If you’ve been thinking about buying another property on Maui these days, you’re not alone: the housing market has been soaring to new highs in 2021, eclipsing many of the previous all-time records. Choosing to buy a second residence comes with a host of advantages: diversifying your investment portfolio, having a new getaway spot for you and your family, and generating passive income via using the property as a short-term rental are but a few of the potential benefits to be realized. But should you be looking to buy a home or a condo with your hard-earned money? Read on to find out more!
Purchasing a home
For those looking to maximize resale value and overall, potential profits, purchasing a second home might be the best way to go. Typically, homes carry a much higher value on the market than condos – and that goes double on Maui! Currently, the median sales price for a single-family home is just a shade under one million dollars thus far in 2021, far outpacing the median sales price for condos at just over $600,000, according to data from the Realtors Association of Maui.
Furthermore, many (if not most) homes are larger than a condo and can provide additional space to accommodate your family and friends, not to mention make the property all the more alluring to potential vacationers and other short-term rentals. Purchasing a second home can be one of the best ways to increase your overall net worth and to create a fantastic getaway opportunity for you and your ‘Ohana!
Purchasing a condo
Conversely, a condominium is all but assured to carry a much-smaller mortgage payment than your typical home due to the lower overall cost, which could help your bottom line in the here and now. Furthermore, condos almost always have a homeowner’s association (HOA) that require monthly maintenance fees that help to keep up the exteriors of the building, which means that you will only need to concern yourself with keeping things secure and up to date within the condo itself.
What’s more, many condos also offer up a number of amenities and features that many vacationers and short-term residents will find appealing, including swimming pools, hot tubs, grills, and recreational areas. If you’re looking to appeal to the vacationer crowd, a condo can be a wonderful way to both break into the marketplace and to solidify a new stream of income to be enjoyed year-round in one of the world’s premier destinations.
Investing in a second property is a terrific way to diversify your portfolio and to create another revenue stream for you and your family, not to mention all the benefits of having another spot to steal away to for vacation! No matter if you’re shopping for a second home or condo, the GM Maui Team has you covered every step of the way: as the Valley Isle’s #1 realty team, we’ve got the knowledge and the know-how to help you invest in one of the world’s premier real estate locales. From Lahaina to Upcountry and back again, we’ve been helping our clients to expect the extraordinary and don’t plan on stopping anytime soon. Give us a call today and schedule your free 15-minute consultation to get started. Aloha!