Hawaii has always been a popular real estate market for investors from all over the world. It has an outstanding reputation for everything that visitors and residents want. There are breathtaking beaches, gorgeous volcanoes, tons of birds and wildlife, and golf. Year-round gorgeous weather helps.
From a financial standpoint, it makes more sense than ever. Today, we’re talking about why so many international investors choose Hawaii County, often called the Big Island, to buy rental homes. If you’re looking for a new market to expand your real estate investment portfolio, you might want to consider this one.
Economics and Population In Hawaii County
The Hawaii real estate market has been growing consistently for several years, and there’s also a large population increase that supports the demand for high quality housing. There’s been plenty of job growth in the area, and the economy is stable.
Demographically, Hawaii is getting older like all real estate markets. There are recent projections that show the population growing and getting younger, on average. Hawaii’s growing population and shift in demographics will create a large increase in the need for good rental housing. This will create stable and profitable investment environment for buyers all over the world.
Hawaii County and High Rental Demand
Investors love this market because the supply of housing units in Hawaii is limited, which means there’s a lot of competition for good homes. There’s not a lot of land left to develop on the Big Island, so owning property is even more lucrative. Real estate experts have seen both single-family homes and units in multi-family buildings sell and be rented in a matter of days. If you want to buy, don’t wait.
There’s also diversity in the type of investments you make. Hawaii County is unique in that it’s a great market for both long term rental properties and short term vacation homes. International investors who enjoy spending a few weeks out of every year in Hawaii can enjoy their own time in the property and then rent it out the rest of the year. There’s an investment strategy that fits every portfolio.
Stable Rental Income and Tenant Pool
Real estate in Hawaii is expensive. If you want to buy a property, you’re going to spend some money. It’s not an easy market to enter, but international investors are willing to pay the price. That’s because the value of the properties is increasing steadily. Since 1985, property values have increased by 4.8 percent and the average rate of appreciation is five percent.
That means reliable ROI. Combined with a large pool of qualified tenants who are looking for good homes, a Hawaii investment property will keep you earning money for years to come.
Hawaii gets around nine million visitors every year. Considering the size of the island, that’s pretty intense. Whether you’re investing in real estate with the goal of renting out short term vacation homes or long term tenant-friendly properties, we can help you. We work with international investors all the time, and the result is a better investment experience. Contact us at Hawaiian Dream Properties.