One of the most frequently asked questions I get is about units at 111 Kahului Beach Road. People are amazed to find ocean view properties in Maui at such a low price. Here is what I know. If you have more questions, please ask!
The Good About Harbor Lights
- The units are Fee Simple. No leasehold so it is just like the purchase of most condo properties.
- The complex is located right across the Kahului Harbor so many units have ocean views
- It is located walking distance from the University of Hawaii – Maui College, the Maui Arts and Cultural Center and Maui’s only mall – Queen Ka’ahamanu Center. Easy bus access.
- Most units (306) are 2 bedrooms and 1.5 baths with about 785 sq. ft. There are also 46 one bedroom units with 610 sq. ft.
- Elevators in every building
- Four buildings each with 4 stories
- Pool, BBQ area, playground and clubhouse
- Long term rentals – at time of this writing, rents were about $1100/month for a decent 2 bedroom unit.
The Not So Good
- Currently, you can not get any financing for purchase of units at the complex. This is due to the the fact that one owner owned too many units. My understanding is that the same owner is going through foreclosure so this may not be a problem forever. Also many owners are delinquent in making monthly fees so the association is considered “at risk” by lenders. This is probably the biggest reason that you can get such bargains if you have cash!
- The maintenance fees are very high. At the time of this posting, they were $688/month. This does include electricity, water, garbage and basic cable but is still very high. But with rents at $1100, and property taxes at less than $300/year, you can still cash-flow.
- There is a large number of foreclosures in the complex.
- The complex has fairly high security. Some people say it feels like a prison but families I know that live there do feel safe. All guests going in and out has to be checked in/out.
- I don’t know the numbers but there are a high number of HUD rentals. For investors, this is good steady income source.
- Although electricity is included in the maintenance fees, the complex currently does not allow Air Conditioning without a medical permit. The complex has been looking into sub-metering each unit so if/when they do, that may all change.
- The complex was built in 1974 so you have lead-based paint and issues with any building that old. It is a concrete building so it is sturdy and fairly quiet.
- It is in the flood/tsunami zone because of close proximity to the harbor.
- The ocean view rooms aren’t necessarily the best because supposedly the smell from the harbor at some times of the year can be pretty bad! I’ve never experienced this myself but be forewarned.
- My experience is that they have a real problem with bugs. I’m sure they have regular service but I’ve rarely seen a unit without roaches.
Here is the latest summary report of the current sales information for Harbor Lights Maui.