With most places still under strict travel restrictions—including the Big Island—many people are wondering if this is still a good time to buy property. On one hand, interest rates are at an all-time low. On the other, nobody seems to be buying houses right now. So, even if you lock in an incredible interest rate, is it a safe investment, and can you even still buy property during the COVID-19 pandemic?
These are questions many potential buyers are asking themselves, and unfortunately, there’s no solid answer. It all depends on your real estate goals.
For Most Buyers, Absolutely!
In the long haul, real estate—especially in Hawaii—is a solid investment. Even if the market isn’t the strongest right now, it’ll eventually bounce back. If you’re thinking about purchasing a long-term investment property or just want a dream vacation home that you can love for years to come, this is the perfect time to buy!
Mortgage rates have never been lower than they are right now. Experts are predicting that we might even see sub-3% rates! That means you could purchase your dream home with a low, low, low interest rate and save money in the long run.
Well, even with low mortgage rates, isn’t it hard to shop for homes with social distancing rules? Not at all! Real estate has been steadily moving in a virtual direction for years. Many homes in Hawaii were being sold sight-unseen before the pandemic hit. If you’re curious about the “new” homebuying process, check out my blog about how to buy a house during COVID-19.
Some Things to Think About
Just because interest rates are low, doesn’t mean it’s the right time for everyone to buy. If you’re an investor looking for a quick flip, you might want to hold off. Although the market is picking back up, it’s currently a seller’s market and prices might not be where they need to for an easy turnaround. Plus, with unemployment at an all-time high, there aren’t many people looking to buy.
For buyers thinking about purchasing a rental property, keep in mind that tourism in Hawaii is currently at a standstill. Quarantine rules are still in effect for the foreseeable future. If you buy now, you might have to wait a few months to start generating income.
Randy’s Final Thought
If you’re looking for a long-term investment or a personal vacation home and your income is secure, this is the perfect time to purchase property on the Big Island. Mortgage rates have never been lower and there are still plenty of spectacular homes on the market.
It’s a tricky and unprecedented situation, so gather the facts, do your research, and make the decision that’s right for you. You don’t want to look back in a couple years and wonder what might have been. If you’re still hesitant or have questions about whether buying is the right move, feel free to reach out. Give me a call, send me a text, or shoot me an email; I’m always happy to share my thoughts—especially about real estate!
Aloha, and welcome to Hawaii.