Hawaii real estate for investment

Investors around the country are picking up bargains these days, with prices down and inventory up. If an investor is looking for Hawaii real estate, where should he buy right now?

Answer - Oahu condos. Conds on Oahu rose in price to an all time record price last month, even as single family homes declined over 12% from their record a year ago. Also, rents in Oahu are still at record levels with no sign of cooling off.

There are nearly 1 million people living on Oahu, and that means there is a terrible shortage of good rentals. So if an investor is looking to 1031 exchange or purchase new investment property in Hawaii, condos are the answer.

In particular, I like Hawaii Kai and Kailua condos. In Hawaii Kai, a 3 bedroom condo or townhouse can get about $2500-$2800 in rents right now, and it costs about $450k-$500k to own one of them. That means with about 20% down you can just about cover your mortgage.

For Hawaii Kai condos, you should consider Lalea, Mariner's Village, Nanea Kai, Moana Kai, and a few others that are not as well knows but still get plenty of rent.

Kailua condos are all around the same neighborhood, just off of Aoloa st. You can get about $2200-$2500 for even a 2bedroom in Kailua, if it's in great shape. It will cost around $400k-$500k to buy one at Poinciana Manor, Gardenia Manor, Hokulani, Windward Cove, Windward passge, or a few others that are less well known.

Condo values continue to rise because there is always a need for a the cheapest real estate. In a slowing market, the lowest priced property always does the best, as people hunt for bargains. $400k on the East side and Windward side of Oahu is about the least you can pay to get into Oahu condos.

Investing in Oahu is like a no-brainer. As the population grows, the island's property just continues to rise. There is no end in sight to the population growth, and therefore an Oahu Condo is a great long term investment.