Kona Condominium Information
Kona, Hawaii is home to thousands of condo units, ranging from the basic to extraordinary. Konacondominium.com is an information resource for those who are looking to rent or buy a condo in Kona. The website is currently not affiliated with any real estate or vacation rental company.
Why use KonaCondominium.com?
Konacondominium.com is an unbiased source for information about the range of condos available in the Kona area of Hawaii's Big Island. The Kona area of the Big Island is the area on the leeward (Kona means leeward) side of Hawaii Island and encompasses the areas north and south of Kailua-Kona up to the Kohala area north of town and the Kau district south of Kailua-Kona.. This website focuses on the thousands of condo units on or near Alii Drive in Kailua-Kona and Keauhou.
If you are looking to rent a condo, each condo page has information about the price range of the units, the amenities of the condo complex and the location. There is also a place for those who have stayed in a particular unit to leave their impressions.
If you are looking for property in Kona, Hawaii, this website can help you become better informed about the the condo complexes. You might not know, for example, that some Alii Drive condos are sold "leasehold" which means that you do not own the land and you must lease it. A leasehold condo is, of course, less expensive to buy, but the long-term costs and limitations might not make it a very good deal. Some condos on Alii Drive are not available for short-term rentals due to zoning laws, so they are not suitable for vacation rentals, but might be good investments for long-term rental use.
Renters Beware: Kona Condo Rentals
Note that every condo in the rental programs is different. The top-notch complexes have plenty of units that are poorly maintained and with outdated furnishings and decorations. Some of the less expensive complexes have units that have recently been remodeled with top-of-the-line furnishings and appliances. There is no way to judge an individual unit without seeing recent photographs or reading about the experiences of others who have stayed in that unit. Price is often a good indicator,but beware, because most rental companies have one price for each complex, which means that a recently updated unit can rent for the same price as a unit with a fifteen-year old bed. Our advice is that you ask the rental company a lot of questions.
Condos vs. Hotels
Vacation rentals in Hawaii can be a wonderful place to stay during your vacation. What you get is a much bigger room(s) than a hotel, a kitchen, and a lot more privacy than a hotel. The prices are usually about the same if you are going to stay less than a week, but if you are planning on a week or longer stay, you'll save a lot of money staying in a vacation rental. The monthly rates for many units are sometimes less than half of what you'd pay at a hotel. Not only will your room costs be less, but you'll also avoid paying for parking and have a place where you can make your own meals.
Hotels have maid service, room service, a concierge and a 24-hour front desk. If you need these, get a hotel. Also, if you are in Hawaii with a "party all the time" mentality, get a hotel room. Most condo complexes expect residents to adhere to quiet hours after 10pm. Many people live in condos and, yes, they do have a right to quiet and peaceful premises, so if you can't respect the fact that everyone is not on vacation here, get a hotel. Trust us: you'll be happier and so will those who choose the relative laid-back pace of the vacation rentals.
Are condos in Kailua-Kona a good investment?
Condo buyers should looks at three ways to make money from a condo in a vacation rental program. The first is the amount of money you're likely to receive from the rentals. The occupancy rate can range from 10% to about 70% for most units if you have short-term (daily, weekly and some monthly) rentals. Be sure to ask a lot of questions when considering a property. Your realtor and the vacation rental company might not give you all the facts, as they want you to buy the property and enroll in their programs. Ask to see the rental histories of comparable units and ask for references.
The second way to make good on an investment in a vacation rental in Kona, Hawaii is to realize savings from staying in the unit yourself. If you plan on being in Kona from December to April each year, you will probably save $10-$20,000 a year in rental costs. You'll also be able to keep clothes and vacation items in your unit, so you'll have more comfort traveling and less expenses when you arrive. Note that January-March are the highest occupancy times in most of the Alii Drive condos. If you are on-island during this time, expect significantly less rental incomes! Most rental programs will take about 20% of gross rental receipts for their efforts.
A third way to profit from a real estate investment in Kona is to see the value of your property appreciate. if we know which way the market was going, we would, of course, be rich. If you bought in 2001 and sold in 2005, you probably doubled your money. If you bought in 2005 and sold in 2008, you might have lost 20-35%.
The three pathways to profits above need to take into account expenses. The big expense is association fees, which at the low end are about $300 a month, with some of the properties more than twice this. There are also assessments that can come up when there are major repairs. Other expenses include insurance, phone and electricity and general upkeep. The Big Island has the highest electricity rates in the U.S., with occupied an one-bedroom condo running upwards of $200/month in electric bills a month. Add a lot more if you have air conditioners.
The value of an investment in Hawaii real estate can be difficult to determine, but if you take into consideration your use, rental income and property values, you can begin to understand what affects the value of your investment.