You Are in the Military, Why Should You Buy a Home in Hawaii?
By: Randy Prothero
Buying a home in Hawaii could be a means to an end. Your BAH (Basic Allowance for Housing) combined with your VA benefit, will give you an opportunity to start to build wealth.
Here are the most common concerns about buying a home in Hawaii.
• We will only be here a few years.
How long will you be at your other duty stations? If you do not buy now when will you buy?
• Homes in Hawaii are so expensive.
So is renting.
Your BAH in Hawaii is higher than other places, offsetting the expense.
The government will buy you a home.
• The VA Loan Program gives you a no down payment mortgage. (100% loan)
No mortgage insurance.
VA interest rates are competitive and many times it is lower than conventional loans with 20% down.
• The interest on your mortgage payment is tax deductible. You get a double
tax benefit on your BAH.
If you rent you get no tax benefit and you pay someone else’s mortgage for them.
• If you take base housing you are just giving back one the biggest benefits your military service has earned you: Home Ownership and saying no thank you.
You can build wealth while in the military.
• Prices in Hawaii appreciate over time.
In 1985 the median priced single-family home on Oahu was: $158,000.
In June of 2016 the median priced home was: $760,000.
Over the short term, they can and do go up and down. Like you hear on the radio ads, past performance is no guaranty of future performance. Although it is the best indicator.
What if prices are down when I PCS out?
• Have an exit strategy.
The military always has an exit strategy when they go into battle, so should you. Buy a home that you can rent out when you leave and still make you payments. That gives you the option of selling it or keeping it when you leave.
Do not buy the home of your dreams. That comes when you retire from the military or after you have had more time to build wealth. Buy a means to your end.
How to get started?
Contact us at: (808) 352-0756 or [email protected] to set an appointment with a VA specialist. We can walk you through the process. Feel free to check out my website and browse the market online at www.OahuHale.com.
Mary Standahl is a Real Estate Broker and Agent-Owner at eXp Realty. Originally from Virginia, she relocated to Hawaii 5+ years ago to pursue her passion to assist families in buying their dream property in paradise. In the past, she graduated with a Bachelor degree in Business Administration from James Madison University and worked as a Senior Sales Consultant for Pitney Bowes Global Mailing Solutions for almost 6 years. She is an active member of the Daughters of the American Revolution (DAR), National Sorority of Alpha Sigma Alpha, and avid volunteer for the National Society of Multiple Sclerosis. She has a Real Estate e-Pro internet marketing designation that keeps her up-to-date on social media trends and new technology skills. Her brother, grandfather and first cousin have all served in the Air Force. Mary married an Army Blackhawk MEDEVAC pilot and loves her new role as FRG Leader for her husband's company command. She has a Military Relocation Professional (MRP) designation so she understands the needs of military personal and loves assisting other military members in the transition process into island living. Mary also has a Council of Residential Specialists (CRS) Designation which only the top 3% of Realtors has earned.