The Investment Plan for Vacation Rentals in Hawaii

Kolea and the Waikoloa Beach Resort is one of the world’s choice vacation spots. Real Estate is about location-location-location. Kolea is top choice for a visitor desiring upscale accommodations on the Big Island of Hawaii Kolea is one of the only beach front resorts on the sunny Kohala Coast that has direct beach access for its residences and guest's. The beach access at Kolea is famed for it's soft sands, gentle & temperate seawater and will bring you and you guest back for future enjoyment year after year.

Kolea will always be a highly desirable location. Investing a Kolea and or Waikoloa Properties will bring many years of personal enjoyment and generate and income stream through vacation rentals by owner. Many consider Kolea as slice of Hawaii Heaven.

There are several advantages of investing in real property-vacation property. The main reason that real estate is an attractive investment choice is due to favorable tax deductions and appreciation potential. Below you will find both the rule of 72 explained and government data on appreciation for Hawaii and through out the country. This is un-biased and reflects actual statistics collected by the Office of Federal Housing Enterprise Oversight. There are no guarantees of what future appreciation will be. Property investments in Hawaii have historically done well.

Nothing Compares to Luxury Properties on the Sunny Kohala Coastline in Hawaii

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The Rule of 72
:  If you want to determine when a property will double in value, look to the Rule of 72. To determine what kind of appreciation you will need to see if you want the property to double in 10 years, divide 10 into 72, and you get 7.2. So if the property appreciates 7.2% a year, each and every year, for 10 years, it will double in value. It works the other way, too. If you think you're going to have 12% appreciation for a few years, divide 12 into 72, and you'll see that the property would double in value in 6 years. I sometimes use this when someone tells me they made a killing in their home. It doubled in price in the 9 years they owned it. Using the rule of 72, that would mean they had an average of 8% a year appreciation, which is fine, but was barely over the national average of 7.7% in 2003 and well below the 11.3% national average for 2004. The 1st quarter of 2005 national average appreciation was 12.5%. I also use this when someone is trying to figure out how long it will take for a property to be "worth a million dollars." I let them tell me what kind of appreciation rate they expect for the next few years, run it through the Rule of 72, and I can reasonably estimate how long they'll have to hold their property before it gets to seven digits. For example, if they own a home that is $250,000 and expect to see 10% appreciation each year, it will take 7.2 years to double from $250,000 to $500,000. So for the property to be worth $1,000,000 it would take 14.4 years at an annual appreciation of 10%. While there are a lot of factors that have been assumed (appreciation would have to be exactly 10% a year, no higher, no lower, each and every year, and markets don't consistently do that), the mathematical basis for the Rule of 72 is 100% certain.