RENT VS. BUY: WHY NOW IS THE TIME TO BUY BIG ISLAND REAL ESTATE
It’s never easy to predict with exact certainty what will happen in the real estate market. Buying a home is often one of the most significant investments and financial decisions that people make and, understandably, it can be an overwhelming decision for many prospective buyers. If you’re considering making the leap into home ownership, there are a few items you should evaluate before making your purchasing decision. Before buying a home you’ll want to consider, how long you plan to stay in the area, the cost of housing relative to your location, and the opportunity cost of taxes, insurance, and your down payment. You should also understand that market conditions on the Big Island differ from those you’ll encounter if you’re buying on the mainland. Here are a few reasons now is the perfect time to buy Big Island real estate:
- Enjoy island paradise
If you’ve fallen in love with the Big Island, and you plan to stay put for awhile, you should absolutely consider buying a home. As more and more people move to the Big Island, landlords will continue to drive up rent, which means that the gem you found in an up-and-coming neighborhood may be significantly cheaper in the beginning that it is three years down the road. If you invested the capital it took to move to the Big Island, and you plan to make this your home for at least 6-7 years, buying a home makes more financial sense than renting.
- Mortgage and interest rates are steadily climbing indicating a healthy market
In the wake of the election, interest rates and mortgage rates have begun to slowly and steadily climb. Far from being a deterring factor, this should indicate to homeowners that the market is healthy and now is a good time to invest. The upward trend indicates that the U.S. economy is healthy and growing and people will continue to purchase homes. If the current administration follows through on plans to boost the economy by adding jobs, lowering taxes, and reducing regulatory burdens, buying a home now will result in higher gains down the road.
- Make your home your own
If you’re moving to the island to find your slice of paradise, it is certain that you’ll want to customize your place and make your home your own. The challenge with renting is that you will be extremely limited when it comes to making changes to your property including landscape, interior updates, and more. Or, if you are able to make those changes, you’ll end up making a significant investment that will benefit your landlord in the long run, instead of you and your family. If you have a very specific vision of how you want your island home to look and feel, buying a home will allow you to customize without restriction.
We know that buying Big Island Real Estate can be a bit complex, especially if you’re unfamiliar with some of the unique considerations specific to our real estate market. Whenever you’re buying a home, you should employ an expert to help you navigate the process and make an informed decision that you’ll be happy with in the long term. We’ve lived on the island for years and have helped many families and individuals find the perfect home in our community. If you have any questions, we’re happy to help. You can always contact us here or call (808) 217 – 8500.