3 Reasons to Invest in Luxury Real Estate in Hawaii
Investing in luxury real estate has vast lucrative potential in terms of seeing a return on your capital. If you are going to put money into an asset, it has to be viable, right? Therefore, finding property (if that’s the route you have chosen), means finding the optimal area. Hawaii has a lot to offer within the context of luxury real estate and profitable property potential. It is good to research and deliberate before settling on a choice, so here are three reasons why investing in luxury real estate in Hawaii could be a smart move for your money.
Steady Appreciation in the Housing Market
One of the best reasons this guide has to offer is that the Hawaiian housing market has seen an almost steady and constant rate of positive appreciation. That is not to say that there aren’t dips and low points; as with any global housing market, struggles are inevitable sporadically. However, the defined pattern has certainly taken shape in an upwards motion, and this fact is hard to deny.
Take the example of Kihei homes for sale, a quieter area of the Maui province. Kihei real estate has seen exponential growth over the last few decades, and despite there being an element of budget-friendly homes, there is an undeniable selection of Kihei luxury homes for sale. You can find amazing Kihei condos for sale, too and in general, Kihei real estate has a lot to offer the luxury investor. This is just one of the great areas you can find as well.
Major Return on Investment Potential for Luxury Property
Luxury properties are worth the investment when it comes to maximizing your returns too. Why? There are two key reasons.
- Firstly, luxury properties have a lot of tax breaks if they have somebody living inside them (owner/occupier model).
- Secondly, luxury properties are great places for holiday-goers, and this is a guaranteed income model in Hawaii because it is such a popular destination for vacationers.
The Tax Benefits
Property tax in Hawaii is one of the great advantages of investing in the islands. In fact, Hawaii boasts some of the lowest property taxes in all of America, which is not something that can be taken lightly. It certainly boosts the investment market because of this fact, and it’s not hard to see why. Here are the key takeaways:
- Every year, the property will undergo a new assessment to value the most up-to-date figure.
- If you are planning on living in your property as opposed to a second home vacation rental model, there is every chance that you are eligible for home exemption tax breaks too.
- You do have to provide proof of residence though, either through paying resident income tax or similar.
- Tax rates do vary between the different areas, and it is worth researching each place if you are considering a range as opposed to one fixed zone.
Luxury real estate investment in Hawaii is a very attractive option for people looking to accumulate growth in their capital assets. There are beautiful areas, and attractive luxury properties all over the islands, so let the search begin.