Among the 137 islands in the Aloha State, Maui is one of the most popular destinations that many people know. Because of its warm weather all year round, world-famous white-sand beaches, and beautiful sceneries, tourists from all parts of the globe flock to Maui. But aside from these travelers, there is another group of people who finds Maui an attractive site.
Those who are looking for real estate investment opportunities also have their eyes set on the second largest Hawaiian island. But is Maui real estate a good investment decision? Buying property whether for long-term investment or to generate income is a big decision for many people. Before you take the plunge, it’s vital to know what you’re getting into and if it’s the right choice for you.
Diverse Hawaii real estate investment options
From Maui luxury real estate properties to beachfront condominium units and oceanfront single-family homes, you will find a variety of real estate investment opportunities at Maui. If you’re new to this money-making strategy and still hesitant to spend a huge amount, you can put your money into a simple Maui home. Investors with more budget who want to yield greater returns will find impressive luxury townhouses in exclusive neighborhoods like Kapalua’s Pineapple Hill.
With the variety of options, it’s also easy to diversify your real estate portfolio to ensure ongoing and steady growth. For example, you can invest in beachfront condos to take advantage of the peak season. You can also invest in properties in exclusive neighborhoods to enjoy continuous income from seniors looking to retire and spend a relaxing time in Maui. You no longer have to look far since everything is under your nose.
Excellent vacation rental investment opportunities
Millions of tourists from all over the world travel to Maui every year. The Hawaii Tourism Authority even recorded 3,071,596 visitors arriving on Maui in 2019, surpassing the 2-million mark in the previous years. If you invest in a property that can be permitted as a vacation rental, you could wind up with lucrative opportunities.
With this impressive number of people visiting Hawaii each year, investing in Maui real estate is undeniably a good decision. After all, people need a place to stay, and your real estate investment could be one of them. If you choose the right property, you may even get your money back without having to rent out your property every single day of the year.
Relatively low property taxes
If you’re planning on investing in Hawaii real estate, one of the things you will have to consider when choosing a property is tax. It’s best to choose a home that doesn’t have high property tax so you can enjoy more of your earnings. The good news is that Maui has relatively lower property taxes than most places in the country.
Since Maui has a strong tourism industry and various sources of revenue, it doesn’t rely heavily on property taxes to fund the island. Although the exact property tax rate you will pay will depend on your real estate property, Maui County collects an average of 0.16 percent of a home’s value. According to Tax-Rate.org, you may pay an average of $965 for property tax.
Consistent property appreciation
Real estate properties appreciate, which means it increases its value as time goes on. If you choose to sell your Maui home in the future, you can expect to earn a significant profit even if you didn’t make any upgrades. Another good thing about Maui real estate is that it consistently shows high rates of appreciation.
According to Zillow, the value of real estate properties in Maui has increased by 10.1 percent from 2020 to 2021. The average value of homes in the county rose from $770,000 to $782,000 from June to July this year. Plus, with the high demand for Maui real estate, you can expect to sell your property quickly, especially if you have a top commodity like a Maui beachfront home.
Limited investment space in a high demand market
Despite having diverse real estate investment options, the supply of housing in Maui is still limited. That’s because almost 95 percent of land in the state of Hawaii is allocated for agriculture and conservation. These protected areas are not allowed for real estate development.
Since there’s an increasing number of people choosing Maui as their retirement and vacation destination, the demand for real estate properties in the market is increasing. Investing in Maui real estate today could mean an even higher appreciation in the future, especially with the limited supply.
Tax breaks and deductions
Although equally beautiful island destinations also exist around the world, investing in their real estate properties means there’s a chance you may not enjoy U.S. rental income benefits. For example, you may not be able to deduct property taxes if your real estate investment in a foreign country is for personal use.
Since Maui is a county in the US State of Hawaii, you may be able to enjoy numerous tax breaks and favorable tax treatment. If you invest in Maui real estate to generate rental income, you may be able to deduct mortgage interest, property taxes, insurance, maintenance costs, and depreciation.
Fascinating activities, sceneries, culture, and history
Another reason that makes Maui real estate an attractive and good investment is the county’s fascinating activities, scenery, culture, and history. Whether you plan on living here permanently or renting out your real estate property when you’re out of town, Maui offers many things that will make you fall in love with the place.
Maui is home to numerous protected conservation areas, sacred temples, and historic trails. Many festivities and cultural events are also celebrated on the island each year. Moreover, Maui offers its residents and visitors world-class dining, high-end shopping, and exciting adventures. There’s plenty of reasons that will convince anyone to live and stay in Maui.
Invest in Hawaii real estate and partner with a reliable realtor
Investing in Maui real estate can be one of the best and most lucrative decisions you’ll ever make in your life. Not only is the island an attractive destination for tourists, but also investors. It offers numerous benefits, including excellent home appreciations, low property tax rates, high vacation rental opportunities, and more.
Ready to take the plunge and start your real estate investment portfolio? Contact our team of professional realtors today! We will help you look for the best real estate properties with amazing investment opportunities.