Finding a place to live on O'ahu is no easy task. The cost of housing on O'ahu is one of the highest in the nation, reflecting the island's shortage of available land.

In the second quarter of 2005, the median sales price of homes here, according to the Hawai'i Board of Realtors, was $577,800. The median price of condominiums was $257,000.

It will take lots of persistence and patience to find your Island home, but help is available:

Current Homes on the Market www.hawaiishomes.com

You'll find a current listing of homes, real estate agents and mortgage brokers at the above Web site. You'll also be able to access all kinds of mortgage information, from how much money you need to make to afford a mortgage loan to how much interest you'll be able to deduct. Here's an example of the information available:

For more up-to-the-minute listings of homes on the market, also check the local newspapers, individual real estate firms and the Honolulu Board of Realtors Web site at www.hicentral.com.

The Sunday Honolulu Advertiser has the largest listings of homes and condominiums for sale or rent plus open house locations. The Hawai'i Real Estate Weekly also publishes a comprehensive listing every Thursday.

Real Estate Professionals

If you can, meet your real estate agent in person, and let him or her show you around the communities that best fit your needs. If that's not possible, there are plenty of professionals who can handle your house search over the Internet, by fax or by phone. Most of them can also help you find suitable places to rent.

Fee Simple vs. Leasehold

There are two types of land ownership in Hawai'i, and these apply to both single-family homes and condominiums: fee simple and leasehold. Make certain you know which you're buying before you sign on the dotted line.

Fee simple is the most complete form of ownership, because the buyer owns the entire property — land, building and all.

Leasehold property belongs to a fee simple landowner who enters a ground lease with a lessee. If you are the buyer of residential leasehold property, you cannot own the land, and your use of the land is limited to the remaining years covered by the lease. Leasehold properties are generally much less expensive than fee simple, because the cost of the land is not a factor.

Real Property Tax Base

Land and improvements are assessed at 100% of fair market value. Currently, the basic homeowner's exemption in Honolulu is $40,000. This means that $40,000 is deducted from the assessed value of the property and the homeowner is taxed on the balance. The exemption is $60,000 for persons over 55; $80,000 for persons over 60; $100,000 for persons over 65; and $120,000 for those over 70.

Rates vary according to category of property, with different rates on land and buildings in all counties.

The City and County of Honolulu Real Property Assessment Division is located at 842 Bethel Street, Honolulu, HI 96813. For more information, go to their Web site at www.co.honolulu.hi.us/ rpa/index.htm or call 527-5539

O'ahu Rental Market

Rental prices on O'ahu are also higher than those in most states, yet the rental market is tight. You'll realize how competitive it is when you're standing elbow-to-elbow with other eager renters in the apartment you had your heart set on.

O'ahu's Unique Neighborhoods

The neighborhoods of O'ahu are as unique as the distinctive blend of people and cultures that live in this Island State.