The Real Cost of Leasehold Property in Hawaii

The first clue that you’re looking at a leasehold property?

The price.

It’s usually a lot lower than a comparable fee simple property — and there’s a reason for that.

If you’re scrolling Zillow, Realtor.com, or even my own website and you see a price that seems too good to be true, you won’t immediately see the monthly land lease fee. And no — it’s not because agents forgot to include it. The issue is with the way third-party sites are built. Many of them don’t have a dedicated field for leasehold, so the info just doesn’t show up.

It’s easy to see how buyers feel a little bait-and-switched when they start hearing the full story. But I promise — we put that info into our MLS systems. The disconnect is just in how the data gets pulled.

So how much does the lease add to your monthly cost? It can be a lot.

Take what I believe is the most complex leasehold property on Kauai: Kiahuna Plantation. This beachfront resort has 333 condos spread across five different phases — and five separate leases.

There are four different expiration dates, ranging from 2049 to 2058, all under one master lease. It’s… layered.

As of this video, monthly land lease fees at Kiahuna range from $1,033 to $2,889 — and that’s in addition to over $2,100/month in association dues.

So yes, that “affordable beachfront listing” comes with a backstory.

Usually, when I’m explaining this to someone who found the property on Zillow, this is the part where they go really quiet. And I get it — this is a completely new concept for many buyers. It takes a minute to wrap your head around.

In my next video, I’m going to break down the Surrender Clause — and if you don’t know what that is, trust me, you’re going to want to.

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Aloha! 

Lynda Gill RS Lic. #63088
Hawai’i Life Real Estate Brokers 808.346.0056
LyndaGill@HawaiiLife.com