Is This Realistic - Retire To Maui? (foreclosures, lease)

[8o8state]

Correct me if I am wrong but won't there also be yearly property taxes which sometimes can be a fairly big chunk of cash...assuming you have purchased a condo. Please forgive my error if property taxes are factored into the association fees in this thread.

This is a useful article on how property taxes are calculated for Maui condo owners/buyers

Maui Property Tax Rates and How to Calculate Estimated Property Taxes - Maui Real Estate

[MitchTempo]

Originally Posted by 8o8state

Correct me if I am wrong but won't there also be yearly property taxes which sometimes can be a fairly big chunk of cash...assuming you have purchased a condo. Please forgive my error if property taxes are factored into the association fees in this thread.

This is a useful article on how property taxes are calculated for Maui condo owners/buyers

Maui Property Tax Rates and How to Calculate Estimated Property Taxes - Maui Real Estate

Taxes are not usually included in a maintenance fee.

But based off the OP requirements, a 'moderate' condominium isn't really defined, but if you take a 250k condo, and claim owner occupancy exemption they'd be paying about $12.50/month (the minimum payment is $150/year). Hardly a big chunk of cash. If they picked up a condo that the owner wasn't living in it, it would cost them about $1500/year for the first year, and then be dropped down to the $12.50/month rate once they file their exemption. Provided the county does not reduce the exemption rate again, but out of the whole state, Maui has the largest homeowner's exemption at $200k I believe.

[TwoByFour]

I would worry more about health insurance. Of course that worry is not unique to Maui. The single biggest expense for my wife and me is our health insurance. That will decrease somewhat when we are on Medicare, but will still be a large expense with supplemental insurance. Between co-pays, deductibles, uncovered expenses, and premiums right now we are budgeting about $10-12k/year. We are close to the age of the OP.

[visitingagain]

Mahalo for all you comments, suggestions and thoughts!

[pinipig523]

I'd love to retire on maui... such a nice place to just be in.

[MauiPartTimer]

No 401K, IRAs or other retirment savings?

I agree with others that $48K/year doesn't seems like a lot, but since it's all social secuity, at least it'll be tax-free. If you're taking in $4K/month and about $1500/month is going to homeowner's fees, taxes and healthcare, that doesn't leave a lot for everything else. You might be able to do it, but it would be pretty "no frills". Travel, dining, owning a car, etc. would be pretty limited. A little part-time work would certainly help.

I'd probably suggest renting a while (6 months?) before buying a place, just to be sure you can make it work.

One other point about AOAO/homeowner's fees: There's no assurance that they won't go subsequently go up dramatically.

[visitingagain]

I listed $48,000 SS income only as a baseline to get a feel for if retirement on Maui would be feasible at that level ... since I don't have an actual condo purchase price. Would probably have an additional $10,000 per year, lifetime from other asset, but that's all. Trying to be super conservative in my estimate, not trying to mislead.

Mahalo!

[isabella20]

If you don't have a house or car payment and if your HOA fees on the condo are low, then it might work. It just depends on your lifestyle. If you run an air conditioner most of the time, that could be a large expense. Also, most people on a budget in Hawaii buy fresh fruit and veges at a local farmer's market and don't buy processed foods. It's healthier that way and saves a lot of money. You'll also need to limit how much you eat at restaurants if your on a tight(ish) budget.

To me $48K seems like a lot. We lived on the Big Island and spent about $1,600 per month. We didn't have a house or car payment, no debt, and lived simply. Since we were in a house, not a condo, we didn't have HOA fees. Our property tax was very low with the homeowner exemption and our car insurance was low because we drove so few miles per year. Our biggest expense was our medical expenses (monthly premium, prescriptions, and doc co-pays were half of our total budget). We didn't have an air conditioner or heater (not necessary), hung our clothes on the line to dry and did other energy savings things and our utility bills were less than $100 per month. The electric rates are crazy high (over 30 cents per Kilowatt hour, so bills can be really high if you don't conserve. We spent next to nothing on clothes and almost never went to restaurants because we prefer to cook at home. Gasoline is high, but we drove so little we could go 2-3 months on a tank of gas.

So, that should give you an idea on how you can live cheaply. It all depends on the lifestyle that makes you happy. We're happiest when we keep it simple. If you are like us, then it should be easy to live on $48K...even on Maui.

[Ellwood]

Originally Posted by MitchTempo

Taxes are not usually included in a maintenance fee.

But based off the OP requirements, a 'moderate' condominium isn't really defined, but if you take a 250k condo, and claim owner occupancy exemption they'd be paying about $12.50/month (the minimum payment is $150/year). Hardly a big chunk of cash. If they picked up a condo that the owner wasn't living in it, it would cost them about $1500/year for the first year, and then be dropped down to the $12.50/month rate once they file their exemption. Provided the county does not reduce the exemption rate again, but out of the whole state, Maui has the largest homeowner's exemption at $200k I believe.

If I am reading this correctly, you are referring to taxes. In cases where electric is included in the HOA/maintenance, it is still a cost that needs to be considered when budgeting as electric is higher than on the mainland. A quick look at a few condos currently for sale in Kihei shows Keonekai Village $365/mo. maintenance, Kihei Village II $350. So although taxes may be reasonable, they need to seriously consider the maintenance fees.

[8o8state]

Originally Posted by isabella20

our car insurance was low because we drove so few miles per year.

I would like to know what insurance carrier you have as my current carrier and all the others I have spoken with told me the amount of miles I drive has no affect on my rates.....