A recent survey from bankrate.com revealed that Americans consider real estate investments to be the most lucrative kind. About 27% of Americans polled believed that the smartest investment to make would be in real estate. The second most popular choice was cash investments like savings accounts, with 23%. After that, it was the stock market with 17%, precious metals with 14% and bonds with only 5%. The remainder either didn’t have an answer or didn’t like any of the choices.
The survey also revealed that while many Americans remain cautious about their jobs and the economy, they feel good about their personal finances. When you add strong personal finances to a discerning attitude about real estate investments, it’s no wonder that home sales are on the rise, bringing prices up with them as inventory continues to shrink.
When it comes to real estate investments, general market trends are one thing, but choosing real estate based on location is another crucial factor. For example, what would it take to reduce West Maui real estate values, considering its status as a popular destination for vacationers? The market may fluctuate over the years, but the beauty of Maui isn’t likely to go away anytime soon. That’s especially true given the island’s lack of active volcanoes and uncanny tendency to get skipped over by passing hurricanes.
A real estate investment can be used in several ways. One is to live in the home, another is to rent it out to long-term tenants, and there’s a third option if your home is in a popular vacation destination like West Maui. That is to provide short-term rentals to vacationers.
Your choice depends on your circumstances, budget and interests. If you need assistance finding the right real estate investment, you’ll find our contact information at the bottom of the page. We also have a vacation rental management branch, so be sure to ask us about it if that’s something that interests you. Mahalo for reading this week!