Moving to the Big Island of Hawaii can have its challenges when you are looking at real estate on the MLS and you find condos and beach properties that appear to be below the market values than other homes in the area. Look in the comments to see if the property is leasehold. This also holds true for farmland, which in many cases is owned by the Bishop Estate, a trust that owns a sizable portion of the agricultural land on the Big island.
There are generally two types of property you can purchase in Hawaii: Fee simple and leasehold. We recently wrote a post about fee simple, which means you actually own the structure AND the land.
When you purchase a leasehold property you are buying the structure only.
Here is how it works:
When you buy a…