Anyone can buy real estate in Hawaii! If you are one of the many would-be buyers who have been sitting on the fence for months or years, your day is here! Now is a great time to finally take the leap!

If you think I am nuts, think again. Do you know any current property owners who regret buying Hawaii property? Almost anything you considered buying over the past 8 or 9 years would have been a good investment. But like so many of life's big decisions, it is sometimes hard to make the leap from thought to action. No one can make you do it, you alone have to take some very decisive steps. If you are petrified of taking decisive action on buying a home, worried that you will make a mistake, buy the wrong property at the wrong time, or regret your actions, read on.

Look First, Then Leap
This is not to say that you should buy in haste, or proceed without caution. There are armies of experienced professionals ready to help you with the decision and the process. These include home inspectors, mortgage lenders, Realtors, title and escrow specialists, pest control guys, not to mention family and friends.

My point is that if you are really serious about purchasing a Hawaii property, chances are you can do it if you have a job and at least average credit rating. A little money in the bank helps, but is not always necessary depending on the property and again your credit score.

I have recently seen attractive in-town properties starting a bit under $200,000 for studio apartments. Outside of Oahu's urban center, you can find 2-3 bedroom townhomes at around $ 300,000. It is not hard to qualify for this price range. The monthly payment for a $100,000 mortgage at 6.5%, for example, would be around $623,so do the math.

If you can't squeeze into this size space, perhaps you could start with an investment property and leverage your equity towards a larger place, perhaps a two bedroom condo, in a few years. Buyers who did just that 3 - 5 years ago, are moving into houses right now. Patience helps, and it is worth planning and strategizing to get to the home you eventually want to own.

Excuses, Excuses
You might think of all sorts of objections to this logic. Here are some of the ones I have heard over the last 20 years as a Realtor in Hawaii:

"If I find something 'under market' I will buy."
Duh, the market value is determined by what buyers like you actually end up paying. It's like saying you want a new car for the cost of a used one. No Can Do.

"I like the flexibility of renting."
Unfortunately, it's the landlord's flexibility that you will be experiencing - flexibility in raising your rent, renewing your lease or not, selling at an inconvenient time, or finding another tenant.

"I want to wait for the market to bottom out."
If you do that you will be buying when prices are going up. If you have tried to buy a home in the past 6 years you know how that worked out. Besides how will you know when it has reached the bottom?

"I can't afford to buy what I want, so I'll wait."
Guess what, even the million dollar buyers want the multi-million dollar homes. Learn to want what you can afford - this is practical wisdom and applies to all aspects of life!

"Prices will be lower in a year or two."
Maybe yes, maybe no - are you sure? And when mortgage rates go up as they are likely to do, your payment will be even higher.

"Renting is cheaper than buying."
Only temporarily. Your rent will surely go up, and you may have to move when it is least convenient. Buying with a fixed mortgage will freeze your housing cost for up to 30 years!

"I have not seen the right one yet."
This could be true if you just started looking. Once you have preapproved for a mortgage, be sure to confine your search to the homes you can afford and meet your criteria. This should include the specific areas you will consider, and the minimum requirements you need. If you view at least 30 homes that meet your criteria and you still can't find one you like, you are probably being too picky.

What if you can't find even 5 or 6 homes to consider after months or years of searching? You are going for the "needle in a haystack". It's like deciding you will only marry a 25 - 30 year old millionaire who is at least 6'4'' tall and has green eyes. You may as well plan on renting (or staying single) unless you are willing to broaden your needs and desires!

"I am waiting to inherit my relative's property."
Really tacky. They are probably hanging on just to spite you. Grow up and get your own place!!

"I need a budget house on a large lot close to town."
Well, I "need" a lot of things I can't get, like a limo and driver so I don't have to deal with parking hassles. Everyone loves a good deal, but remember that bargain homes may have hidden problems and remember that "if it seems to good to be true, it probably is."

"I am waiting for some foreclosures to become available."
Unless you are comfortable with bidding on a home without any of the consumer protection you get from a regular purchase, this is not for you. Foreclosures are among the most misunderstood of properties, and most are purchased by the bank holding the mortgage. They are also frequently involved in scams and are definitely not for novices.

Help for the Desperate
If you can't afford the mortgage for a minimum $200,000 - $300,000 property, here are some other avenues to pursue:

Plan for the future: Start saving money, a bit at a time, so that you will be ready in 2 or 3 or 5 years. Clean up your credit if it is an issue. Most good mortgage lenders are happy to show you how. Meanwhile, educate yourself on the process. Read some of the excellent books on the subject. My Roadrunner column alone has over 50 articles on all aspects of buying a home. Start going to Open Houses and meet some Realtors to see if you can find one with the inclination to help you on your path towards home ownership.

Invest in another area (The Big Island? Las Vegas?? ) . Your and your family's future are well worth the planning. Relocating to an affordable place, whether the Big Island or the mainland is a good choice for many people who may want a single family home in the $ 150,000 - $300,000 range. Our market does not have these homes and probably never will.

Get Outside Help
There are private and public sources for housing help that are available to some. These include some of the following:

American Dream Down Payment Initiative: Offers grants of up to $5000 to low income households towards purchase of a single-family home. Funded through HUD, a Federal program.

Down Payment Loan Program: For low and moderate income first time homebuyers, down payments loans of up to $25,000 at (0% interest!) are offered by the City and County of Honolulu. As an example, a household with 3 persons would need to have income below $51,350 to qualify. To get more information, visit their web site by clicking this link: Honolulu Down Payments.

Other Resources: Want to participate in building your own home? Habitat for Humanity is a charitable Christian organization that has assisted motivated low income persons of all faiths in building their own homes. They can be contacted on their web site by clicking here Habitat Hawaii. Other resources are available for specific groups such as recipients of Section 8 housing allowances and native Hawaiians, for example.

Need help with understanding the basic concepts to get started? The Hawaii HomeOwnership Center is an educational program for first time homeowners that provides guidance in the home buying process for a nominal cost. You can find out more at Home Ownership Center. This program is good for people who may have limited experience in business transactions or are intimidated by the steps involved in qualifying for home financing.

Fire Your Inner Wimp
Financial self-sufficiency is an important goal. Don't take no for an answer, especially from your Inner Wimp. Fear of making a mistake is not a good reason to remain a renter, or continue to hang out at Mom's place.

More Americans own their own homes now than ever before and Hawaii home ownership has shot up to over 60% in the past 10 years. This is the heart of the American Dream, so wake up and start living it!

You can click here to access my real estate columns, or go to www.hawaiihomehelp.com for my real estate home page with lots of additional information and interesting links.

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