Upcountry Maui real estate offers residents a departure from the typical sun-kissed beaches along the coast and provides instead a backdrop of mountain peaks and misty mornings. Surrounding the island’s highest mountain, Haleakalā, Upcountry Maui continues to draw in newcomers for its stunning beauty and peaceful atmosphere. It’s not unusual to see displays of Paniolo culture or spend an afternoon hiking through the national park. If you’re hoping to invest in a Hawaiian home this year, consider homes for sale in Upcountry Maui. But before you step into the buying process, take a look at some of the most important financial information you’ll need to keep in mind.

Prior to finding that perfect piece of real estate on the island, it’s important to run through a standard home-buying checklist. How much are you hoping to spend? What kind of home are you interested in buying? What’s the cost of living like in your preferred neighborhood?

Exploring what Maui has to offer is a great first step and will provide a sense of what homes are selling for in the area. From there, interested homebuyers can assess their financial readiness and determine their budget.

Reviewing your personal finances is a must before you buy a home anywhere in Hawaii. If you’re going to take out a loan, spend time going through your current income and expenses to determine the type of monthly mortgage payment you’ll be able to cover. You’ll want to improve your credit score as much as possible before you invest, too. The higher your credit score, the better your chances of getting approved for the loan you want. You’ll want to review any current debts you owe and make sure that you’re financially ready to take on a new loan. If you’re planning on making a down payment, consider what your options are there, as well.

Once you have a sense of what kind of home you can afford, it’s important to get preapproved for a mortgage loan. Lenders will do a deep dive into your finances, reviewing your credit score, debt-to-income ratio, and history of repayment. From there, they’ll provide an estimate of the loan you can take out down the line. Buyers should always keep in mind that working with a local lender can make this process much smoother and that buyers may be approved for a higher loan amount than they need.

As buyers partner with a Maui real estate team and start putting offers in on homes, it’ll be important to have properties professionally appraised. Home valuations and appraisals consider the property’s fair market value and provide an estimate to which buyers can compare the home’s listing price. Appraisals let lenders know that what you’re paying for the home is accurate to its value and can play a role in determining property taxes as well. If you’re selling an Upcountry Maui home, a precise home valuation will be a key part of the pricing process and can help you determine how much you’re likely to bring in from your sale.

Million-dollar luxury homes in Upcountry Maui are some of the most beautiful on the island. With options in the millions of dollars, there are luxury homes to suit every preference and budget. Overall, home prices have been appreciating across the island, with homes selling faster than they did the year before. This trend is expected to continue, meaning good news for both buyers and sellers. Sellers may find they are able to bring in top dollar on their investments, while buyers can rest assured their investment can provide strong long-term returns.

Across Hawaii, interest rates have been on the rise, as they have been across the country. Currently, for a fixed-rate, 30-year mortgage, buyers can expect an interest rate of around 6.3%. Buyers should always shop around for the right lender, being sure to see what rates are available given their credit score and the size of their down payment. For buyers hoping to invest, they should keep in mind that a 7.25% property tax will be charged to them if a non-resident seller does not pay it. Although, this HARPTA tax is typically paid by the seller according to the Hawaii Association of Realtors standard purchase agreement. A Realtor from the ‘Ohana Real Estate Team and your escrow officer will help you ensure and navigate this withholding. Conveyance and foreign investment taxes may also apply, and buyers are always encouraged to consult a professional tax consultant before investing.

Once you invest in a home in Upcountry Maui, you’ll also need to consider the costs of upkeep. How much will you need to put in to maintain the property? Barring any large-scale repairs or renovations, everyday maintenance could require a good portion of your monthly income, depending on the size of your home. The best way to determine the true cost of upkeep for an Upcountry Maui home is to get to know local businesses that provide cleaning and landscaping services to see what it would cost for a home with similar square footage to yours. If you’re not sure where to start, speak to your real estate team and get a feel for the cost of living in Upcountry Maui.

When it comes to investing in Maui real estate, you want to work with the best. The ‘Ohana Real Estate Team is one of the top teams on the island, known for its innovative and personalized approach. As their name implies, the Ohana Team treats clients like family, and with ample experience in the luxury market, they are expertly equipped to help you make an investment you can feel proud of. To get started in finding your perfect piece of Upcountry Maui real estate today, get in touch with the ‘Ohana Real Estate Team.