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Buying A House In Hawaii – Bankrate.com

Thinking about buying a house in Hawaii? You’re probably already dreaming of sunshine, surfing, lush greenery and blue water. There is plenty to love about living in the Aloha State, obviously — but the process of purchasing pr…….

Thinking about buying a house in Hawaii? You’re probably already dreaming of sunshine, surfing, lush greenery and blue water. There is plenty to love about living in the Aloha State, obviously — but the process of purchasing property here won’t feel like a vacation. As you try to figure out where to live, what to expect and how much to budget, use this as your guide to buying a home in Hawaii.

Steps to buying a house in Hawaii

Decide where to live in Hawaii

From a condo in a skyscraper in downtown Honolulu to a bungalow tucked away in a corner of Kauai, Hawaii offers a wide range of location options. While anywhere you pick is going to be beautiful, you should also count on it being expensive. Not just the home itself, either: The cost of living in Hawaii — which includes transportation, food, utilities and more — is much higher than you’ll find on the mainland. Consider this telling statistic from Bankrate’s cost of living calculator: If you move from Dallas to Honolulu, you should be prepared to cover an 88 percent increase in your budget. Be sure to keep that in mind as you determine your home buying budget in Hawaii, to make sure you leave ample room for your day-to-day expenses.

Tips for buying a house in Hawaii

The most unique aspect of buying a home in Hawaii is trying to figure out which island to call home. While the state consists of eight major islands altogether, only four of them are widely populated, according to Hawaii Realtors: Hawaii (also known as the Big Island), Kauai, Maui and Oahu. The Big Island is by far the most affordable option. Single-family home sales from 2022 peg the median price here at $457,000. If you’re looking at the other three islands, the median sale price jumps to over $1 million.

That $1 million price tag means that when you’re looking at mortgage rates, you may need to borrow a sizable chunk of cash — in which case you’ll want to compare jumbo loan options. In Hawaii, any loan over $970,800 exceeds conforming loan limits in 2022. If you’re looking at FHA loans, you will need to have a tighter budget. For example, FHA loans are capped at $477,250 on the Big Island.

Things to know about buying a house in Hawaii

  • Property taxes: Buying a house in Hawaii may be expensive, but property taxes here are actually quite affordable. Relative to tax rates in other states, Hawaii’s property tax rate is very low. According to the Tax Foundation, you can expect to pay an average of 0.31 percent of …….

    Source: https://www.bankrate.com/real-estate/buying-a-house-in-hawaii/

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