Hawaii is certainly a popular tourist destination, and those who are lucky enough to visit this place cannot easily forget it. The island fascinates visitors with its natural beauty and peaceful environment.
If you are looking for real estate in Hawaii, we suggest you check out Lensa real estate jobs. However, if you are someone who is still unsure about buying property in Hawaii, this guide is for you!
In this article, we will look at the main reasons why Hawaii is not only a popular tourist destination, but also an excellent investment opportunity.
Real estate in Hawaii is booming
Since Hawaii is a popular tourist spot for people all over the world, there is an array of people who want to buy a home there. Generally, the real estate market faces ups and downs, but the market in Hawaii is always on the rise. This is due to the immense attraction of the place and a large audience that appreciates the beauty of this island.
The best part is that with so many visitors each year, there’s no end to the number of people wanting to buy a home in Hawaii. However, the real estate offer is limited. This is because the age group (45-65) that tends to buy vacation homes in Hawaii is growing rapidly. This leads to fewer properties being available for sale, which leads to higher property prices. This is good news if you already own and rent property in the area.
Only 5% of Hawaiian land is real estate, while the rest is agriculture, which further means that the best time to get your hands on real estate in Hawaii is now!
The American legal system provides security
Hawaiian real estate is more secure thanks to the American legal system. The security and clarity of US legal procedures makes it easy to buy a property without incurring additional costs or facing unexpected legal rules. Real estate in Hawaii is backed by income stability, which means income from a rental property is stable, secure, and financially beneficial.
Even if you decide to buy a property and only spend part of your year in Hawaii, you can generate good rental income by allowing others to use your property while they are on vacation.
Your investment is more than just a vacation home
Due to the COVID-19 pandemic, most businesses have gone digital, which has forced many people to start working from home. If Hawaii means more than just a vacation spot to you, then you’re in luck. Not only can you vacation in Hawaii, but you can also freelance while enjoying the beauty of this island. This means you don’t have to leave Hawaii to be at your workplace to earn a living.
The digital age has made people less hesitant to invest in property in Hawaii. Therefore, you might want to grab the best opportunity before someone else grabs your dream home!
Buying a home in Hawaii pays off
Apart from tourists from different parts of the globe, Hawaii also welcomes a generous number of visitors from the American continent. These amounted to almost 629,681 visitors in May 2021. The annual growth in the number of visitors from the American continent from 2010 to 2019 was 5%. The Hawaii Tourism Authority has also concluded that increased tourist numbers mean more financial benefits for people who already own property in Hawaii. The increase in the number of visitors has considerably increased the demands for real estate:
- Seasonal rental periods have no restrictions
- Rental income is reliable all year round
- Payments are never late and cash flow is stable
- Some tourists who expect luxury and high-end services are often willing to pay for expensive Hawaiian homes
- Townhouses and detached condominiums are more in demand and are sold at a good price
Hawaiian property sells easily for a profit
So far, we wanted to convince you to buy real estate in Hawaii, but we want to let you know that it’s not as huge a commitment as you think. Indeed, if you choose to sell your property, you will likely get good value due to high demand without incurring any losses. Other benefits of owning Hawaiian property include:
- Minimum tax deductions
- Rent can help you collect maintenance fees and appropriate taxes
- Insurance and depreciation are also covered when you sell for a reasonable price or get a good rental income
- All properties sold in Hawaii not only sell for a substantial profit, but are also only subject to the capital gains tax rate, which is significantly lower than the normal tax rate.
Not only can you use your property in Hawaii as a vacation resort, but you can live there permanently and also rent it out. The best part is that tax deductions are minimal, rental income is high, and the selling prices for each estate allow owners to make a substantial profit.