Friday, May 23, 2008
Should I buy?
That is probably the most frequent question I get asked these days. "Should I buy, Andreas?" Without a doubt, I say do it! Do it because:
Interest rates are way low and there is talk that the Feds won't be dropping them again any time this year. In some cases we're already at 3% - 4%, after that its free money, and that just wont happen.
Prices are at a 3 year low! With the last boom a pleasant distant memory, prices of homes in some locations are almost back to where they were before the boom. In a lot of subdivisions, vacant land prices have dropped by as much as 50% - 60%.
Hawaii represents something different to everyone, a place to retire, a place to raise family, paradise... Compared to the mainland, although we have seen significant price drops, Hawaii has faired a lot better. Prices have been holding steady as Hawaii, to some degree, is isolated from certain attributes that were involved in causing the slump on the mainland.
So basically, my answer is: Buy. Plain and simple.