Re: HAWAII Investing - Posted by John Corey
Posted by John Corey on May 12, 2006 at 02:35:08:
What do you mean by ‘invest’? Are you looking to hold a property for the income it produces or are you ‘investing’ as a second home?
I own property in HI (Maui). The location does not matter half as much as the cash flow.
If you are investing then you should be looking at all the cash flows (purchase, income produced and sale).
The island of Hawaii might be less expensive than some other location but it still might be a bad idea. Or it could be more expensive and still be a good idea.
To illustrate the point a bit…
If you pay all cash and have no holding costs other than property taxes then maybe the income matters less than if you are going to borrow to buy something. If you did buy for all cash and the property did not go up in value then you have a bad investment.