land on hawaii

[stevo75]

Not sure where to put this one but I have been looking at homes in Hawaii and spoke to someone who once lived there and they said that when you own a home the land it is on is least by you. Can someone explain this or am I way off base. Aloha!

[1stwahine]

Re: land on hawaii

Not sure where to put this one but I have been looking at homes in Hawaii and spoke to someone who once lived there and they said that when you own a home the land it is on is least by you. Can someone explain this or am I way off base. Aloha!

If you own a home there is Fee Simple or "Leasehold."

"Fee simple is an estate in land in common law. It is the most common way real estate is owned in common law countries, and is ordinarily the most complete ownership interest that can be had in real property short of allodial title, which is often reserved for governments. Fee simple ownership represents absolute ownership of real property but it is limited by the four basic government powers of taxation, eminent domain, police power, and escheat and could also be limited by certain encumbrances or a condition in the deed. How ownership is limited by these government powers often involves the shift from allodial title to fee simple such as when uniting with other property owners acceding to property restrictions or municipal regulation.
http://en.wikipedia.org/wiki/Fee_simple

"Leasehold, conversely, is the property to which title remains yours for a specified period of time, at the end of which the property reverts tot the part that hold title in Fee Simple.

The most common of the Leasehold title is to convey land upon which improvements have been made or are to be made, such as a condominium or a single family residence. The lease is usually for a period of time in excess of fifty years during which time you may exercise the rights of ownership as if you held title in fee."
http://www.balihai.com/realestate/faq/leasehold.html

K-den. I wen go look foa you. Have a beautiful day.

Auntie Lynn

[timkona]

Re: land on hawaii

The advantages of leasehold land are primarily via taxes if you farm it. There are two major lessors in Hawaii, King Kamehameha Schools/Bishop Estate and the State of Hawaii.

Leasehold real estate is generally cheaper to purchase, and often harder to finance, as many lending institutions do not understand feudal land systems. The biggest problem with leasehold purchase is "headroom" on the lease. If you have 25 years left on the lease, you can typically only get a 20 year loan. Some lenders require even more than 5 years of headroom.

Many leaseholds under 1 acre can be purchased from the owner, if you are patient and play your cards right. Leasehold land from The Bishop is subject to a variety of rules, one of which is that subletting is prohibited.

One thing is for sure. The anti-growth crowd is totally winning the battle on Big Island. This basically means that subdivision of any land is getting harder and harder. Of course, this is the number one cause of rising land prices on the island. So if you are truly thinking about buying, and you don't happen to be a Rockefeller, then you better do it yesterday.