We have been going to Kaanapali beach, Whalers condominiums, for years, until we got caught in the "wildfire ". Don't get me started on the "wildfire "... but as a former real estate agent for 15 years and investor, I noticed not only that the HOA fee for a studio apartment in those buildings was over $700/month (about 4-5 years ago), but that the buildings are old and they are not updated as far as I could tell, when it came to plumbing and electrical. I didn't even want to consider buying any unit in those buildings, because I know fully well that the special assessments are coming soon
Nice to see you doing well. You were my statistics teacher before I graduated from Kalani. I am very grateful because it was you who motivated me to learn about finance and be very disciplined in my savings and investments!
If you don't fix the core of the problem, you end up working around it, and you don't solve anything. Keep voting the same people back in, this is what you get.
Great points you bring up and confirms exactly my thoughts. Yeah I’ve been thinking that government needs to step in and regulate the insurance industry. They are one of the biggest and wealthiest industries in the world. Every time there’s some disaster or claim they justify trying to keep their shareholders pockets deep. Everyone is taking a loss and they need to lessen their greedy hands. Without regulation every time d s someone sneezes they’re going to cry 😭 about loses. Nuf already
what's the deal with the associations out in places like ewa and waipahu that are 5-600 a month for the single family houses? My association on the big island is only $88 a month and we have a big golf course/swimming pools/association buildings but yet its a fraction of what oahu associations are
Why does it seem that insurance companies are targeting condos with these huge rate increases? My understanding is rates for single family residences haven’t increased nearly as much. I would imagine that SFRs suffer just as much damage as condos during catastrophic events. Why have the insurance companies been allowed to make condo owners bear a disproportionate share of the financial burden of recouping their losses?
my guess would be that condos have a higher rate of deferred maintenance and are more difficult/expensive to repair. concrete multi story v.s. 1-2 story wooden structures. If i were a carpenter/maintenance worker i would much rather be standing on the ground doing a repair and not dangling 10 stories up
Condos are litigious by nature. No homeowner in a SFH can litigate against him/herself due to something happening in a house. This alone makes insurance many times higher in a condo vs SFH. Then you have claim frequency in condos vs homes. The claim frequency is far higher in condos. Then you have cost of reconstruction. Rebuilding a house is the fraction of the cost of rebuilding a condo therefore rates need to reflect this. Then you have inter-unit damage risk. Whereas one leak in one unit can flood and damage many others below. This does not exist in SFH. This is just the tip of the iceberg. But condos are super expensive to insure because of realities. Not because of some bias from insurance companies.
On my two condos in Oahu .. both insurance and HOAs have been going up 20 - 30% every single year, since 2021. Year over year. Thinking of just selling out. Makes no sense anymore. Not just inflation, massive corruption..
The HOA controls the management of the property. If the owners aren't residents of the condo, then turning over the yearly proxy to the HOA means that whoever manages the proxies is managing the upkeep of the property. If one doesn't attend the meetings of HOA, read the minutes, talk to other owners, they don't know how the property is really managed. It's easy for corruption to exist. Having two condos on Oahu with similar problems, indicates the residents/owners of the condo aren't much different from each other, expecting cruise control of someone else to do the right thing? However, one person alone cannot undo the power of the board, which the proxies ensure those who have it can do anything they choose to. Buying a condo is fine, provided the owner is pays attention to who's managing it and how they are doing. Just like putting a car on cruise control, it only goes in the direction it was pointed in. It will not stop on its own or change directions.
Doubtful. Depending on the location of the condo, space of the condo and the owner, prices of prime condo units are as high as some single-family homes. Condos are usually in urban settings but depending on the unit's resident and the number of drivers, parking stalls might be limited to a single stall. That means buses, bikes, walking or uber might be the means of transportation for the residents. Monthly maintenance of the amenities, insurance and reserve funds could be high depending on the nature/usage of the amenities of the condo, which might not include security on the property. Hawaii has condos throughout the islands, but not all condos are situated in close proximity of walking distance to the nearest shopping for groceries, drugstores, shops, eating locations, which might be blocks or miles from the location, so planning on shopping, weather and traffic conditions becomes more planned to avoid rush hour congestion. Finding affordable and reasonable housing might require longer commute time, more congestion as well. Young buyers with starting families find a difficult time finding reasonable price homes are difficult in times of high interest rates, low wages/salaries, increasing travel times and demands of education of family members, which they are left to either continue renting or thinking of moving out of state, which the problems of housing, insurance and availability of employment exist in most places.
We have been going to Kaanapali beach, Whalers condominiums, for years, until we got caught in the "wildfire ". Don't get me started on the "wildfire "... but as a former real estate agent for 15 years and investor, I noticed not only that the HOA fee for a studio apartment in those buildings was over $700/month (about 4-5 years ago), but that the buildings are old and they are not updated as far as I could tell, when it came to plumbing and electrical. I didn't even want to consider buying any unit in those buildings, because I know fully well that the special assessments are coming soon
hi, can you please let me know where you are getting your stats regarding under insured condos on Oahu? I live here and we are all being robbed...
Nice to see you doing well. You were my statistics teacher before I graduated from Kalani. I am very grateful because it was you who motivated me to learn about finance and be very disciplined in my savings and investments!
@@jon6309 thank you for letting me know!
If you don't fix the core of the problem, you end up working around it, and you don't solve anything. Keep voting the same people back in, this is what you get.
Great points you bring up and confirms exactly my thoughts.
Yeah I’ve been thinking that government needs to step in and regulate the insurance industry. They are one of the biggest and wealthiest industries in the world. Every time there’s some disaster or claim they justify trying to keep their shareholders pockets deep. Everyone is taking a loss and they need to lessen their greedy hands. Without regulation every time d s someone sneezes they’re going to cry 😭 about loses. Nuf already
HOA fees are now absurd too in Hawaii.
agreed, it's getting crazy
what's the deal with the associations out in places like ewa and waipahu that are 5-600 a month for the single family houses? My association on the big island is only $88 a month and we have a big golf course/swimming pools/association buildings but yet its a fraction of what oahu associations are
Why does it seem that insurance companies are targeting condos with these huge rate increases? My understanding is rates for single family residences haven’t increased nearly as much. I would imagine that SFRs suffer just as much damage as condos during catastrophic events. Why have the insurance companies been allowed to make condo owners bear a disproportionate share of the financial burden of recouping their losses?
my guess would be that condos have a higher rate of deferred maintenance and are more difficult/expensive to repair. concrete multi story v.s. 1-2 story wooden structures. If i were a carpenter/maintenance worker i would much rather be standing on the ground doing a repair and not dangling 10 stories up
Condos are litigious by nature. No homeowner in a SFH can litigate against him/herself due to something happening in a house. This alone makes insurance many times higher in a condo vs SFH. Then you have claim frequency in condos vs homes. The claim frequency is far higher in condos. Then you have cost of reconstruction. Rebuilding a house is the fraction of the cost of rebuilding a condo therefore rates need to reflect this. Then you have inter-unit damage risk. Whereas one leak in one unit can flood and damage many others below. This does not exist in SFH. This is just the tip of the iceberg. But condos are super expensive to insure because of realities. Not because of some bias from insurance companies.
Hawaii is not a good place to live.
On my two condos in Oahu .. both insurance and HOAs have been going up 20 - 30% every single year, since 2021. Year over year. Thinking of just selling out. Makes no sense anymore.
Not just inflation, massive corruption..
Agreed, management of condos can vary from decent to atrocious. Let me know if I can help should you decide to sell.
The HOA controls the management of the property. If the owners aren't residents of the condo, then turning over the yearly proxy to the HOA means that whoever manages the proxies is managing the upkeep of the property. If one doesn't attend the meetings of HOA, read the minutes, talk to other owners, they don't know how the property is really managed. It's easy for corruption to exist. Having two condos on Oahu with similar problems, indicates the residents/owners of the condo aren't much different from each other, expecting cruise control of someone else to do the right thing? However, one person alone cannot undo the power of the board, which the proxies ensure those who have it can do anything they choose to. Buying a condo is fine, provided the owner is pays attention to who's managing it and how they are doing. Just like putting a car on cruise control, it only goes in the direction it was pointed in. It will not stop on its own or change directions.
I'm here laughing, owning a home without HOA fees....
smart move!
Interesting to see if the high cost of condominium ownership will drive some over to single family homes instead.
Yes, I think that is one of the market drivers pushing up SFH demand.
Doubtful. Depending on the location of the condo, space of the condo and the owner, prices of prime condo units are as high as some single-family homes. Condos are usually in urban settings but depending on the unit's resident and the number of drivers, parking stalls might be limited to a single stall. That means buses, bikes, walking or uber might be the means of transportation for the residents. Monthly maintenance of the amenities, insurance and reserve funds could be high depending on the nature/usage of the amenities of the condo, which might not include security on the property. Hawaii has condos throughout the islands, but not all condos are situated in close proximity of walking distance to the nearest shopping for groceries, drugstores, shops, eating locations, which might be blocks or miles from the location, so planning on shopping, weather and traffic conditions becomes more planned to avoid rush hour congestion. Finding affordable and reasonable housing might require longer commute time, more congestion as well. Young buyers with starting families find a difficult time finding reasonable price homes are difficult in times of high interest rates, low wages/salaries, increasing travel times and demands of education of family members, which they are left to either continue renting or thinking of moving out of state, which the problems of housing, insurance and availability of employment exist in most places.
Honolulu has the greatest corruption because democrats get kick backs from insurance companies