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1
mthom
2010 Sep 27, 2:12am
How much more would a fee simple cost?
We bought a condo in HI a few years ago and chose a fee simple. The difference in price was about double. We didn't like the idea of leasing. It seems too similar to leasing a car. You pay all that money and after x many years, you have nothing to show for it.
2
BobbyS
2010 Sep 27, 4:04am
I don't think fee is available for the unit. With leesehold though, you can sell the lease to someone else, but at a near garantee loss in price.
3
American in Japan
2011 Jan 29, 2:42pm
American in Japan
2011 Jan 29, 2:42pm
@ BobbyS
Let me know if you have looked into this since. I am interested in Hawaii properties too, but more the Big Island than Oahu...
cheers
Does anyone here have any knowledge/experience with the real estate market in Hawaii and/or experience with purchasing leasehold property? Here are the numbers on a unit that's for sale:
- Price: $100,000
- HOA: $289 (includes water, sewer, trash)
- Montly lease: $48 (not sure if it's included or seperate from the HOA fee)
- Lease term: to 2078
- Property tax: $26
- Total monthly costs: $695 ($743 if lease fee is seperate from HOA fee)
Comparable units in the same building rent for around $750 - $950 and comparable units currently on the market are on for sale at around $115k. I'm guessing this unit is a fixer as it's one of the few units without interior photos, so the rent will likely be in the ~ $700 range. What other fees do I have to consider? The thing about leasehold property is that the property depreciates in value the shorter the lease term is. So reselling the unit at a loss is highly likely. But then again, the purchase price is lot cheaper than fee simple/freehold. Would I be better off buying or renting a unit in this Condo?
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