Make Your Home an Investment

Selling Your Oahu Home? Get a free home value report

Buying a Oahu home? Search all homes for sale

Lately, a lot of people have been asking me if your personal residence is an investment. It's a difficult question, but I will answer it in today's video. 

Generally speaking, the answer is no. However, if you rent your residence or rent out rooms to boarders, your residence would be considered an investment. An investment has a revenue stream, which would be the rent you collect. 




All investments of personal property are valued by their revenue stream and by the appreciation of property in direct location to it. Your home's price can be affected positively or negatively by things such as imminent domain or freeways. 

The thing to remember about your home is that's just what it is: your home. The best way to look at your home is as a place to live, and maintain, and enjoy.

If you have any other questions about real estate, please send me an email or give me a call. I look forward to hearing from you.

Are You Missing out on the Benefits of 1031 Exchanges?

Selling Your Oahu Home? Get a free home value report

Buying a Oahu home? Search all homes for sale

Hello, and welcome back! Today, I have a few quick tips on 1031 Exchanges.

If you're an investor, you need to take advantage of 1031 Exchanges when they're appropriate. In order to do this, seek the advice of your CPA to see whether or not you should use one. 

In a 1031 Exchange, when you buy a property that's worth more than the one you're selling, the amount of profit that you're taking from the sale of your first property is considered "boot". The amount you need to spend on your new property must be at least the amount of the original investment and the "boot". For example, if you buy a $1 million property and you are able to sell it for $2 million, you have $1 million in "boot". You can then turn to purchase a new $2 million home using the untaxed $1 million "boot" as an investment. 

You have 45 days to identify the property you want to invest in after the initial sale if you want to qualify for a 1031 Exchange. If you have any questions about this type of investing, or if you have real estate needs of any kind, don't hesitate to give us a call or shoot us an email. We would love to give you a hand!