Not to get off topic, but I don't recommend purchasing in Honolulu - and I own several properties here.
Demand is insane and prices are soaring. For example, a house about 1/4 mile from mine went on the market for $900k. By the end of the first open house, there were 16 offers. 6 Cash. It ended up selling for ~$1.2M. Cash.
Must be a beachfront mansion, right? Nope. 1500 square feet, 3 or 4 bedroom, 2 bath. Average or below average condition. Good neighborhood close to the beach.
Wow, made me look. I was at my retirement condo Dec/Jan/Feb and saw that properties were moving quick but prices were just stable at about $1000 per sf. Just looked in my building and there's a listing at $1425 per sf. So a $200,000 down payment six months ago and a thousand or two a month since (there's no cash flow on properties that appreciate this much) and you walk with your $200,000 and a nice $400,000 bonus!! Yeah, no money being made here!
First time using the quote function, hope it works.
I'm skeptical and cautious in this market. And yes, I'm thinking about selling in the near future, although I wasn't when I bought.
I'm familiar with all the predictions - 15-20% appreciation this year, median price doubles in 4 years. And you're right ... if that happens, the returns will be INSANE because of leverage (my loans at 3.25%-4.5% are feeling pretty good right now).
"Be cautious when others are greedy ..."
"Irrational exuberance ..."
Are you on island? I'd enjoy getting together for a coffee (or beer) to talk some more about real estate. I love the topic!
Feel free to PM me if interested.