Should You Invest in Real Estate?

People are constantly asking me about investing in real estate. Perhaps you are wondering if building a real estate portfolio is the way to go? I’m by no means an expert, but this is what I know. Real estate appreciates over time.  Historically, real estate is a good investment, especially in Hawaii. We have a limited amount of supply, but an ever growing increase in demand. People want and need homes. A place to live. And, for those who have a choice, Hawaii is a great place to live, work, and play. Demand from those who already live here, combined with the demand from those who dream of living here, continues to increase. And, that same demands stands to increase real property values.

Not a Short-Term Investment

So, if you are considering investing in Hawaii real estate, it stands to reason that it’s a pretty safe bet. Of course, like all investments, there are risks. Owning Hawaii real estate is not without its challenges. Be prepared for high prices, rents that don’t always cover the underlying costs of mortgage, taxes, and insurance, plus the high cost of maintenance. Frankly, investing in Hawaii real estate is not a short-term proposition. The real estate market cycles.  There are great seasons of growth and some not-so-great seasons. In general, I recommend a long-range view. Yes, there are those shrewd investors who seem to time things perfectly who instinctively buy when values are low and sell when prices are high. But, for most of my clients, the key is buying and holding. Holding for enough time to recognize sizable appreciation.

Have the Proper Mindset Around Investing

Buying real estate has less to do with your income than it does with your desire. Your mindset. I know people who are on fixed incomes who own investment properties and I also know people who live lavish lifestyles who don’t own property. You can succeed in investing in property if you are committed to the process and if you take action. Truly, it doesn’t matter where you start. It matters where you want to end up. Investing in real estate is really not that hard. It just takes intention.

Start With Small Steps

If you want to buy a piece of paradise, just determine to do so. Take deliberate steps to get financially ready. Focus on your long-term vision. Ask the right questions. Get to know the market and work with a trusted advisor.

Over the years, I’ve bought and sold lots of properties. Some investments have proved to be better than others. I’ve made mistakes and I’ve learns some lessons. Hard lessons. The good news is that none of the mistakes have been beyond recovery and the better news is that I’ve made money.

Are You Interested in Investing in Real Estate?

It really doesn’t matter where you start. What matters is that you know where you want to go. You can achieve your real estate goals when you focus on your long-term vision and take deliberate steps to get there. There are always opportunities to buy Hawaii real estate, you just need to begin the process. With the right steps and a long-term vision, you can build an impressive real estate investment portfolio and design your financial future.