Many people who have built a significant amount of equity in their primary residences have found the stock market doesn't provide anywhere near the returns they could make when buying investment properties or vacation homes.
Vacation homes are especially popular here in Hawaii. They allow families a great place to visit during the year and produce great income for you the rest of the year while you are not enjoying your home for yourself.
While buying a vacation property is typically the same as buying your primary residence, you might want to consider visiting and spending an extended period of time in the area were you’re looking to purchase so you can get a feel for the local market and also to see what it’s like to live there.
No matter where you choose to purchase a vacation home, some of the best spots are found near water. Here in Kona, there are many great areas with vacation rentals and many opportunities for you to find that perfect rental.
Most vacation homes are purchased with the idea in mind to rent the property while it’s not a use by its owners. This is a great way to afford a vacation home, but be sure to consider who is going to manage the property when you’re not there. If you’re going to employ a management company, you should expect to pay some type of fee for this service, so this needs to be factored into your expenses. Lokahi Properties offers full service management along with partial management options for those who want to maintain some of the management duties, such as bookings, for themselves. We will work with you to create the perfect management solution for your needs.
All in all, a vacation home can be a great getaway for you and your family to enjoy while earning income when you are not there. Be sure to reach out to us at Lokahi Properties for personalized property management services for your vacation home or for help finding your perfect income producing property.
Dana Kern is the Principal Broker at Lokahi Properties