Investing In Paradise.. Hawaii’s Inside Track
Property has always been and still is one of the best ways to make yourself a lot of money.
But, like any business or investment opportunity there are loads of people trying to make a buck, and only a small number (relative to the total trying) that actually make it.
There are always different reasons for this, unique to each industry and each person and circumstance, but some fundamentals always hold true about why when you have 2 people trying to make money from the same opportunity one will make a lot and the other very little.
The biggest factor is information.
If you have conducted quality research you will always have the competitive advantage. You will know whether you are taking an educated risk or whether you are just throwing money at a project and hoping it works.
The next most important investment consideration has to be sustainability or defensibility. How much is the return on your investment affected by economic conditions. How much is your investment affected by factors outside your control? And how easily can you defend against these factors.
Consider a famous market like Big Island Hawaii real estate. This is a market that is always going to be liquid. (The degree of liquidity may vary..) People are always going to love the beach and they are always going to dream about living in Paradise and Hilo real estate and Kona real estate deliver against those desires.
This is a defensible investment marketplace because their it is a classic market. Like buying shares in Coke or Gillette (as our friend Warren Buffet).
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July 25th, 2007 at 7:03 pm
I’ve been researching the Hawaii real estate market for some time. However, I live on Kauai, but real estate is soooo expensive here that you can’t get into the game if you’re a first time home buyer or beginning investor. I checked out the Big Island real estate and there are some great deals there! I’ve already booked my ticket, I’m flying over next week to buy a property!