Hi Jen,

Nonresidents are subject to withholding taxes when they sell and when they rent an investment property.
When they sell, they are subject to withholding taxes as a nonresident of Hawaii
http://hawaii.gov/tax//a1_b3_6harpta.htm

They are also subject to federal withholding taxes when they sell:
http://www.irs.gov/businesses/small/international/article/0,…

If they are OK with all of that, they need to check with their accountant and/or attorney to see if it's a good idea.

The Canadian Dollar exchange rate more than makes up for all of the above. The peak months for Canadians are without a doubt DEC-MAR. We get a 25% premium on rental rates from Canadians visiting here.

Aloha,
Frank

I've seen and met Canadians on all the islands. I'm associated with an office on Maui where my favorite areas are South Kihei and Wailea. Wailea of the two being more expensive. Maalea is also nice and Lahina and Kaanapali areas are popular too. If you would like me to send any Maui listings over based on your criteria just let me know. Glen glenmitchell@remax.com

I'm sorry, I meant areas on Oahu just not Waikiki... or Honolulu... .I am also interested in exploring condos in Maui> Thanks .

Jen you repeated Oahu twice?? Are you looking for other cities on Oahu or other islands? I've seen Canadians invest all over the islands. They love to come there in the middle of their winter. Glen

Aloha, Jen. We're seeing a lot of Canadians purchasing condos in Kailua-Kona on the Big Island, and I can certainly understand why! Prices are great and with the exchange rate in Canadian's favor, there almost couldn't be a better time for them to buy! The most important thing to note about condos on the BI is that most of them have fairly high monthly HOA fees. The oldest projects tend to hover around $400-500/month, and they go up from there... most newer condos charge $700-1200/month for HOA fees... We closed a short sale condo last week at Kona Shores, and older, but oceanfront project for $150,000 - exactly 50% what the seller paid for it in 2005. There are some great deals out there! Let me know if you'd like more info... katie@lavarockrealty.com or 808-895-4327. It Takes Courage to Live on a Rock! Warm aloha, Katie Minkus, R(BIC)