Property Owners Discuss Leasehold vs Fee Simple Condos in Maui

During a recent meeting of the Maui County Housing and Land Use Committee, discussions centered on the complexities of property ownership types, particularly the distinction between fee simple and leasehold properties. This topic is crucial for potential homeowners and investors in Maui, as it directly impacts their ability to secure financing and understand their rights as property owners.

Committee members confirmed that the majority of properties currently for sale in Maui are fee simple, which allows for full ownership of the land and property. In contrast, leasehold properties, where the buyer only owns the building and not the land, present unique challenges. These properties often require renegotiation of leases, which can complicate mortgage qualifications.

One committee member raised concerns about the implications of leasehold ownership, noting that properties priced lower, such as those around $200,000, may be leasehold. This can mislead potential buyers regarding true ownership and long-term investment value. The committee discussed the need for clarity on how many leasehold properties are available, with one member estimating there are about 12 leasehold properties currently listed.

The committee agreed to gather more detailed information on leasehold properties and their implications for financing, ensuring that potential buyers are well-informed about their options. This discussion highlights the ongoing challenges in Maui's housing market, where understanding property types is essential for making informed decisions.

As the committee continues to address these issues, residents can expect further updates that will help clarify the landscape of property ownership in Maui, ultimately aiming to support informed housing choices in the community.