No matter if you’re a Hawaiian native or a transplant to the beautiful island, you might be asking, “Should I rent or buy?” It definitely raises a great question, and you’re not alone in wondering. With mortgage rates at an all time low, homeownership is definitely growing in popularity, but with other factors like limited inventory and increasing prices, it might be better to ditch that rental and buy sooner rather than later.
RENT PRICES ARE COMPARABLE TO MORTGAGES
When it comes down to it, the ultimate deciding factor for renting versus buying is typically finances. The majority of people assume that renting will be cheaper; however, it might surprise you to learn that it’s not always the case.
There are perks of renting. Things like repairs, yard work, and maintenance are often taken care of, leaving you with more time to enjoy the beautiful island. That being said, renting also has its downsides, such as sudden increases in rent and a landlord that might not have a sense of urgency. Plus, you don’t own your property. These cons might sound small at first, but over time as rent prices continue to rise, it could impact your finances significantly.
While rental and housing prices appear to be climbing steadily, sources state that in the first half of 2021, median rent prices increased 9.2%. It’s more than likely that your rent will continue to increase year. A mortgage, however, might be higher initially but will be much steadier over time. Remember, rent is a cost, mortgage payments are an investment.
INTEREST RATES ARE AT AN ALL-TIME LOW
While higher home prices might seem scary, don’t panic just yet! Mortgage rates currently are sitting at a record low, making buying a home very appealing. According to real estate, sources mortgage values look like this:
30-year mortgage rate: 2.96%
20-year mortgage rate: 2.81%
15-year fixed mortgage rate:2.25%
10-year fixed-rate mortgage:2.25%
5/1 ARM rates:2.80%
These record-low numbers are causing more demand in the housing market that’s already facing low inventory. With a lot of uncertainty in the market, it is smarter to take advantage and lock in at a lower mortgage rate now before the economy starts to level off!
BUYING IS A SMART INVESTMENT
While buying a home might have more upfront cost and potentially a little more risk involved, the end results can definitely work out in your favor. Not only will buying a home be cheaper than some monthly rental rates, but it also provides you with equity and will likely increase in value after a few years. Hawaiian homes have continued to appreciate over time, making real estate one of the best investments you can make. According to sources, homes in Hawaii over the last decade have continued to appreciate in value, making them a very smart investment decision.
TIME TO BUY YOUR DREAM HOME
With incredibly low mortgage rates and rental prices on the rise, now is the time to come find your permanent paradise and make Hawaii your home. Contact me today to turn your dream vision into an incredible investment opportunity, while living a life you could only imagine! Your luxury dream home is waiting. Let’s find it!
Aloha, and welcome to Hawaii.