COVID impact on Hawaii leasehold properties?
Tom from Oxford asked:
Aloha. Do you think the double whammy of COVID-19 (no tourists since early March and high unemployment on Mainland) will have a big impact on leasehold condo sales? Especially for people who may be over leveraged (i.e., dependent on cashflow from VRBO rentals) and now face a significant monthly nut (high HOA, insurance, taxes, and the leasehold fee [rent] and possibly a mortgage). I’ve been watching leasehold condos on Kauai, and there’s a lot of inventory (over 20 units in one complex in Poipu). The 20 units in Poipu have their leasehold fee (rent) being reset in 2021, and I suspect people are trying to bail out now. I’ve seen condos dropping $5K, $10 and $25K at a clip, including asking prices below what they paid. Mahalo
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