The word “Hawaii” connotes beautiful beaches, elaborate history, and images of a beautiful tropical oasis. These features draw tourists and vacationers from all across the globe all year long, but have you ever considered that those same features would make Hawaii real estate investment a wise choice? There’s ample evidence to support the fact that it does, as explained below.
Real Estate as an Investment
You may know that diversifying your investments is generally regarded as a wise way to spread out your risk and secure your stable future. Unfortunately, most consider this to mean spreading their money around different companies in the stock market.
In reality, a truly diversified investor uses different types of investment, including real estate. This can insulate you from the ups and downs of the stock market, particularly in volatile times such as today. Hawaii real estate investments are an even better way to diversify due to the unique nature of the area.
Real estate investment also allows you to build equity in the property you’ve purchased, making this type of investment unique. Rather than have to choose between preserving capital and generating income, a strong real estate investment can do both: preserving your capital in the form of equity in the real estate, and generating income from rental or other sources.
Hawaii Real Estate Investment – Distinct From Any Other
Generally economies have ups and downs. The Hawaii real estate investment market tends to be different from others in this regard. Due to the large amount of sightseeing opportunities, abundant beaches, and natural history, Hawaii consistently remains a top tourist location. With tourism comes a strong rental market. Strong rental markets inevitably work to a real estate investor’s advantage as it allows for higher rental rates and lower vacancy.
While there are many vacation destinations, few are as unseasonal as Hawaii. The Kona coast, a top destination, for example, has an average high of 81 degrees in January versus 86 in the peak of summer. Hardly a difference at all. The result is, compared to other markets, the Hawaii real estate investment market is not seasonal at all. That makes it all the easier for real estate investors, given that there’s no true “off-season” that could reduce demand.
Hawaii experienced increased visitor growth throughout much of the last decade, another indicator that the tourism and rental markets remain healthy for prospective investors in the area.
Whether you are an experienced investor looking to further diversify your portfolio, or a beginning investor looking for a way to generate additional income while growing your capital, a Hawaii real estate investment may be just what you’re looking for.