We recently sat down with one of our clients who bought a condo/home in The Pines in Kailua Kona to discuss his experience and insights into buying a second home that is NOT an investment property.
Why NOT an investment property?
Not everyone wants to manage a STVR from afar. Property management fees and no control over the marketing are major considerations when people who want to own a peice of property in Hawaii. Sure, having an income from vacation rentals are great, but did you know that you can only do short term vacation rentals in certain areas of Kona, most notably on Alii Drive? These condos also come with an "investment price tag" because they bring in income. If you were to purchase in the condo complexes that only allow 30 day rentals, you will pay less, but you won't make $300 a day. So, you have to consider what your goals are.
We interviewed our client, Brad Dunker, who had been traveling to West Hawaii for 8 years dreaming of buying a home on the island, but after 2020, watching the price of homes jump to beyond he and his family's reach. He also is not old enough to retire, and he and his wife both have great jobs in Alaska with benefits and a teen son who does not want to live here full time. Enter, the second home that cost less than $800k in the Pines housing development.
We asked Brad these questions:
What made you decide to buy on the Big Island even though you knew you wouldn’t live here full time?
Why here versus just vacationing or renting each year?
What were your biggest fears before purchasing a home here?
What type of property did you choose and why (condo vs house)?
Does owning here change how you experience Hawaii versus being a tourist?
Do you rent the property when you’re not here, or is it strictly personal use? Why?
Biggest benefit of owning here part-time? Biggest challenge?
What would you tell someone considering buying here but keeping their mainland home?
Who is part-time ownership perfect for — and who is it NOT for?
If you are considering purchasing a second home on the island, we can discuss your goals, give you property information that can fit your lifestyle, provide insights into which complexes or neighborhoods work well for second home ownership, and more! Email Julie@Ziemelis.com and let's connect!
