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5. Leasehold vs. Fee Simple

If you’re looking for that maintenance-free, amenity-rich lifestyle in hawaiʻi, you may be looking at buying a condo. Although condos come with a significant number of perks, they also mean becoming part of a community with its own set of rules. Buying a condo also means making a commitment to the entire property, including its upkeep and maintenance. Before you commit to a hawaiʻi condo: get clear on whether the condo is a leasehold or a fee-simple property. Read more about leasehold properties in hawaiʻi. Review the rules associated with the community and make sure you feel comfortable with them.

In honolulu, condominiums tend to dominate. When browsing these listings—especially in waikīkī—you’ll see some properties listed as “leaseholds. ” these listing may catch your eye because their price is often significantly lower than their “fee-simple” counterparts. Hawaiʻi is one of only a few u. S. States in which you’ll find leaseholds. Here’s the deal: leaseholds are similar to long-term leases—with a few different privileges and responsibilities. The up-front cost for a leasehold is lower, but you’ll need to vacate the property at the end of your term, which can be as long as 30-50 years. In contrast, buying a fee-simple property is more like the standard real estate purchase you might be used to. https://en.wiktionary.org/wiki/realtor