The most spectacular Maui Sunset

What an incredible site, I have been living and working on Maui for 11 years Selling Maui Real Estate in Wailea and Makena and sometimes I begin to forget what a beautiful place I live in…THEN… a sunset like this comes along and it snaps me out of my complacentcy and makes me realize Maui is a very special place. A couple weeks ago on the night of this sunset it was amazing I saw comments all over the social media networks raving about how spectacular it was, but I think it is important to remember that we all have spectacular beauty all around us, we just need to pay attention.

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So you are moving to Maui…what do you do first?

Relocating to Hawaii: Suggestions for a Major Move

Provided by Tom Tezak*

 

Section 1: Moving Your “Stuff”

  • Furniture
    • Selling vs. Shipping
      • Selling –  Typically makes a long-distance move “easier” however prices of practically everything is higher on the island, so unless you are willing to buy everything new for your home, shipping your current furniture is usually cost-effective. Keep in mind that replacing antique furniture is almost impossible once you arrive. While there are furniture stores, the majority of available items are modern. Also, if you are only shipping a few pieces of furniture, it is possible that it will cost more to ship them than to replace them on-island.
      • Shipping – As with any move, it is possible that damage will occur during transport, although it is usually minor.  Generally speaking, shipping an entire household of furniture is less expensive than re-buying everything on-island. This also ensures that you keep furniture items that are hard to replace or hold great sentimental value to you.
    • Ways to Transport your Items
      • Crating: An intermodal container or freight container is a reusable transport and storage unit for moving products and raw materials between locations or countries; the terms container or box may be used on their own within the context of shipping.
        • FCL – A Full Container Load (FCL) is a standard (20 or 40 ft length) depending on location of origin, but sometimes it is standard container that is loaded and un-loaded under the risk and account of one shipper and only one consignee, in practice it means the whole container is intended for one customer. FCL container shipment attracts lower freight rates than an equivalent weight of cargo in bulk. The FCL means the loading reaches its allowable maximum weight or full measurement. In practice, the FCL in the ocean freight does not always mean packing a container to its full payload or full capacity.
              • LCL – Less than container load (LCL) is a shipment that is not large enough to fill a standard cargo container. Most LCL methods require that all items shipped to be packaged in shipping grade boxes, cartons, or crates. This requirement is for the protection of your shipment as it will be loaded into an ocean container with all kinds of freight from around the country.

           

              • Door to Door – This service includes pickup and delivery from your old home to your new home, rather than you delivering/retrieving your items at the loading docks. This does not include carrying items into various rooms, or set-up of any kind.

           

              • Full Service – this is how it sounds – packing, pick-up, delivery and unpacking/setup of all your household goods.

           

           

           

          • Items other than Furniture
            • Full Service companies listed above will also move your items
            • Other options include, but are not limited to:
              • Moving Companies
              • Relocation Services
              • Self-sent through the Post Office
          • Vehicles
            • Matson – “One Call Does It All”
              • Matson offers state-of-the-art customer support which simplifies the entire freight transportation process. By calling one toll-free number, customers can quickly and easily obtain information pertaining to any aspect of doing business with Matson, including rate quotations, booking, billing, schedules, equipment needs, shipment status and problem resolutions
              • Pasha            The Pasha Group is a transportation and logistics company with over 60 years’ experience in vehicular transportation, offering expertise in point-to-point logistics, terminal operations, distribution management and information tracking systems.
              •  Horizon Lines– TheMission    To deliver reliable and cost competitive container shipping and logistics solutions with industry-leading customer service and operational excellence between the Continental U.S., Alaska, Hawaii, Guam, Micronesia, and Puerto Rico. 

                 

                Section Two: Pet Relocation

                Hawaiiis rabies-free. Hawaii’s quarantine law is designed to protect residents and pets from potentially serious health problems associated with the introduction and spread of rabies. All dogs and cats, regardless of age (puppies and kittens included) or purpose, must comply with Hawaii’s dog and cat import requirements. The different quarantine options and requirements can be found here: http://hawaii.gov/hdoa/ai/aqs/info

                • Dogs – Many Hybrid dogs such as wolf mixes are not allowed to be brought onto the island. The entire prohibited animal list can be found here: http://hawaii.gov/hdoa/pi/pq/lists

                 

                 

                 

                • Small Animals – Many small animals are not allowed into the Hawaiian Islands. These include gerbils, hamsters, ferrets and snakes. The full list can be found here: http://hawaii.gov/hdoa/pi/pq/lists

                Section Three: Moving the Family

                            Provided you have children, there are essentially two options when relocating your family. You can have one adult come ahead of time, or everyone can come at once. Each option has its pros and cons, a few (not all) of which are discussed below.

                 

                 

                All Together Pros:

                • Everyone gets the first experience ofMauiat the same time.
                • Family can be a major source of support.
                • Depending on kid’s ages they can help clean, unpack, etc.

                 

                All Together Cons:

                • The kids may be restless with the chores of moving
                • Multiple travel tickets are expensive!
                • Timing for such a venture may be tricky

                 

                 

                 

                Separately Pros:

                • Monetary requirements will be more spread out
                • The relocating adult will have better focus on needs of moving
                • Time to explore and find good island activities for the arriving children.

                 

                Separately Cons:

                • Lack of support in new area/missing family members
                • One partner has to complete the rest of the move with the children
                • Time constraints if working to let in movers/painters etc.

                 

                 Section Four: Important To-Dos After Arriving

                • Safety Inspections and Registering your vehicles –Hawaiirequires both a Safety Inspection and State Registration to legally operate a vehicle onMaui.
                  • Safety inspections must be completed as “provisional” before the state will begin your registration process. After the vehicle has been registered, you will need to return to the registration station to have them officially complete your inspection and issue you a sticker.
                  • Vehicle Registration inHawaiiis done by weight, not necessarily the age of the vehicle. There are several places you can register your vehicle onMaui.
                  • For information on the vehicle registration process in Hawaii, please visit the state website: http://www.state.hi.us/dot/publicaffairs/motorvehicleregistration.htm

                 

                • Driver’s License vs. State ID    Hawaiirecognizes all other 49 state driver’s licenses as valid.  If your license has a long time before it expires, there is no direct reason to re-take a written test to obtain aHawaiilicense. The underlying reason many people change their license upon arrival is due to the vast majority of businesses offering “kamaaina” discounts to anyone with proof of residency inHawaii. The other option you have is to apply for a state ID, which is also acceptable as proof of residency. To learn more about obtaining either a driver’s license or aHawaiistate ID, you may visit

                http://www.state.hi.us/dot/publicaffairs/driverslicense.htm 

              • *Tom Tezak does not recommend, partner with, benefit from or endorse any company, product, service, or website mentioned in this article. All links, quotes, products, services, or other third party materials are provided for informational purposes only. Tom Tezak does not assume any liability should individuals receiving this information choose to begin a business relationship with any mentioned entity. All materials referenced are copyright of their respective owners.
              •   

                 

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Buying U.S. Maui Hawaii Real Estate from a Canadians point of view

Thinking about crossing the 49th to buy some Maui Real Estate? while I asked one of my clients from Canada to share her thoughts on the process. See her comments Below, I hope it helps in your thought process. If you have any additional thoughts I would love to hear them.

 

“Aloha Tom,

     We’re back home and the jet lag is subsiding.  Thanks again for lunch on Tuesday, it was good to catch up.  We talked about Canadians buying in Hawaii and some of the hurdles us Canucks think we might have to jump to do it. 

     First of all, I think people should really get a feel for the market before they even think about buying. I guess that’s obvious. Then try to find a reputable, interested, and knowledgeable realtor that you can deal with. (I know we did) Then, check it out.  We were only in Maui for 2 weeks but before the end of the first one, the offer had already been made.

     This next part was the part I was most unsure about. The Escrow process! Not what we’re used to north of the 49th.  But with your referrals for escrow companies, we chose one and were guided through  the process with ease.  We chose to meet with our escrow person but really didn’t even need to.  The Docu-sign system that you have in place made it very simple to have all the signing done on computer so conceivably, a person could be back in Canada to finish the buying process if it all wasn’t completed by the time they had to go back.

     I would also advise people interested in spending winter in Maui, that they check with either an accountant or  lawyer back home to get the information on how living in the US part time has it’s conditions and what they need to be aware of before they buy.

     The buying process really doesn’t differ that much from the Canadian system, just a bit more paperwork on the Offer to Purchase and the Escrow thing. But once you figure it out , escrow’s just the part we have done by a lawyer.  The escrow company just takes the lawyer’s place. It was easy and having you as a realtor to guide us through out the process made it easier.

     So, that’s my experience with the real estate buying process in the US and I must say I think it was the best thing that I’ve experienced in a long time.  I can’t wait now to spend our cold winters in our Maui home.  Thanks again for your help and your patience and good luck in all your endeavors. If I meet anyone looking to buy in Maui I will happily refer them to you.

     Take care, Tom 

     Gerri Then”

Please feel free to add you comments if you have had buying experience in the U.S.

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What is HARPTA and FIRPTA, Maui Real Estate

FIRPTA & HARPTA, a basic explanation.

What is FIRPTA; it is not a tax but a 10% withholding based on the total sales price of real property. This withholding is put into an account with the IRS by non United States residents when they sell a piece of real property located in the United States and is typically done at close of escrow by the escrow company. It is similar to when you pay estimated income taxes when you are self employed. The IRS collects this money so they are assured to get paid in the event a foreign owner has a taxable event in the United States, such as taking a profit on the sale of real property. This IRS rule was put in place because foreign nationals are not required to file a tax return in the United States if they are not earning regular income. However upon the sale of real property they may experience a substantial gain and it is very difficult for the IRS to collect and monitor 1 time taxable gains like in the sale of real property. The foreign owner will then be able to file a tax return with the United States IRS and apply the withholding amount towards any tax liability  and then be refunded any overage. In the event the property is sold for less than it was purchased for the seller can get an exemption but it does take some time so the seller would need to be proactive in working with the title and escrow companies to have all the appropriate paperwork filed as soon as possible once the property goes under contract. Here is a link to the IRS page that explains in detail the FIRPTA Rule http://www.irs.gov/businesses/small/international/article/0,,id=105000,00.html .

What is HARPTA; it is basically the same as FIRPTA (the federal withholding IRS rule) but is targeted at all sales of real property in the state of Hawaii. HARPTA requires all real property sellers to withhold 5% of the gross sales price of the property. Hawaii residents are typically granted an exemption from this withholding because they will be taxed on any profits from the sale when filing there Hawaii Income Tax returns.   However non-Hawaii residents are required to deposit the 5% with the Hawaii Department of Revenue at closing this is typically handled by the title and escrow companies handling the transaction. The non Hawaii resident owner will then be able to file a tax return with the Hawaii Department of Revenue and apply the withholding amount towards any tax liability  and then be refunded any overage. In the event the property is sold for less than it was purchased for the seller can get an exemption but it does take some time so the seller would need to be proactive in working with the title and escrow companies to have all the appropriate paperwork filed as soon as possible once the property goes under contract. Here is a link to the Hawaii Department of Revenue page that explains in detail the HARPTA Rule http://www.state.hi.us/tax/taxfacts/tf2010-01.pdf

With  Hawaii real property sales both rules apply to non US citizens,  so it is important to be aware that when a foreign owner sells a piece of Real Property in Hawaii a total of 15% (10% Federal & 5% Hawaii) is withheld, this can be a substantial amount . For example, the sale of a $500,000 property would require a combined withholding of $75,000. It is important to keep this in mind when listing your property for sale, it is advisable to discuss this with your tax advisor so you will a have good idea of what your true tax implication will be based on your real property tax basis and potential profit  on the sale. As well as any possible exemptions that may be available to you.

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