Investing in vacation rentals on Maui!

As a real estate professional in Maui, Hawaii, I am often asked about the benefits of investing in vacation rentals on the island. Maui is a popular vacation destination, with millions of visitors each year, making it a great place to invest in vacation rental properties. Here are some things to consider when thinking about investing in vacation rentals in Maui: Strong Rental Market: Maui has a strong rental market, with high demand for vacation rentals throughout the year. With its year-round warm weather, beautiful beaches, and outdoor activities, Maui is a popular destination for tourists from around the world. Positive Cash Flow: Vacation rentals in Maui can generate significant rental income, providing investors with a positive cash flow. Depending on the location and amenities, vacation rentals in Maui can command high nightly rates, making them a potentially lucrative investment. Appreciation: Real estate in Maui has historically appreciated over time, making it a solid long-term investment. As the demand for vacation rentals continues to grow, the value of vacation rental properties on Maui is likely to increase. Tax Benefits: Investors in vacation rentals on Maui may be eligible for tax benefits, including deductions for mortgage interest, property taxes, and depreciation. Professional Management: Many vacation rental properties on Maui are managed by professional property management companies, making it easy for investors to manage their properties from afar. These companies can handle everything from advertising and booking to maintenance and cleaning, making vacation rental ownership a hassle-free investment. Diversification: Investing in vacation rentals on Maui can be a great way to diversify your portfolio. With its strong rental market, appreciation potential, and tax benefits, investing in vacation rentals can be a smart addition to your investment portfolio. As a real estate professional in Maui, I have extensive experience helping investors find and purchase vacation rental properties on the island. From analyzing rental income potential to managing the purchase process, I can help you make a smart investment in Maui real estate. Contact me today to learn more about investing in vacation rentals on Maui. Gray Marino 808-745-7445 Gray@GrayMarino.com RS-86136 REAL Brokerage LLC

MORE

What is Title Insurance? Do I need it on Maui?

As a real estate professional, I often get asked about title insurance and why it's necessary. Simply put, title insurance is a type of insurance that protects against any issues with the ownership of a property. When you buy a property, you're essentially buying the title to the property, which is the legal right to own and use the property. However, there can be issues with the title that may arise after you've purchased the property. These issues can include: Liens on the property Claims by previous owners or heirs Undisclosed easements Forgery or fraud in the title documents Incorrectly recorded legal documents Title insurance is designed to protect against these types of issues. It is a one-time premium that is paid at closing, and it provides coverage for as long as you own the property. If any issues with the title arise, the title insurance company will step in and handle the legal defense of the title, including paying any legal fees or damages that may result. There are two types of title insurance: lender's title insurance and owner's title insurance. Lender's title insurance is required by most lenders and protects the lender's interest in the property. Owner's title insurance is optional but highly recommended, as it protects the owner's investment in the property. While title insurance is not required by law, it is essential for any real estate transaction. Without it, you could be taking a significant risk by purchasing a property with unknown title issues. The cost of title insurance is typically a small percentage of the total purchase price of the property, making it a relatively small expense compared to the potential costs of title issues. When you work with a reputable title insurance company, they will conduct a thorough search of public records to ensure that there are no issues with the title. In conclusion, title insurance is a crucial aspect of any real estate transaction, protecting buyers and lenders from issues with the ownership of a property. As a real estate professional with 18 years in the title insurance industry, I highly recommend that all buyers consider purchasing owner's title insurance to protect their investment in the property. If you have any questions about title insurance or any other aspect of the real estate transaction, feel free to contact me for assistance. Gray Marino 808-745-7445 Gray@GrayMarino.com RS-86136 REAL Brokerage, LLC

MORE

After pandemic buying frenzy, Maui home prices may ease — but not by much

A Kahului parcel with two homes is listed for sale Thursday at $995,000. PC: Kehaulani Cerizo Although Maui County’s real estate market is facing uncharted territory after the frenzied home buying of the pandemic, Realtors Association of Maui said signs point to slightly softer prices heading into the new year. Low inventory, though, will keep price tags relatively high, and potential buyers shouldn’t expect costs to plummet to pre-pandemic numbers. “Because you still have people a little reluctant to put their place on the market unless they know where they’re going to go, the inventory is still not so much and days on market are a little longer . . . That sort of indicates that prices will soften a little — but they’re not going to go crashing down,” Karin S. Carlson, RAM president, told Maui Now this week. Median sales price for single-family homes in December ticked up less than a percentage point year over year to $1.08 million, according to market statistics released by RAM earlier this week. In 2021, the median was $1.07 million. In 2020, it was $849,000. For condominium homes, the December median increased 10.5% to $773,500. In 2021, it was $650,000. In 2020, it was $557,000. Median sales price is the point at which half the sales sold for more and half sold for less in a given month. Meanwhile, sales last month dropped 45% to 66 for single-family houses, and they fell 61% to 68 for condominium homes, the report said. Days on the market increased 30% for single-family homes and 16% for condos. December caps a year that took a sharp turn from the frenzied buying at the heights of the pandemic, where homes drew multiple cash offers above asking price, houses sold fast and interest rates were in the 3% range. January through May 2022 saw the spillover of busy 2020 and 2021, Carlson said. Then, due to a combination of factors, the housing market started to slow down. “In May, it was a pivot: It just started to slow down, and you saw less people looking, less people asking,” Carlson said. “Days on market starting to go up. People started to shift their listing price downward if they really needed to get it sold.” RAM’s president said the change was tied to several factors, including people concerned about the economy, the volatile stock market and the Fed aiming to squash inflation by increasing interest rates. A December report from University of Hawaiʻi Economic Research Organization said Maui home prices dropped 13% since May, but interest rates continued to keep potential buyers from taking action. Interest rates reached a nearly 20-year high of 7.1% in November 2022. Now, they’re hovering in the 6% range. Even with the slowdown, Maui County’s lack of inventory will continue to keep prices high because there are not many homes from which to choose, Carlson said. Plus, the real estate market remains strong and the economy isn’t as bad as it was in the middle of the pandemic, she added. “At least that’s the way it looks right now — we’re kind of holding steady,” Carlson said. Still, the future for the post-pandemic housing market remains hard to predict. “We’ve been saying this for a couple years now — we are in uncharted territory,” Carlson said. “We’re all in this together, and we’re working our way through. Every year’s been like we’ve never seen anything quite like this before.”

MORE