Thinking about buying a second property on the Big Island?
You’re not alone. With 2021’s housing market settings records across the islands, many kama’aina and citizens the world over are pondering the purchase of a second home or condo to spruce up their real estate portfolio, which certainly has its advantages:
- Diversifying your income and investments
- Having a new island getaway for you and your ‘Ohana
- Potentially generating another income stream via short-term and vacation rentals
Having said that, what are the distinct advantages of purchasing either a second home or a second condo? Let’s take a look!
Purchasing another home
If you’re looking to maximize resale value and your overall (potential) profits, then purchasing a second home just might be the way to go. Usually, a single-family home carries a much higher value on the real estate marketplace than a condominium—and this certainly holds true for the Big Island of Hawai’i.
Additionally, most homes are of course larger than the typical condo, and thus can provide far more additional space for your family and friends, not to mention make the property even more alluring to potential travelers should you decide to go the short-term rental route (and assuming you’ve been zoned for short-term rentals: keep your eyes peeled for more on this in a future blog post!). Overall, purchasing a second home is one of the very best ways to increase your bottom line and overall net worth, as well as creating a wonderful opportunity for you and your family to have somewhere to go on a vacation or staycation to boot!
Purchasing another condo
Conversely, a second condominium is all but assured to allow you a much-smaller mortgage payment than your average home due to their lower overall cost, which could be far more beneficial to your bottom line in the present if you don’t have the financing to purchase a second home. What’s more, condos almost always come with a homeowner’s association, or HOA, that will require monthly maintenance fees to keep the building and the grounds looking their best, freeing you up to focus on keeping the condo’s interior up to date and looking good.
Furthermore, many condos also come with several amenities and features those vacationers and other short-term residents often find appealing, including swimming pools, grills, and recreational areas. If you’re focused on investing in a property to utilize as a short-term rental, then buying a second condo could definitely be a great way to solidify a new income stream in one of the world’s most sought-after vacation destinations.
Overall, investing in a second property is a wonderful way to diversify your portfolio and build wealth, not to mention a great opportunity to create a new landing spot for you and your family to enjoy. If you’re ready to get started on locating the perfect second home or condo, then give me a call—I’ve been helping kama’aina and visitors alike find their piece of paradise for over 40 years and would love to help you do the same.