Buying Bargain Kona Hawaii Vacation Homes
Home prices in Kailua-Kona Hawaii, like many other places have seen substantial decreases since the market peak in late 2007. Recent market data in Kailua-Kona, HI has shown prices remaining flat but the number of homes and condominiums sold, increasing. Rather than going into the old "there's never been a better time to buy" pitch, I am going to point to a real estate market niche that is performing extremely well through these difficult times. I am referring to the vacation home rental market in Kailua-Kona , Hawaii.
Vacation home rentals have become very popular across the country. Web sites like VRBO.com, and Homeaway.com which provide an advertising platform for vacation home rental owners, have exploded in popularity in recent years. As vacation accommodations, the appeal is to families or groups of friends that are traveling together and want to avoid the incredible expense of renting multiple hotel rooms or a large multi-room suite. Vacation homes are fully furnished and ready for occupancy, just bring your suitcase. Many of these homes, especially in Hawaii have private pools, upscale furnishings and spectacular settings. The appeal to buyers interested in investment property is not only the far superior income potential versus a long term rental or the future appreciation; its also the benefit of having a fully furnished , well maintained vacation home for you, your family and friends enjoyment. Vacation home rental bookings in Kailua-Kona Hawaii are near all time highs despite, or possibly because of the sluggish economy.
Why is Kailua-Kona the best place to own a vacation home rental? The two most important variables to an owner are nightly rate and occupancy percentage. You want your home to fetch the highest nightly rate, coupled with the maximum possible number of nights rented. In Kailua-Kona, the weather is beautiful year round and while the Winter months are the busiest, the rest of the year does not see a substantial drop in visitor numbers. I do not believe that there is a place in the United States that has as a year round vacation rental market as strong as Hawaii. When you consider the possibility of 80%+ year round occupancy rates and the bargain prices homes are selling for, buying a vacation home rental in Kailua-Kona could be a very smart investment.
Just like any other investment, buying a vacation home in Kailua-Kona requires some research. You need to find out what renters are look for when seeking vacation accommodations. What the difference is between a vacation rental that is occupied 50% of the time versus a rental with 80%+ occupancy? Where are the most popular locations and what are the most sought after amenities. There is a formula for success and there are features that your vacation home MUST have to achieve high year round occupancy and profitability.
Fortunately, I have owned and sold many, high producing vacation rentals and would be happy to discuss this segment of the Kailua-Kona real estate market with you. Contact me at (808) 785-4664 or richbosselmann@gmail.com
Here is one of my top producing vacation home rentals.
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