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According to data from the Honolulu Association of Realtors, home prices on Oahu had a small temporary dip during the Lehman Brothers collapse in 2008, but recovered three or four years later, and even in 2020, when the pandemic caused a sharp drop in tourism and weak commerce, real estate prices rose moderately and almost They rose sharply in 2021, when the lockdown was almost over.
Factors that have helped maintain stable prices,
1) common resorts around the world
2) Limited supply tightens supply and demand
3) Real estate transaction system that ensures high transparency and fairness
The following is a list of the most important factors that can be considered.
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The advantage of buying and investing in real estate in Hawaii is by far the highest room occupancy rate compared to other states in the United States.
In addition, approximately 10% or more of Hawaii's Oahu population is military-related.
In particular, single family homes often have a low risk of vacancy and rental delinquency because the tenants are often military personnel. -
In Hawaii, the age of the building does not affect the selling price of a condominium. Whether the property was built 20 or 30 years ago or yesterday, the value is determined by the environment, location, and content.
The island of Oahu is expected to see a further increase in existing property values due to its booming economy as a world-class resort destination and the limited amount of land available for new residential development, both as investment properties and as local residential properties, and the lack of supply to meet demand. -
While the U.S. mainland is frequently hit by floods, wildfires, hurricanes, and other major disasters, the state of Hawaii is known as one of the safest places in the U.S. with a mild climate and few natural disasters throughout the year.
KANEOHE
- Property Name
- Haiku Point 2
- address (e.g. of house)
- 46-1067 Emepela Way #2A,Kaneohe, HI 96744
- selling price
- 610,000 (¥91,500,000)
- Room Type
- 2 Bedrooms / 1 Bathrooms
- Room area
- 717 Sqft (66.61 m2)
- Year Completed/Year Built
- Completed in 1988, 36 years old, wood construction
- Depreciation period
- 4年
- Percentage of buildings
- 81%
- Total amount of amortization recorded
- $495,320.00 (¥74,298,000)
- Amortization per year
- 123,830.00(18,574,500 yen)
- Assumed Annual Rent
- $30,000
- Income tax (4.712%)
- $1,413.60
- Annual Common Area Maintenance Fee
- $7,050.00
- property tax
- $2,100
- Residential fire insurance premiums
- $600
- Management consignment fee (10%)
- $3,000
- NOI
- $15,836.40
- Cap Rate
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2.59%
*$1 = 150 yen equivalent
Estimated sales price: 96,500,000 yen
(The estimated price increase is 5-10% based on past performance.
Please note that this is not a guarantee of price increase)
- This simulation is only an assumption. We do not guarantee the accuracy, completeness, or reliability of the contents. It does not guarantee the effectiveness of the investment.
- The Company assumes no responsibility for any damages (whether direct or indirect) arising from the use of the information contained herein. Please be sure to make actual asset management and investment decisions at your own risk.
- Please be sure to consult with a tax accountant or other professional when filing actual tax returns or executing the plan.
- Please note that repair and other expenses may be incurred after the property is acquired.
I bought Hawaii real estate
Reason?
We decided to purchase the property because of the corporate tax saving effect of depreciation in four years, the "high building valuation" characteristic of U.S. real estate, and the "stable asset value of used properties," which is unique to Hawaii.
I bought Hawaii real estate
Reason?
The property value of the property we purchased has increased over the years. Another positive aspect is the uninterrupted rental income from the detached properties where U.S. military personnel and their families live.
*The above is not a guarantee of the accuracy or completeness of the tax benefits, and we ask that you check with your tax advisor before making a decision.