For some, the search for the perfect Maui dream home can be a daunting process, especially if you live on the Mainland. As South Maui real estate specialists, we do our best to make sure you can get the most information possible out of listings on our website, and that you’ll have an easy time searching based on the criteria that applies to you. That being said, you obviously need to see a property in person before deciding to buy, and in most cases, you’ll want to view numerous properties throughout this process, but that can be tricky to accomplish when you’re not living on the island. Fortunately, renting makes a good stepping stone to help you transition.
While it might be easier to visit, find your dream home easily, buy it, and move your things straight in, this sequence of events doesn’t always unfold so conveniently. It might be the best decision to move to Maui and rent a place temporarily until you find the property that you want to buy. Fortunately, a recent report from RealtyTrac indicated that the average cost of rent in a three-bedroom home on Maui has fallen over the past couple of years, meaning you won’t have to strain your budget just to rent.
According to the report, the average cost to rent a three-bedroom Maui home was $1,812 per month in 2013, which was a 16 percent drop compared to the $2,164 of 2011.
You might be wondering, why is the rent falling? Owners will charge as much as they can get away with. Ask too much and your property will remain unrented. Then you lower your rates until someone moves in. A few factors can explain rental costs dropping. If there are plenty of places that renters can choose from, they will take the best deal. This means competitive pricing is a part of it. Then there’s the economy. If income is low, renters will squeeze into the most affordable option possible, sometimes sharing space with family and friends, despite it being uncomfortable. However, if the answer was a poor economy and low income, why is it that real estate inventory is so low? Foreclosure properties and short sales are now just about non-existent, according to the latest reports, and there are relatively few properties to choose from if you’re looking to buy.
On Maui, it seems that the economy, and the income of residents, has been slowly climbing for a while now. The most likely answer is that there are plenty of places renters can choose from, so owners have to be competitive with their rent prices. If you choose to rent a property while you search for the right buy, the low cost of rent is a good thing. Since inventory is low, it might take you longer to close in on the right property to meet your needs. Patience is a great asset, and so is a good eye for value. If you need assistance with the process of buying a Maui home, you’ll find our contact information at the bottom of the page. We hope we’ve helped you with your perspective on buying Maui property in the current conditions. Mahalo!
RealEstateMauiHawaii.com – By Mark Harbison