Honolulu has always been one of the hottest real estate markets in the country.
Even with a potential housing market dip looming across the country, Hawaii real estate is likely to keep growing. The reason for this is fairly obvious: Hawaii, and Honolulu in particular, is an amazing place to live.
In this post, we're going to tell you 5 reasons to invest in Honolulu real estate in 2022. It might seem like an expensive investment, but keep reading, and you'll quickly see that Hawaii is the safest place to invest in a rental property and real estate in general.
1. Market Appreciation
As we mentioned at the top, the real estate market in Honolulu is impervious to nationwide trends. Over the past 12 months, the median home value in Honolulu has gone up over 18%. This is due to increased demand and a decrease in inventory, in addition to lower borrowing costs.
Simply put, there's no bad time to purchase a Hawaii real estate investment. As long as you have the capital, it's always going to appreciate and make you look like a smart investor.
2. Good Rental Income
Along with rising home value is a rise in rental prices. The average monthly rent for a 1-bedroom apartment in Hawaii is over $1,700, which is the highest in the nation. Investing in Honolulu real estate means stable rental income over a long period of time.
3. Vacation Rental Potential
Since Honolulu is one of the most desirable cities in the world to visit, you're going to have loads of potential to turn your property into a vacation rental. In Hawaii, there's no such thing as an off-season, so a vacation rental yields year-round returns.
Vacation rental platforms, like Airbnb and VRBO, have made it easy to earn loads of money from your property.
4. Great Property Management
There are really great property management companies in Honolulu for those investing from the mainland US. Having access to a company like Home River Group, one of the country's most reputable property managers, means your property will be well looked after.
We offer all of the essential property management services, from maintenance to rent collection. No matter where you reside, you'll be able to maximize your Honolulu real estate investment.
5. Long-Term Tenants
Another byproduct of Honolulu being one of the most desirable US cities to reside in is that you'll have long-term tenants in your rentals. Being able to maintain high tenant retention is one of the keys to making a stable income on a rental property.
As long as you properly maintain your property, charge a fair market price for rent, and perform repairs as needed, you'll be able to keep the best tenants around.
Investing in Honolulu Real Estate Is a No Brainer
Now that you know why you should invest in Honolulu real estate, it's time to find the perfect property to buy. A property in one of the world's most desirable locations is a great way to diversify your real estate portfolio.
Once you've got the property, the next move is to hire a property manager. Contact us at Home River Group to learn more about our full-service property management and how it can help you.