Top Four Reasons for Buying a Maui Home Now
Everyone wants to live on Maui. Here are four reasons why now may be a good time to invest in a home or rental property.
1. Home Prices are On the Rise
The Hawai‘i real estate scene has always attracted international buyers and part-time home buyers, which can create some stiff competition for Hawai‘i residents. But it’s a bit tricky to gauge when to buy on Maui and when to sell.
Currently, prices on Maui are on the rise. Although buyers are still looking for a bargain, short sale and foreclosure inventory are less commonly found. Competition for market-rate properties is challenging, but not impossible.
2. Maui Rental Prices are Super-High
If you’re looking to buy for investment reasons, buying a long-term rental property is a pretty good idea. It has become increasingly difficult to find rental properties on Maui; investors are looking constantly. Having a consistent, long-term tenant is one of the best ways to secure a Maui property investment.
Due to the recent changes in Maui County vacation rental and B&B legalities, a lot of those folks who were renting their properties on VRBO or Airbnb are now only able to rent to residents—not visitors.
Vacation rental landlords were used to making more profit per month from their B&Bs, and still want that income. In addition, the majority of available and high-priced Maui rentals are being offered fully furnished, providing yet another excuse to hike that monthly price back up.
So, buying a Maui property for the purpose of renting to Maui residents is a good idea. They are always looking for a solid deal.
3. Increases in Inventory
With an increase in Maui properties for sale, the market is beginning to stabilize. This is not just happening on the Valley Isle, but is also being forecast on in national real estate trends.
Even Lawrence Yun, chief economist for the National Association of REALTORS, said, “Inventories are at their highest level in over a year, and price gains have slowed to much more welcoming levels.”
This statement supports that buyers now have more choices.
4. Low Interest Rates
Interest rates are still low, but won’t be for long. Taking advantage of today’s lower interests rates would be advantageous for Maui property buyers. According to kiplinger.com, interest rate forecaster David Payne reports that the Federal Reserve is raising rates in 2016. It is expected that there will be a moderate growth and two increases this year.
As the Maui real estate market starts to see more action, we can expect interest rate increases. That means that monthly mortgage payments will increase, too.
Mahalo for reading “Top Four Reasons for Buying a Maui Home Now.”
What do you think are the best reasons to buy property now on Maui? We welcome all comments, and would love to hear what some Maui Realtors think…