Wealthy investors are always interested in diversifying their investment since they are aware that some investment categories make give low returns or even result in a loss for some time. Real estate is one of the most popular investment options worldwide, since there is a limited amount of land available, and people always require a place to stay or holiday. One of the most attractive investment options for wealthy investors at present is the Kona Estate luxury project at Opihihale on the Kona Coast of Hawaii. While investinkona.com provides complete information on this project, some of the benefits of investing in the project are discussed below
Hawaii is one of the most popular tourist destinations in the world due to its natural beauty, beaches with more than 10 million visitors annually. These tourists are spending more than one billion dollars annually, and the number of tourists is increasing at the rate of 5% every year. Since the real estate in the island state is limited, and the demand for property is increasing, investing in real estate is always lucrative. Hence the Kona Estate Fund II LLC is developing the Kona Estates project, a real estate project over 324 acres of land on the Kona Coast of Big Island, Hawaii, and is now accepting new investors for this project.
The project at Kona Estates involves developing the 324 acres of land in a prime ocean front locality which have already been purchased by the fund. The fund is planning to develop sixty 1-3 acres homes, including 2-4 bedroom villas and 4-6 bedroom grand estates. Additionally 40 luxury villas will also be constructed over an area of 15 acres. The development project will make money as the properties developed are sold to investors and buyers. Since real estate prices in Hawaii are likely to fluctuate, the manager will adjust the rate at which the properties are developed, based on the demand, to maximize the returns for the investor.
Kona Estates is an attractive investment option, since the developers are targeting a high internal rate of return of 22% which is far higher than most other investment options at present. Only accredited investors in the United States having annual income of more than $200,000 are allowed to invest in this real estate project. The minimum investment for investors in this Estate fund is $100,000 and they become part owners of the project. The investors also can choose to purchase the the villas or houses if he wishes. Tax benefits for investing in the property include lower taxation due to long term capital gains.