Did you know that humpback whales have a lifespan of about 40 to 50 years? For long-term Hawaii residents, that means that from your lanai or favorite beach, you’ve likely been seeing the same migrating whales returning to Hawaii for decades!
Hawaii’s year-round perfect weather, abundant natural beauty, unique culture and wildlife, and laid-back lifestyle make it a wonderful place to live. We often hear from non-residents looking to make an immediate move to our state, or from those planning to retire in Hawaii to enjoy their golden years here.
We get it! It’s an incredible place and we are so grateful to call Hawaii our home.
Purchasing a Hawaii home with the intent of renting it long-term is a common option for homebuyers planning for their retirement or for those wanting to own a second home to use as a getaway from U.S. mainland or Canadian winters. Buying a home and leasing it allows you to build equity over time and have a warm place to live for part of the year, or in your later years.
If you’re just starting out in your career or if you’re a young family living here and looking to enter the real estate market, you might also consider purchasing a home as a long-term rental. Later, when your earning power increases, you can take over the mortgage and enjoy your home.
Here are some things to consider as you’re looking for a Hawaii property:
Hawaii Rates of Appreciation Are Consistently High
According to Zillow’s Home Value Index, the average Hawaii home price has risen from $457K to $638K between February 2010 and February 2020. That’s an average increase in value of $221K or 39.61% over just ten years. In Maui County, home values have gone up 2.9% over the past year alone, and Zillow predicts they will rise 4.3% within the next year (as of this writing).
Median listing prices in Hawaii have grown from $392/square foot to $532/square foot in that same 10-year period from February 2010 to 2020, according to Zillow’s data.
Hawaii Property Taxes Are Relatively Low
According to the Tax Foundation (taxfoundation.org), average Hawaii property taxes are some of the lowest in the country. Due to Hawaii’s robust tourism industry and other sources of revenue, the State of Hawaii does not rely heavily upon property taxes to pay the bills. In 2017, here are the average property taxes paid in each of Hawaii’s counties, according to the Tax Foundation:
- Kauai County, Hawaii: $1,321
- Hawaii County, Hawaii: $889
- Maui County, Hawaii: $1,062
- Honolulu County, Hawaii: $1,803
See how these rates compare to your home state, or to other places you’re considering calling home.
We Offer Comprehensive Long-Term Property Management Services
Our property management team offers comprehensive long-term property management that includes a full scope of services to market, maintain, and manage your Hawaii long-term property rental. We handle everything from screening applicants, filling vacancies with qualified tenants, managing the homeowner-tenant relationship through the leasing period, and providing the utmost in maintenance and care for your investment.
Long-Term Rentals Can Help You Build Home Equity
Hawaii is a great place to build equity in your property. While the operational and carrying costs of owning a Hawaii home can be high, average historical rates of appreciation, as noted above, have been substantial. If you’re already a Hawaii resident or homeowner, you are likely well aware of the consistent growth that Hawaii real property has achieved over time. A well-managed long-term rental means that your tenants are paying the bulk of your property’s carrying costs so that over time, you can reap the benefits of established home equity.
Contact our Hawaii Life property management team today. With decades of real estate and property management experience, we are standing by, ready to help you reach your goals.
To learn more about our comprehensive Hawaii property management service for long-term rental, and about our expertise, check out our recent blog posts: