Maui is an incredible place! It has the lifestyle that everyone wishes to seek. With local healthy foods, yearly comfortable sub tropic weather, and United States health care, the standard environment is more than satisfying. So, how do you get to partake in the Maui Lifestyle? What is the Opportunity Cost?
Being on a tropical island is very low maintenance! With grass huts, people tanning in the nude, and endless abundance of fruity flavored cocktails, there seems to be no stress? Well, put that fantasy book away.
Working as a full time Principal Broker & owner of Living Maui Real Estate, LLC, Kimberly gets daily questions about purchasing in Hawaii. Do to being in a resort location in west Maui, the inquiries range from income producing properties to breaking even on an investment. Explaining further, obtaining property thousands of miles from home comes down to Maui Lifestyle Vs Opportunity Costs.
Questions to ask yourself!
- Will my family share yearly memories here?
- Is it safe?
- Am I comfortable parking my money in real estate?
- Will I procure a Net Cap Rate on my investment?
- Do I need to rent it out?
Yes, is the answer to all these questions. Year after year, the visits here will be consumed with laughter, recollections in the warm sunshine, and endless sand in your condo or home.
Most importantly, State of Hawai is considered safe being part of the US. Compared to foreign countries and non English speaking areas, it is comforting knowing that American Laws & Freedoms apply here. Not just that, if an injury should occur, your insurance will be executed.
No, you are not putting your money in a Coca Cola stock. Real estate is an investment where you don’t need your money anytime soon. Maybe you have a 1031 deferred exchang and need to acquire an alike property? You are resting or parking your dollar knowing you are not rushed to recapture it.
The Net Cap Rate coincides with the question above. In the current market, Kimberly witnesses a return on all cash deals. The best figures occur in condominium hotels where there is an onsite management company, full resorts amenities, allows short term rentals, and is on the ocean. In fact, when preforming Cost Breakdowns, studios preform the best. They have the lowest HOA, property taxes, and highest rental frequency.
Well, you might not be swimming under waterfalls daily or barefoot patching together your clay home, but you will be loving life in Hawaii. Now it’s time to figure out just what opportunity costs means to you!
Contact Kimberly Drechsel for more questions. Having her office here in Kaanapali, she is available for appointments to further discuss objections and overcoming them.