Investing in real estate looks so different for everyone. If you are debating investing in Kauai real estate here are some helpful tips. Buyers call frequently on the mainland asking if Kauai real estate is a good investment. The answer always it it depends. It really depends on the person and their reasons for investing. In fact I have told a few buyers that I didn’t think that investing in real estate on Kauai was in their best interest and they appreciated my honesty. I rarely have investor clients that purchase and end up selling the next year or two. Unless their intention was to sell for a profit.
Kauai is basically not too cold, not too hot, but just right. And I don’t exactly mean temperature. Kauai is not as busy as some of the other islands like Oahu and Maui but yet not as isolated and slow as Lanai and Molokai making it “just right”.
Here are reasons to invest in Kauai real estate.
An investment that wont lose value.
If you are looking for an investment that wont lose value Kauai is a good option. Or if you are looking for a property to invest in for the appreciation, Kauai is a great option! Our properties here are limited therefore our properties do not really lower in value by much. Properties are limited for few reasons. The first is that most of our island is not buildable and is conservation land. The second is that there are not too many new construction projects. Lastly, our county zoning is controlled by our county and only so many homes can be built upon properties here depending on the zoning.
I have heard that many international investors park their money in Hawaii for this reason. A good bet are residential homes. Our residential homes really uphold their value in the long-run. I would recommend a residential home for someone wanting a property that appreciates in value.
Frequent visits to Kauai
This is definitely a reason to invest in a vacation rental on Kauai. I would say that our vacation rental properties work best for those who are frequent visitors to the island. That way they also save on a hotel room. Many of my clients who own a vacation rental use it frequently.
This is not a requirement. However I do end up finding that vacation rental type investments make the most sense for these type of buyers. In my opinion is also nice to be a little hands on with your investments, it’s part of the fun!
In the past I have spoken to people who just want to make money and not visit the island at all. I advised them it may make more sense for them to invest where they are located.
Click here for vacation rentals for sale.
Being a Resident of Kauai
This is the best reason to invest in Kauai real estate. Being a resident and being on island! Here are the reasons why I think being a resident of Kauai is important for investing in real estate here:
~It’s always easiest to manage your investments where you are living. Plus it’s part of the fun. Not only is it easiest but the investor is able to be hands on. Get things done from little fixes to property management.
~Connections that you have. Having friends or family with a certain skill set is so important! Especially on Kauai where it can be difficult to find service people. Like good cleaners, handymen and more.
~Knowing the market best where you live. When purchasing you know if something is a decent deal and have a better idea of the income the property can produce. A few real estate ‘experts’ have even written books about investing in properties only where you currently are living.
~Enjoying being hands on with your investments. One of the reasons I decided that investing on Kauai was right for me was that I enjoy being hands on. I enjoy seeing the before and after, picking out the materials and having control over these things. I also enjoy doing what I can on my own (even tho I can’t do much, haha.)
Having an investment should be somewhat enjoyable. It is not a necessity to have an investment so do what is fun for you.
I’ve considered purchasing property outside of Kauai and it was an exhausting search. Every property I’d have to look for comps and by the time I could make a decision if it was a good buy there will be others ready to make an offer. If it truly is a good deal.
If you don’t want to do a ton of Research
If you don’t want to do a ton of research on a property Kauai is a super safe bet!
There are hardly any “non-desirable” areas making the whole island a great opportunity for purchasing. Even our areas on the island that have previously had lower prices and now relatively similar to the rest of the island. We have very low inventory on the island on Kauai and therefore it keeps our property values high. Making almost any property on Kauai a secure investment. Be sure to check with your Realtor of course before purchasing.
Where to Start
The best advice I can give someone is that investing looks different for everyone. It can be overwhelming being that there are so many options when it comes to investing.
When purchasing a home there are a lot more ‘guidelines’. Some people want to be close to work, or family. Or maybe you even inherited a home to live in long-term.
Start noticing what type of guidelines you can put on investing. Do I want my investment to be where I live? Do I enjoy being involved in the process or do I not care? Do I have somewhere I want to visit or family that can help me run an investment in a different location?
It is great to hear about other peoples investment stories (I do the same). However I don’t think someone’s exact footprint of how they got into investing is always the answer.
Feel free to call me to talk more about investing in Kauai real estate!
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