01-21-2008, 07:02 AM
I am not a professional & didn't respond because of that, so you must take EVERYTHING here as heresay & such.
Leasehold is an option if you want to live near the beaches in Hilo (most of the Keaukaha properties are in various leaseholds), if you want ag land, if the lease has tons of years left & you don't. Some of the leaseholders do/have extended & have kept the rates within market reason, some leaseholders have not. There have been some leaseholds since I have been looking that have resold without depreciation, & some that have (usually prime location & longer terms hold better... but some ag leaseholds have held value, too. Some people do hop from leasehold to leasehold (esp in ag lands & prime vacation type lands)
I know of quite a few of the UH - H ag students that get a foothold on leasehold ag land, then go on to purchase, & many stay with leasehold.
I do remember decades ago when the 'new' condo leaseholds started to gain favor, and many old timers speculated that there was no way that they would hold value.... Leasehold land is actually a very old system & can give a buyer an option to live somewhere that they would otherwise have. In many aspects it is less speculative than fee simple (you know how long your land will cost how much) but it will not give you the potential return on investment that fee simple might (but that return is speculative, also)
Leasehold is an option if you want to live near the beaches in Hilo (most of the Keaukaha properties are in various leaseholds), if you want ag land, if the lease has tons of years left & you don't. Some of the leaseholders do/have extended & have kept the rates within market reason, some leaseholders have not. There have been some leaseholds since I have been looking that have resold without depreciation, & some that have (usually prime location & longer terms hold better... but some ag leaseholds have held value, too. Some people do hop from leasehold to leasehold (esp in ag lands & prime vacation type lands)
I know of quite a few of the UH - H ag students that get a foothold on leasehold ag land, then go on to purchase, & many stay with leasehold.
I do remember decades ago when the 'new' condo leaseholds started to gain favor, and many old timers speculated that there was no way that they would hold value.... Leasehold land is actually a very old system & can give a buyer an option to live somewhere that they would otherwise have. In many aspects it is less speculative than fee simple (you know how long your land will cost how much) but it will not give you the potential return on investment that fee simple might (but that return is speculative, also)