Let’s start with the not-so-sexy stuff.

First is income, in other words, your ability to rent the unit when you are not on the island. Rental income is important because it helps you defray the costs of owning the property, and even helps you qualify for a mortgage if you are not paying cash.

You may have heard of the Minatoya List, which is Maui County’s list of condos allowed to offer vacation-rentals in Apartment-Zoned complexes. Being on the list used to mean you were safe. But these days? Not so much. 

With ongoing housing shortages due to the Lahaina fires, and potential regulatory changes, Minatoya List properties may well lose their ability to do short-term rentals if Maui County decides to tighten the rules, which looks to be likely.

That uncertainty has a lot of owners sweating right now, and it’s why we recommend clients purchase only in a Resort or Hotel-Zoned complexes, which are approved for short-term use.

Outside of zoning issues, many complexes are also dealing with insurance spikes. Thanks to a combo of wildfires, rising construction costs, and changes in weather patterns, insurance today costs more than it did a couple of years ago. That plus higher property maintenance costs leads to increased HOA fees.

And let’s talk about the buildings themselves. Many Maui condos were built back in the 70s and 80s, which often means deferred maintenance. There are roofs that need to be replaced, plumbing that needs to be upgraded, parking lots that need to be repaved, and buildings that need to be repainted, all contributing to increased costs, and sometimes leading to special assessments. 

And don’t forget potentially lower visitor counts since the fires and Covid. With more vacation rental options on the market and fewer tourists, some lower-end units are sitting empty longer than their owners would like. 

I don’t mean to burst your bubble, but I’d rather you know the truth before we get into escrow and you learn the facts. 🙂

The bottom line is that if you’re buying property on Maui thinking it’s going to be your golden goose, you might want to reconsider. When you factor in all the costs, maintenance, assessments, taxes, and fluctuating rental income, your actual return might not even beat a boring old index fund.

So why are people still buying on Maui?

The reason is simple, people buy here because they love the island and the unique Maui vibe. There’s a lot more to the story than dollars and cents.

That condo is not only an asset. It’s your front-row seat to humpback whales breaching at sunrise. It’s where your kids learn how to surf. Where you sip wine on the lanai and watch the sky turn pink and gold while holding the hand of someone you love. 

It’s memories in the making, year after year, with the people you care about most.

Family trips, playing in the waves, sandy towels draped over beach chairs, the smell of salt air mixed with sunscreen as you head off to explore a new restaurant or go on a whale watch. 

Now, when walking down the beach with family and friends, remember this isn’t about real estate. It’s about creating new traditions with people you love. 

It’s about giving your family time together in paradise, making memories that will last long after the sun has set.