Types of Hawaii Real Estate Investment

Real estate investments can be classified as either income producing or non income producing. Income producing real estate investments generate an income for their owners other than the amount that will be made when the property is sold. This income is usually produced through renting out the property. Non-income-producing real estate investment can be very profitable, but they do not generate a regular income.

The most basic form of real estate investment is the investment that people make when they buy their own homes. If the value of the property increases between the purchase and the sale of the property, then it will have been a successful investment as well as a home.

Another possible form of Oahu real estate investment involves buying residential properties without intending to live in them. These properties may be renovated, rented out or sold at a profit. Sometimes it is possible to buy a property and resell it quickly at a higher price. In other cases, it may be necessary to hold on to the property for a longer time before the increase in value will be enough to generate a substantial profit. The value of the property may simply increase over time, but it can also be increased by performing renovations or remodeling the property. Rather than selling the property in order to generate a profit, it may also be possible to rent it out in order to earn a steady income.

Investing in commercial property can be a profitable alternative to buying residential property. Commercial properties can be office, retail, industrial or multi-family residential properties. Commercial properties are often easier to rent out than individual residential properties, and they often generate a much higher income. The leases on commercial properties also tend to be longer than those for residential properties.

Successful Hawaii real estate investment depends upon choosing the right property, in the right location at the right time and not paying too much for it. It is, therefore, important to perform plenty of research before making an investment in a particular property. The quality of the property and the trends in the values of similar properties in the local area need to be thoroughly investigated. If the property will be rented out, the income that is likely to be generated should also be evaluated.

It is also possible to benefit from the profits that are to be made from property investments without having to be the sole investor. Various trusts and funds are available which generate profits for their investors through real estate investments.

Tempe real estate market

The Tempe real estate market, a small portion of the larger Maricopa County and Phoenix area housing markets, showed signs of improvement in the month of May, as foreclosures began to taper off. According to a June 10, 2010 article from the Arizona Republic, “A new Arizona State University real-estate report shows home foreclosures may be leveling off, but the author says it’s unclear if the trend will continue because of the number of defaults and late payments still plaguing the market. Foreclosures were 33 percent of the market’s recorded activity in May, down 40 percent in March, according to the latest realty-studies report.” The piece, composed by John Yantis, went on to state that “A number of issues will continue to affect the real-estate market, he said. Defaults and late payments remain at record levels, and they could be a precursor to additional foreclosures. Income may not increase enough for people to hold onto their current homes, especially if they are confronted with a change in an adjustable-rate mortgage that could reset in coming months, Butler said.”

The report itself went into more detail about the challenges confronting Tempe and Phoenix-area homes for sale. The Arizona State University study quoted professor of real estate Jay Butler as saying “The key question is whether this is a harbinger of the future of steadily lower foreclosure activity or a ‘blip’ with a return to higher levels. Defaults and late payments are still at record levels and could be a precursor of additional foreclosures. The main issues center on whether income will increase enough for people to hold onto their current homes and whether they can maintain payments on their houses, especially if confronted with a change in an adjustable-rate mortgage that could reset in coming months.”

The amount of land purchased in the Tempe housing market and other sectors of the Valley increased dramatically in recent months. According to a June 14, 2010 article from ABC 5 News, “Analysts say the Valley’s housing market could be showing another sign of making a comeback. Experts with Land Advisors, a Scottsdale-based brokerage firm, say home builders have bought $90 million dollars worth of land in the Valley so far in 2010.”

Rocklin, California Real Estate

A mid-sized city in the Sacramento area, just north of that city, Rocklin, California, is home to around 55,000 in Placer County and is home to a population with a median household annual income of almost $85,000. Though the Rocklin real estate sector initially suffered many adverse effects from the withering national real estate market that onset in 2008, it has since begin to show some new signs of life and that i may be out of the worst period.

According to statistics from local Re/Max realtors, near the end of January (as of Jan. 27), there were 265 Rocklin homes for sale, a decline in inventory of 6% from four months prior, in September. Of these homes, 25 were bank-owned, 48 were active short sales and 108 were short sale-contingent. The homes ranged in price for as little as $138,000 to as much as $1.7 million.

The average asking price at the end of January was $444,225, a more than 11% increase from four months’ earlier, when it was just over $397,000. The median asking price was $349,000, a 4.6% improvement from four months earlier, when it was $333,687. The fourth quarter of 2009 saw sales activity in Rocklin improve. From October through December, there were 196 homes sold, versus just 181 from July to September. The sales prices, too, were higher.

The average sales price during the fourth quarter was $338,653, up 6.25% from the third quarter, while the median sales price was $310,000, up 3.7% from the third quarter. Despite the increased sales activity, however, homes spent four more days, on average, on the market before selling than in the previous quarter, at 80 days. Sales activity for the year’s final quarter was an improvement of more than 18% from the same quarter in 2008, but both median and average prices were down for the year, by 5.5% and 7.3%, respectively.