Generally speaking a person really can’t go wrong purchasing real estate on Kauai. Why? Because we don’t have much and there isn’t new real estate being built! Kauai properties appreciate like crazy. Even people who purchase a property then sell the next year usually break even or make some profit.
With that said there are 3 specific types of Kauai properties that I would never buy as a Kauai real estate agent! Read below why..
Oceanfront vacant land
This is specifically vacant land not a pre-existing ocean front home. The reason I would not purchase land that is oceanfront is because of erosion and our ocean set back rules.
Erosion is a real issue on an island. Hawaii has one of the fastest eroding coastlines. Some oceanfront vacant land parcels are marketed as 10,000 sq. ft. (for example) but in reality parts of it have washed away and its 7,000 sq. ft.
Because of this the county/state has made strict ocean set back rules. Depending on where the set back is sometimes only a small portion of the land is buildable at the very back end of the property.
These set backs are often estimated and can change whenever the county/state feels like they should change. This website shows some information http://www.pacioos.hawaii.edu/shoreline/hcgg/
Kiahuna Plantation Condos
Kiahuna Plantation Condos have a great location in Poipu. They are older plantation style units. The property is well kept and classic. The reason why I don’t like them is because their monthly maintenance fee plus their leasehold rent equals to around $4,000 a month.
This is not including property taxes and a property management fee (assuming the property would be handled by a property manager.)
There were some people who got lucky and bought these properties at $50-$80k. Maybe they are profiting, I’d be interested to know. Overall its a No go for me.
I once sold someone a unit at Kiahuna Planation. I tried to steer her away many times from this complex. Her heart was set on it and I realized I need to do what my client wants. She ended up wanting to sell it a year later.
Development from a developer that I didn’t trust
This is probably easier for me than someone who isn’t from Kauai to know. I would never buy property from a developer that I didn’t like or trust. For example there is a specific land devolvement project in Kapaa where the developer stole all of the funds and ran. This project is still not built upon today and unfortunately many people lost their money are still aren’t able to build their home today!
There is also other developers trying to build luxury homes/condos during a housing crisis on Kauai. It’s a no go for me.
My advice to others would be to internet search the developer before handing over your money. Especially if buying into a project that hasn’t been built upon yet.
2nd I would contact various real estate companies who have been in business on Kauai for 20+ years and ask them about the developer.
Kauai Properties I would buy…
Overall a buyers concern especially today is if they are over paying. Because prices are higher than ever. Especially on Kauai as our market did not lower since the interest rate hike.
Now every property is case specific. However in general the consensus that I am noticing between myself and other agents is that there are no new properties being built here. It’s true, especially right now and there is no reason for people to want to move away from Hawaii. Aside from an expensive lifestyle.
Therefore my opinion is that people aren’t over paying right now for their properties in Kauai.
