Aloha,
THis is the second part of my blog where I will cover the relocation objection. Folks firstly I don't preach Real Estate speculation. In addition please don't get the wrong impression that you are going to buy a home now, sell within 3 years and walk away with $150,000 more then you started with. This was the case 3 years ago however we are in a different market. The point is you can do that in Hawaii because when our market goes up it really GOES UP. Generally speaking People dont necessarily buy for cash flow in Hawaii as much as you would for long term investment. The " Buy and Hold" strategy is a pretty same one here as we have such a limited supply of land to support the infrastructure.
So you would like to get in however you are going to be leaving in 3 years. Dont fret simply rent your place out. There is a under-supply of military housing. So think about the following steps for a moment.
1. You buy a house ( investment) with not a dime out of your pocket
2. You now have an interest write off so you will be getting money back come tax time.
3. you own a piece of property in paradise.
4. you leave, rent it out and someone else pays for your investment over and over every month.
You say " well dave what if I cant cash flow and I have to pay out of pocket. Well lets say you have to pay roughly $500 out of pocket or $6000 a year. You bought a property for $400,000. Bear in mind history has proven that Real Estate in Hawaii has Doubled every 12-14 years. This means in 14 years you will have paid $84,000 to make $400,000. If you went toLas vegas would you bet $84,000 to make $400,000?? Again this is not a guarantee however based off the facts it is a pretty safe gamble. Here are those facts again
1. Very limited supply of land to build on
2. the market has doubled here every 12 -14 years for the last 50 years.
3. In addition most people dont figure in their tax advantage that home ownership privides.
That's all folks' Thank you for stoppong by
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