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Ten Things Canadians (or Any Foreign Buyers) Need to Know Before Buying Real Estate in Hawaii Part 2 of 2

by: Pat Strausse, RB

March 9, 2012

4 Comments

Incredible tropical scenery is calling to many Canadians and other foreign buyers

Part one of this series talked about the first five things Canadians, or other foreign buyers, should know before buying real estate in Hawaii.It is actually

fairly easy for a foreign buyer to purchase property, but if the buyer knows in advance what to look for, the process will be even smoother. In this part, the next

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five tips for buyers are presented.

So, heres a look at the next 6 out of 10 things you should know before you buy:

6. If you are going to carry a mortgage on the property, you can obtain a mortgage if you live outside the U.S. , but there are some special points to consider

when getting a loan.

You will need to work with a lender that is licensed in Hawaii. If you are getting a loan on a property here on the Big Island, experience teaches that itis best to work with a local lender. Ask your agent for some recommendations of lenders here on the island.

You will have to pay a higher interest rate if you are a foreign buyer and you may have to put down up to 40%.

All cash to close must be deposited into an existing U.S. bank account.

7. Your closing paperwork will have to be notarized.This will mean either having it done in the U.S. or going to a U.S. Embassy in your county. Luckily, there

are eight embassies located in Canada. If you need the location of one, here is a link with all embassies around the world: http://www.usembassy.gov/.

8. Thinking of using your property as a vacation rental?There are three points you should know about renting your property out as a vacation rental.

Laws on short term vacation rentals are set by the laws of the local county government, not all islands are open to vacation rentals, so check local laws.

Condos are very popular as a vacation rental, but some condo projects restrict the use as a vacation rental, so again check before putting in an offer.

There are special Hawaii state taxesthat apply to short term rentals such as a vacation rental.


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Condos are very popular to use as a vacation rental, as this use leaves the condo open for Snowbird owner occupancy

9. And, on the subject of taxes, you should know that if you decide to sell the property, two special taxes come into play.

FIRPTA

HARPTA

10. The number of days you spend living in Hawaiiand enjoying paradise is restricted. If you stay too long, you will be subject to double taxation.

And, thats the list of 10 things foreign buyers should be on the look out for when buying their special part of Hawaii. And, as you can see, nothing in the list is

overly difficult, just something to work on in advance of your purchase. So, now yourre all set to go out and buy your Hawaiian Dream. Eh?

I love the Big Island! Aloha.

Big Island, Buyer Tips, Hawaii, Kauai, Lanai, Life, Maui, Molokai, Oahu

About Pat Strausse, RB

Pat's dream was to move to Hawaii. In 1997, this dream became a reality. This experience, combined with working with dozens of home buyers and sellers all over

the island since 2001, places her in a unique position to understand what you need in order to find your special place to call home. She prides herself in putting

you and your needs first. She listens, shares her knowledge and works together with you to help you live your best Hawaii Life. Pat loves the Big Island!

Get in touch:(808) 960-5745, Blog, Email, Website

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4 Responses to Ten Things Canadians (or Any Foreign Buyers) Need to Know Before Buying Real Estate in Hawaii Part 2 of 2

Carol Andrews, RB,ABR,SFR

March 9, 2012 at 8:36 pm #

Thank you for this very informative information. We have a lot of Canadian visitors and it is great to have a resource like this to share.

Mahalo,

Carol

Reply

1.

Michelle

February 18, 2014 at 3:08 pm #

Hi.

Im thinking about making a permanent move to the big island with my elderly parents and two children. Do you have any idea how hard it is to immigrate

and the time it takes? I understand Id need a green card but is it possible to bring my parents and is it possible for my parents to get health care there? Does

it make a difference how much capital we plan to bring with us?

2.

We are coming for a month this summer to see how we like it and look around


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We are coming for a month this summer to see how we like it and look around.

Thank you.

Reply

Brian PAUL

April 20, 2014 at 2:21 pm #

Hi Pat

Myself and eleven friends are contemplating on forming a company and purchasing a condo in Mauii. It would not be for rental purposes and each person

would have access to it for one month of the year. Have you any experience with such a situation? We are all Canadians.

Brian

Reply

3.

Pat Strausse

April 22, 2014 at 12:53 pm #

@Brian, Hi Brian, thanks for reading my blog. I have worked with 4 Canadians that bought a

condo over here on the Big Island. I havent worked with a group of 12 but its really the same

process as for 2 or 4 people. It would be easiest if you bought the condo as a cash purchase.

Then it would depend on if the purchase is by the company or as the group of 12 you can do

it either way is a group of 12 you could hold title as joint Tenants OR Tenants in common. If it is a company, Id assume that just one or two people would

be authorized to sign for the paperwork. Since all the final paperwork would need to be notarized, it would probably be easier for just the company to sign

the final docs instead of all 12 buyers having to go to a notary.

But, then again you could all come over here to Hawaii and have one great big signing party!

Hope this helps you out sounds like a great way for you to have your own place in Hawaii. Let me know if you have any other questions.

Aloha, Pat

Reply

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