homepage logo

Mortgage interest less than office rent

By Staff | Jul 2, 2015

Only five units remain at Keawe Business Center.

LAHAINA – With interest rates historically low and prices below replacement cost, it’s true. Your mortgage interest on a 90 percent loan will be lower than rent. This alone is the reason to buy your office space at Keawe Business Center located in the Keawe corridor, Lahaina’s new commercial center for West Maui.

It doesn’t stop there. There are many more benefits to owning:

As an owner, you receive tax savings from depreciation, as well as not having to pay general excise tax on rent. This could save you an additional $300 to $500 per month.

You will no longer have those annual rent increases, which really add up over time. This represents an average savings of around $200 to $300 per month.

You will accumulate $150,000 (+/-) in equity over ten years through your mortgage payments.

You (not your landlord) will earn the future appreciation. Prices are at least 25 percent below replacement cost, so when the market normalizes, you could see an increase in value of $100,000 or more.

Private restroom – As a bonus, the remaining units will be delivered with a restroom, per seller’s specifications, and framed demised walls, which saves each buyer over $10,000.

Low down payment – Most businesses qualify for 90 percent financing under the SBA 504 program, and 100 percent financing is available for medical doctors and dentists. You can also finance your improvements.

More control. Invest in your future and have more control when you’re ready to sell your business or retire.

Only five units are available for sale at Keawe Business Center. The remaining five units are available in various sizes, locations and prices. Sizes range from 858 to 1,495 gross square feet, and prices range from $327,000 to $517,000, which represents a dramatic discount from the original prices of $479,000 to $778,000. That’s a reduction of over 30 percent!

Businesses occupying the 13 sold units (out of the 18 total) include Valley Isle Community FCU, The Pink Puka baby store, Strategic Financial Alliance, Imua Physical Therapy, Insurance Associates (coming soon), Kasprzycki Designs (coming soon), TS Restaurants, DLD Properties, and Hawaii Executive Transportation.

Mario Cardone, principal broker of CardOneRealty Corp. and subagent of Peake & Levoy LLC, is offering private showings for those wishing to purchase or lease space in what promises to be West Maui’s best business address. Call Mario at 276-8132 for your Net Cost of Buying cost/benefit analysis or for more information. Information is available at www.mauicommercialproperties.com or e-mail mario@peake-levoy.com.