With the continued upturn in the economy, Hawaii home and condo construction is busier than in previous years. There’s even a new show called “Building Hawaii,” debuting January 1 on HGTV that features a local company,Dickinson General Contracting, building homes from Keauhou to Kohala. With all of the new construction in Hawaii, and on the Big Island in particular, this is the ideal locale for a second home.
As you're considering buying in Hawaii, take a look at these questions below and discuss them with your family, realtor and investment counselor:
- Is this vacation home for you, family, friends, and business associates only? Or is it a vacation rental whose income you want to use to pay down the mortgage and/or develop as revenue?
- Do you have enough for a down payment? Most lenders will require at least 20% down to start. If you don’t have the 20% then you’ll need private mortgage insurance (PMI).
- Did you know more and more people are purchasing second homes as investments when the equity market is soft? Many times real estate provides a higher rate of return than investing money in the markets.
- Do you love to travel? If so, swap your vacation home for time at another home across the country or around the world! As much as you want to visit Paris, someone in Paris wants to visit Hawaii!
One of the best things about Hawaii is that there really isn’t a “low season.” Our peak months are Dec 15 to April 15 (when it's a little cooler, around 75-80 degrees tops), and then mid-June through Labor Day weekend (warm and sunny with long days of sunlight). Our fall season is popular with couples, singles and especially triathletes participating in the Kona Ironman World Championship which is held in October. But since you can golf, surf and swim in the ocean year-round, any month is a great month in Hawaii!
Remember to research your realtor, property manager and lender carefully. Call Cindi with Kohala Estate Realty & Big Island Vacation Properties at 808 885-6939 for expert advice on all things Hawaii real estate.