If you are considering buying a house in Hanalei, you must understand what types of ownership exists. In Hanalei, there are two types of real estate properties including fee simple and leasehold properties. Fee simple property is a private property. This means that you own the land and buildings on it. The advantage of buying fee simple property is that you don’t need to pay a monthly lease. The disadvantage is that simple fee properties are more expensive.
Leasehold properties are leased for a certain period of time. You can improve the land but you may not own it. Leasehold properties are very common in Hanalei. Most of the condominiums and properties located nearby to the beach are leasehold properties. Many leasehold properties have a short term of 55 years. You will be able to renegotiate the lease rent at the renegotiation date. The advantage of buying leased property is that it is cheaper. The initial cost of owning a leasehold property is lower. It can also be a tax advantage to own leasehold property. The average cost of the property is about $250,000 - $600,000. Luxury homes will cost million of dollars to own.
The federal government of Hanalei own approximately 39% of the land. The rest of the land is available for private ownerships. There are a variety of options you can choose in the real estate. Some of the different real estate options include condominiums, single-family houses, and multi family house. Single-family house is becoming increasingly popular among homebuyers. Statistic shows that single-family house is the type of house that most people purchase. If you buy the single-family home, you will be responsible for paying all the costs. You will have to pay for the property tax as well as the mortgage.
Single-family homes are quite expensive. Because of the high cost of owning a single-family home, many people are buying condominiums. If you live in condominium, you will have access to all sorts of amenities such as laundry facilities, barbeque grills, tennis courts, golf course and etc. You will be subjected to pay a monthly fee for maintaining the condominium.
You can also buy a Timeshare property in Hanalei. Timeshare property has existed since 30 years ago. In this type of property, you will buy a land for a certain period of time. It is suitable for people who plan to stay in Hanalei for a short term.
