Looking to add Oahu Real Estate to your Investment Portfolio?
When you look at the shimmering blue waters and pristine beaches of Oahu, it’s easy to forget that behind this tropical paradise lies a dynamic real estate market teeming with potential. While it’s true that Hawaii is one of the most beautiful places in the world to call home, it also has a thriving residential real estate market that provides great investment opportunities.
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Oahu’s real estate landscape offers unique advantages that are hard to find elsewhere, though it can come with a higher price tag up front. The market has historically outperformed others over the long-term.
Even still, owning an investment property on Oahu can be a tricky proposition. Regulations differ per island in Hawaii, and rules that come into play depending on your intended usage. The island's geographic insularity restricts the amount of land that is available, creating an environment where Real Estate value tends to appreciate over time - as long as you are following the rules and not racking up fines.
Our team lives and breathes Oahu real estate. Scott Startsman, leader of the HiEstates Team, has decades of experience with investing, syndications, and development projects. He has his own development company and investment group that has worked on a variety of projects. Together, we understand the nuances of the local market and will guide you past the pitfalls and towards a property that matches your needs and wants.
Real Estate Investing Videos
Things To Consider Before Buying Investment Property In Hawaii
Aloha! Before you spend your hard earned money on investment properties in Hawaii, there are some things you should think about.
First - how much work do you want to do on maintaining this property as a rental? If you outsource the management, you sacrifice some of the profit for freedom from doing the work - and sometimes creating a mostly passive source of income. The downside is that the tighter that profit margin, the less cushioning you have if there are disruptions similar to COVID.
Second - how ar
Regulations For Owning Rental Properties On Oahu?
Aloha! Looking at investing in rental properties on Oahu?
In Hawaii, each island has different regulations surrounding owning rental properties. Before you start looking to buy one on Oahu, there are some things you should know.
Oahu does not allow you to simply purchase a single-family home and turn it into a short-term rental. These homes can only be rented out for periods of 30 days or more. If your home is part of a HOA, the minimum amount of days can be even higher or other restrictions could come
Where Can You Buy Vacation Rentals On Oahu?
Aloha! A quick word on short-term vacation rentals on Oahu
There are three resort zone areas where you can find short-term vacation rentals on Oahu. They are Waikiki, Turtle Bay, and Ko'Olina.
Check out more information on Waikiki below!
https://www.hiestates.com/waikiki
Ready to reach out to an Oahu-Based Real Estate Professional you can trust? Contact Me Today!
Why Is There No Vacation Rental Inventory On The North Shore?
Aloha! We know what's going on on the North Shore.
There are two things. First - Bill 89 stopped all (or nearly all) short-term vacation rentals on the North Shore. Secondly, the resort zone in Turtle Bay is very limited in size and available units.
Ready to reach out to an Oahu-Based Real Estate Professional you can trust? Contact Me Today!
Getting The Best Return On Your Hawaii Investment Property
Aloha! What should you think about to get the best possible investment?
If you're planning to invest in Hawaii real estate, there are a few things you should think about to make sure you're getting the best return possible. Especially if you're planning on using the property yourself.
Lowering your mortgage payment in today's inflationary market
Aloha! It's not very common to see someone pay the same rate for the entirety of their 30-year loan.
Many people choose to refinance their home loan when better interest rates come along. This allows them to cash out some of their equity while lowering their monthly payments. Whether it is worth it in the end is highly dependent on your personal situation, however. Make sure to speak to a financial professional before making your final decision.
Wondering what area of Oahu suits you best? Take our fun qui
What Types Of Rentals Can Be Found In Waikiki?
Aloha! In this video we’re talking about vacation rentals in Waikiki.
Waikiki has both short-term and longer-term rentals available.
There are rental regulations on Oahu that restrict short-term rentals (less than 30 days, usually nightly) to certain areas, known as “resort zones.” In Waikiki, this zone is mostly from Kuhio Avenue to the ocean. Honolulu county has a web page dedicated to information on short-term rentals, which includes this map showing the resort zone.
http://www.honolulu.gov/rep/site/d
What Is It Like Buying Empty Land Vs A Fixer-Upper On Oahu?
Aloha! Typically, it's much more difficult and complicated to purchase empty land and build new structures on Oahu.
At times, it can even be easier to buy an older fixer-upper property. At that point you can either renovate the property for use with the option to destroy and rebuild down the line.
I actually did a home renovation on a two building property myself recently. I ended up demolishing one of the buildings and rebuilding it from scratch. Click the link below to learn more!
https://www.hiestates.
Interest Rates & Their Effect On Loan Options
Aloha! As the saying goes - marry the house, date the rate.
As interest rates continue to climb, they will continue to eat into affordability and causing significant increases in monthly payment costs. A common trend at this point is for many people to pull back, hoping to wait until the after interest rates start coming back down.
That comes with its own issues, however.
Wondering what area of Oahu suits you best? Take our fun quiz to find out!
https://www.hiestates.com/learn/what-area-of-oahu-best-su
How Is The Fixer Upper Home Market in Hawaii?
Aloha! An audience member was wondering - is there a market for fixer-uppers in Hawaii?
Oahu is an oasis of older homes in need of fixing - but tread cautiously with fixer uppers. In the current market you need to be really careful about trying to get in on a fixer upper - you're essentially betting on tomorrow's market. There's significant risk.
00:50 Oahu Fixer Upper Market
04:11 Big Island Fixer Upper Market
09:26 Hawaii's Capital Gains On Real Estate
Check out this recent home renovation and new
What's a realistic price for land and home construction In Hawaii?
Aloha! The answer to this question really depends on not only the island, but also the neighborhood.
While the viewer that asked this question might be able to get a decent home on Big Island for their asking price, Oahu is another beast.
How does Hawaii's high land use regulations affect home prices?
Aloha! High regulation seems to have some correlation with land scarcity and high housing prices in Hawaii.
A lot more housing opportunities are out there, but are limited by tight regulations. One example of this is that most of Hawaii is zoned for single-family homes, leaving little room for duplexes through low-rise apartments.
Will New Home Construction in Hawaii affect the housing market?
Aloha! Hawaii very rarely adds new homes, which tends to keep housing prices high even when other markets are going down.
Even as other housing markets on the mainland are going down, it doesn't feel like Hawaii will follow suit. There may be a pullback as it plateaus, but the fact is that Hawaii simply doesn't build new homes often - meaning the supply is often lower than the demand. A recession does not always equal a housing crisis.
How are loan forebearances affecting the Hawaii Real Estate Market?
Aloha! Forbearance is a policy that allowed mortgage owners to delay payment on their loans as a response to the pandemic.
It's important to note that loan forbearance did not cancel the payments or decrease the loan, simply delayed it for a limited time period. The number of loans in active forbearance have been actively dropping - from nearly 5 million in mid 2020 to under a million in April 2022.
There are a lot of moving parts involved with every situation, so be sure to consult with professionals bef
How To Prep A Home For Sale In Hawaii
Aloha! What kind of renovations should be done to prep a home for sale?
Often when buyers are first looking through a home, they’re looking for excuses NOT to buy - fix any underlying issues before worrying about the cosmetic side. Once that’s established, buyers often need to make an emotional connection to a home to make the purchase.
00:00 Intro
00:18 Renovating To Sell
00:50 Scott’s Take
02:05 Dylan’s Take
Click the link below to learn about what area best suits your lifestyle!
https://www.hiestates
Why and when will Hawaii's home inventory increase?
Aloha! Hawaii is unique in terms of livable land mass.
While it has plenty of green areas, the amount zoned for residential development is small. Until more land is zoned for residential use, inventory will rise and fall with the market demand - which shows people are willing to pay at current prices.
Click the link below to learn about what area best suits your lifestyle!
https://www.hiestates.com/learn/what-area-of-oahu-best-suits-you/
Ready to reach out to an Oahu-Based Real Estate Professional you c
At what price point does buyer competition decrease?
Aloha! As with many other topics, this depends on your island.
On Oahu and Maui, that price point was at around $4.5 million and up when this video was published in May 2022. The higher you go in terms of price, the less competition you're likely to see. On Big Island the price point was a bit lower - around $3.5 million.
Click the link below to learn about what area best suits your lifestyle!
https://www.hiestates.com/learn/what-area-of-oahu-best-suits-you/
How Difficult Is It To Get Zoning Changed In Hawaii?
Aloha! Depending on what you're attempting, rezoning in Hawaii can be akin to asking for an act of Act Of God.
It's really all case-by-case, with some rezoning efforts being easier than others. One way to find out is to find a good attorney and planning consultant - this is what they do on a daily basis, so they're able to give you the best idea of what's possible due to their connections.
Ready to reach out to an Oahu-Based Real Estate Professional you can trust? Contact Me Today!
Best configuration for condo that will be rented when not in use?
Aloha! A viewer who is seeking a condo for personal use plus renting it out asked us this. It all comes down to usage.
The price difference between a 2-Bedroom and a 1-Bedroom can be vast - $500,000 or more.
02:05 How often will you have guests?
03:45 Price Vs Comfort
05:45 Don't overestimate
07:40 Family Visit Experience
Click the link below to learn about what area best suits your lifestyle!
https://www.hiestates.com/learn/what-area-of-oahu-best-suits-you/
Do Hawaii Homes and Condos Appreciate In Price The Same?
Aloha! This is a complicated topic. It all comes down to the island you choose and the neighborhood you choose.
Overall, they tend to trend in the same direction - but it really comes down to the area.
Click the link below to learn about what area best suits your lifestyle!
https://www.hiestates.com/learn/what-area-of-oahu-best-suits-you/
Honolulu County (Oahu) Property Tax Rates Explained
Aloha! Property taxes in Hawaii are paid in August and February, and vary both by island and based on what the property is used for.
On Oahu, residential properties are taxed starting at around $0.035 for owner occupants. It starts going up from there, with hotel and resort taxes being some of the highest taxed properties.
Check out our fun interactive quiz to learn which area of Oahu suits you best!
https://www.hiestates.com/learn/what-area-of-oahu-best-suits-you/
Or check out my blog post on Cost of Li
How Will Upcoming Long-Term Rental Bills Affect The Market?
Aloha! There are changes coming to vacation rentals throughout Hawaii, including Oahu.
Bill 41 is a change coming to short-term rental regulations on Oahu that will make it harder to get short-term rentals outside of resort zones. There are only a few resort zoned areas that allow rentals of less than 30 days on Oahu. Three of the most popular areas are Waikiki in Honolulu, Ko'olina near Kapolei, and Turtle Bay on North Shore.
In any other zone, you were previously allowed to rent for up to 30 days at
Was Waikiki a good buy during the pandemic?
#Aloha! Video from January 2022
Click the link below for more information on popular Oahu neighborhoods!
https://www.hiestates.com/communities/
Click the link below for more about Waikiki!
https://www.hiestates.com/waikiki/
Things To Consider When Buying Real Estate With Family
#Aloha! This is an interesting question - and the answer has to be tailored to your situation.
Check out my recent construction project!
https://www.hiestates.com/blog/kapahulu-new-home-construction-renovation-project/
| 3 Ways To Invest In Hawaii Real Estate In 2023 A blog post about the Oahu Real Estate market |
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