Benefits of investing in Hawaiian real estate

May 1, 2010 by · Leave a Comment
Filed under: Hawaii 
Hawaii #16 - Baby wolphin
Image by Mark Interrante (aka pinhole) via Flickr

Hawaii has long been known for its tropical beauty and outstanding sceneries. It boasts a unique charm and lively, floral appeal that is enough to refresh and enthrall your mind and body and fill you with abundant energy. Such is the beauty of Hawaiian resorts. From crowded beaches amid sparkling waters to magnanimous mountains and hilly regions to the lush growth of flourishing flora; the place is indeed one of its kinds. Every year millions of tourists from all around the world are attracted to this tropical paradise. Some of these are new visitors while there are still those who are so captivated by the place’s beguiling beauty that they return frequently to spend their vacations.

Hawaii with its beautiful six islands offers a rich geographical variation to its visitors. With a unique blend of cultures, the place holds the power of turning your simple vacations into a highly distinctive and enjoyable experience.

Out of the large number of tourists who visit Hawaii every year; a majority opts for rental houses or condos, while on the other hand there is an equally large population in search of a suitable property on this perfect holiday destination. People may opt for a real estate property on any of the six Hawaiian Islands namely: Kauai, Oahu, Molokai, Maui, Lanai and Big Island

You will find a huge variety of houses, lands, villas, apartments, single bedroom cottages, condominiums and duplexes on the islands. Whether you are single, newly wed couple or a large family, investing in a real estate that lies in a tropical paradise is indeed worth it.

For real estate buyers, there are abundant opportunities available. Even though the market lacks it usual galore due to the recent financial crisis all over the globe, the chances of finding a suitable accommodation that best suits your likes and budget are still very high. Furthermore, with the recent decline in the real estate property prices, the time is indeed ideal to invest.

For some the investment in Hawaii homes may seem rather dis-satisfactory owing to the declining prices and market clumps. However, it is worth mentioning the fact that this fluctuation is not a new one and that the chances of recovery by leaps and bounds are indeed very high.

Furthermore, another benefit of investing in a Hawaiian real estate other than its breathtaking views and floral charm is that of lower interest rates. This means that the buyer is actually able to purchase more property than he thought from his given amount.

Investing in Hawaiian real estate is also beneficial because overall the cost of living in Hawaii is very high. This major tourist attraction is also one of the most expensive places to live in and thus one has to consider all the housing costs too.

In addition, the cost of rentals is extremely high, especially if you wish to live on the main land. For this reason, the idea of investing in a real estate is more economical. The prices of Hawaiian homes are still very high; however, they have dropped considerably in the last few years giving the buyers more chances of finding amazing deals. So make sure you buy yourself a slice of this heaven on earth before the property prices soar again. Many buyers tend to foresee this economic trend as an ideal future investment.

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Oahu real estate update

October 15, 2009 by · Leave a Comment
Filed under: Hawaii, Home Searches 

oahuLocal economist Howard Dikus reported on his webpage that military construction and spending dollars has helped to stabilize the Hawaii real estate, especially on Oahu, by ensuring dozens of transactions and property purchases every day.  However, there was good news to report: “After predicting that Oahu median home prices would fall nearly 5% in, now the forecast is for a decline of less than half that much.”  Another glimmer of home was the end to a long-time slowing of home sales in July.  The “rebounding number of sales was also bottoming out prices as well.”

Oahu real estate has fared much better than the other neighbor islands, reported Allison Schaefers of the Honolulu Star-Bulletin.  The September 16, 2009, article claimed that “Oahu posted 302 foreclosures in August, or one per every 1,109 households.”  However, this doesn’t mean Oahu was completely immune to disastrous foreclosures.  Ewa Beach posted 65 foreclosures in the month, making it the third-worst zip code in the entire Hawaiian island chain.  In fact, “Kapolei, Mililani, Waianae, Kaneohe and Waipahu also posted high activity.”  For these reasons, real estate on Oahu has become especially volatile and reactive to just slight changes in the market.  Interestingly, in light of these depressing statistics, Jessica Holzer wrote in the Wall Street Journal on September 23, 2009, that the FHFA monthly index, calculated using purchase prices for homes backing mortgages by Fannie Mae and Freddie Mac, climbed 1.6% in Hawaii while most other regions saw declines between 0.3% and up to three percent.

oahu2The number of Oahu homes for sale has risen due to a number of factors, among them the dwindling rate of vacation renters.  According to the PR Newswire on September 23, 2009, occupancy rates of Oahu vacation rental homes dropped to sixty-one percent, based on the top 2, 373 vacation homes and condos operated on Oahu.  The lowest occupancy rate was 40% in February while the peak of summer saw 80% occupancy – a time when most rentals are usually booked to full capacity.  As more homeowners who previously rented out their properties for short-term stays, they are finding it much better financially to sell the home outright instead of worrying about an erratic income from renters.