If you’ve considered purchasing a vacation rental property in a major U.S. destination, Hawaii is likely to have crossed your mind. The state’s appeal to travelers is clear: for five consecutive years, it’s broken its own records for visitor arrivals and visitor spending. In particular, the three major “neighbor islands” of Maui, Kauai, and the Big Island have experienced the largest increases in incoming tourist dollars.
Home and condo values in the state of Hawaii have also seen an approximately 4% appreciation over the course of each of the past seven years. This pattern of steady growth over time makes them attractive long-term investments for those already interested in real estate.
Depending on how a second home in Hawaii is used, it may also provide tax benefits. And what could be better than writing off some of the expenses associated with trips to a tropical paradise? If it isn’t already, Hawaii will surely become your vacation location of choice once you own an income-generating property on one of its gorgeous islands.