Foreign Buyers


For many foreigners, buying a property in Hawaii is not simply to beat the winter weather, but also to make a sound investment. With fluctuations on the global economy, the Hawaii real estate market continues to be one of the most stable in the world, and the opportunities to invest in Hawaii properties are unparalleled. However, there are a few issues that a savvy investor must keep in mind - with significant expertise in representing Canadian, Japanese, Australian clients, the points below are based on experience:

* In the US, there is a mechanism to delay capital gain taxes when selling real estate, it is called a 1031 Exchange. It allows capital gains from the sale of a property (investment) to be deferred and used to purchase a similar type of property (i.e. a residential for a residential) if the transaction is completed within 180 days. This 1031 Exchange can be done several times allowing capital gains to be deferred until the property is finally disposed and not replaced.

* In the US, there are hundreds of banks and lending institutions, who may differ greatly in their lending policies. Be diligent and thorough in researching your financing options for non-US residents, and feel free to contact us if you need a recommendation or have questions.

* In the US, there are hundreds of banks and lending institutions, who may differ greatly in their lending policies. Be diligent and thorough in researching your financing options for non-US residents, and feel free to contact us if you need a recommendation or have questions.
World Flags

 

* Under the Hawaii Real Property Tax Act (HARPTA), the purchaser of Hawaii real estate is obligated to withhold and deduct a tax equal to 7.25% of the amount realized by the seller upon settlement of the transaction. To be clear, this is withheld from the Seller's proceeds.

* Under the Foreign Investors Real Property Tax Act (FIRPTA), the buyer of real estate in Hawaii (and anywhere else in the USA) is obligated to withhold and deduct a tax equal to 15% of the amount realized by seller upon the settlement of the transaction. To be clear, this is withheld from the Seller's proceeds.

With a high level of expertise in representing foreign-nationals, we can help. Whether you are a Canadian looking for an investment property, a European seeking paradise in the Pacific, or a Brazilian searching for a surfing spot, we are here to make an unnecessarily tedious process into a pleasant one.

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