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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Frank Diaz, Agent, Honolulu, HI
Mon Feb 16, 2009
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
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