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Maui Vacation Condos – Is it Better to Buy or Rent?

Stop paying so much for your Maui vacation! That’s right, I said it. Stop paying these outrageous rates at Maui resorts and make your money work for you! Did you know that 62% of visitors to Maui have been here before?

Maui’s tourism industry benefits greatly from repeat business and it’s no surprise, as Maui has been named a top island destination by Conde Naste the last 20 years. To learn more about what makes Maui such a great destination, read my recent blog. But how does this benefit you? 

Maui copy

Photo Credit: Tracy Dudley, Maui

Having a solid base of demand (tourists) is the foundation for any successful hotel or resort, right? But there’s plenty of demand for condominium properties as well. In the October 2013 monthly visitor statistics report published by the Department of Business, Economic Development and Tourism, over 103,000 visitors to Hawaii in October planned to stay in a condo while visiting Hawaii. That’s 1 out of every 6 visitors to Hawaii in October!

How Does This Save You Money?

So, let’s get back to how this saves you money. Instead of paying $400+ a night for a hotel (with tax, that’s over $3,100 just for a room!), you could purchase a Maui vacation condo and make a profit on your vacation dollar. Many visitors to Maui choose to purchase a Maui vacation condo, and rent out their home while they are not on Maui.

This is a smart way to save on your vacation expense, take advantage of potential tax savings, and earn a little extra cash throughout the year. Remember, there were over 103,000 people in the month of October looking for a Maui vacation condo to rent! They could rent yours.

Maui Vacation Rental Management for Condos

So you’re not a hotel manager? You’re not interested in learning the Maui vacation rental business? No worries! There are several management companies that will manage your Maui vacation rental for you, including the reservation process, check in and check out, and handle any issues that might arise while the unit is rented to a guest.

The fees for these services range from 30-50% of the income produced. For more information on these services, please call Brian at 808.280.9884 or email brianhill@hawaiilife.com. As with any investment, it’s always a good idea to speak with a tax expert to understand any tax benefits or consequences given your specific financial situation.

Active Vacation Condos on Maui

Since we’re talking about vacation condos, here’s a few of my favorites on the market right now.

1. For Sale: Island Sands #500

This two bedroom, two bath home in Island Sands offers some great ocean views (people pay more for ocean views!) and the complex has a great oceanfront pool. Nearby, the Ma’alaea General Store offers some great food, I love the Shrimp Po’boy! This home is priced at $499,000FS.

IslandSands

Maui vacation condo at Island Sands (MLS# 357197)

2. For Sale: Kamaole Sands #8-402

This two bedroom, two bath home in Kamaole Sands offers a great location across the street from Kamaole Beach Park III and is a short drive to Wailea. This home is priced at $565,000FS.

MAUI357079R

Maui vacation condo at Kamaole Sands (MLS# 357079)

3. For Sale: Wailea Beach Villas #P-203

This gorgeous home in Wailea Beach Villas offers beachfront living with a grand sense of style. One of the best features of this community is the beachfront pool.

MAUI352831U

Maui vacation condo at Wailea Beach Villas (MLS# 352831)

This home features two Sub-Zero refrigerators (for the Chef in your family!), a spacious lanai, and built-in surround sound system. On top of all of this, the in-house rental management program is considered one of the best on the island. This home is offered at $2, 585,000FS.

Contact a Maui Vacation Condo Specialist

For more information on any of these homes, or for help in planning your next Maui vacation condo purchase, contact Brian Hill R(S) at 808.280.9884 or email at brianhill@hawaiilife.com.

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David

December 10, 2013

Investment advice?

Brian Hill

December 11, 2013

Aloha David,

Thanks for reading my blog. To answer your question, it’s difficult to give investment advice without understanding your unique financial situation and your goals. A few things to always consider when investing in real estate include:

1. Know your numbers. Understand the comparable sales in the area (or building). Know what the current market rates are for rent (whether they be monthly or nightly). Know all of your costs going into an investment including tax, HOA’s, maintenance fees, special assessments, utility costs and more.

2. Understand your tax situation. Be sure you understand the tax benefits or consequences given your unique financial situation. It’s always best to consult with an tax expert. If your doing a 1031 exchange, be sure to understand the different types of exchanges available to you.

3. Know your insurance needs. Is the property located in a flood zone? Are there minimum levels of insurance required by the Home Owners Association? Be sure those costs are included in your monthly expenses.

4. Always seek the help of a professional.

David

December 10, 2013

Investment advice?

Brian Hill

December 11, 2013

Aloha David,

Thanks for reading my blog. To answer your question, it’s difficult to give investment advice without understanding your unique financial situation and your goals. A few things to always consider when investing in real estate include:

1. Know your numbers. Understand the comparable sales in the area (or building). Know what the current market rates are for rent (whether they be monthly or nightly). Know all of your costs going into an investment including tax, HOA’s, maintenance fees, special assessments, utility costs and more.

2. Understand your tax situation. Be sure you understand the tax benefits or consequences given your unique financial situation. It’s always best to consult with an tax expert. If your doing a 1031 exchange, be sure to understand the different types of exchanges available to you.

3. Know your insurance needs. Is the property located in a flood zone? Are there minimum levels of insurance required by the Home Owners Association? Be sure those costs are included in your monthly expenses.

4. Always seek the help of a professional.

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