Question: When is a good time to consider purchasing a home rather than continuing to rent?
Answer: This year so far we hit many records in real estate in terms of prices of rent and average median sale prices of single family homes and condominiums. I recommend to anyone if you can afford a mortgage you should consider buying a home or condominium now. We live on an island, real estate is limited and the population is growing every year; this is basic supply and demand economics. Interest rates are low right now, which is great for buyers, especially first time homebuyers. I recommend to at least get your foot in the door now so you can build equity instead of paying someone else’s mortgage. I think a lot of people think it is too expensive own a home in Hawaii. That mindset is relative because you can buy a fee simple studio on this island right now for less than $100,000 — or a $36 million grand penthouse.
Q: What is one solution for low- to middle-income earners who hope to afford a home in Hawaii?
| PROFILE
Trase Wagner
>> Title: Realtor Associate
>> Company: Coldwell Banker Pacific Properties
>> Age: 32
>> Website: trasewagner.com Opens in a new tab
>> email: trasew@cbpacific
>> phone: 808-551-9080
|
A: Maybe you do not necessarily want to buy that studio for less than $100,000, or you do not want to live in reserved housing. An option that many people may not realize is that they could purchase a home with a friend or multiple friends and opt for something better than a small studio.
If you have two individuals making a combined gross income of approximately $80,000 a year, they could afford a house worth $750,000. This can buy a nice house on the west side or a two bedroom condo in central Honolulu.
Q: What are some ways for friends to hold title to a property?
A: Well I’m not an attorney and I would advise people to speak with a real estate attorney prior to purchasing a property together to work out all the details. It is possible for two or more friends to own property together. I know people that have co-owned commercial property and you even see two or more families owning a vacation house or second home together.
Joint tenancy and tenancy in common are types of property ownership for friends who hold title on a property together.
Tenancy in common is where all tenants hold an undivided interest on a property. For example one friend could own or have 70 percent interest in the property and the other friend could hold the remaining 30 percent. Joint tenancy is where two or more parties hold title on a property.
Q: How many people can go in on a property together?
A: There is no written rule about this but most lenders will allow up to eight people maximum to purchase a property together.
Q: What are some ways homeowners can prevent issues from arising, such as the owners disagreeing on whether to sell the property?
A: To prevent any issues from arising I would recommend that any persons who want to buy a home together consult an attorney first to come up with a legal document that clearly defines and spells out the rules of this partnership. So if problems do arise there will be no added conflict or stress. I would suggest buying a home with someone you trust and can rely on. The last thing you want is to default on your loan.
“Akamai Money” seeks out local experts to answer questions about business in Hawaii. If you have an issue you would like us to address, please email it to business@staradvertiser.com and put “Akamai Money” in the subject line.
