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Bob Czeck, Other/Just Looking in 55303

Is this property fee simple of leasehold? If leashold when is the lease up?

Asked by Bob Czeck, 55303 Mon Feb 16, 2009

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This question is about this property: http://www.trulia.com/property/3303966-4999-Kahala-Ave-265-H…

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Hi Bob,

It's leasehold. It is currently the highest priced condo in the 4999 Kahala complex. The average sales price over the last year has been $153,000. The lease expires in 2027, so you can only get financing with a 13 year loan, which does not exist. You have to finance it yourself, get a private loan or get owner financing. The lease rent renegotiates in 2017 (can go up or down).

For comparison, if you financed the property with a private loan at 60% of the sales price for $270,000, payments would be approx ~ $1800, + $960 maintenance fees + $2240 lease rent = $5000/month.

I'm not saying you should buy a different or more expensive property, but the lease rent in this case could finance more than 100% of the price. In other words, you could buy a property 100% more expensive with the same payments and probably get a better interest rate with the same down.

On the other hand, this is one of the prime spots on the island. I know many people that would love to live here for $5000/month. That is close to the going rental rate there from September through March. Some of them go for more or less. It is 1-month minimum rental if you rent it out. You have the Kahala Hotel next door with world class food and a relaxing beach. Try the $18 hamburger. Not twice as good as a $9 Teddy's Bigger Burger, but it sure tastes good with plantation tea sitting on the lanai by the beach.

Aloha,
Frank
808 723 0900
0 votes Thank Flag Link Mon Feb 16, 2009
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