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5 Reasons NOT To Look At A Home

1. It’s Leasehold (LH)

Often times it is hard to get a loan on a leasehold property if the lease is going to expire too soon. Call your loan officer; know your options.

2. The HOAs

The draw of oceanfront living is always high, but be sure to take note of the monthly sticker price that comes along with it.

3. There is an Assessment

Whether it’s time for a new roof or a seawall is caving in – special assessments happen. Be sure to ask your realtor if there have been, are, or are known future special assessments.

The whole complex will be charged their portion of these major maintenance upkeeps,  and it may cost you greatly.

4. No Water Meter and/or no Fixtures

Both Upcountry and Northshore Maui have a closed waiting list for new water meters. See the following water meter sizing worksheet for what you can build with your current water meter.

Meter Size

Fixture Count

Additional Available for Purchase

5/8-inch 31 8
3/4-inch 53 14
1-inch 128 32

5. The Property is on Cesspool

You may incur the cost of replacing the cesspool with a septic tank when you go to pull the permits for the remodel and/or expansion of your home.

Aloha,
Lena

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Marcel

March 5, 2020

I think the title is a little too strongly worded to be good ‘advice’. I am glad I listened to someone else’s advice and LOOKED at a leasehold property because I found one with 35 years left on the lease when I bought it. Sure the lease rent is added to the monthly costs but it was still cheaper than the mortgage amount of a similar fee simple property.
None of the other reasons preclude looking at other properties either. As long as you go in knowing what your potential costs will be. Investors know when and where the deals are. I think maybe you must be a Realtor Salesperson that specializes in first time homebuyers? May I suggest that the title suggest something along those lines? “5 things a first time home buyer might want to avoid” would be more accurate. Aloha!

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