Honolulu Civil Beat recently reported on two property tax bills that would target non-resident owners. Due to our economic crisis, many believe we can tax our way out of our financial deficit.
These two bills come at a unique time. Recently, the Honolulu Board of Realtors noted that the median single family home price is $920,000. Due to that, some people believe out of state buyers are pricing out locals from our housing market. In addition, some reports state that 25% of all homes purchased were from out of state buyers.
Real estate, in reference to non resident owners, is always a hot topic. Creating new taxes always seems like the go-to solution. However, what will really happen if these two bills pass?
If a non resident owner is renting out his/her home, he/she will probably pass on the additional tax to his/her tenant. These two bills could hurt (local) renters. Speaking of rent...Rent seems to be increasing over time. This is another factor to consider too.
Owning real estate in Hawaii, especially on Oahu, has proved to be a sound long-term investment for many people. Despite high purchase prices and other red tape like issues, non-resident buyers still park their money into our housing market. Even if these two bills pass, I doubt it will prevent out of state buyers from investing in our housing market.