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I have run across this several times. 687 Stainback Hwy? 60 Acres in Panaewa Farm Lots? Does anyone know anything about this area they would be willing to share? All I have found is that it has issues with the caterpillar from hell (nettle). Is there soil? Is it farmable? Lava zone? Will workers work there? Is it a million miles from anywhere? If anyone has info I would love to hear.
http://www.realtor.com/realestateandhome...1102490227
-Blake
http://www.theboysgreatescape.blogspot.com/
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Actually I think you may be correct. I think the land may be west a bit, kind of NW of Volcano.
-Blake
http://www.theboysgreatescape.blogspot.com/
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The property is just before, and across from, the Zoo & Equestrian facility.
It is DLNR leasehold land, lease up in '23.
Tax records has it owned by State of Hawaii - Flowers Inc. with a 3200sq ft warehouse built in '74
Tax info:
http://www.hawaiipropertytax.com/Datalets.asp?gsp=Profileall_hawaii&mnu=PSearch&submnu=Profile&pin=240490310000&cp=1&tp=1
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That's beautiful dude! I am a little embarrassed because I have been shown how to check this info before and did not before posting. Also should have checked here first:
http://www.hilobrokers.com/cgi-bin/hb?!8...trEnnoaFm6
Thank you!
-Blake
http://www.theboysgreatescape.blogspot.com/
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I was thinking that is a steal for $5000/acre until I saw it was leasehold!
Puna: Our roosters crow first
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quote:
Originally posted by EightFingers
I was thinking that is a steal for $5000/acre until I saw it was leasehold!
Just remember, if it sounds too good to be true ...[
]
Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
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Typically Tropical Properties
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I wonder what this property would have listed for two or three years ago?
My impression of "leasehold" is that you pay for structures and improvements on the property plus a small yearly payment to the state. If you sell your lease, you are compensated for the improvements and structures, plus any new ones made.
So if the previous leaseholder paid the same $300,000 ($5000/60acres), and say, $500 a year to the state, they would be much better off now than a fee simple owner of a similar property. (A property worth $600,000 three years ago, and $300,000 today)
Have leaseholders been insulated from the recent devaluation of property?
Just a layman's pondering.
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Several benefits of leasing, your future costs are known, you're protected from inflation, excellent tax write off. If the price of land plummets, it doesn't matter, at least to a point as competing L.H.'s may become cheaper than yours.
Couple not-so-good things: no chance of capital appreciation (it can happen!), no way to covert income into capital gains, might be some heavy restrictions on how the land is used. When lease is up, your initial investment is gone (but usually this is amortized and written off over the life of the L.H. if used for business)
I don't know how Hawaii taxes these things, tho'.
Puna: Our roosters crow first
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Leasehold agreements vary, the state ones have the ability to increase the yearly lease rate, normally with a cap... so your future costs have a ball park... there is also property tax to pay... and the state usually does NOT pay for improvements... and any improvements are supposed to be approved by the state agency (this can get into "asking forgiveness rather than permission, as Bohnett did at Pu'u Wa'awa'a...) sometimes there are penalties to pay on improvements made.... depends on the lease...
The problem with a leasehold with only a decade or so is that capital improvement write-offs are limited... Also the state has not granted early lease extensions on some of their industrial lands in Hilo, thus limited capital improvement on many of the buildings that have a decade or so left on the lease (this explains the condition of many of the industrial park buildings in Hilo... & is one of the reasons some of the companies have moved to Shipman Industrial..)
ETA: the lease rate is probably not $500, probably not even $500/acre in that location, but could be...
HHL is negotiating with Target/Safeway for an industrial lease agreement that is almost 1,000 times that rate...
