I am familiar with the “fee simple” terminology in Hawaii RE regarding condo purchases, but I stumble across a listing here in SD that was my first experience seeing a “ground lease” expiration disclosure in the listing. Do any of you have any experience in this area and does the lease generally get renewed. The property is steeply discounted, however it is risky if no renewal occurs. Leave is set to expire in 2027.
Thanks, been away a while, nice to be back on the board.
I’d avoid it like a virulent case of Ebola. (JMHO)
The land owner basically has the HOA by the yarbles. If you do buy it and plan to rent it out, make sure that your return is such that it’s worth it if the property becomes worthless in 2027.
Also, check what’s the mortgage situation on a land-leased building. Banks often don’t look favorably upon this type of situation.
[quote=Trojan4Life]I am familiar with the “fee simple” terminology in Hawaii RE regarding condo purchases, but I stumble across a listing here in SD that was my first experience seeing a “ground lease” expiration disclosure in the listing. Do any of you have any experience in this area and does the lease generally get renewed. The property is steeply discounted, however it is risky if no renewal occurs. Leave is set to expire in 2027.
Thanks, been away a while, nice to be back on the board.[/quote]
You are talking about the high rise in oceanside correct?
God, I went on vacation and completely forgot which condo I was talking about. I typically look for condos in the coastal area, so chances are yes. It was priced ridiculously low.
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