Pros and Cons of Buying a Condo in Hawaii

If you dream of waking up with a view of the Honolulu skyline from your 42nd floor lanai, or downsizing to a smaller living space to retire in paradise, buying a condo in Hawaii is an investment to consider. List Sotheby’s International Realty, one of the Islands’ premier real estate agencies, has helped many prospective homeowners find the right condominium for their lifestyle. Realtor Hatsumi Campbell, a condo specialist with 15 years of experience helping clients buy and sell condos in Honolulu, shares pros and cons of buying a condo in Hawaii — and why owning one can be worth it. 

Pros: Amenities, location and control 

“For clients, if they ask what’s a ‘pro’ for buying a condo in Hawaii, number one I think is the investment potential,” explains Campbell. “Because real estate always increases in value, while you are owning a condo, you can earn equity.” Campbell says that after several years, a condo owner can sell the property to upgrade to a single-family home or move to another apartment. The benefit of knowing your property value will not depreciate — as long the condo market in Hawaii remains competitive — offers flexibility for future decisions. 

Another plus for buying a condo is location, says Campbell. With Hawaii being a popular vacation destination, many condominium complexes are in areas that offer “access to the Hawaii lifestyle easily,” with beaches, hiking and local leisure spots nearby. Kakaako, for example, is great for condo owners. “Even though the price is higher than other locations, people love the convenience,” notes Campbell. “They don’t have to drive; they just go to the market at Whole Foods, the beach, restaurants and entertainment.” And, of course, condos in Hawaii offer incredible views of the ocean, mountains and Honolulu city lights. 

Photo: Courtesy of Getty Images.

Amenities abound for condo owners as well. Campbell says having a pool, Jacuzzi and building security are among the perks that make condo life appealing. Additionally, some condos have maintenance workers on staff who can take care of easy repairs for residents.  

Lastly, a good reason to buy a condo in Hawaii, according to Campbell, is that it puts you in the driver’s seat. If you don’t plan to reside in the condo for a time, you can opt to earn some rental income from a temporary tenant. And depending on your building’s rules, you could also renovate and upgrade your spaces “with your taste” in mind. If you are buying a condo to downsize, there’s “no need to maintain an aging home or yard,” says Campbell, but you can still grow your own garden on your lanai if you’d like. 

Photo: Courtesy of Getty Images.

Cons: Cost and constraints 

Property prices are perhaps the biggest drawback when it comes to buying a condo. “It’s so expensive in Hawaii,” says Campbell. In Texas, she says, you can own a single-family home for the same price as a studio here. As you discuss condo listings with your Realtor, it’s important to balance your expectations when it comes to amenities and affordability. 

Some condominiums add maintenance fees and other expenses on top of your monthly mortgage. According to Campbell, these fees may have to be paid whether you are occupying the condo or not. During the COVID-19 pandemic, Campbell says, many condo owners who were unable to come back to Hawaii still had to pay these fees as their units sat idle. 

Condo owners may also have to pay for insurance, as well as “assessment fees” for overall building upkeep. As a real estate agent, Campbell says she works hard to keep her clients informed if major assessments will be coming up or if maintenance fees will be increasing.  

Constraints in space and “house rules” are other cons of condo living, notes Campbell. “You just own the unit, and also maybe parking,” she says, “so you can’t really expand. Usually couples live in a condo, then when they have kids, they want to move to a single-family home because they need more space.” 

Photo: Courtesy of Getty Images.

Owning a condo also means abiding by rules that can dictate everything from whether you can own a pet, to regulating noise and activity, and even what you are allowed to do if you choose to remodel.  

Campbell says she always asks her clients “very detailed questions” to learn more about their home needs, especially if they are exploring condo options. Once those questions are answered, she says she does her best with the resources and network at List Sotheby’s International Realty to find prospective owners the condos they’ll appreciate for years to come. 

Hatsumi Campbell, Realtor ®, HI License RB-22801, (808) 220-1283,  hcampbell@listsir.com. Visit her profile  here.