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
This short clip came from our Aloha Friday Hawaii Real Estate Show which goes live every other Friday on our Hawaii Real Estate YouTube channel or our Living in Hawaii Facebook page
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What do you think?