Paying $1500 to Rent a 1 Bedroom Kaneohe Apartment? Why not Buy a Condo?

If you have a little bit of money saved up, I’ve got a great listing in Kaneohe.  It’s a 1 bedroom, 1 bath unit in Puu Iki, a complex right off Lilipuna Road & walking distance to shops and restaurants.  Unlike most of Hawaii’s condos, Puu Iki is “relatively new” having been built in 1991.  The 1 bedroom units seldom are available.  The majority of the units are 2 bed, 2 baths.   I also found out recently that the building has an owner occupancy ratio of 73%!  Last year I sold a 1 bedroom unit for $290,000.  The unit I currently have listed just got reduced from $270,000 to $250,000!

Here’s some simple math: with 20% down ($50,000), say you borrow $200,000 at 6% interest (which is very conservative- rates are much lower these days), your principal & interest would be $1200/month.  Maintenance  fees are only$197/month and property taxes $29/month.  So, you’re looking at payments roughly $1426/month to own! This is before all the benefits or mortgage interest deductions, principal payoff & ultimate appreciation over time! Why rent when you can buy?