Replacing your income through investments and earning passive income for retirement is the ultimate goal for many people, well at least one ultimate goal (life’s not all about money). There are times when holding an investment property may be less beneficial to your financial portfolio than selling — not all investments pan out or keep their importance over the years. It’s critical to keep your finger on the pulse of the island real estate market’s current and expected trends. After all, staying on top of the different variables that affect your retirement portfolio just makes savvy and practical business sense. This habit, along with careful consideration of your long and short-term returns on your vacant land, can mean you’re always prepared to take the action that impacts your portfolio most advantageously at any moment. Read on to discover 5 reasons why you should sell your vacant land in Hawaii.
Exit Strategy
Formulating your exit strategy should be included in any investment plans when you initially purchase a piece of real estate in Hawaii or anywhere else. Your goals should be updated when the need arises or as life events change, with careful monitoring of local island market conditions along with public and private current events (changes in the law, zoning, demographics, flood zones, net migration, rail project, coastal erosion or tsunami risks, etc.). By utilizing the equity you have built up over the years, along with your increased leverage by paying down or off the debt, you can improve your passive income depending on how you plan your next move. Moving upward with your investment portfolio by selling one property and purchasing another may generate better returns. Taking these steps when the time is right ensures the best return on your investment dollar and is why you should consider if it’s the right time to sell your vacant land in Hawaii.
Resolving Finances
Finally putting to bed any lingering financial dilemmas is another reason why you should sell your vacant land in Hawaii. As time passes, our lives and needs inevitably change – kids enter, kids move out, jobs change, etc. Regrettably, these changes are not always for the better and can often have a severe financial impact on our entire family. For instance, you find your children will need more college financial assistance than your planning initially allowed. You can alleviate a great deal of this unexpected stress by reassessing your investment portfolio and creating a better strategy to generate a better return and account for those new costs. Often, the solution is to sell a piece of vacant land to move funds into an investment in real estate with higher income.
It Just Feels Right
While you should always view your investment in person if possible before purchasing (not always possible during Covid), when it comes to real estate investments, jumping into any property based purely or primarily on emotions can be a costly mistake. Often, newcomers, overtaken with their excitement at getting started in an exciting market, fail to do their proper due diligence and find themselves holding land that wiser investors would have avoided outright (for example, buying a house or lot in Lava Zone 1 on the Big Island). Investors with experience learn to trust their inner voice or listen to a trusted mentor who has provided wise counsel in such situations. Or, perhaps you’ve just mentally and emotionally turned the page on this investment and can’t handle it any further, preferring not to hold the property any longer than is needed. In either case, it makes sense to sell your vacant land in Hawaii and start on a new path entirely.
Change of Scenery
Many people experience a desire to move to a new location at some point during their lives. Some find later in life that their children have moved across the country and follow, wanting to spend precious time with grandchildren. Or perhaps another region of the country would be better suited to their health conditions – we once bought a property from someone who moved to Texas to alleviate his pulmonary issues. Another strong pull to a new location may be your dream lot on the waterfront has come onto the market, and you simply do not want to miss the opportunity – this was the case for the buyers of our recent canal-front property in Kailua. Using the funds from selling your vacant land in Hawaii could be just the ticket to your new destination.
New Dreams
Success can be a driving force in change, especially if the money you have invested in a property would bring better, easier returns elsewhere, even beyond Hawaii. Finding things have quickly changed or that business is progressing more quickly than you anticipated can mean you now require more space. If your blueprints for your dream house or your business headquarters have outgrown your original plans, selling your vacant land in Hawaii may be the right move. By doing so, you can use the profits from the sale to get a great deal on the right piece of real estate elsewhere to better suit these new goals.
It helps to work with a reliable, professional real estate investment company that can meet needs as they come up, even without notice. Allow Oahu Home Buyers us to be your full-time team. Your success is our success! We make it fast and easy to sell your vacant land in Hawaii! If you are trying to decide what is right for you, Oahu Home Buyers is happy to answer your questions with no obligation. If you have decided you’re ready to sell now, Oahu Home Buyers is here to help and work with you on some options, from Maui to Oahu to the Big Island. Just send us a message or give Oahu Home Buyers a call today at (808) 333-3677.