Resources for Hawaii Investors
Many people come to Maui and dream of owning property here. Some people primarily want to use it for personal use but many want to "rent it out" to make some money.
Owning property on Maui is an exciting venture. There are not many places around with the climate, culture and beauty of Maui. There is no doubt that property values over time will increase. There is a reason we say "Maui No Ka Oi - Maui is the Best". An investment here is an investment in your future! In Maui, there are 2 primary investment markets:
- Vacation rental market -- This market is primarily oriented for tourists vacationing in Maui who are staying anywhere from 1 day to up to 6 months with a week being the most common. Property management costs in the vacation rental market are typically 20-50% of rental rates. Only properties zoned for hotels or approved as a Bed and Breakfast legally allow vacation rentals.
- Ka'amaina rental market -- This market is 6+ month rentals for Maui residents and or snowbirds.
- Property values in Maui are high. On average, a 1-bedroom vacation rental costs between $400,000 and $800,000.
- Based on property sold in South Maui in the last year, an ocean view (even peek-a-boo) is worth about $50,000. For a full panoramic ocean view, you will pay much more.
- Property management rates vary drastically. Some full-service, on-site vacation rental vendors with extensive marketing will charge up to 50%. Others will manage weekly rentals for as low as 20%. It is delicate balance though between costs, value retention and occupancy rates.
- Your primary investment gain is in increased equity over time. In most cases, don't expect that rents will cover your mortgage costs unless you put 50% or more down.
The current buyers market is an excellent time to look for investment property in Maui. There are many good deals to find, interest rates are still low and there are a wide variety of financing available. With an average vacation rental occupancy rate of over 70%, Maui offers year round vacation paradise. With our strong economy and low unemployment, there are also great opportunities for people who prefer to invest in long-term rentals.
A qualified agent can make your Maui investment purchase or sale go smoothly. I am constantly gaining more insights for Maui investors. Do you need assistance in analyzing the potential income of potential investment properties? Make sure to use a REALTOR(R) who is familiar and trained in dealing with investors. I've invested in training through "Rich Dad Education" so that I can provide the BEST SERVICE to investor clients as well as grow my own wealth. If I don't know the answer to your questions, I'll pursue it to get YOU the RIGHT answer.
Contact Me for more data
- Call Kathy with questions or requests at 808-344-0469
- Are you interested in investing but not sure how to get started? Contact me!
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