While many Americans have been turned off when thinking about buying a home due to economic issues, many cash-rich international buyers are swooping in to take a chance at owning some amazing Hawaii beach front houses.
It is easy to see why Hawaii beach front homes are attractive options to prospective buyers. Views from Hawaii beachfront real estate properties are simply stunning, and the communities in which these luxurious homes sit offer security and a peaceful atmosphere.
Additionally, there are a variety of options to choose from; condos or homes, large or small, secluded or in busy, populated areas. Hawaii, and Oahu in particular, offers some of the most popular beaches in the world.
Living near these areas gives residents the joy of experiencing these places at any given moment. Waking up to a beautiful sunrise from a view in one’s own home on any Hawaiian beach is certainly a fantasy that many have and only the wealthy can obtain. Many foreigners have obtained the wealth needed to purchase these high-end real estate properties from economic booms in their own countries.
Oahu is one of the top 10 most popular places in the country for foreigners to buy property. According to Title Guaranty, Japanese residents were the top foreign buyers of Hawaii real estate in 2014 with 291 purchases for a total of $278 million. Other top five purchases by foreign investors last year were Canada (213 purchases, $165 million); Singapore (15 purchases, $57 million); China (15 purchases, $25 million); and Hong Kong (13 purchases, $14 million). Other popular buyers of Hawaii real estate are from South Korea, Australia, Germany, Guam and New Zealand.
Many foreigners prefer newer or completely new homes that they can move into quickly and efficiently without a long wait, and there are several communities in Oahu that are newer and being built at this present time. Favorable exchange rates boost sales for Oahu oceanfront real estate as well. When the dollar is weak, international buyers save money on the exchange rate.
International buyers want beachfront real estate in Hawaii for a number of reasons. Some want a second home, and others want a retirement home. Many people have a hard time becoming homeowners due to their native land’s restrictions on real estate buying power. In some countries, there is a law banning the ownership of more than one home. Others only allow a leasing of property, not a true ownership of land.
Foreigners who wish to have a second home must look elsewhere for property, and Oahu waterfront properties are an attractive solution. In retirement, many people want the convenience of living near city amenities, but want the security of a quiet community. Oahu is attractive for retirees because it offers a high standard of living without many restrictions in living the life that many people can only dream of.
Sometimes it simply comes down to finding a place to spend a lot of excess money. Oahu offers this with its luxury beachfront properties and a myriad of activities, such as golfing, yachting, scuba diving, and other ways to spend close to home.
Other popular and simple reasons for internationals buying up Oahu oceanfront real estate are the convenience of flying to and from Hawaii to their native homelands and for better education opportunities for their children.
Oftentimes, international buyers are attracted to beachfront homes for sale in Hawaii because of certain demographics in the area, proximity to commercial sites or job opportunities, better school districts, potential for substantial long-term appreciation, potential for growth in the economy, and even the weather. Obviously, one wants to feel welcome wherever he or she chooses to live.
A person wants to be able to access jobs or other places of convenience, and nearly everyone wants their children to have access to a great education. In the United States, children often have a better chance in experiencing higher education endeavors. Rather than sending children alone abroad, entire families can accompany their children and live conveniently close by. People want to make sure that they have invested their money in a home that will retain its value and that the economy is safe to invest in. It is important to feel comfortable in the climate, and health issues can directly impact whether a person will choose to move to a better environment for their own benefit.
Not many Realtors specialize in foreign buyers for beachfront real estate in Hawaii. It is important for foreign home buyers looking to purchase Hawaii beachfront homes to understand how realtors in the United States are involved in the buying process, because in their native land, realtors may play a different role. Negotiation techniques may be quite different, not to mention basic cultural differences. Communication is important and may be somewhat of a barrier, so it may be equally important for a foreign buyer to have their realtor network with another realtor from their homeland in order to ensure smooth transitioning.
A Realtor must possess knowledge about all legal issues that could arise and certain restrictions relating to foreign currency exchange, and he or she should be prepared to explain this to the client, using an interpreter if necessary. Buying Hawaii beachfront property means that one must have a visa. The visa can be a tourist visa or any other visa. Because there are so few banks that are willing to provide a foreign national loan (which have higher interest rates and down payments), it is better to pay in cash.
Living a luxurious lifestyle is a dream that not everyone can realistically experience. Calling a multi-million dollar structure a home is an unknown feeling to many people, foreigners included. However, if a person has the right amount of money, that person should not be limited to his or her own country’s options for high standards of living. Oahu offers beauty, luxury, convenience, and security that other places simply cannot offer for foreign buyers.
Contact your friendly Hawaii Realtor, Oleg Potiomkin, today to purchase your own dream home in Hawaii. Call (808) 398-9987 or simply send email to oleg@HawaiiBeachfrontHomes.com