FINALLY, FINALLY, FINALLY......
Some astute buyer has put in an accepted offer on the Leasehold Pali Ke Kua #238 listed for $350K! - after only 593 days on the market and price reductions that started out at $699,900 and gradually moved downward over the years! Am I surprised? Yes, but only because it took so very long for an offer to come in. Granted, Leasehold is not for everyone, but considering that this ocean view condo offers similar views as the other Leasehold and Fee Simple condos in the same complex that are listed for MUCH MORE, it certainly begged for consideration.
Here are all the details on this unit:
Copyright 1/15/2008 by Hawaii Information Service
MLS DATA: Condominium Property MLS # 174822
Property Type: Condo TMK # 4-5-4-12-9-28 Status: Contingent DOM:593 Price: $350,000
Address: 5280 KA HAKU RD Zoning: R-6 Tenure: Leasehold
Project Name: PALI KE KUA III District: Hanalei Public Report #: 0607
Bldg/Unit #: 238 Unit Description: 2 Story, End Unit Floor: 2 Record Sys.: Regular
PROPERTY DESCRIPTORS
Bedrooms: 1 Living Area: 993 Year built: 1974 Pool: Pool
Baths: 1.50 Other Area: View: Mountain, Ocean Golf Frontage: No
Exterior:Lanai Exterior Area:85 Oceanfront Unit: No
Inclusions: Ceiling Fan, Carpet, Window coverings, Dryer, Disposal, Dishwasher, Floor Tile, Furniture, Kitchenware, Landscaped, Linens, Microwave, Pool, Refrigerator, Range, Storage Area, Smoke/Heat Detector, TV Cable, Washer Disclosure Form: Yes
Car Storage: Garage/CP Size: Stall #:
Remarks: PRICE REDUCED.... SELLERS MOTIVATED ! ! ! ! !Desirable up stairs end unit with high open beam ceilings facing into the cool trade winds. This unit has both ocean and mountain views. While this unit is listed as a one bedroom/1.5 bathroom, there is an upstairs loft bedroom and bathroom. This unit is within easy walking distance to the community pool or a short walk to georgeous Hidaways Beach adjacent to the complex where one of the top summer snorkeling spots on Kauai is located. During the winter months there is an awesome surf break right in front of Hideaways. At night, Sabellas Restaurant (on premise) is a stones throw away, there you will find fine food and great great jazz. This unit is being sold turnkey. While this unit is a lease hold unit there are benefits to owning a lease hold unit. The asking price is just the beginning.
FINANCIAL MATTERS
Current Taxes: $5,440 Home Exempt. Amt.: Spec. Assess.: No Spec. Assess. Amt.:
Terms Acceptable: Cash, Conventional Maint. Fees: $575
LEASEHOLD DETAILS
Lessor: Maroney
LH Rent: $767 LH Exp. Date: 9/17/40
Reneg: 9/18/15 Fee Avail:
OTHER PARTICULARS
Assoc. Mgmt. Co: Certified Unit Rental Mgr: Resident Manager: No
This information has been supplied by third parties and has not been independently verified by Hawaii Information Service and is, therefore, not guaranteed.
Heres the thing about this unit, for the right buyer, you are getting an oceanview unit at a fraction of the cost of the other units. Even with a leasehold fee of $767, it is still a bargain. Why? Because to buy any of the other units, be they Leasehold or Fee Simple, you are going to need at least another $200K for the least expensive LH unit and up to an additional $500K for a fee simple unit. Try getting mortgage money like that for $767 a month, not to mention that the $767 is tax deductible right along with the HOA fees. (which are $575.)
Of course, you have to be willing to face the uncertainty of what will happen when the lease expires in 2040. Or maybe that isn't even an issue for you. I've shown this unit to many clients - several wanted it but just did not have the funds to move forward when all was said and done. Others were concerned about what the leasehold fee would go to at the scheduled renegotiation in 9/18/2015 and / or worried about "the end." Some didn't care... they just wanted the unit for themselves to enjoy and felt if the fee were offered at the end of the contract, and it was too high,they would just let the unit go. After all, by that time they would have had many years of enjoyment, income and tax write offs.
But in the end, there were no takers amoung my clients....
Take a look at how this unit compares to the other PKK currently on the market:
Copyright 1/15/2008 by Hawaii Information Service
197847 T A 200 4-5-4-12-8-24 LH $599,000 Pali Ke Kua Ii #130 1,100 #130 2/1.5
192740 T A 309 4-5-4-12-5-28 LH $695,000 Pali Ke Kua Incr I, ii, iii #210C 1,127 #210C 2/2
204622 T A 33 4-5-4-12-8-28 FS $869,000 Pali Ke Kua Ii #232 993 #232 2/2
173096 T A 667 4-5-4-12-9-24 FS $895,000 Pali Ke Kua Iii #234 1,135 #234 2/2
196893 T A 222 4-5-4-12-9-30 FS $899,000 Pali Ke Kua Iii #242 1,135 #242 2/2
194640 T A 226 4-5-4-12-9-27 FS $950,000 Pali Ke Kua Iii #237 1,135 #237 2/2
203728 T A 52 4-5-4-12-5-20 FS $1,500,000 Pali Ke Kua Incr I, ii, iii #202C 1,127 #202C 2/2
This information has been supplied by third parties and has not been independently verified by Hawaii Information Service and is, therefore, not guaranteed.
Not one of these other units has undertaken price reductions like PKK 238 did. It's a funny thing...and I'm noticing this more and more... Sellers know it's a buyer's market but... yes, there's the problem. That "but." Somehow it just doesn't apply to their unit. Well, it will be hard to hold to current LH pricing when this closes. After all, appraisers do look at past SALES for "comps" and they are not likely to stretch a couple hundreds of thousands of dollars to make an appraisal come in for the seller's benefit.
I hope this unit stays in escrow. I for one will be waiting with anticipation to see what this puppy closes for... and then I'll be interested to see what happens next. At the very least, this buyer will be down at the County challenging their 2007 assessed value which at this present moment is $695,100!
Aloha Elaine
Elaine Schaefer (R, GRI, ABR)
Broker in Charge - Princeville Resort Office
Graduate, Realtor's Institute
Accredited Buyer's Representative
Top Producer 100% Club
RE/MAX Kauai
Princeville Resort Office
POB 223632
Princeville, HI 96722
cell: 808 639 2935
home fax: 1 808 440 4552
email:soldonkauai@yahoo.com
website: www.kauairealestatenow.com
......you can have your own piece of paradise
ask me how!
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