HONOLULU (HawaiiNewsNow) - Almost 60% of the properties for sale on Oahu are condominiums, but not all condos are the same. On today's Real Estate of Mind, we caught up with Coldwell Banker Realtor Associate Patrick Graham and tapped into his expertise. Check out the video.
Here is an outline of the different types of condominium ownership.
- Leasehold Condominium: As discussed on recent Real Estate of Mind segments, the land for this type of condominium is leased from the landowner.
- Fee Simple Condominium. You own your condo and the "land" associated with it. This type of residence is a good choice for someone who wants a predictable monthly payment and who doesn't want the upkeep of a single family residence. Financing is typically straightforward. Monthly maintenance fees vary depending upon the amenities of the building.
- Co-op: Instead of actually buying the property where you live, you're buying into a corporation that owns the building. Once you purchase shares, you have an apartment that you and your family get to live in, but you are constrained in what you can do with the apartment by the rules of the corporation. There are very few co-op apartments on Oahu, but many in major cities like New York.
- Condotel: In this case, you own the unit but how you use it is flexible. You can live in it, rent it out short term (1-2 days or more) or long term (more than 30 days). You can leave it in a hotel pool and receive rent, self-manage it, or hire your own property manager to manage it for you. Mortgage financing is harder to secure for Condotels, so many sales are made for cash.