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Aloha
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In this newsletter:
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Oceanfront Vistas
Puamana 160-2
Lahaina
$5.2M (FS)
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Considering Leasehold Properties in Maui
Hawaii is the only state in the union that offers leasehold (LH) tenureship. Traditionally property is exchanged under terms of fee-simple (FS) ownership. With LH tenureship, a property is split so one entity owns the land and leases it to another entity that owns the building.
Today, few single-family homes are offered as leasehold (LH), but hundreds of leasehold condo units and land properties still exist throughout Hawaii. LH condos are more prevalent in Honolulu than on Maui, however, with limited state-wide inventory and prices for FS ownership remaining high, it may be worth considering a leasehold purchase-especially if it provides a lifestyle or investment opportunity that would, otherwise, be unattainable.
First-home buyers are not advised by most Realtors® to purchase LH properties since FS ownership allows them the best opportunity to build equity. For “investor and lifestyle” buyers, LH properties may afford an income revenue stream, stability and access to prime property locations (Hawaii Business Journal).
For the Investor buyer, a well priced LH may generate monthly cash flow if the cost of owning the unit is low (lease rent, maintenance and management fees, & property taxes), and the rental income it produces can generate a good return over the long haul of the lease.
For the Life-Style buyer seeking greater luxury, prime location, or more predictable costs, a leasehold property might make sense. According to an article in the Hawaii Business Journal, seniors in the golden years of their lives, or those on a fixed income with limited resources to carry them through retirement, a leasehold property can offer peace of mind with fixed costs, desirable living locations attainable at a fraction of the cost of a fee simple home (thus leaving more of their resources liquid). LH properties may appeal to those without children to pass on property inheritance, and for others offer the benefits of luxury ownership and the bragging rights of a property they can share with family and friends.
Things to Consider Before Buying a LH Property:
- Duration of the lease?
- Monthly rent and schedule of future increases?
- At Termination of lease-renewal or conversion to FS?
- Any plans or negotiations for conversion?
- Does it make financial sense-improved lifestyle or income revenue?
- As a business investment, do the numbers pencil out?
- Better affordability, better location, larger condo?
- Lease rent can change every 10 to 20 years, depending on the terms of the lease
- Values of individual condo units often decline as the lease gets closer to expiration
- Financing options may be limited or impossible unless terms of LH exceed terms of mortgage by 6 or more years.
- Property taxes paid by lessees are calculated upon highest and best use which may include TAT for vacation condos.
According to research data for Maui from the Paragon MLS, there have been over 730 LH transactions since 2021. Condo sales accounted for 183 of those deals. Currently, there are 207 condos for sale, 103 of which allow for short-term rentals. While the majority are FS listings, 6 properties are available for LH and all allow short-term rentals. If you are curious about LH properties or have any other real estate questions, the Smith Team is here for you.
Mahalo Nui Loa,
Ken Smith R(S), Melissa Smith R(B), and Gregory P Smith R(B)
The Smith Team
P.S. Local residents and visitors welcomed back a favored tradition known as Friday-Town-Parties. If you missed the Kihei-4th-Friday-Town-Party this past Friday, check out the Lahaina-2nd-Friday-Town-Party coming up in August.
Market Watch
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Active
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Pending
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Sold
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Change
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Homes
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248 (205)
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179 (91)
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1271 (708)
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+32 |
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Condos
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209 (97)
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254 (130)
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2056 (606)
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+21 |
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Land
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103 (53)
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46 (10)
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303 (99)
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-4 |
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Total
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560 (355)
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479 (231)
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3630(1413)
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+49 |
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1. The numbers in parentheses reflect the number of listings over $1M
2. Sold listings are for the previous 12 months.
3. Change is the increase or decrease in the number of active listings from the previous week.
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Homes Over $1M
1049 Hou Street
Kihei
$1.05M (FS) |
Large home on corner lot in the heart of Kihei. This two story home has a very flexible floor plan with access on both Waipuilani street and Kou street. This home is in a great central location, close to schools, the Piilani shopping center and the Liloa Bike and walking path.
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59 Waipoli Road
Kula
$1.45M (FS) |
Gaze at dramatic bicoastal views from Kahakuloa to Wailea from this charming Kula home. You will not want to leave this comfortable, yet elegant home that features a gas fireplace, a 20ft wide fully opening sliding door system to allow for indoor/outdoor living to the large covered lanai.
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107 Ka Drive
Kula
$1.797M (FS) |
Spectacular views, sublime landscaping, stunning sunsets. Total privacy bordering 300 acre Haleakala ranch land. Open beam high ceilings, chef's kitchen, ample decking, beautiful legal ohana with kitchen and separate access. Furnishings are included.
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70 Wailau Place
Launiupoko
$2.65M (FS) |
The home is not visible from the street as it is nestled down below with lots of beautiful greenery surrounding. A large living area for this size home with Granite counters, travertine floors, and imperial plaster finish on the walls that all add to the lovely feeling when you enter.
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199 East Ikea Moku Place
Wailea
$3.2M (FS) |
Situated on a quiet cul-de-sac in the gated Wailea Kialoa subdivision & offering exceptional panoramic ocean & outer island views, this 3195 s.f. home is in immaculate condition. Upon entering you will find beautiful perimeter tiled walls & floors with travertine chair-rails plus an open oval ceiling affording an abundance of natural light.
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Homes Under $1M
341 Ehilani Street
Pukalani
$799K (FS) |
This half acre boasts gorgeous, bi-coastal views. And the bonus is you already have a well-built, cinder block cottage waiting for remodel and could be lived in as you build that dream home. The 2/1 cottage is perched at the bottom of this spacious, gently sloped lot and the best location was saved above for the main house.
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367 Lahainaluna Road
Lahaina
$799.9K (FS) |
House near the Old Sugar Mill on Lahainaluna Rd. Property is being sold in "As-Is" condition. Property may have nonconforming improvements. Some uses and features of this property might be nonconforming with county records.
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22 Ololi Place
Waikapu
$859K (FS) |
This one level home has been lovingly lived in by 3 generations of one family. You'll appreciate the tasteful remodel, the polished concrete floors, sunken livingroom and natural light throughout. A huge outdoor patio for entertaining awaits you and your friends, guests and 'ohana!
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233 Humupea Street
Kihei
$910K (FS) |
Bank Owned. A wonderful 3 bedroom, 2 bath a good opportunity to own a home on a large lot in North Kihei. Central Maui and all that Kihei has to offer are both just minutes away.
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Vacation Condos Over $1M
Hale Kamaole 2-332
Kihei
$1.1M (FS) |
Majestic ocean, mountain view, two bedroom two bathroom with a loft. Enjoy your morning coffee as you look up at Haleakala and then watch the boats go out to Molokini. Newly painted and new carpet, this fresh unit is ready for you to move in or start renting right away.
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Wailea Ekahi 40-D
Wailea
$1.85M (FS) |
This bright and airy, second-floor condo in sought-after Wailea Ekahi Village will soothe your soul. Completely renovated in 2021, you will love the open feeling as you walk in, and the soft light and gentle Hawaiian breezes from 16 windows and six ceiling fans the AC is almost never needed.
Customer Listing Synopsis
Video/Virtual Tour
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 "Price Reduction"
Kamaole Nalu 504
Kihei
$1.199M (LH) |
This is a gorgeous, remodeled 2 bedroom, 2 bath, ocean view condo at Kamaole Nalu. Premium upgrades throughout the unit, including wooden cabinets, granite countertops, stainless steel appliances, and every possible amenity. Tiled lanai Loaded with every possible amenity.
Customer Listing Synopsis
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Wailea Ekolu 909
Wailea
$2.1M (FS) |
The 2 bedroom, 2 bath unit has been thoughtfully maintained with new cabinetry, fresh paint, high-end flooring, updated tilework and modern fixtures in both walk-in showers. The spacious master bedroom offers sweeping ocean views, a private balcony with lanai, en-suite bathroom, in-unit washer and dryer, and storage closets.
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Vacation Condos Under $1M
Kihei Bay Vista B-103
Kihei
$645K (FS) |
This cozy and well-equipped 1 bedroom, 1 bath unit is located in the "B" building at Kihei Bay Vista. This condo has three steps to the first floor. It is a perfect Maui getaway with tile floors, sunny windows, and a large private lanai that greets you when you enter this homey space. Soak in the tranquil atmosphere from the comfort of your personal lanai.
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Paki Maui 208
Honokawai
$795K (FS) |
A direct oceanfront 108-unit condominium community spread across three 4-level buildings. Just a quick walk to the Honokowai Farmers Market and adjacent to the Honokowai Beach Park just north of the complex with a play area for kids. Elevator access and concrete structure construction makes the Paki Maui a perfect 2nd home or investment property.
Customer Listing Synopsis
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Haleakala Shores A-211
Kihei
$885K (FS) |
A spacious 2 bedroom, 2 bath condo. Adjacent Kamaole Beach 3 makes getting to the beach a breeze. That beach park offers good snorkeling, swimming with a lifeguard station. Restrooms and lots of shade trees at this park. With repeat clientele at this complex year after year, this unit has a wonderful track record for bookings.
Customer Listing Synopsis
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Kamaole Sands 5-215
Kihei
$990K (FS)
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It's time for you to own your Piece of Paradise on Maui. This beautiful, furnished, remodeled 1 bedroom, 2 bathroom condo. Located in the beautifully landscaped grounds of Kamaole Sands Kihei can be yours to enjoy. Sip on your coffee or a cocktail with views from the pool to the ocean from your lanai.
Customer Listing Synopsis |
Residential Condos Over $1M
Wailea Palms 3306
Wailea
$1.825M (FS)
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The pastoral views encompass the gracious, spacious, meticulously manicured lawns & gardens. The light-filled living area has south-facing windows & opens seamlessly into the elegant kitchen & out to the tiled dining & lounging lanai area. This unit has been updated & maintained fastidiously.
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Kai Malu 34-A
Wailea
$2.175M (FS)
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Kai Malu is known for it’s gorgeous landscaping and the “Hale” which is the shared open-air clubhouse, with expansive ocean views. The resort amenities include a 75-foot infinity pool, large hot tub, sauna, steam room, fitness center, library, onsite staff, full kitchen and grill area. You won’t want to leave.
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Hokulani Golf Villas 124
Kihei
$2.495M (FS)
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This 3 bedroom 2.5 bath with developer converted den for use as a fourth bedroom comes turn-key ready and furnished. This was one of the many of the $60K in developer upgrades. The primary bedroom is conveniently located on the ground level with excellent ocean and sunset views.
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Residential Condos Under $1M
Maalaea Mermaid 206
Maalaea
$395K (FS)
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This 1 bedroom 1 bathroom needs some TLC. Ma'alaea Harbor views from the living room and lanai. Conveniently located in the center of the island close to shopping, dining, Kahului and Kihei.
Customer Listing Synopsis
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The Breakers E-41
Honokawai
$489K (FS) |
This beautiful top floor, pet friendly studio is Located directly across the street from the ocean, 1 bathroom condominium at The Breakers features central AC system and open floor plan, granite counter tops with 4” back splashes, stainless steel appliances, multi cycle dishwasher, a washer/dryer combination unit, ceiling fan and windows for natural light and fresh air.
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Kihei Villages V27-203
Kihei
$499.4K (FS)
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This 2 bedroom 2 bath condo in South Maui. Move in Ready! Bonus peek-a-boo views of West Maui Mountains, windmills off front entry and peek-a-boo view of Haleakala of back patio. Recently installed new vinyl flooring throughout. Unit has a stackable washer and dryer.
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Hale Kanani 4-205
Kihei
$850K (FS)
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This beautiful and meticulously maintained 3 bedroom, 2 bath, furnished, pet friendly condo has a peaceful garden view and is only steps to The Cove, a fun surf spot for beginners on Maui's South Shore. Also, across the street from Charley Young Beach, boasting white sand, blue water and epic sunsets.
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Vacant Land
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484 Lower Kimo Drive
Kula
$1.3M (FS)
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A beautiful, peaceful and very Private 3.5 Acres of Rural (half Acre) Zoned Land on one of desirable neighborhood. Build your dream home or invest for multi single family homes within the limited water fixtures (5/8” County water meter installed). Lot is cleared and beautiful ocean view to north and south Ocean. 4 lot CPR has been recorded - with more than 1/2 Acres each Lot.
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