1031 Exchange Hawaii
Hawaii is one of the best real estate markets which guarantees stable demand and appreciation. Single-family homes are trendy and are a reliable option. Hawaii is loved for its lush greenery and sandy beaches. With millions of tourists arriving each year, it allows excellent opportunities for realizing high rental incomes.
Tourism is supporting the economy extensively, and Hawaii proudly boasts the 8th highest personal income in the US. Apart from a beloved tourist destination, Hawaii is also a desirable real estate market for investors. Let’s identify the top reasons for doing a 1031 Exchange in Hawaii.
Population growth – By the year 2025, the population of Hawaii will increase by 19%, and the growth will reach a staggering 25%. As a result, Hawaii will experience a significant increase in the need for housing units. Investing in Hawaiian real estate now will guarantee a stable and decent rental income.
High demand – The quantity of housing units in Hawaii is limited. Also, almost all the land is already occupied, while the market is an ever-increasing one. This means a fast turnover for those looking to sell their properties for a profit.
Stability of rental income – Real estate in Hawaii is expensive. In Oahu, the median price of a typical family home is $755,000, which is thrice than in the rest of the US. Also, the cost of such properties has been firmly increasing by 4.8% on average since 1985. Appreciation is projected at 5%, and it is predicted that it won’t decline any time soon. This indicates a stable rental income than in other states.
What is a 1031 Exchange?
If you decide to complete a 1031 Exchange in Hawaii, you should know the basics about 1031 exchange. 1031 Exchange allows an investor to trade property and reinvest the profits in a replacement property and to delay capital gain taxes.
Allow Experts to Manage a Successful 1031 Exchange in Hawaii for You
Structuring a profitable 1031 exchange in Hawaii can be a little difficult. We at 1031Xchange have extensive experience in structuring highly profitable exchanges for our diverse client base.