Purchasing Investment Property in Maui

Maui is a popular tourist destination for individuals and families of all ages and from all walks of life. Because it is such an attractive and frequently-visited area, many people have jumped at the opportunity to purchase or build properties in and around Maui and then to rent them out to vacationers short-term and/or long-term. If you are interested in this investment path, know that it’s very doable, as long as you follow a few basic tips and are prepared for the realities of buying and renting out vacation homes.

To begin with, you need to be prepared for all the expenses associated with purchasing rental property. Even something as simple as a one bedroom condo can cost you upwards of half a million dollars- or more if it’s got a good view of the ocean. Unless you buy the condo outright, you can expect a sizeable mortgage payment, so you’ll need to recoup at least that, plus your other fees, in rent each month you are not personally using the property. As such, make sure you are prepared for the financial realities of purchasing a rental properties and what it will take to actually make a profit. 

Wanting to build? You also have to understand, particularly if you are not a local, you will need a construction management team and a design and build team to make certain all zoning and

regulations are met. While building a new home, even a vacation home, can be super exciting, it can also be super stressful, particularly if doing this from a distance.  Most investment property owners are not local, but appreciate the pros and cons of having investment propery in a highly desireable area.

As long as you stay smart and knowledgeable, there should be no ugly surprises along the way, and you should have a pleasant, profitable experience with Maui investment property!

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• Should I Rent My Vacation Home? (ncpropertygroup.com)