What Is the Full Cost of Owning a Second Home on the Big Island of Hawaii?
If you’re thinking about buying a second home on the Big Island, the purchase price is only part of the picture.
The real question is:
What does it actually cost to own it month to month and year to year?
Let’s break it down simply so you can see the full picture.
The 5 Main Costs of Owning a Second Home
When mainland buyers look at properties, these are the five numbers that matter:
Mortgage (if financing)
Property taxes
HOA fees (if applicable)
Insurance
Maintenance + management
When you combine these, you get your true monthly cost.
1. Mortgage Payment
If you’re financing:
Your rate depends on second-home vs primary
Down payments are often higher for second homes
Monthly payment is your base cost
This is usually the biggest piece… but not the only one.
2. Property Taxes
On the Big Island:
Taxes are based on property value and classification
Second homes are taxed higher than primary residences
Even then, Hawaii property taxes are oftenlower than many mainland states.
Still… they need to be factored in.
3. HOA Fees (Common in Resort Areas)
In places like Waikoloa and Mauna Lani:
Condos: roughly $600 – $1,500+ per month
Homes: lower monthly HOA, but still present
These fees usually cover:
Landscaping
Exterior maintenance
Pools and amenities
Common areas
For second-home owners, this often simplifies ownership.
4. Insurance
Insurance varies more than most buyers expect.
Typical ranges:
Condos: ~$800 – $2,500/year
Homes: ~$2,000 – $6,000+/year
Costs depend on:
Lava zone
Location
Property type
Hurricane insurance may also be required.
5. Maintenance + Property Management
This is the piece people forget.
If you’re off-island, you’ll likely need:
Property management
Cleaning and upkeep
Repairs and maintenance
Even if you don’t rent the property, someone needs to keep an eye on it.
Real Example: What This Looks Like
Let’s say you’re buying a condo in Waikoloa:
Mortgage: varies
HOA: ~$800/month
Property taxes: depends on value and classification
Insurance: ~$1,200/year
Maintenance/management: varies
When you combine everything, the total monthly cost is oftensignificantly higher than just the mortgage alone.
That’s why looking at the full picture matters.
Can Rental Income Offset Costs?
For some buyers, yes.
If the property is in an area that allows vacation rentals:
Income can help offset expenses
But it’s not guaranteed
It depends on occupancy, management, and market conditions
Many buyers view this as:
Lifestyle first, income second
Why Many Buyers Still Move Forward
Even with the full cost, second-home buyers choose the Big Island because:
They want a place they love
They plan to use it regularly
They’re thinking long-term
They’re planning for retirement
When those align, the numbers often make sense.
Common Mistakes Buyers Make
Looking only at purchase price
Underestimating HOA and insurance
Not planning for management
Assuming rental income will fully cover costs
So… What Should You Expect?
Expect this:
Owning a second home on the Big Island is a combination of lifestyle and financial planning.
If you understand the full cost upfront, there are no surprises later.
FAQ
What is the average monthly cost of a second home?
It varies widely, but you need to combine mortgage, taxes, HOA, insurance, and maintenance.
Are condos cheaper to own than houses?
Often yes in terms of maintenance, but HOA fees can be higher.
Can rental income cover expenses?
Sometimes partially, but it depends on the property and usage.
Next Steps
If you’re thinking about buying a second home, the most important step is looking at:
The full monthly cost
Not just the purchase price
Julie Wettstein is a trusted real estate broker specializing in buying and selling homes on the Big Island of Hawaii, with a focus on helping off-island sellers, second-home owners, and real estate investors navigate the unique Hawaii market with confidence.
With over 30 years of real estate experience, Julie provides expert guidance on pricing strategy, marketing exposure, negotiation, and the complexities of selling property in Hawaii—including HARPTA, FIRPTA, short-term rental regulations, and island-specific property considerations.
Known for her concierge-level service and strong negotiation skills, Julie helps clients maximize value while removing stress from the selling process—whether they are on-island or managing their property remotely.
If you’re thinking about selling your home on the Big Island of Hawaii or want a clear strategy to get top dollar in today’s market, Julie is a trusted resource for expert advice and results-driven marketing.
Julie Wettstein, Broker RB-21086
Island Homes by Scuba Julie
Big Island, Hawaii
(808) 345-6934
BigIslandDreamHomes.com
[email protected]
