What You Might Not Know About Buying a New Build in Hawaii
Buying new construction in Hawaii represents a unique opportunity. New developments on Oahu feature top amenities, modern construction, and the features and finishes you want in a move-in ready home. They also may offer the opportunity to get an amazing deal, if you lock in your price early on in the building process and close when there is already equity built.
Before you decide to look at homes for sale in new developments on Oahu, check out this post on things you might not know about buying a new build. And, as always, contact us any time with your questions.
Flexible Timelines and Costs
When you sign a contract to buy a new build, you will be given an estimated completion date. However, the further out you are from that date, the less firm the timeline is. Construction costs in Hawaii can be higher than in other parts of the United States due to factors such as shipping materials to the islands. Additionally, there might be delays in construction timelines, influenced by weather conditions, permitting processes, or a shortage of skilled labor. Shipping materials to the mainland can also affect timelines. Buyers should be prepared for potential delays and factor this into their plans.
In Hawaii, land tenure is a critical consideration. The two main types are Fee Simple and Leasehold. Fee Simple ownership provides the buyer with full ownership of both the land and the property. Leasehold ownership, on the other hand, means the buyer owns the home but leases the land from a landowner. Understanding the land tenure structure is crucial in making informed decisions.
Many new construction developments, especially condominiums and townhomes, come with homeowners' associations (HOA). Buyers should be aware of the HOA fees and any restrictions or covenants that come with it. HOA fees may cover maintenance, amenities, and insurance, but it's crucial to understand the financial obligations and rules.
We can help you navigate the details of the HOA agreement to make sure the regulations fit your plans for the property. For example, if you plan to invest in the home as an income property, you will need to first be sure that this is allowed by the HOA and that your type of renting plans will be accommodated.
Tourist versus Residential Areas
Hawaii is a popular tourist destination, and some areas may be more geared towards tourism than residential living. Buyers should consider whether they prefer a community-oriented residential area or a location with a more tourist-centric atmosphere. This decision can impact the day-to-day living experience and long-term satisfaction.
You will find new developments in various parts of the island, suited to different lifestyles and plans. If you are looking to invest in a primary residence, consider the lifestyle you want to live and whether proximity to the beach, schools, or your workplace is a top priority. On the other hand, if you plan to buy a short term vacation rental property, choosing a tourist area and a new development with resort style amenities may be the better choice.
When you buy a new construction home in Oahu, you need to partner with a real estate agent who knows local developers and has experience with the local market. That's us. Ready to find your new home on Oahu? Contact us any time to get started.