Most conversations about buying in Hawai‘i stall at the same place. Someone says the median price and the other person stops listening. So instead of a median, here is one actual unit that is on the market as I write this.
The unit
1250 Richard Lane #408 in Honolulu. Two bedrooms, one bath, 643 square feet, built in 1977, listed at $330,000. The maintenance fee is $721 a month. It was renovated in 2020: newer flooring, updated kitchen and bathroom, custom tile, built-in storage, and a washer and dryer that are genuinely new. There is a lanai that catches the mountain breeze and a full-time on-site manager, which matters more than people expect once you own in a building.
It is not a dream home. It is a starter home, and it is priced like one.
The part people get wrong
When buyers compare buying to renting, they compare the mortgage payment to their rent, notice the mortgage is higher, and stop. That comparison is incomplete in both directions.
On one side you have to add the maintenance fee, property tax and insurance to the mortgage, which makes ownership look worse. On the other side, part of every mortgage payment goes to principal, which is money you keep, and your housing cost stops rising the way rent does. Rent on O‘ahu has not historically stayed still.
I am not going to tell you the answer comes out in favour of buying every time, because it does not. It depends on how long you plan to stay, what you would put down, and what rate you can get. But it is a real calculation with a real answer, and almost nobody who tells you Hawai‘i is impossible has actually run it for your situation.
What to look at in a building like this one
Before the unit itself, I look at the reserve study, the association’s insurance situation, any pending special assessments, and whether the building has already handled sprinkler retrofit requirements. A $330,000 purchase with a $40,000 assessment coming is not a $330,000 purchase. This is the sort of thing a buyer’s agent is genuinely for.
See the listing, or read the first-time buyer guide.
Listing details as published on HiCentral MLS 202610681. Availability and price are subject to change.
