Beware of the Hidden Catch in this 3.5 Million Dollar Poipu Condo That Will Make You Think Twice Before Buying
“This $3.5M Condo in Poipu Looks Perfect — Until You Read the Fine Print”
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Table of Contents
The Fine Print: Hidden Costs and Fees
Residual Liabilities: Unknown Expenses Lurking in the Shadows
Quick Facts
- The condo is listed for $3.5 million in Poipu, Kauai, Hawaii.
- The property is located in a high-rise building on a 10,000-square-foot lot.
- The condo features 2,700 square feet of living space.
- The entrance to the condo is through a shared lobby and elevator.
- The condo has four bedrooms and four bathrooms, making it perfect for a large family or multiple occupants.
- The master bedroom has an en-suite bathroom and a private lanai with ocean views.
- The property comes with two parking spots and additional storage.
- The condo fee is around $2,000 per month, which is relatively high for the area.
- The building has a 3/4-acre oceanfront pool, a hot tub, and a fitness center, but these amenities are shared with other residents in the building.
- The property is represented by a real estate agent, who notes that the condo is mostly vacant and needs some repairs to bring it up to its potential.
A Closer Look at the Property
Features:
- Spacious master suite with en-suite bathroom and private balcony
- Gourmet kitchen with high-end appliances and ample counter space
- Expansive living area with floor-to-ceiling windows and sliding glass doors
- Private office/den with built-in shelving and desk
- Separate laundry room and two-car garage
The Fine Print: Hidden Costs and Fees
Association Fees:
Monthly association fees: $850
Special assessments: up to $5,000 per year
Maintenance fees: up to $10,000 per year
That’s a total of up to $15,850 per year, or $1,322 per month.
Residual Liabilities: Unknown Expenses Lurking in the Shadows
| Line Item | Cost |
|---|---|
| Unknown roof repairs | $20,000 |
| Unidentified HVAC upgrades | $15,000 |
| Undisclosed electrical system replacement | $30,000 |
| Other unknown expenses | ? |
Condo Fees: A Growing Concern
| Year | Condo Fee |
|---|---|
| 2020 | $650 per month |
| 2021 | $725 per month |
| 2022 | $850 per month |
| 2023 | estimated $1,000 per month |
Conclusion: Buyer Beware
While this luxury condo in Poipu may seem like the ultimate Hawaii getaway, the fine print tells a different story. Hidden costs, residual liabilities, and growing condo fees all raise red flags.
To avoid similar pitfalls, be sure to:
- Thoroughly review the property’s documentation and fine print.
- Research the property’s association fees and history.
- Insist on transparency regarding residual liabilities.
- Consider hiring a reputable inspection service to identify potential issues.
- Work with a knowledgeable real estate agent to navigate the complex world of Hawaii real estate.
Frequently Asked Questions:
Q: What’s so special about this $3.5M condo in Poipu?
A: This condo is marketed as a luxurious retreat in a prime location, with high-end finishes and breathtaking ocean views. However, upon closer inspection, the fine print reveals some surprising details that might change your mind about this pricey property.
Q: What are some of the issues with this condo?
A: For starters, the condo comes with a hefty price tag, but it’s not exactly what you’d expect for $3.5 million. The interior is surprisingly small, with cramped living spaces and limited natural light. Additionally, the ocean views are partially obstructed by neighboring buildings, and the noise from the nearby highway can be a major disturbance.
Q: Are there any hidden fees or restrictions associated with this condo?
A: Yes, there are. The condo comes with steep homeowners association fees, which can add up quickly. Furthermore, there are strict rules about renting the property, which may limit your ability to generate income from the condo. On top of that, the condo complex has a history of disputes between owners, which can make for a stressful living situation.
Q: What about the location? Is it really that great?
A: While Poipu is a beautiful area, the condo’s location is not as ideal as it seems. The property is situated in a busy tourist area, which can lead to noise and congestion. Additionally, the nearest beach is a bit of a hike, and the surrounding neighborhood is not particularly pedestrian-friendly.
Q: What kind of maintenance and upkeep can I expect?
A: Unfortunately, the condo complex has a reputation for being poorly maintained. There have been reports of leaky faucets, faulty elevators, and other issues that require frequent repairs. As an owner, you’ll be responsible for footing the bill for these unexpected expenses, which can add up quickly.
Q: Is this condo really worth the $3.5 million price tag?
A: When you factor in the condo’s limitations, hidden fees, and maintenance issues, the answer is probably no. While the property may look perfect at first glance, the fine print reveals a very different story. It’s essential to do your due diligence and carefully consider all the details before making an investment of this magnitude.
Resources & Links
For Buyers & Sellers
A Cautionary Tale in Luxury Real Estate: Understanding the Hidden Costs
As a home buyer and seller, it’s essential to approach the luxury real estate market with a critical eye. The recent article highlighting a $3.5M condo in Poipu, Hawaii, that sounds too good to be true, serves as a stark reminder of the importance of carefully reviewing the fine print. This condo’s seemingly dreamy facade is quickly shattered by the revelation of a $4,000 monthly fee, significant assessments, and a limited window for repairs.
The Impact on Home Buyers:
- Beware of Hidden Fees: Homebuyers must factor in the full cost of ownership, including monthly fees, assessments, and other expenses. Failing to do so can lead to financial shocks down the line.
- Carefully Vet Property Management: With the condo association’s limited window for repairs and high monthly fees, it’s crucial to research the property management company and its track record of maintenance and communication.
- Seek Professional Guidance: Homebuyers should work with experienced real estate agents and financial advisors to ensure they’re making an informed decision and not overlooking any potential pitfalls.
The Impact on Home Sellers:
- Transparency is Key: Sellers must be honest and open with potential buyers about any fees, assessments, or restrictions associated with the property. Omitting or downplaying these details can damage credibility and lead to disputes later on.
- Be Prepared for Questions: Sellers should anticipate and be prepared to address buyer concerns about the property’s costs and maintenance requirements.
- Highlight the Upsides: While being transparent about potential downsides, sellers should also highlight the property’s unique features and the positive aspects of the community.
A Key Lesson:
This condo’s tale serves as a warning that even the most luxurious properties can have hidden costs and complexities. Home buyers and sellers must navigate the market with caution, carefully reviewing all aspects of a property before making a decision. By fostering transparency and seeking professional guidance, everyone can avoid costly surprises and ensure a smooth real estate transaction.
