Investing in anything can be overwhelming and downright frightening. Many people feel as if they are just guessing about how, where and what to do with a real estate investment. Don’t leave your fate to the Internet, educated advice can save you lots of time and headaches.
There are many polls and articles about the best places to retire, best places to live on a retirement income, or just look at the cities in which people are claiming they are flipping houses and making money. Becareful, there are real estate trends just like fashion and everything else. Right now everyone is looking for that country feel with upgraded amenities. They want to live in smaller communities where everything is friendly and their families feel safer. However, when this fad passes and we are back to wanting the comforts of the city the place you invested may not pay the long term returns you were hoping for.
There is a place is protected from real estate fads. A place that is so unique that even during 2008 the real estate values only dipped slightly. There is a place that attracts retirees and families as well. Where family will come to see you no matter how far they are and it has a built in inflation protection: that place is Hawaii.
Let’s take a look at the three most important reasons you should buy real estate in Hawaii.
- Hawaii is a retirement haven. With different kinds of community living on different islands, retirees can choose what kind of atmosphere and community which meets their needs. Also, property values differ from island to island. Hilo boasts median house prices in the $290,00 range whereas Lihue has a median home price at $572,00, but the median income is approximately $59,000. Best of all Hawaii, has the second lowest local state and local sales tax at 4% which is second only to Alaska.
- Hawaii real estate is appreciating rapidly. First, everyone should remember that real estate appreciates, but doesn’t depreciate. Why is Hawaii better than other states? Because the state of Hawaii is made up of islands, at some point new building will have to stop. Then it will be a matter of supply and demand making it a sellers market. Rail systems are going to connect islands which will make it easier to commute and offer the opportunity to commute which will increase the distance of home sales. The one-of-kind state creates a one-of-kind opportunity to see significant gain on your real estate investment.
- There is a high demand for Hawaii real estate. As you might guess, the limited land, limited housing yet high demand from retirees and people looking for a change of lifestyle will continue to create a high demand for real estate in Hawaii. The change in the job force which offers many people the opportunity to telecommute also opens up the demand of people who work to choose where they live and many are choosing Hawaii. A variety of services, free activities, and a community that spend a lot of time out of the house is appealing to many and will continue to be. It creates a prefect shield from severe inflation or loss of investment.
Many people that invest in property in Hawaii lease or rent their property for vacationers. Whatever your plan investing in the tropical paradise that is Hawaii is not as risky as you might think. Make sure you embark on your investing with a licensed real estate agent to navigate the unique market. Don’t forget to travel there to check out your investment and soak up the culture of paradise.