Investor or not, investing in Hawaii homes is usually a sound investment. Whether you’re a single, military member, a family of six, or someone who invests in real estate faithfully, owning a piece of tropical paradise almost always pays off. The real estate market is down, yes, but that just means right now there are incredible opportunities to be had. For instance, if investing in Hawaii homes is something you’ve been thinking about, you can get a single-family residence for a great price. The average price for a single-family home on Oahu in February 2009 was down over 18% from last year island wide. If you’re in the market for a condo, you’ll be happy to know that in February 2009, the prices of condos were down even more from just a year ago.
The dropping prices have discouraged some people from investing in Hawaii homes, though. The media would have you believe that investing in Hawaii real estate or real estate anywhere in the country is a risky move. Don’t take everything you hear to heart. Look at what’s happened before. Has the real estate market ever been so dreary in the past? Yes it has. Did it recover by leaps and bounds? Yes it did. There’s going to be slumps in any market, and investing in Hawaii homes is no different. You just have to be patient and not panic over every fluctuation, because in the end you will come out on top if you’re investing in Hawaii homes.
There are some great reasons and some useful incentives right now that make it easier for investing in Hawaii homes. First of all, there’s a first time homebuyers tax credit. You can receive this tax credit if the closing on your new home is completed by November 2009, and it’s refundable. That means even if you don’t owe taxes, you benefit from receiving a check. The amount you’re credited or paid caps at $8,000 for most people (if your income is too high, then the cap begins to come down). Plus, this money never has to be repaid, unlike the tax credit of 2008.
Another great reason is because interest rates are at an all time low. This enables you to purchase more home for your money. Hawaii foreclosures are up and sometimes you can pick these up for a great price.
If you’re military, the VA may finance your home 100%. That makes investing in Hawaii homes a bit easier, right? There are caps here as well though, depending on the location. For instance, 100% financing from a VA loan for a home in Honolulu County caps at $800,000. You may not even have to pay closing costs or come up with a down payment. The seller is allowed to gift or pay these for you if they so desire. You may wonder why any seller would want to do that. Well, many homeowners are having difficulty selling their home. Some of them are behind on payments and need to get out from underneath their mortgage. So don’t chuckle at the thought, there are plenty of sellers who would be happy to pay those costs.
As you can see, investing in Hawaii homes is definitely a lucrative decision if you’re financially capable. Many real estate and economy experts foresee the real estate market making a rebound in the very near future, so now may be a great the time if you’re thinking about investing in Hawaii homes.