The Kona coast of Hawaii may not be the most likely place you’d imagine as an ideal spot to invest in real estate, but there are actually many reasons why it can be a good choice. With beautiful scenery, warm temperatures, and easy access to local stores and restaurants, it’s no wonder that many people choose to invest in Kona if they have the means to do so.
Here are some of the reasons why you might want to consider doing the same.
While you might not think of a vacation home as an investment, it actually can be—and a good one at that. Unlike long-term investments (like retirement accounts or CDs), short-term investments are liquid.
They’re also generally easier to research and manage. If you want exposure to real estate but don’t want huge risks and don’t have a lot of capital, invest in Kona to get your feet wet in the area and gain some quick capital.
For example, condos along Ali’i Drive are regularly listed for just around $400,000 — yet many have annual returns upwards of 8%. Think about the returns you could get if you picked up a handful of these.
Property values tend to be stable in and around Kona, meaning that you can count on a dependable return from your investment. Over time, even small investments can add up as inflation continues to rise.
Therefore, for many investors, long-term investments offer greater stability and guaranteed growth prospects. If you’re considering buying property for an extended period of time (more than five years), consider purchasing real estate along the Kona coast or somewhere with a similar climate.
Rental Rates for Condos Near the Ocean
The location is simply stunning. The ocean view is superb and condos are just steps from both restaurants and tourist attractions.
Tourists will pay upwards of $500 per night to stay at one of these beachfront properties. Plus, you can offer upgrades such as high-end appliances or even access to their own private pool or sauna.
There are two ways you can go about buying property on Kona. The first is through a property management company. Property management companies buy land and then rent it out as a way to maximize profits and minimize risks. If you want easy access, security, and professional expertise, consider renting through a property management company.
In addition to managing your rental units and taking care of taxes, insurance, upkeep, and repairs, these companies also advertise for tenants so that you don’t have to worry about finding renters or interviewing them.
However, if you prefer being more hands-on with your investment, purchasing real estate directly might be an option worth considering. There are a variety of commercial and private owners looking to sell condos on the coast for great prices.