually run around $75 per month and electric is really a function of the size of the unit and how much the A/C is run. Please ask me about what my observations have been on particular unit sizes.
- Miscellaneous fees – It is a good idea to get contents or renter’s insurance on your unit, which really shouldn’t cost more than say $35 per month and should cover major damages if anything happens. Depending on the contract that you have with your property manager this will dictate the amount of miscellaneous fees that you will incur.
- Debt service in the form of mortgage payments – Honua Kai is the only property classified as a condotel that I know of that can be financed with 25% down payment. Banks will also require additional cash reserves and other compensating factors that depend on your individual strength as a borrower. Financing Options at Honua Kai
- Closing Costs – When purchasing a developer unit the closing costs have essentially been taken care of by means of a credit by the developer at closing. However, as the real estate market continues to improve here on Maui, it is my understanding that the developer will begin cutting the amounts of these credits that they are offering to buyers based on the categories of the purchase: studio, one bedroom+den, two bedrooms, and three bedrooms. If you are purchasing a resale unit, you should expect to pay anywhere from 1.5%-3% of the purchase price in cash at closing on top of your down payment – this covers the buyer’s portion of title and escrow fees, transfer fees, preparation of documents, and most notably your loan costs.
Looking to Invest at Honua Kai?
1. Be sure to check out my gallery of all Resale Units at Honua Kai. I will help to educate you what seller’s paid for the properties, what an accurate market value of the property is in correlation with current comps and market trends, and educate you what properties are the best buys.
2. Developer units at Honua Kai – Please reach out to me in regards to the remaining developer inventory at Honua Kai where there are a few studio units left, one bedroom plus den units, two bedroom units, and 3 bedroom units. Remember that I can exclusively represent your best interests as a buyer – not the developer’s and I will help you determine what real estate is best for you, negotiate vehemently on your behalf, and guide you through the entire process.
3. Shadow/Unlisted Inventory – Through my marketing efforts at Honua Kai I am in touch with a number of owners who have expressed interest in selling their properties but are not ready to go to market yet. Please ask me about these properties as one may be a good fit for you.
I offer honest, straightforward, and helpful information. I am here to help educate and put you in a position to be successful with achieving your goals.
Thinking About Selling at Honua Kai?
The Maui & Honua Kai Condo Market is Hot!
We understand accurate pricing and international exposure at Honua Kai. We had 4 sales at Honua Kai in 2012 directly from our series of blogs on Honua Kai because buyers are easily finding them on the web and we know how to put deals together.
Interested if you have equity in your property?
Request a free price analysis and view our results proven marketing plan to get it sold. We have Honua Kai buyers and are in need of more inventory to sell. HawaiiLife.com is Hawaii’s #1 real estate website with roughly 150,000 visitors each month and this pace is increasing exponentially with HGTV’s Hawaii Life show becoming an instant sensation. We directly market all of our listings to our company database of 80,000 buyers and growing. Simply put, we put more eyes on your listing than any other brokerage firm in the state and we are very good at closing transactions.
My Blog Series of Honua Kai Condos
- Honua Kai Resort in Kaanapali, Maui – Start here, as this blog will provide you with a good overview of the resort including video on its location, and its world class amenities and ownership offerings.
- Honua Kai Resort Real Estate For Sale – Kaanapali, Maui Condos For Sale – This post focuses on the inventory actively for sale and where all the units are located.
- 4 New One Bedroom Listings at Honua Kai – Posted on January 2013 be sure to check out these best buys priced under $550K
- Honua Kai January 2013 Market Update- What’s happening in the new year at Honua Kai? Are prices increasing?
- 25% Down Payment Financing Options at Honua Kai– get the inside track on leveraging your cash investments at Honua Kai.
- Canadian Couple from Vancouver B.C. purchases a 3 bedroom Honua Kai unit for $1,900,000-Did you know that many of the owners at Honua Kai are from Canada?
- Honua Kai November 2012 Market Update – The latest news after a crazy year of selling
- Honua Kai January 2012 Update – Why Honua Kai is the hottest deal in town right now
- Honua Kai Purchase Process – an owner’s perspective of purchasing and experiencing the resort.
- 35% Price Reductions on Condos For Sale at Honua Kai Resort – Read about how the developer dramatically slashed the prices at Honua Kai and where some of the best deals are at.
- Price Reductions on Honua Kai Resort One Bedroom Units – video blog on 1-bedroom units that are Screaming Deals.
- Honua Kai Resort in Kaanapali – Best Two Bedroom Deals – video blog on 2-bedroom units that are Screaming Deals.
Aloha,Jeremy Stice R(S) 808.281.2178 Stice@HawaiiLife.com