Mainland transplants about to buy a house... what should we consider?

[KauaiHiker]

I would second the renting and buy-if-you-stay plan. Dealing with a rental, even with local contacts is a pain, not to mention a financial drain. By law you need local management (not just a friend or family member who takes care of it), so that's 10% (at least) off the top.

As for the "spreading the wealth" issue, GE taxes (like a sales tax, paid by everyone) go into the general fund to cover stuff like education, and Hotel and car taxes and fees essentially cover the impact of the hotels and cars themselves (congestion mitigation, road improvements, increased infrastructure such as sewers). Property taxes are higher for non owner-occupants, though it's the same whether you live in-state or out-of-state, just not at the property.

I agree with jackrabbit808 in general, though not really the way he said it (gives the wrong impression and gets dismissed). My take on the issue is that it is in a community's interest to promote local involvement. People who come with cash to speculate and flip just drive prices up and keep rents high. People who buy a place to retire or mainland landlords as in this case still keep rents high because they want to cover their mortgage (and those 10% management fees). Outside investement is usually needed to create new housing, but that's not the problem right now. What we need is housing that is affordable to Hawaii's middle class without competing with the mainland's real-estate investors. I think that would create better living standards in Hawaii and improve communities.

[honobob]

Originally Posted by KauaiHiker

I would second the renting and buy-if-you-stay plan. Dealing with a rental, even with local contacts is a pain, not to mention a financial drain. By law you need local management (not just a friend or family member who takes care of it), so that's 10% (at least) off the top.

You do not have to have a paid (10%+) agency on island. A friend or family member can do this. I also believe that mainland landlords help keep rents low.

[senoraperry]

Thanks for all the advice!

Jackrabbit, the home we're interested in is actually owned by a couple on the mainland who bought it for investment, so not quite the situation you guessed However, I do appreciate the discussion you started. I know this is a difficult issue, and we'd prefer not to be part of the problem as much as possible, although I guess just by moving here we are adding to more "outsiders" taking resources.

I'd like to get involved in the community and learn how things are done around here. Any suggestions on where to get involved? I'm thinking of helping out with the local schools as a start.