To buy land or not to buy land in Maui….that is the question. Right?!
Many people have come to Maui, and had the great idea: “hey! Why don’t I just build my own home on some small plot of land”? Sounds like a great idea right? Here’s some things to keep in mind:
- Land is expensive: Because of our location and desirability, land in Maui can often be just as expensive as buying a home on the mainland. For example, the lowest price piece of vacant land as of the date of this post in south Maui is located in Kihei for $275,000.
- Financing for homes is quite different. Unlike homes and condominiums where you can put down as little as 3% and obtain a 30 year fixed mortgage, land often takes at least 25% down. Typically banks like 25% down and a pay off within two years. There are different programs out there so it’s best to research local banks and local mortgage brokers for the best possible bank products available.
- Building: Did you forget that Maui is a remote island in the middle of the Pacific? Guess what that means? It’s difficult and expensive to get building materials, tools, and qualified construction engineers to the island to build. Even if you have the materials, you can’t always find good staffing for the project. Building a home can take some time. But, the good news is, if you are patient and have resources you can get a beautiful product that is exactly what you are looking for. All anything takes is time and money right? 🙂
- Building costs: As of the date of this post, average building costs in Maui for an average build home (meaning no fancy upgrades like wolf appliance and Poggenpohl cabinets) range on average from $150-$280/square foot. Luxury home building (anywhere in Wailea and Makena) ranges from $500 – $900/square foot on average and obviously that price can go up depending on options you select. But in general, that’s a rough estimate.
- Worth it! Buying land and building your own home can be incredibly rewarding. Not only do you get exactly what YOU want but, at the end of the day you can end up getting much more for your money.