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Condo Buying Tips - From A Hawaii Real Estate Agent ~ Call 808-298-2030 - YouTube
Channel: Hawaii Real Estate
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why literally the top five things
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that'll make all the difference making
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sure it's a wise investment it's
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something that you're happy with for
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many years to come
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okay number one make sure that the unit
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has a partial or full ocean view one of
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the two when people come to rent the
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condo in Hawaii that's probably their
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number one thing does it have an ocean
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view number two make sure that the unit
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is fee simple now if you do buy a lease
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hold the only ones I recommend are the
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ones that have other fee simples in that
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complex in other words part of it has
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already phased into feet simple or it
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has an expiration date that's super way
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out in the future or the leasehold fee
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is very very low but I do not recommend
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buying a leasehold you know 100 percent
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leasehold property where the fees are
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gonna go up or there is a contract
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renegotiation about to happen number
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three look at the financials and the
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historical performance of that unit
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that's your number one indicator of how
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it's going to do in the future
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now goes without saying the complex
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needs to allow short-term vacation
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rentals and when you get those financial
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look at the gross vacation rental income
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for the entire year figure out what
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they're getting per night and then come
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up with an average occupancy of say 80
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percent then apply that to all of the
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other units that you're looking at in
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other words some units will perform
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better but the owners are staying in
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there for
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many nights or some units will perform
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better if the management company had a
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higher occupancy level so the best way
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to get everything on an even playing
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field is just to come up with okay here
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is the average amount that it is renting
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per night and then assume that
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everything is going to rent for at least
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80% occupancy also level out the
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management fee say okay it's going to be
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a 30% managed fee management fee across
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the board and so that way you can kind
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of get a feel for what all the units
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will produce given these assumptions and
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take out some of the variables because
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he was going to happen you're gonna get
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these financials from all different
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people and it's going to be a hodgepodge
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and be very difficult to figure out
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exactly what kind of revenue you can
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expect to really compare these units so
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if you need help with that I've got a
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spreadsheet that I've created that
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really takes out all those variables and
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really boils it down to the expenses and
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the expenses are very simple your HOA
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dues your taxes and your utilities
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that's really all there is because the
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cleaning fees and the transit
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accommodation tax and the general excise
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tax were passed through right to the
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client okay number four is ocean access
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ocean access is huge now the best-case
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scenario of course is that it's
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beachfront but if it's not beachfront at
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least having a rock wall and a rocky
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shoreline but having some kind of access
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into the ocean guests really like that
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and of course worst case scenario is
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you're not on the ocean but you're at
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least a very short walk to an ocean
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that's accessible but the best case
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scenario is beachfront that's accessible
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and a good swimming beach in other words
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it's not all coral it actually has good
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areas where people can swim that really
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brings in the numbers and one final
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bonus tip for you condo
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if you have the opportunity to stay in
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the complex that you're considering
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purchasing that is highly recommended
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and read every review that was ever
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posted on Yelp or VRBO or Airbnb this
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will give you a lot of insight into
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what's going on in the complex and I
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even tell people hey reach out to other
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people that are staying there other
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owners and really get that inside scoop
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before you make a final purchase
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decision because you know the Devils in
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the details and you don't want to find
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out some of these things after you close
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better to go into it with eyes wide open
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and my final tip number five is make
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sure you buy it right and what that
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means is you have to take a really hard
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look at all the comparable sales that
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have happened within the last year once
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you get all those comparable sales
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create yourself a little spreadsheet and
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come up with a price per square foot
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that each unit has sold for in the last
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12 months and then make adjustments for
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was the unit upgraded was it largely
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upgraded or was it in original condition
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it was a review partial view or garden
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view and those adjustments obviously can
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make a big difference in what you're
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purchasing so you have to be careful if
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it looks like a good deal it might just
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be that the last unit sold you know had
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I had an ocean view and yours doesn't
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and you think you're getting a great
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view in reality that garden view should
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sell for a lot less but looking at those
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comps and buying the unit at the best
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price possible is absolutely critical to
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your return down the road and if you
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need any help with that obviously hit me
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in the comments or send me an email I'd
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love to show you the best way to pull
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those comps and to make sure you're
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working with the right data and that you
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analyze it correctly as well if this has
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been helpful hit the like button
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subscribe and I'd love to hear your
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comments and see what kind of
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suggestions you have in terms of what
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helped you find the right condo and any
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kind of trouble that you ran into in the
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process that you'd like to share with
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other people so they can learn from your
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from your adventures Aloha
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anything is out people think I sell real
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estate you know what I'd love sharing
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the most
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beautiful lifestyle in the world
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