10 Great Reasons to Invest in Hawaii Real Estate!

1. Hawaiian Islands real estate is a tangible asset. You can see it, feel it, touch it. It can be sold at any time to improve your liquidity, most likely at a nice profit.

2. As an asset, land in "Paradise" is truly unique. There is only so much of it. Unlike money or stocks, Hawaiian real estate cannot be reproduced to increase the supply.

3. "Passive Loss" rules can help offset your annual taxes. Even with a positive cash flow, your island property can effectively create a passive loss.

4. Most likely, your investment will appreciate considerably over time, especially in today's market. Recently, many Hawaiian Island properties have appreciated 25% or more in a single year.

5. Many single-family home investments provide you with a monthly cash flow that can be used to fund other investments.

6. Real estate investments can significantly grow your equity. Each payment reduces your principal balance. That money comes back to you upon your sale of the property.

7. Federal 1031 Exchange rules allow your investment to be sold tax-deferred. Here, you can immediately roll your gain into a new investment of your choice.

8. Potentially, your investment could become tax-free. Under new IRS guidelines you could move into your formerly rented property and have a tax-free gain when you sell it.

9. Real estate lets you take advantage of the tremendous power of "leverage" in acquiring other properties. This can be done with a relatively small amount of cash combined with bank or owner financing.

10. You may find a bargain property no matter where you look. Such relative bargains exist in all real estate markets. The key is knowing when and where to search.