A Builder’s Perspective: Is now the time to build or remodel in West Maui?
We all know what the tourism and real estate market has been like in West Maui for the past three years, so it is not necessary to repeat what has been said in newspaper and magazine articles and in conversation with our friends and associates.
But the past is behind us. We can only live in the present and have hopes and aspirations for the future. The question is: Is now the time to build or remodel in West Maui? Let me provide my perspective based on nearly 25 years in the Maui residential construction business.
There are a number of factors that lead me to believe that now is the time to invest in residential remodeling or new construction in West Maui.
Demand for properties is down as compared to years prior to 2008; prices of land, condominiums, single-family resort homes and the cost of construction have generally declined during the past two to three years. Buyers are clearly getting more value for their money. New construction prices and remodeling prices are at comparative values not seen on Maui in over a decade. And quality is up, as the general contractors and builders who have survived the economic climate of the past three years are the best on Maui. High-quality workmanship is now available at prices not seen in many years.
Maui, and West Maui in particular, is considered by many to be one of the most desirable resort destinations in the world. This will not change. Maui offers what many other island resort locations in the world do not offer: the rule of law of the United States; a climate that is not subject to extremes of hurricanes, storms and humidity; and dining, golfing, surfing and other activities that rival any location in the world.
It is hard to imagine a better place to live or vacation than Maui.
Having stated the case that now is the time, it is appropriate to list some of the factors causing caution in our decision-making process. There is economic uncertainty! Will the economy recover? Will there be growth in employment? Will state and federal income tax rates increase? Is inflation coming back? Will interest rates rise? All of these are uncertainties that often cause all of us to side with caution in our decision-making.
But having considered both sides of the question — “Is now the time to build or remodel in West Maui?” — my conclusion is NOW IS THE TIME! Who would want to bet against the future success and growth of America, the beauty of West Maui and the value proposition that buyers of West Maui real estate find themselves with at this time?
(Dan McDermott is the owner of McDermott Homes Inc. MHI specializes in quality new residential construction and resort condominium remodeling. Visit McDermott Homes Inc. at www.mhiMaui.com.)