Hawaii is surely popular as a tourist destination, and those that get a chance to visit this place cannot forget it easily. The island mesmerizes visitors with its natural beauty and peaceful environment.
If you are someone looking for real estate property in Hawaii, we suggest you check out real estate jobs by Lensa. However, if you are someone who is still unsure about buying property in Hawaii, this guide is for you!
In this article, we shall look at the top reasons why Hawaii is not only a popular tourist destination but also an excellent investment opportunity.
Since Hawaii is a popular tourist spot for people worldwide, there is an array of people that wish to buy a home there. Generally, the real estate market faces highs and lows, but the market in Hawaii is always on a rising scale. This is due to the immense attraction of the location and a wide audience that appreciates the beauty of this island.
The best part is that with several visitors each year, there is no end to the number of people that desire to buy a home in Hawaii. However, the real estate supply is limited. This is because the age group (45 to 65 years) that tends to buy vacation homes in Hawaii is growing rapidly. This causes less property to be available for sale, resulting in higher real estate prices. This is good news if you already own and rent out a property in the region.
Only 5% of Hawaiian land is real estate, while the rest is agriculture, which further means that the best time to lay your hands on a real estate property in Hawaii is now!
Hawaiian real estate is made more secure due to the U.S. legal system. The safety and clarity of the U.S. legal procedures make it easy to purchase a property without incurring added costs or facing unexpected legal rules. Hawaii real estate is backed up by income stability, meaning that a rented property’s income is stable, secure and financially beneficial.
Even if you decide to purchase a property and only spend part of your year in Hawaii, you can generate a good rental income by allowing others to make use of your property while they are on vacation.
Due to the COVID-19 pandemic, most businesses digitized, which forced loads of people to start working from home. If Hawaii means a lot more than just a vacation spot to you, then you are in luck. Not only can you spend your holidays in Hawaii, but you can also freelance while enjoying the beauty of this island. This means that you do not have to leave Hawaii to be at your workplace to earn a living.
The digital era has made people less hesitant about investing in a property in Hawaii. Therefore, you may want to pounce at the best opportunity you get before someone else gets hold of your dream home!
Apart from tourists coming in from different parts of the globe, Hawaii also hosts a generous number of U.S. mainland visitors. These amounted to nearly 629,681 visitors in May 2021. The yearly growth in visitors from the U.S. mainland from 2010 to 2019 was 5%. The Hawaii tourism authority has also deduced that the increased number of tourists means more financial benefits for people that already own a property in Hawaii. The increased number of visitors has raised real estate demands significantly:
- Seasonal rental periods have no restrictions
- Rental income is dependable all year round
- Payments are never late, and cash flow is steady
- Some tourists who expect luxury and high-end services are often willing to pay for expensive Hawaiian homes
- Townhomes and isolated condominiums are in higher demand and are being sold for good value
Until now, we were all about convincing you to purchase real estate property in Hawaii, but we want to let you know that this is not as huge a commitment as you think. This is because if you choose to sell your property, you will likely get a good value due to high demand without facing any losses. Other advantages of owning a Hawaiian property include:
- Minimal tax deductions
- Rent can help you collect maintenance costs and proper taxes
- Insurance and depreciation are also covered when you sell at a reasonable price or obtain a good rental income
- All properties sold in Hawaii do not only sell at a substantial profit but are also only charged with capital gains tax rate, which is significantly lower than the regular income tax rate
Not only can you use your property in Hawaii as a resort for vacations, but you can permanently live there and also rent it out. The best part is that tax deductions are minimal, rental income is high, and the selling prices of each estate enable owners to earn a substantial profit.