Kauai in Hawaii is not just a place to dream of living, it can become a reality, so long as you have factored all the costs into your budget. This includes the hidden costs, too. For instance, many people do not stop to consider how the closing costs can vary considerably between regions. For more information on these costs in relation to Kauai, you can click on https://kauaicondosandhomes.com/, who offer some useful advice in relation to this part of the US.
For some specifics, Kauai is the fourth largest, the oldest, and the northmost island in Hawaii, and often referred to as the “Garden Island”. It has been described as having valleys that are emerald in colour, mountains that have sharp spires, and cliffs that are jagged due to how the elements have shaped them over time.
So, let us consider the costs that come with living in such a place.
Location Costs
As a Hawaiian island, Kauai is desirable in terms of a place to live, which will come at a cost.
Apart from its picturesque scenery and opportunities for hiking, Kauai is also one of the quieter islands. It is a relaxing place to live while still having enough going on to satisfy the more adventurous. Kauai boasts natural beauty with its Garden Island, which is one of the most underdeveloped of the main Hawaiian Islands and offers, in addition, the Na Pali Coast with beautiful beaches, and Koke’e State Park to visit. Fresh topical fruits are also on the menu. So, this all comes at a cost in terms of higher rents and property prices. If you have the finances, however, then it is a price worth paying.
In terms of tourists, they might spend on average $152 per day on a vacation, based on the average costs of daily expenses for visitors. This gives you some idea of the cost of living in Kauai, although this figure will be made up of meals out and transportation costs for sightseeing.
Closing Costs
A closing cost can be defined as a fee that is paid to close a real estate transaction. The point at which it becomes payable is the moment that the title of the property is transferred or conveyed to the buyer.
In the US, closing costs are a cost that is necessary to be absorbed by everyone purchasing real estate, so what really matters is that you are aware that these closing costs can vary between regions. In addition to the down payment, these costs represent a large chunk of the budget. Particularly in Kauai, where living costs are also high.
For a further article on closing costs in general, click here. This provides a financial perspective on them to help understand the unavoidable expense that is incurred in purchasing a house in the US, not just its 50th state. Hawaii officially became this on 21 August 1959, then existing as its smallest state and the only one made up entirely of islands.
Building a Home
The cost of building a home on Kauai is thought to be a minimum of $300 per square foot. This would provide an average to modest home with reasonable facilities and finishes. For luxury, you would need to increase your budget by at least 50 percent per square foot. This does relate to things costing more in Hawaii. But then, to be an idyllic place does come at a premium. It is only a matter of having the budget, and like the other expenses, being prepared for them.
To conclude, everything might be more expensive in all parts of Hawaii, but if we had to pick one area that has it all then it is Kauai, in that it is quiet yet developed enough for activity. We just need to bear in mind all the costs involved in setting up home there, including closing costs being higher, as a knock-on effect of everything costing more in such an idyllic location.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin