When talking about realty markets of Hawaii, Honolulu real estate is counted amongst the profitable markets to invest in with a wide number of real estate investment opportunities here. The Honolulu property search covers both rentals and homes for sale, ensuring greater profitability and good return on investment. However, before you dig into more details about this property site, here are some things that are likely to shape this real estate market for the year 2020.
• Buyers will be the most benefitted from the Honolulu real estate
For people planning to buy a house this year, the real estate market of Honolulu is in your favor. After almost a decade of an exponential increase in the house prices, home for sale in Honolulu looks more affordable as the prices of residential real estate have now started to fall, making it the best time for the investment followed by better negotiations and deals for the buyers. More than sellers, it is easier for the buyers to navigate the market today as there’s no tough competition and options of property financing are easily accessible.
• The healthy job sector is the backbone of the Honolulu real estate
Being a region with the lowest unemployment rate in the country, it acts as a strong anchor for Honolulu real estate, adding to the Honolulu property search boom. The job factor has a big role to play in the real estate market of Honolulu as it has resulted in an increased demand for investment properties. With this factor expected to grow in the near future, creating more job opportunities, the real estate market is sure to witness an upward trend here.
• The local economy will continue to perform better
With the fairly diverse economy of the region, there is little to no impact on the income of the people, which is greatly benefitting the Honolulu real estate. People aren’t just reliable on tourism but are a part of different jobs, with most of them in government sectors, which adds to an impressive growth of the economy. All these factors impart a great boost to the Honolulu property search.
• Steady growth of the tourism sector is another point worth considering
Honolulu real estate market and the tourism industry work in sync with each other, leading to increased demand for both commercial and residential real estate. With tourism seeing an upward trend, the real estate market will continue to benefit from it.
With all these plus points on the platter, there are some negatives too to take note of. Being a very dense and overcrowded real estate market, the rate of new constructions will remain low in Honolulu, adding to its high cost, and secondly, there’s soon going to be short-term rental regulations in place, which will make the laws stricter in the region for short-term investments. So one must make a calculated move in order to make money with Honolulu real estate.
Here are some pointers to help you with the same:
1. Be very selective of your choices while making an investment
Invest in a property that makes financial sense. Do not just blindly follow things. If it is rental on your mind, choose to invest in an area with high rents. You have to be good with maths in this case.
2. Try to spend a good amount on your realty investment
If you can afford a monthly loss and can even handle a mortgage, don’t stop yourself from investing in a Honolulu real estate. Going forward, you will be making huge on this property while selling it or even renting it. So invest your money the right way and let it work in your favor.
3. Create a positive cash flow
Look for properties in areas with high rents. Investing in such properties will help you make more money with monthly rents, which will be more than the price at which you have purchased the property.
4. Investing in Honolulu real estate means reduced taxes
Honolulu real estate investment can significantly lower your taxes, helping you to save more and make more money. When you buy a home for sale in Honolulu or any other property, its financing costs and advertising costs; both are deductible. Also, your mortgage interest could be deductible with certain limitations. You just have to keep track of your spendings to avail of these benefits.
However, if you are considering investing in popular islands then let me tell you that the cost of living in Hawaiian Islands varies depending on different factors like housing, food, electricity, insurance, healthcare, car costs, and so on. So on the basis of all this, Hawaii Island is the most reasonable option for investment while Oahu is the most expensive.
Thus, considering the various options, factors, and market trends, investing in Honolulu real estate seems to be a good decision at this point in time. It is the area with the lowest property tax rate, is landlord-friendly, and assures long-term profitability. Rest everything depends on your financial circumstances.