Birds have nests, bears have dens, and even worms curl up in the ground.  Everyone needs a home.  The desire for a stable place to live is the most basic human needs, and one we share with all the birds and beasts. Are you happy with your island “nest”? If you plan to make your home here in Hawaii, one of the most desirable rocks on the planet, you need to choose the best possible Island home. And if you are still renting, is now the time to buy?

Home prices in Hawaii are stable compared to the rest of the nation.  Interest rates are at record lows and holding steady which brings the monthly cost of ownership way down. It’s a good time to examine your options.

Urban Legends
Renting does have its advantages. Maybe you know someone lucky enough to have one of those sweetheart rental deals.  You know, the landlord who charges half the going rate for a historical cottage in Manoa, and they can stay forever. Then there’s the one about the couple who are caretaking an oceanfront villa in Kahala for just the cost of the electric bill.  But let’s face it: long-term rental “steals” are as rare as a shave ice in Pele’s garden.

Love Your Landlord
Rentals involve no long-term commitment.  You can just call the landlord if something needs to be fixed. If you need to move to be closer to work, no problem.  Noisy neighbors? No big deal, you can move – or ask the landlord to take care of it. But if you are a good tenant, chances are your landlord will want you to stay. After all, you are paying his mortgage for him, rather than your own!

Short Supply
Rental homes of all sizes, prices, and in all areas are in short supply. Always have been, always will be. There are simply not enough new properties being built, and almost none of them are dedicated rentals. And for potential tenants, finding a good rental is a difficult process and can take weeks or months of effort.

One reason is that there is little motivation for investors to buy rental properties. Believe it or not, most investment buyers lose money every month until they have owned a property for many years and rents rise enough to cover their expenses.

A Temporary Home
Renting is a good option for people who don’t know where they want to live, or how long they will be living in the area. After all, renting is by its very nature temporary. Tenants are at the mercy of the landlord whose plans for the property may change. Renting is a short-term solution to a permanent problem. If you want to control your own destiny, you should consider owning your own home if you plan to live in Hawaii for the next 3-5 years and have a steady income.

The Cost of Renting
The following table shows just how much money you are spending when you rent. You might want to pour yourself a tall glass of your favorite adult beverage before digesting these figures! As a renter you are doing your landlord a great favor, but what are you doing for your own long-term future?

These numbers put the true cost of renting in perspective.  Rent is money down the drain with nothing to show for it.  Owning your own home is the best investment you can make, and the only one you can live in!

Get Motivated!
What enables some people to take the leap to home ownership, and other would-be homeowners to stay at the sidelines?  Determination is the key. You have to take a positive and definitive step to buy a home.  You must decide what type of property you want to buy, find a real estate professional to help you with the search and manage the process (a “Buyer’s Agent”). You should have your financing lined up so you can make an offer promptly when you find that property. It just doesn’t happen by accident.

Compare For Yourself
Home prices may have nearly doubled over the past 10 years, but the monthly costs have not gone up as much. Here are some examples of the monthly cost of owning your own home in several price ranges. Buying may be more affordable than you expect!

Compare these figures with typical rents. If you factor in home owner’s income tax savings, the comparison is even more dramatic. Where will home prices be in 2021 – and how much do you expect rents will go up between now and then?

Kiss Your Landlord Goodbye!
Your mortgage payment may be the same or less if you bought the home you’re renting. And there are other expenses of home ownership. The big difference is you can experience that sense of privacy, stability and community that accompanies a permanent address; where your family can share special moments and milestones in your own kitchen, lanai, or backyard!

For many people, the time to buy is now! Why pay someone else’s mortgage when you can be a homeowner yourself? There’s no better time than today to purchase your dream home. Talk to your real estate professional to learn how to get started on the road to home ownership. Or email me directly at mailto:stephanieg@remax.net. 

© 2011 Stephanie Gieseler. Honolulu, Hawaii. All rights reserved.