Investing in Vacation Rental Property: Is it a good idea in Hawaii?

The past eighteen to twenty months have seen one of Hawaii’s most precious features – it’s tourism – decline. Consequently, there’s been a knock-on effect on real estate prices.  Valuations of Hawaii condos for sale have either declined, or ticked higher only marginally. More importantly, demand for vacation rentals dipped too. However, of late, things seem to be picking-up. And with a broader economic recovery in sight, it’s clear that home prices will start moving higher too. For anyone looking to invest in real estate, a move into Hawaii’s vacation rental segment might make sense now.

The Trend if Your Friend

According to Q2-2021 house price appreciation data, compiled by the Federal Housing Finance Agency (FHFA), at 7.99, Hawaii’s House Price Index ranked 42 out of 51 – indicating a comparatively lower rate of home price appreciation. This means that, whether you are planning to invest in a beach house in Hawaii, or a condo as a vacation rental property, real estate values are at their historic low.

This trend, of temporary low property value appreciation, may be a brief setback for those already in the market. However, that trend is certainly a friend for prospective Hawaii real estate investors. It’s a sign that, if you are willing to buy low, there are Hawaii condos for sale, as well as single-family and multi-family beach front units, that make it a wise move to invest in them as vacation rental properties.

More Friendly Trends

And the long-term Hawaii real estate price appreciation trends confirm that thesis too. Back in December 2019, at the onset of the COVID-19 crisis, the average price of a Hawaii condo stood at $514K. More recently (Sep 2021), that index has continued to trend higher – to $573K. That’s nearly a 11.5% rate of return in less than 2-years! 

And, when you compare that trend to a multi-decade trend of CAGR for the S&P 500 (of 10.32%), it’s easy to see why investing in a beach house in Hawaii makes better sense – lower volatility (compared to stock markets), and faster ROI!

Why Invest Now?

The simple answer: Because change is in the air! And one easy way to put numbers to that change is to analyze the recent visitor statistics from Hawaii’s Department of Business, Economic Development & Tourism. And there too, the trends are friendly towards investors in the Aloha State’s real estate market.

Clearly, travel to the State is picking up, and with that surge, comes a need for rental accommodation – for short, intermediate, and long-term stays. So, as visitor ship continues to trend higher, the demand for rental real estate will also rise. However, that’s not the only reason that you might actively start looking for Hawaii condos for sale now.

Ultra-low mortgage rates make financing that purchase more attractive now, than it’s ever been in recent memory. But there are indications that those low rates may soon be trending higher. So, whether you wish to invest in Hawaii real estate as your own personal vacation home, or as a vacation rental property – now’s your time to make that move!

Here are some comments from National economists:

Mortgage rates rose to the highest level in nearly two months yesterday as prices on the front-end of the yield curve were weighed down by better-than-expected data and long-end yields were pushed up due to Pfizer’s $31 billion duration-heavy, multi-tranche, fourth largest ever offering of bonds. There were also FDIC sales, $12.5 billion over Monday and yesterday in total, which contributed to the widening of MBS spreads to roughly 315 basis points. Retail sales, which factor into GDP, rose in April despite still-high inflation and borrowing costs as slow unemployment and steady wage growth continued to support demand. The 0.4 percent month-over-month advance in sales would normally be good but follows larger declines in February and March (-0.7 percent) and doesn't take into account price changes, meaning that on an inflation-adjusted basis retail sales are actually down. Declining sales will eventually be a headwind to economic growth this year.

The National Association of Home Builders Housing Market Index rose to 50 in May, meaning an equal number of builders have as positive a view of the market as a negative view of the market. Though the figure beat both expectations and April’s reading, the index has been trending under 50 since last August and fell a record twelve months in a row over the entirety of last year.

The housing boom over the past couple of years was mostly in home prices, not in home building, and this report dampens expectations for much new home building leading up to and continuing during the spring season. This report, and the lack of home building in general, suggests that the dire shortage of new home construction is not set to change anytime soon, which is quite a head scratcher considering the extreme dearth of home inventory for sale.

As every lender knows, the inventory of homes for sale has dried up. So, where have the spring home selling seasonals gone? Ask the millions of American homeowners paying 4 percent or less on their mortgages who are deciding to stay put rather than trade up. One-third of housing inventory hitting the market is new construction, compared to historical norms of a little more than 10 percent. The annual rate of home building currently resides at 980k, less than half its 2.3 million average since 2000. Existing home sales are due out tomorrow morning and are expected to drop to a 4.3 million annualized rate, or down 3.2 percent compared to March, which in turn was down 2.4 percent compared to February. It’s rough out there.

After mortgage rates increased last week (even as Treasury yields were essentially flat), mortgage applications decreased 5.7 percent from one week earlier, according to data from MBA. We’ve also received housing starts and building permits for April (). Markets were looking for 1.44 million and 1.46 million compared with 1.42 million and 1.43 million previously. Later today brings a Treasury auction of $15 billion 20-year bonds. We begin the day with the 2-year back up to 4.07, Agency MBS prices better by a few 32nds, and the 10-year yielding 3.52 after closing yesterday at 3.55 percent.

Real Estate information for Oahu Honolulu Hawaii click here.

Critical Considerations for Retirees Buying a Vacation Home On Oahu

A vacation home has a lot to offer – it can be a remote working hub, a winter getaway, a gathering place for family, and even a source of passive income. It’s no wonder vacation homes are selling like hotcakes: there was a 16 percent spike in vacation home purchases in 2020, and a 33 percent increase in 2021, according to CNN Business.  

As tempted as you may be to snag one before it gets even more expensive, you should first take stock of your finances, do your research, and make sure it’s the right decision. Home purchases are a major commitment and can quickly become a money sink if you’re not careful. 

Here, Oahu Hawaii Realtor Ralph Gray offers critical advice for retirees looking to purchase a vacation home: 

Can you afford a vacation home? 

Second homes are a major financial investment for retirees, who typically have a limited nest egg. You should only purchase one if you can ably meet all your needs afterward, from living expenses to healthcare, and still have a sizable emergency fund. Get a good overview of your finances (inflow and outflow and use a home-costs calculator to figure out how much home you can afford.  

There are many costs associated with a vacation home purchase on Oahu Hawaii:  

● Purchase-related expenses: Down payments, deposits, mortgage fees, closing costs, attorney fees, transport and moving, real estate agent commissions, and more. 

● Ongoing expenses: Maintenance, repair, insurance, security, association fees, and more. 

● Taxes: You will need to pay a property tax. Also, as a non-primary residence, your vacation home isn’t exempt from capital gains tax if you sell it. 

If you want to sell an existing house to finance your vacation home, be sure to get in touch with a trusted real estate pro like Realtor Ralph Gray to make the process as quick and easy as possible. 

Is it a vacation home, an investment, or a retirement home? 

Having a plan for your vacation home can help you get your ducks in a row and find a house that fits your needs. If you want a vacation home to escape the colder months, then you need to look at warmer locations (say the seaside). If it’s an investment, you will need to research the property market on Oahu and pick something with long-term value. Keep in mind that vacation homes in Hawaii aren’t always good investments – they can’t always be sold immediately, take time to appreciate, and require upkeep and maintenance. If it’s eventually going to be your retirement home, you need to make sure it can meet your needs (like the presence of healthcare amenities nearby).

Making money by renting your vacation home out

Some people manage to make a significant amount of money renting their vacation homes out. The income is taxed (after 14 days), but it’s often enough to cover maintenance and upkeep – and sometimes even mortgage payments. Pulling this off will require planning and organization. Some details to hash out are marketing, guest hosting, security, finances, administration, pricing, and legalities. 

It may financially be a good move to rent the vacation home out as an official company as opposed to an individual sole proprietorship. If you set up an LLC, for instance, your personal assets become safe from litigation, as the company confers “limited liability.” Also, there are other benefits like easier paperwork. You can hire a lawyer or use a formation service, whichever is cheaper, to start an LLC in Hawaii.  

Maintenance and security 

You will need to find professionals to look after your home. Some examples are handymen, cleaning crews, security personnel, and general contractors. If you’re renting your home out, it may be convenient for you to appoint a property manager – they typically handle everything, from marketing to customer care. Last, don’t neglect the security. Vacation homes are a favorite target of thieves. Consider getting a security system and having someone house sit when you’re away. 

Estate planning considerations 

Finally, your Hawaii vacation home may become a part of your inheritance if you’re planning to keep it long-term. As such, you may want to ensure you can pass it on to your family, which may require serious estate planning, according to RBC Wealth Management. Also, you may want to talk to your children and keep their wishes in mind before you make an estate plan or update your will to prevent contention later. 

Conclusion

Having a vacation home on Oahu Hawaii can be a solid investment, provided you do your research, don’t bite off more than you can chew, and preferably register as an LLC or other corporation if renting out. Don’t hesitate to involve a financial advisor if you have to – they can help you to take stock of your finances and truly understand how much you can spend without breaking the bank.

Click here for great homes to buy and vacation rent.

Luxury Beachfront Homes for Sale: Your golden Hawaiian investment opportunity

Have you ever considered investing in real estate in the U.S.? Well, not just anywhere in the country, but somewhere that’ll give you the greatest bang for your buck? The challenge for most prospective real estate investors has always been twofold: Where (State, location, city) to invest; and what to buy that’s worth putting money into. You really can’t just buy any type of property in any state or City. The question is: Where can you find real value for your investment?

And, the answer to both these questions lies in taking a closer look at luxury real estate in Hawaii. 

Judging by The Data

Data from the world’s most reputed housing price index, the S&P CoreLogic Case-Shiller Index, shows that the index of home prices in the U.S. rose by an average over 11% in Jan 2021, compared to a year ago. And yes, there were outliers to that growth, including cities like San Diego (14.2%), Phoenix (15.8%) and Seattle (14.3%).

These price gains are some of the biggest the country has experienced since March 2014. And, considering that we are in a global state of crisis – that’s saying something! Can you think of a place where there’s a better return on your investment (ROI) than that? Well…we can – in just 4 words: Hawaii houses for sale! And here’s why.

Take Hawaii’s Oahu Island, for instance. The third-largest island in the archipelago State saw median home prices for single-family units cross the $900,000[1] mark recently. Valued at over $920,000, some units recorded twenty-percent-plus price gains. Now, isn’t that a worthy ROI for anyone looking for real estate investment opportunities in Hawaii – or anywhere in the USA?

The Winning Formula: Location³

There’s the time-tested real estate investment adage that says: Location, location, location! Mathematically, that’s location x location x location – or Location³ for short! And that saying isn’t without merit when it comes to picking your real estate targets in Oahu. It matters not what your intention is for that investment:

·        Future retirement home

·        Current beach-front vacation getaway

·        Rental income property

·        A second home

·        Resale purposes

·        Diversification of your equity/bond-heavy investment portfolio

The fact remains the same: You must choose the right location…or else you’ll never benefit from your investment.

Luckily, when it comes to investing in luxury homes in Hawaii, there’s really no dearth of choice locations – especially in a geographically, culturally, architecturally and historically diverse region like Oahu.  There are a choice of locations and communities to invest in, from Sunset Beach and Diamond Head, to Portlock, Niu Valley and Waikiki. And when it comes to the types of homes to invest in, most would-be-investors feel spoilt for choice. Sometimes, the harder choice is choosing between multiple equally good choices – and that’s the only dilemma you, as prospective Hawaiian real estate investor, will be confronted with.

Making That Tough Choice

Whether you are a first-time investor in beach homes for sale in Hawaii, or whether you are an international investor looking to diversify your investment portfolio – there are some things you must consider before making that tough choice. Some international residents might be accustomed to conducting property deals differently; and for some prospective out-of-state (Hawaii) U.S. investors may not be aware of these “Hawaiian peculiarities”. Either way, this information will help you make a more informed choice.

ESCROW & TITLE

Your title transfer and title deeds are typically handled through Hawaiian Escrow and Title companies. Make sure your Realtor/Broker is well-versed in handling such transactions.

FEES

There are several fees that come into play when buying/selling property in Hawaii. These may be the same/similar in other jurisdictions, but being aware of them may help you prepare for them. Some fees include Inspection Fee, Title Insurance, Appraisal Fee, Escrow Fee and Attorney Fee.    

MORTGAGES

Like in many states in the U.S. (but unlike some non-U.S. jurisdictions), it’s possible to get an extended mortgage of up to 30-years. To qualify (and benefit) for such financing, you must ensure your lender is a licensed practitioner in the state of Hawaii.

Non-U.S. real estate investors should typically plan on making a minimum of 30% down payment. However, that percentage may vary slightly depending on the communities or specific locations you’re planning to invest in. For instance, some luxury real estate in Hawaii may require down payments as high as 35%.

One additional point of interest to international investors: Be prepared to pay a slightly higher mortgage rate than what domestic Hawaiian buyers might pay for the same property. One factor that may (but not necessarily) help in rate reduction is the presence of a stellar U.S. credit rating.

INCOME and TAX CONSIDERATIONS

If you invest in rental real estate (i.e., for the purpose of renting out your property), make sure you plan to pay tax on your rental income. For foreign rental income earners, there’ll be a 30% withholding tax deducted on that income. Typically, you’ll require to establish a business that’s licensed to collect TAT (Transient Accommodations Tax) GET (General Excise Tax).

Investors must also plan to pay property taxes, which vary depending on what type of assessment the property carries. The rate (calculated based on per $1,000 in assessment value) may be different for  long-term rentals, apartment use or owner occupied. There’s also a rate-break offered to owner occupants on the initial $200,000 in assessed valuation.

The Hunt is On!

Ideally, you must do your homework before pursuing or bidding for your investment property. For instance, the best way to hunt for ideal beach homes for sale in Hawaii, is to use the extensive resources available through your trusted broker’s website. 

Apply a range of filters to narrow-down your intended investment target. A good broker should allow you to narrow down that list by Region, Neighborhoods and Price points. Because most investors prefer specific types of properties over others – like Single-family Homes versus Multi-Resident tenements – the Broker should allow you to further filter your selection by Type of Property. That’s the minimum required to start your hunt.

However, a reputed Realtor should go the extra mile, and enable prospective investor to search based on additional features – such as age of the structure, number of amenities (bedrooms, baths), area of the home…and much more.  Some “hot” areas to get you started on your hunt include: Honolulu, Kailua, Haleiwa, Kaneohe and Waialua…among other popular locations on Oahu Island.

Happy Hunting!

Moving homes is a big decision to make. As you weigh all the relevant factors of your lifestyle against the huge number of options available to you, you may question whether the home you have chosen is right for your lifestyle- even in paradise.

When considering whether a luxury Kailua Hawaii home is right for your lifestyle, you’ll want to keep in mind a variety of features. Whether you are a nature-loving single ready for beach, sun, and fun, a new family with young kids, a hardworking professional, or a couple getting ready to retire, Kailua will likely offer the right mix of factors to make you feel at ease and at home. Let’s take a look at how to determine whether a luxury Kailua Hawaii home is right for your lifestyle.

What Kind of Home Do You Need?

The real estate on offer in Kailua mostly consists of condos and single-family homes, but that can encompass a huge range. Luxury living in Kailua is mostly concentrated in the neighborhoods of Lanikai and Kailua Beachside. Here you can find stunning private gated homes with serene ocean views. Tropical flora and fauna, pristine swimming pools, and huge private outdoor areas make luxury homes in Kailua Beachside the perfect place for anyone seeking relaxation, abundant natural beauty, and privacy.

In Lanikai, residents are incredibly active, and generally very friendly. Lanikai residents can be seen running, bicycling, hiking, kayaking, surfing, and even ocean canoeing, making this a great home base for anyone who likes to stay fit. The Mid Pacific Country Club in Lanikai offers a fitness center with the latest machines and excellent classes, a fabulous restaurant, and a serene 18-hole golf course, open all year. A day at the range is an excellent way to enjoy the beautiful weather that makes Kailua such a desirable destination all year round.

For new residents who prefer to live closer to town, there are also neighborhoods of condos and townhomes located closer to Kailua Town center, which may be preferable for retirees who prefer to live within walking distance of the many lovely shops and restaurants located within Kailua Town.

Location, Location, Location

When you think of Hawaii, chances are you picture golden sand beaches, warm tropical breezes, lush palm trees and jungle vegetation, and clear turquoise water making gentle waves. The beaches in Kailua offer exactly this picturesque landscape. The most famous, Kailua beach, attracts tourists from all over the world to frolic in the waves, or try their hand at water sports like kitesurfing and windsurfing. For prospective homeowners who wouldn’t mind waking up to that landscape every single day, luxury oceanfront homes located right on Kailua Beach will be worth seeking out. Watersport enthusiasts will want to focus their luxury home search in this area, so they can practice riding the wind and waves every day, right outside their home.

Luxury homeowners who need to be close to the action of an international business world hub will benefit from living so close to downtown Honolulu, the center of business on Oahu. Kailua is only a half hour drive, so busy professionals who also love the beach can make a short commute from paradise to work and back again.

Remote employees, meanwhile, can set up a perfect home office with access to a reliable, fast broadband connection that will allow them to be productive, even while they view a scene so pristine it looks like a pre-programmed Zoom call background. Not everyone gets to work while overlooking the turquoise ocean and feeling the soft salty air of the beach.

For other beach lovers who just can’t get enough of sun, sand, and waves, Kalama Beach Park is a great area to live. Investing in a luxury home near Kalama Beach means you can hear the waves from your bedroom, and, depending on which home you choose, can even count the soft sand as your very own backyard.

Unique Amenities

From local culture to stunning nature, from shopping to sports to dining, Kailua offers something for everyone to enjoy. Nature lovers will enjoy the bird sanctuary at Mokulua Islands, where the local inhabitants, Wedgetail Shearwater birds, are protected. The nearby Kailua Kona Marine sanctuary offers snorkeling among tropical fish and natural coral reefs. Lucky visitors may even spot a whale, a sea turtle, or a spinner dolphin flipping in mid-air.

History buffs will enjoy the military bunkers, reminders of the role Hawaii played during the Second World War. The Lanikai Pillbox Hike loop takes you past these remnants of a bygone era, all while revealing breathtaking vistas of the endless expanse of turquoise water below.

Families and foodies can enjoy the abundant local fruit, vegetable, and artisan food products sold in Kailua Town at the Kailua Farmer’s Market every week. The fine dining scene in Kailua offers plenty of options for international cuisine, often with views overlooking the ocean- the perfect place to welcome guests who have come to visit you at your luxury Kailua home.

No Place Like Home

So, is a luxury Kailua Hawaii home right for your lifestyle? With endless activities, top tier local amenities, and, most of all, the stunning natural setting, the answer is most likely yes.

While this luxurious area on Oahu may not be suitable for urban dwellers who prefer a fast metropolitan rhythm and easy land access to neighboring areas, for remote workers, families, retirees, and beach lovers of all stripes seeking sunshine and a relaxed pace of life, there is no better place to call home than Kailua. Private, safe, welcoming, and calm, luxury living in Kailua is endlessly adaptable to most lifestyles. The only truly necessary requirements? A friendly and inviting attitude, and a deep appreciation for the sun, the sand, and the sea.

For more information on real estate in Hawaii call Ralph Gray at 808-295-0704 or visit www.HawaiianBeachfront.com

For vacation homes on Oahu visit www.HawaaiianOceanfront.com

The third-largest island in the Hawaiian archipelago, Oahu offers a rich variety of luxury homes for vacationers, real estate investors, future residents and rental home investors. When searching for the perfect home, it might be worth looking into luxury real estate in Honolulu and other areas in Oahu, such as Hawaii Kai. And while you’re at it, check out our listings of luxury homes for sale in Diamond Head Hawaii as well as our inventory of luxury homes in Kailua Hawaii.

If you’re in the market for true luxurious living, coupled with a carefree, relaxing lifestyle filled with serenity, then we’ve got just the homes for you!

luxury homes in Hawaii Kailua

Owning Kailua real estate means owning something that’s steeped in Hawaiian history and folklore. Archaeologists believe that Kailua was a settled location 1500 years ago, with families and tribes living in and around the nearby Kawainui Marsh. Prior to the arrival of the legendary and swashbuckling Captain Cook, the region served as the capital city to O'ahu's kings.

Post WW II developments proved to be the catalyst for popularity of luxury homes in Hawaii Kailua. The U.S. navy (and now the Marine Core) established installations there, and even the U.S. Army, with Fort Hase, transformed the region dramatically. Hawaii had become a state in 1950, and what was once a postal designation called Lanikai, was officially redesignated to Kailua.

Investors and owners of luxury homes in Kailua Hawaii have access to some of the state’s most renowned natural beauty. Some lucky residents can enjoy the gentle waves of Kalama Beach Park close to where they live. Others can take in watersports at a sports hum in Kailua Beach Park. Regardless of where you buy Kailua real estate, you’ll enjoy unobstructed access to long stretches of white sandy beaches – often right from your front yard, back yard or through bay windows in your living room, kitchen or bedrooms.

There are plenty of other unique features that owners of luxury homes in Hawaii Kailua have access to. You’ll be able to enjoy splendid wildlife observation at the bird-rich Mokulua Islands, a tiny sanctuary for exotic birds overlooked by the peaceful Lanikai Beach above. And then, there’s the Ka’iwa Ridge Trail on the famed Lanikai Pillbox Hike that takes you to the old WW II-era military bunkers. And, for a spot of local culture, don’t forget sample local produce sold at the weekly Kailua Farmers' Market.

The Hawaii Kai luxury homes market

Located in East Honolulu, and served by the Kalanianaole Highway, Hawaii Kai is one of the largest area housing residential communities in the region. The housing market itself is a composite of luxury Oahu real estate from 23 distinct towns within Hawaii Kai. These include prized locations such as Mariners Ridge, Koko Head Terrace, Kalama Valley, Kamilo Nui, Koko Kai, and Laulima – to name just a few.

Prospective homeowners, looking to get into the Hawaii Kai luxury homes market, have plenty of amenities close-by, including a peaceful Marine sanctuary in the east, and the sought-after community on Halemaumau Street to the west.

But for those investors, residents and owners that want convenient access to the business world, owning luxury Oahu real estate in Hawaii Kai offers great opportunity for that too. The community is situated less that half-hours drive from Oahu islands central business hub – downtown Honolulu.

Within Hawaii Kai, and in the east Oahu areas, families and guests can enjoy a wide array of lifestyle experiences, including entertainment, shopping and dining. And, if you are a lover of the outdoors lifestyle, your investment in luxury real estate in Hawaii, here in Hawaii Kai, offers you excellent access to outdoors activities such as golfing in the 18-hole Hawaii Kai Golf Course, and other water sports events.

The Hawaii Kai luxury homes market offers a variety of single-family homes, in both gated and non-gated communities. Depending on supply of units in the market, you’ll be able to invest in ocean-facing estates, condos with boating docks and townhomes with marina-facing views.  Depending on where your next home is, in Hawaii Kai, the views you enjoy may be that of the popular Koko Marina, the Koko Head Center or the Pacific Ocean.

Diamond Head, Oahu

When you first prepare to invest in Hawaii beachfront homes for sale, you’ll undoubtedly do a lot of research. And as you continue your investigations, you’re likely to come across legends about one of Oahu’s most renowned landmarks: Diamond Head. Formed more than 300,000 years ago, as a result of deep-sea volcanic eruptions, the 350-acre crater spans 760 feet high at its tallest point.

Along with luxury homes for sale in Diamond Head Hawaii, come fascinating accounts (some would say tales – but native residents swear by their truth!) about Diamond Head and its surrounding areas. One legend has it that, in their quest for a home on the Hawaiian archipelago, the volcano Goddess Pele, and her younger sister Hiiaka thought the head of the volcano resembled the head of a tuna. Hiiaka is said to have named the landmark “lae” (brow) “ahi (tuna) – or brow of the Tuna (subsequently renamed to Leahi).

But, like many locations where luxury real estate in Hawaii were later built, it was explorers from the West that sealed the name of this place. Back in the 1700s, western seafarers and traders mistook sparkling calcite crystals in the rocks of the volcano to be diamonds. They affectionately named the area Diamond Head – and it stuck!

When it comes to owning luxury real estate in Honolulu, the inventory of roughly 650 homes in Diamond Head represent everything you might dream of in terms of an exclusive living experience. If you’re one of the lucky few, you might snag one of the 60 homes constructed on a 2-mile span at the edge of the ocean. From your luxurious vantage point, all you can see is endless stretches of pristine white sand.

Situated just beyond the Honolulu zoo, south of Waikiki, luxury homes for sale in diamond head Hawaii envelope Diamond Head Creek, and encompass the area around Gold Coast parallel to Kapiolani Park and Kalakaua Ave.  Leahi is not the only landmark that your new home will be close to. Marking the southern-most tip of Oahu is the Diamond Head Lighthouse. You and your family and friends will also have access to the famous hiking trail that leads you to a breathtaking observation station giving you a 360-degree view of the surroundings down below.

Click here for all your Luxury Honolulu Real Estate

Luxury Homes in Hawaii: A touch of rusticism with plenty of modernity

How does one categorize a high-quality Hawaii beach house for sale? Is it the location of the property? Is it the age of the construction? Or is it the architectural style? Well, one could easily concede that the correct answer is: All of the above. However, that would likely only be part of the answer. To qualify as a truly stunning ocean-front property on Hawaii’s third-largest Island, Oahu, luxury Oahu real estate must include at least two additional qualities:

·        An unobstructed view of the gorgeous ocean right from your backyard, front yard or living room windows; and

·        A quick and easy way to access the sprawling beaches, coves and all other beach-front amenities that living in Oahu offers

Combine these characteristics with the services of a professional realtor who specializes in luxury Oahu homes, and you’ve got yourself a property deal worth bragging about!

A Place for All Reasons

People flock to Hawaii, and especially to the picturesque Oahu island, for many reasons. Some wish to get away from the dreary weather in their native lands. Some wish to make Hawaii their second home – one to escape to when they wish to beat the stress of their lives. Others might choose a place like Oahu specifically because of its vacation-like aura. They’ll make it a point to take a vacation trip once or twice a year to recharge, before getting back to the fast-paced life where they live the rest of the year.

A real estate investment in Oahu offers buyers with various reasons to make property purchases there. Whether it’s luxury Honolulu real estate opportunities you’re pursuing with an intent to becoming a landlord – and rent out the property; Or whether it’s about buying Lanikai real estate and making a permanent address change and relocating there – the reasons simply pile up.

For every reason you may have for making real estate investments and staying put in your current home country, city, town or suburb, there are as many reasons – if not more! – for investing in property in Hawaii and one of its most popular islands, Oahu.

More Than an Island Getaway

A decision to buy one of the many beachfront Hawaii condos for sale listed online is more than about having an island getaway. Yes, owning a piece of Paradise on earth is certainly worth the bragging rights that come with such a move. However, there’s more than that to making an investment in luxury homes in Hawaii.

According to the Zillow Hawaii Home Values index, property values in the island State have rocketed from $480k in Feb 2011 to $678k in Dec 2020. That’s a 41.25% return on your investment! Compare that with average 10-year returns of just 9.2% over the past 140-years for the S&P 500 index (according to Goldman Sachs). There’s no other risk-free investment like that – including stocks and bonds – that can compare.

So, we’ve established that your investment in a Hawaii beach house for sale definitely delivers rich financial rewards. A 10-year, 40-percent plus ROI is undeniable proof of that. Even over the short-term, according to Zillow, property values in Hawaii have risen by an average of nearly 4% in the past 1-year…and the appreciation continues.

But what else does your property in Hawaii deliver:

·        A peaceful place to retire, eventually, and call your permanent home

·        A way to diversify your real estate investment portfolio, regardless of whether you also own your current home elsewhere away from Hawaii

·        The opportunity to rent out your property, while you aren’t living in it, and generate an additional stream of rental income

And, least we forget: The beautiful sunsets and sun rises. The gorgeous ocean views. The pristine sandy beaches. The stunning skies. The awesome weather year around. A relaxed, easy-going lifestyle. Plenty of snorkeling, surfing and wind boarding…and much more. Investments in luxury Oahu homes, therefore, are more than a casual getaway strategy. They can also be about embracing a lifestyle of fun, relaxation and freedom from stress.

Picking Your Spots

There are eight major islands that make up Hawaii, with Oahu being the most populous of them (953,207). With a population of 186,738, the island of Hawaii is the second most populated island in the chain, closely followed by Maui (144,444) and Kauai (66,921). The population of the islands of Molokai, Lanai, Niihau and Kahoolawe (uninhabited) are between 170 and 7,300 inhabitants – almost deserted in comparison to Oahu.

Hawaii’s capital city, Honolulu, is in Oahu, and hosts a population of around 350,000-plus people. Investing in luxury Honolulu real estate, therefore, not only brings you all the trappings that host island Oahu offers, but it comes with the higher living standards that people living in most capital cities enjoy. Having a home in Honolulu, Oahu also brings another distinction with it: It (Honolulu) is the largest city and county in the state of Hawaii. Owning an oceanfront residence in a highly prestigious community like Diamond Head, Honolulu, is not only a great lifestyle move, but also a wise investment move – one that’ll pay off many times over in just a few years’ time.

With not too many properties on the market, luxury homes in Hawaii are still available in other greatly sought-after communities in Oahu too. And Lanikai is one such prized neighborhood. The challenge, however, is that when these homes are listed, they generate tremendous interest from would-be residents and investors alike. And, before you know it – someone else has beat you to owning your dream home.

The twin residential communities of Kailua-Lanikai, on Oahu’s southeastern coast, are located approximately 13 miles from the capital city of Honolulu, along the Kailua Bay. Lanikai real estate is abundant in sandy white beaches and steeped in history and myth. This used to be the place where ancient royals called home. And ancient Hawaiian legend has it that the mountains surrounding this area once were a giant, who turned into stone.  

The Best of All Worlds

It’s true, that owning beachfront luxury Oahu real estate offers the greatest of opportunities to escape far from the maddening crowds, get away from the traffic jams, and distance oneself from the pollution that most big cities inherit. However, your investments come with all the trimmings and trappings of the comforts of modern living.

Most Hawaii condos for sale listed online at HawaiianBeachfront.com come with an impressive list of amenities and utilities, including:

·        AC Split

·        Auto Garage Door Opener

·        Cable TV

·        Chandeliers

·        Convection Ovens

·        Dishwashers

·        Waste Disposal Units

·        Washers & Dryers

·        Fireplaces

·        Gas Grills…Refrigerators, Security Systems, Smoke Detectors, Solar Heaters…and a lot more!

In fact, when it comes to high-end living with a laid-back lifestyle, nothing beats what luxury Oahu homes have to offer!

Investing in Oahu luxury homes: There’s something for everyone

Buying Hawaii beachfront homes for sale doesn’t have to be a precursor for you to move permanently into one of the archipelagos many fabled islands. With the diversity of properties available on Oahu island, one could invest for many reasons, including as a vacation getaway, to turn into a renter’s Paradise, or make an wise investment move and benefit from long-term capital appreciation.

Regardless of what your motivation might be, one thing’s for sure: Oahu luxury homes offer a plethora of diversity in location, architectural style and features. All you need to do, to find one that’s just right for your lifestyle, is speak with a realtor that specializes in luxury Oahu homes.          

The variety of luxury homes: What to expect in Oahu

Real estate on the 3^rd-largest island on the Hawaiian archipelago is often a mystery unto itself. Oahu luxury homes never make it on the nightly news. They’re seldom featured on the front pages of newspapers or the tabloids. And they’re not a household name that most people are familiar with. However, perhaps that’s how many residents and investors of luxury homes in Hawaii, here in Oahu, like it to be!

Tucked-away from public gaze, are gorgeous, stunning homes and condominiums nestled in serene settings all across Oahu island. From mountains and valleys, rolling hills and expansive sandy beaches, gorgeous blue skies and awesome weather. Oahu island owners of luxury condos in Honolulu, Kailua, Portlock, Aina Haina and Niu Valley, among a host of others, enjoy peace of mind, relaxation and serenity in knowing they’ve made great property ownership decisions.

Oahu offers a broad diversity of homes to investors and would-be residents. Oceanfront Hawaii investment real estate isn’t the only choice for buyers. There are single-family homes with views to the Marina, those facing the beaches, and homes with stunning mountainous backdrops. But you’ll also find high-rise condos and luxury Kailua real estate that include penthouses with rooftop pools and breathtaking views.

The best part of the variety of Oahu luxury homes is that it offers you the best of several worlds. If you are an urbanite, you’ll probably embrace owning or investing in Kailua real estate, with plenty of opportunities for urban shopping and socializing. Owning luxury Honolulu real estate, on the other hand, provides ample opportunity taking in nature hikes and plenty of outdoor activities. And, a great aspect of this variety is how easily Kailua residents can switch to a Honolulu lifestyle, and vice versa – typically less than half-an-hours drive and residents from one community can enjoy what the others have!

Not too far from the buzz and crowds

It’s often believed (mistakenly!) that owning Hawaii beachfront homes for sale gives people the ability to retreat from the typical hub-hub, buzz and stress of their usual lives. And that’s a valid assumption. For example, many investors in Hawaiian homes use their luxury Honolulu real estate as vacation properties, and can’t wait to make their regular great escapes to their home-away-from-home.  But that doesn’t mean all they do is lay back and enjoy the sun and the sandy beaches.

For those investors that buy property anywhere in Oahu, be it luxury condos in Honolulu, beachfront homes in Niu Valley, or in any other Oahu communities, the highway systems and road networks make it easy to move from beach comber to restaurant diner, medical support seeker or business leader. Your Oahu luxury homes cut you off from civilization – but only on your terms! You’re free to join the buzz and the crowds whenever you please to do so.

Pick your lifestyle

So, what does owning luxury homes in Hawaii entail? Well, it really depends on your lifestyle and objectives. Whether you are a resident of the Hawaiian mainland, a local buyer in a particular community, or an international buyer – your lifestyle and property ownerships may determine your motives behind making those investments.

RELOCATION OR VACATION HOMES

Many investment homes in Aina Haina, for instance, may represent secondary homes for individuals (and families) that prefer to have homes away from their primary homes. They may be Hawaiian residents, or they might reside in a different state or country. Their motives may be just to own a vacation get-away property in Oahu.

Others want a drastic change in their lifestyle. For them, buying Kailua real estate, or purchasing homes in Portlock or Aina Haina, for example, may be the precursor for a bigger lifestyle decision – a permanent move. Perhaps the backdrop might be impending retirement. It could be that their current home brings them unbearable stress, and they’re looking to relocate to a more peaceful and less stressful residential community in Oahu.

INVESTMENT OPPORTUNITY

Others might have a different motivation. Their lifestyle might be that of a busy property dealer, and they might decide to put money in Hawaii investment real estate purely as a financial transaction. With property values continually on the rise, many real estate investors look at Oahu as the ideal place to tap for their investment property portfolios.

Over the past 36-years, investors in Oahu luxury homes have seen changes in total sale price of 393.8% and 374.9% in single family and condo properties.

What this means is that, if your lifestyle doesn’t permit owning Hawaii beachfront homes for sale in Oahu, to live in, you’ll have done pretty well as an investor – over the long-term – by investing in single family or condominium properties in Oahu.

RENTAL INCOME

Yet other investors might prefer the lifestyle of being landlords. For them, investing in

luxury condos in Honolulu, or buying beachfront single family homes anywhere on Oahu island, is a means to secure a steady stream of rental income. With Hawaii being a prime tourist destination, and Oahu in particular, offering much for tourists and visitors to enjoy, rental homes and apartments are high in demand.

Latest estimates show that the average rental value in Oahu is around $2,070.  That’s significantly higher than the $1,462 national average. This means your investment in luxury Honolulu real estate, or buying property in an Oahu residential community in, say, Niu Valley, could deliver you a steady stream of monthly income, while also steadily accumulating property appreciation.

A great thing about owning rental luxury homes in Hawaii is that they not only deliver predictable income, but may also provide owners the perfect island getaway opportunity – when not occupied by renters. So, instead of having a property vacant, why not invite friends and family over to enjoy some much needed R&R for themselves – and you too?

Once-in-a-lifetime Opportunity to Own Luxury Oahu Real Estate

There are few places like Hawaii today, where you can find a place to go to escape the stress and anxiety of what’s happening in the world. And the island nation’s 3^rd largest Island, Oahu, offers the ideal get away. When it comes to choosing where to buy, rent, own or invest, luxury Oahu real estate offers plenty of opportunity.

That’s because Oahu offers a melting pot of homes, condos, as well as high and low rise houses and properties to meet every lifestyle. Add to that, the extremely friendly people, the deep-rooted historic culture, and an unending supply of gorgeous weather, and you’ve got a recipe for the best Hawaii beachfront real estate investment in Oahu.

From owning luxury Honolulu real estate, to investing in Lanikai real estate opportunities, to considering potential Kailua real estate as your vacation home – they’re all equally great choices.

Luxury Honolulu Real Estate

Being part of Oahu Island means Honolulu inherits all the cultural and social niceties of its host Island. Oahu, also called the “Gathering Place” in the ancient language, is the third largest of Hawaii’s islands, and it houses the majority of this Island Nation’s diverse population. Rightly known as a varied place of gatherings, Oahu, and particularly Honolulu, has attracted a global fusion of East-West cultures to its shores, but remains deeply rooted in the ancient traditions and values of the native Hawaiian people. It’s one reason for owning luxury Honolulu real estate.

Honolulu is the main port city, and the capital of Hawaii. Planned and built according to modern standards, it is located along the southeastern shore of Oahu Island, and expands almost 6 kilometers inland into the Koolau Range. Still, like elsewhere in Oahu, local residents, visitors to Honolulu and investors of beachfront homes and luxury condos in Honolulu, will experience a serene co-existence between ancient cultures and modern values. Investing in a home in Honolulu gives you a taste of two worlds – the hustle and bustle of the busy city life, and the laidback lifestyle of the beachcomber and surfer!  

No matter where you are from, as a truly international city, you’ll feel welcomed in Honolulu, and you’ll settle right in.  The city has a world class-rated shopping scene, the nightlife is vibrant and exciting, and you’ll find a richness of highly rated hotels. And for those of you that are thinking of buying a home in Honolulu, there’s one more irresistible reason for doing so: The culinary treats and opportunities are second to none of the major cities around the world!

Lanikai Real Estate

If it’s the quiet life that you crave for, then investing in Lanikai real estate may be just what you need!  This relatively peaceful upper-scale community is located south of Kailua, on the windward coast of Oahu. For laid-back visitors, investors in Hawaii beachfront real estate, vacationers and homeowners, the Lanikai Beach is the place to hangout and enjoy some much-needed downtime. 

This, just short of ½-mile beach, is one of the most photographed beaches in the world. What draws visitors and residents to its shores is the world famous powdery soft white sand.  Investing in Hawaii luxury homes in Lanikai offers access to more de-stressing opportunities just offshore, at two of the island’s sought after kayaking destination at the Mokulua Islands.

But there’s more to investing or owning homes and condos in Lanikai. If you love nature and the outdoors, then owning real estate in this part of Oahu offers you excellent opportunities to fulfil your passion. The nearby hiking trails give residents and visitors a great chance to take in fresh air, lovely scenery and enjoy the wildlife on the island too. 

The Lanikai real estate inventory comprises of around 500 homes in total. If you are looking for Hawaii beach house for sale, Lanikai has roughly 105 oceanfront-facing properties, with just a handful of them – around 25 – situated right on the famous white sandy beach. So, if you find one listed on our site, make sure you move quickly – because these properties are hard to come by!

Kailua Real Estate

Unlike many other areas in Oahu, you’ll find investing in Kailua real estate offers a slightly different value proposition. Whether you’re buying to make Kailua your home, investing with an eye for longer-term property price appreciation, looking for Hawaii luxury homes as vacation stops, or plan on renting your property for rental income, you’ll find the low-rise nature of homes here different from the high-rise nature of luxury Honolulu real estate.

From its earliest times, Kailua has been home to native Polynesian settlers. Archeologists trace their heritage going back to over 1,500 years. So, your Kailua real estate, should you choose to buy or invest here, is steeped in part of the island’s rich history.  But homeowners here also have access to all the modern-day amenities of life – with supermarkets like Target, food outlets like Whole Foods, and a number of other smaller groceries and strip malls located conveniently.

True development of Kailua Town began in the early 1940s, when the forward-thinking family of Harold Castle recognized that Hawaii was about to change, and the island nation should embrace that change or be left behind. The town continues to grow, with more luxury homes in Kailua Hawaii coming online over time. With the completion of the tunnels of the Pali Highway in the 1950s, the community continues to thrive, with commuting for work, play and the essentials of life, now just that much easier.

Buying property, whether it’s a low-rise home or high-rise condo, in Kailua, is probably one of the best Hawaii investment real estate moves for anyone to consider. With some of the best beaches in America located here, including the holder of the #1 spot - Kailua Beach Park, the opportunity for investment gains is tremendous. But for those of you that wish to make a peaceful community, with friendly neighbors and lots of things to see and do, Kailua Real Estate is your best choice.  

Charming classic 1960's oceanfront island style home on Waimanalo’s eastern coastline. World-class views of Rabbit Island and the Molokai Channel. This unique property offers a pristine 2 bedroom, 2 bath main home and a detached 1 bedroom, 1 bath guest cottage with garage.

Enjoy swimming, kayaking, boating and more in crystal clear water. Watch daily sunrises from your oceanfront deck and green sea turtles feeding just off the beach. On a clear day, six islands are within view of the home.

It is a nature lovers’ paradise! Watch tropical fish frolic in your oceanfront yard. Enjoy cool breezes blowing across your property. Easy access to the ocean from your private pier. This property is eye candy and sells itself on your first visit. Do not miss this rare opportunity to own a paradise.

Come and live the dream beachfront lifestyle in paradise. The home has one of the most dramatic ocean and mountain backgrounds you will ever see. Asking $3,495,000

Call 808-295-0704 for more information or click here: https://www.hawaiianbeachfront.com/property/202100610/