Investing in Hawaii Real Estate

Home Buyers

Investing in Hawaii Real Estate

What is an Investment Property?

Basically, any property that is purchased with the intent of generating income is considered an investment property. The
goal is usually to rent it or remodel it to resell. Investment property can be an apartment building, duplex, single-family dwelling, condo, vacant land, or commercial property--essentially any type
of real estate. The term investment property usually describes property that the owner does not dwell, but in some cases, the owner may live in a portion of it.

Preapproval
Having a written preapproval has many advantages:

It will give you precedence to real estate agents and sellers because there are no worries your financing will fall through.
You’ll know exactly how much you can afford and not waste your time looking at properties out of your price range.
Many sellers will favor offers from buyers with written approval because it’s a sure thing.
Your loan approval process will be quick and simple once you choose an investment property.

Company of Experts
Surrounding yourself with a team of experts can make your investment property purchase easier especially
if the transaction is out of state or out of the country.

Talk to your tax advisor and attorney about the probability of purchasing an investment property and the possible tax consequences.
Build a relationship with a real estate agent. This can be extremely useful particularly for far away purchase. A real estate agent can preview properties for you armed with your list of requirements and give you detailed reports about the properties. CENTURY 21 All Islands agents can provide you with high caliber service including neighborhood information, comparable value reports of surrounding properties, rental costs, etc.; arrange viewings or virtual tours via the Web; help structure the best starting offer to the property you want to buy; most importantly, be your representative between you and the seller and make sure the transaction process is problem-free.
Some lenders will require a full appraisal of a property to affirm that they are making a safe move by funding your purchase. Whether or not you are planning to sell your investment property immediately, an appraiser can help establish if your investment is a good one or not.
Your lender can act as your investment property financing expert. They have access to an array of products and resources and fashion a mortgage that fit your needs. They may also be able to help you with unexpected hurdles that you might encounter such as credit problems.