Given the very strong growth projections we’ve seen for the Hawaii Real Estate Market especially in Honolulu it definitely makes perfect sense to buy a Hawaii investment property. At the same time, there are various factors you need to keep in mind before you get swayed by the gorgeous beaches and amazing surf.
Be Clear about your Investment Purpose
When investing in Hawaiian real estate, you should fully understand the purpose of your investment. Is this a retirement home which you will snuggle into for your golden years? Are you contemplating a permanent move to Hawaii right away? Have you planned it purely for the sake of rental income? Whatever be the case, you really need to be very clear about it right up front. Keep in mind that your purpose will in turn determine a variety of nuances related to the property that you purchase.
When it comes to Hawaiian property, there are many different facets attached to the aspect of “choosing wisely”. One has to do with the location and the other is the type of property (size, single-family residence, condo, etc.) The location is important because having a waterfront property might be high on your priority list. You could also be willing to buy more inland and save a little bit of money.
When it comes to the size of the property it really all depends on your overall goals. If you are planning on making this purely a rental property then you might want to consider a condo on the beach. This type of property will appeal much more to vacationers than an inland property. That means you will will end up with a higher occupancy rate and more rental income each year.
Keeping a Long Term Vision
When you plan on purchasing a Hawaii investment property it is important to have a long term vision. Hawaii has a tremendous demand for property which means that on top of your rental income each month you should also see a lot of equity growth throughout the years that you are the owner. This makes for a great alternative investment for your portfolio.
Upkeep and Maintenance
If you do not intend to live there yourself, upkeep and maintenance is something that you will need to think about. If you purchase a single family home then you could require the tenants to take care of everything as part of the lease agreement. If not you would need to hire a property management company or a handyman to take care of things each month. If you buy a condo then you will have your maintenance included in your monthly association dues.
These are of course only some of the facets which you need to keep in mind when you consider buying a Hawaii investment property. By considering these you will be well on your way to owning the perfect property in one of the United States most beautiful places.