A risk is it is hard to predict interest rates. I don't think anyone would have guessed rates would have stayed as low as they did. We could assuming interest rates fall to 5%, hard to know for sure. Maybe rates go higher by another 2%. If the property cash flows, you don't have to worry as much. Or if the mortgage is roughly equal to rent. Not too much to worry about.
Love the dam analogy. It will overflow then break on through to the other side. Predictable. Good afvise on buying what is affordable for them not just what is attainable. Balance is key.
If I have enough equity in my current home to do a cash offer on my next home, how much does it matter if inventory and interest rates are high or low?
@@movingtohawaii Thanks Derek! I'm contemplating moving back home and I actually had a consult with Mahe and Jodie this past July when I came to visit. Mahe's been sending me weekly listings to keep me in the Hawaii market loop. Keep up the great content!
The alternative in today's market is buying Short Term Treasury bills. Investors (retail/hedge funds and Warren Buffet) are now heavy on cash and buying short-term Treasury bills with zero downturn risks with 5% and above yield. T-bills Intererst earned is state tax free, so that's another plus. I have been buying short term T-bills (mainly 3mo, 6 mo) since last year and rolling over each time they mature to compound gains. Probably it will be a while until the interst rate gets cut, so until then and that's what people are doing now. No brainer to get extra cash with zero downturn risk, while waiting for the housing/stock market crash. If you buy 2 month T-bills today, it's 5.4% (annual rate) - so if 100K is invested in such T-bills for a year you gain $5400/yr with zero risk + state tax free.
I own three properties which I purchased over 20 years! I got 2.25 on two properties and 5.625 on another! I’m not selling. Why would I want to give up my future equity and cash flow! I’m looking to get another
A risk is it is hard to predict interest rates. I don't think anyone would have guessed rates would have stayed as low as they did. We could assuming interest rates fall to 5%, hard to know for sure. Maybe rates go higher by another 2%. If the property cash flows, you don't have to worry as much. Or if the mortgage is roughly equal to rent. Not too much to worry about.
Love the dam analogy. It will overflow then break on through to the other side. Predictable. Good afvise on buying what is affordable for them not just what is attainable. Balance is key.
Awesome content and channel! Mahalos guys for providing an invaluable education on Hawaii real estate!
Lower interest rates decrease the lock in effect so inventory might be higher than expected when lower rates come.
Yes but accompanied by multiples
More in buyers
If I have enough equity in my current home to do a cash offer on my next home, how much does it matter if inventory and interest rates are high or low?
If I’m buying cash, I love high interest rates. No one loves low inventory but you just have to focus on the right one. Let us know how we can help
@@movingtohawaii Thanks Derek! I'm contemplating moving back home and I actually had a consult with Mahe and Jodie this past July when I came to visit. Mahe's been sending me weekly listings to keep me in the Hawaii market loop. Keep up the great content!
I live on the mainland but I want to retire in Hawaii. Is now a good time to buy a home? Thank you!
It’s always a good time IF it’s a good time for YOU. It’s always a bad time if it’s a bad time for you.
"Moving Hawaii". I like it, and my name's not Mikey. :)
The alternative in today's market is buying Short Term Treasury bills. Investors (retail/hedge funds and Warren Buffet) are now heavy on cash and buying short-term Treasury bills with zero downturn risks with 5% and above yield. T-bills Intererst earned is state tax free, so that's another plus. I have been buying short term T-bills (mainly 3mo, 6 mo) since last year and rolling over each time they mature to compound gains. Probably it will be a while until the interst rate gets cut, so until then and that's what people are doing now. No brainer to get extra cash with zero downturn risk, while waiting for the housing/stock market crash. If you buy 2 month T-bills today, it's 5.4% (annual rate) - so if 100K is invested in such T-bills for a year you gain $5400/yr with zero risk + state tax free.
Buy manoa !
I own three properties which I purchased over 20 years! I got 2.25 on two properties and 5.625 on another! I’m not selling. Why would I want to give up my future equity and cash flow! I’m looking to get another