The Top 5 Reasons To Invest In Oahu Real Estate

You may love the tropical weather, majestic views of the mountains and beaches, and Aloha Spirit, but still not be convinced that Hawaii is the right place to invest.  Well, if these weren’t reasons enough, here are 5 reasons that you may want to consider purchasing Oahu Real Estate in 2018.

1. The high rate of appreciation.  Currently, Oahu’s average annual appreciation rate for single family homes and condominiums is above 5% per year when you look at a span of the last 40 years. This means that if you were to purchase a property and hold onto it for 10 years your property value theoretically would have increased approximately 60% assuming a straight line average appreciation.  We are currently nearing the top of the cycle and you can expect another year of approximately 5% appreciation for Oahu properties. 

2. A high demand for property.  Oahu is currently in a situation of having a perpetual housing shortage because we aren’t able to build enough homes to keep up with the population increase.  Add to this the desirability of Oahu for second home buyers and investors and you have a formula for increasing prices in the long run.

3. The stable pricing due to limited supply.  Oahu enjoys a stable trend of pricing due to our high demand and limited supply. When you compare the historical median housing prices to those of the mainland US or even the neighbor islands, we had a smaller decline in prices during the Great Recession and were able to bounce back to our current market highs.

4. The stable rental rates.  The rental rates for Oahu tend to follow the trend in pricing. Given that prices have increased in the last 10 years, it is no surprise that our rental rates have doubled in the last 10 years. With a limited inventory of housing, it is also easier for an investor to expect lower vacancy rates.

5. Enjoy a tax write off in paradise.  Ask your tax preparer what expenses are deductible for you to own investment property on Oahu. You might discover that aside from your typical maintenance and upkeep, a trip to visit your property for appropriate management purposes might be deductible as well.

About the Author

Brandon Lau grew up in Kailua and currently resides in Honolulu with his wife Andee and children Caylah, Elijah, and David. His eighteen years in real estate led him to become a Partner at ChaneyBrooks Choice Advisors. Over the past 10 years he has developed the team and systems that has created a high level of service and value for his clients.

What differentiates Brandon and his team is his consultative approach to real estate. He advises clients with relevant data and expert insight to help them make the best choices in real estate. Good choices in planning for long term dispositions, negotiating for the best price or knowing when not to pursue an investment are ways his consultative services will give you an advantage in the marketplace. His bottom line is providing service with the utmost integrity and expertise.