Buying a condo

[Warm Weather Seeker]

I loved Kauai when I was there and have it in the back of my mind that if it became possible I would like to live there for perhaps two or three months of the year and have an investment that would at the very least, pay for itself and therefore afford me the luxury of living there part time, and at the most, have an investment that might appreciate somewhat. Profit is good.

I have been reading what I can and trying to figure out some of the complexities of property ownership in Kauai. Right now I'm trying to understand how foreclosures come about... strata fees not paid up, mortgages not paid up, financial straits that make someone want out NOW... I'm guessing. Any other thoughts about foreclosures? Comments appreciated.

I think that I will continue to visit there and to learn as much as I can about buying and that when the time comes in a couple years... that I hope to have a down payment squirreled away and that in the meantime I will try to find a real estate agent that I want to work with... someone who is experienced and who listens well.

Leasehold doesn't seem that attractive to me. Fee simple I understand.

And... is it crazy to think that I can buy a simple one bedroom one bathroom small kitchen condo near the beach with a pool for $100,000. What's with that in a market where the median household value on Kauai is $503,000?

[whtviper1]

Originally Posted by Warm Weather Seeker

I have been reading what I can and trying to figure out some of the complexities of property ownership in Kauai. Right now I'm trying to understand how foreclosures come about... strata fees not paid up, mortgages not paid up, financial straits that make someone want out NOW... I'm guessing. Any other thoughts about foreclosures? Comments appreciated.

And... is it crazy to think that I can buy a simple one bedroom one bathroom small kitchen condo near the beach with a pool for $100,000. What's with that in a market where the median household value on Kauai is $503,000?

Let's address the second part. Yes, that's crazy for fee simple. Plenty of leasehold in that range.

For the first part. Hardly any properties on Kauai go into foreclosure- generally less than 20/month. And those that do don't necessarily mean it will be available (since it's a warning to the homeowner) - and for those that are available the banks want top dollar. This isn't 2009.

[dimfeld]

Originally Posted by Warm Weather Seeker

And... is it crazy to think that I can buy a simple one bedroom one bathroom small kitchen condo near the beach with a pool for $100,000. What's with that in a market where the median household value on Kauai is $503,000?

My impression is that the fee-simple $100K-ish properties on Kauai are more like studio apartments or hotel rooms and tend to have HOA fees in excess of $1000/month. Also, the only ones I can think of off the top of my head are the units at Kauai Beach Resort, which is not within walking distance to anything except the beach and I hear charges $15/day for parking which gets expensive quick if you actually live there full time. Was there something else that you had found?