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Paying for a Maui Home - Part 1

Some general tips on the finances involved in purchasing a Maui home.
December 03, 2010

Paying for a Maui Home - Part 1

Maui Homes for Sale in Kihei

By Mark Harbison

The economy is slowly recovering from recent lows, but despite spikes in Maui home sales this year, prices remain incredibly affordable. If you are still managing your finances with caution, here are a few tips about purchasing Maui real estate, particularly with regard to what you should be able to afford.

1. Money now and money over time. When planning to own real estate, you have to keep both the down payment and also the long-term cost over the duration of the loan in mind. This is where excellent job security comes in handy.

2. What is your upper limit? The standard method to determine the most you could afford is to multiply your current annual household income by four, assuming you can make a down payment of 20%.

3. Down payment. Generally, you will need to pay 10% up front or more. If you don't have that much saved, you will probably not be able to secure a loan.

4. Likewise, the bigger your down payment, the more loan options you should have. Lenders that know you have a large sum of money that you can put in right off the bat are going to be much more eager to offer you a loan than if you only have a small amount to start with.

5. Debt is a detriment. Lenders are more cautious than ever in their judgment of worthy loan candidates. If you have any substantial debt to contend with, lenders will assume that your monthly financial obligations will damage your ability to make payments, thus making them reluctant to offer you a loan at all.

6. Making money off your property. One way to make your real estate investment more affordable is to purchase a property with units that you can rent out, as with a duplex or cottage. The rent you collect can go straight into paying off the mortgage. This will be considered by lenders in the process of obtaining a loan.


In the market for Maui real estate? Have a look at new Maui property listings to keep up with what's just gone on the market. We also recommend a look at our Maui real estate listings. You also might like to check out what's available in the Wailea Golf Estates. If you have any questions or need assistance, you can find our contact information at the bottom of the page. Mahalo for reading this week!

Blogs for December 2010

Maui Upcountry Storm and Kihei Flood

Posted on December 31, 2010
Maui Upcountry Storm and Kihei Flood

By Mark Harbison

It must have been strange for some Kihei residents to have found themselves knee-deep in water without a drop of rain having fallen there. If you are shopping around for a Kihei home, the recent flooding should serve as a warning that you… Continue Reading

Hana Arts Performs Little Women The Musical

Posted on December 24, 2010
Hana Arts Performs Little Women The Musical

By Mark Harbison

Normally, we recommend that everyone get out to the lush jungles of Hana once in a while, just to enjoy its supreme natural beauty,  although it's all the way on the opposite side of the island from the South Maui homes we… Continue Reading

Kid's Animal Painting After School Class

Posted on December 17, 2010
Kid's Animal Painting After School Class

By Mark Harbison

Barbara Steinberg will be holding a series of after school art classes at the Maui Bridge Center in Kihei for kids aged 5-10 years. These classes will begin on December 29th and will take place between 3-5pm. What kind of art class is… Continue Reading

Paying for a Maui Home - Part 2

Posted on December 10, 2010
Paying for a Maui Home - Part 2

By Mark Harbison

In our last blog, we went over how to gauge how much Maui home you can afford, and ways to offset your expenses, like renting out a cottage on the property. Here is some more advice.

First of all, don't be scared… Continue Reading

Paying for a Maui Home - Part 1

Posted on December 03, 2010
Paying for a Maui Home - Part 1

By Mark Harbison

The economy is slowly recovering from recent lows, but despite spikes in Maui home sales this year, prices remain incredibly affordable. If you are still managing your finances with caution, here are a few tips about purchasing Maui real estate, particularly… Continue Reading

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Mark and Lisa

Mark A Harbison
R(B) (GRI) (CIPS) (TRC)

Mark@RealEstateMauiHawaii.com

(808) 283-3785

Coldwell Banker Island Properties
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