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| | Robert Myers Maui Real Estate Blog
Real Estate Information for Maui, Hawaii | Maui's Buyer's Market
Why Now is the Ideal time to invest in West Maui Real Estate
May 17, 2008 | We've touched on this subject before a few months ago, but with all the doom and gloom in the news lately regarding the economy, there are some key points which must be mentioned regarding investing in real estate in today's real estate market.
1) As with anything, real estate prices fluctuate. The best time to buy is when prices are low, while the best time to sell is when prices are high. Investors building wealth in today's market "buy and hold" until the next upswing.
This is great for first time home buyers planning to "stay put" for several years, as the market will eventually turn back into a sellers market. Home values will increase over time and the investment will pay off.
There are several nice starter homes in Lahaina and other West Maui locations on the market today.
2) Real estate is one of the most solid investments one can make, as there is only so much to go around, and people will always need places to live. Over the long-term, real estate always appreciates in value, particularly if it was a solid value initially.
The best part is, you don't need to be wealthy to invest in real estate. Good credit and money down will still allow anyone to purchase a property, and interest rates are low right now.
3) With the glut of properties on the market, low prices, low interest rates, and motivated sellers, buyers will get far more "bang for their buck" in today's market than they would in a more stable economy.
But be forewarned: Those who plan to hold off buying until prices and/or interest rates hit rock bottom will typically hold out too long.
5) "Location, location, location" is the key to the best return on your investment. Resorts and/or vacation homes are the strongest segment of the market, particularly those with a large, financially secure entities supporting the overall structure.
This makes West Maui resort locations such as Kapalua and Kaanapali some of the best investment opportunities in the nation! There are also several high-quality homes in prime locations available throughout West and South Maui. So if you are considering a Kahana Oceanfront property, now is a great time to make the purchase.
6) Overbuilding has resulted in a further glut of houses on the market. This means there are more properties on the market driving prices down, a lot of them brand new!
7) As contractors are laid off due to projects being put on hold, there are a lot of them out of work. Labor costs are down, so fixing-up and maintain properties is easier (and cheaper) than ever.
8) Foreclosures are typically due to people investing poorly, having over-extended themselves in the first place, and/or fallen victim to unethical lenders. Those unfortunates who have lost their homes must live somewhere. This means more renters on the market to fill your investment properties.
9) Sellers who don't need to sell generally don't have their properties for sale right now, meaning that almost everyone with properties on the market are motivated sellers! Motivated sellers are typically willing to offer lower prices, throw in incentives, and be flexible on terms.
10) Maui is one of the most visited vacation destinations in the world, and people will always take vacations. Investing in West Maui and South Maui vacation rentals now will definitely pay off in the long run.
To further discuss the benefits of investing in the Maui Real Estate market, contact Robert Myers toll free at 888-781-3548. |
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