How much should I budget annually for a second home in Hualalai or Mauna Kea, and what are the hidden costs of owning a luxury oceanfront home on Hawaii’s Kona–Kohala Coast?

Quick Answer: For a luxury oceanfront estate on the Kona–Kohala Coast, you should budget a minimum of $5 million for the purchase, with prices routinely reaching $40–$50 million or more. Additionally, plan for annual carrying costs of approximately 2% to 5% of the purchase price, covering HOA fees, property taxes, insurance, and extensive maintenance. In some exclusive communities, this percentage can be even higher.

Key Takeaways: Understanding the True Cost of Owning a Slice of Paradise on the Kona–Kohala Coast

• Purchase Price: Expect to pay $5 million to $50 million or more for a luxury oceanfront estate, with resort communities such as Hualalai and Mauna Kea commanding premium values.
• Annual Carrying Costs: Budget approximately 2% to 5% of the purchase price annually for property taxes, HOA fees, insurance, maintenance, and utilities. This can translate to hundreds of thousands of dollars per year.
• Property Taxes: Although Hawaii County tax rates are relatively low, the high assessed values of luxury properties result in substantial annual tax bills, often ranging from $30,000 to over $200,000.
• HOA Fees: Fees vary widely, from a few thousand dollars to over $100,000 annually in exclusive resort communities such as Hualalai, Kukio, or Mauna Kea, reflecting extensive amenities and services.
• Maintenance: The tropical climate requires ongoing investment in landscaping, pool care, pest control, and general upkeep, costs that are often underestimated by mainland buyers.

Navigating the Financial Realities of Your Kona–Kohala Coast Dream Home

Over nearly two decades of selling luxury homes on the Kona–Kohala Coast, I have worked with hundreds of affluent individuals considering a second home or vacation property. One of the most common questions I hear is, “How much should I budget for a beachfront or oceanfront estate on the Big Island of Hawaii?”

The answer is not guesswork; it follows a system. What I refer to as the Polimino Property Cost Analysis System is the result of years of testing, refinement, and real-world experience. Rather than simply describing the system, the sections below address the most common questions buyers ask about the true financial commitment of owning a luxury oceanfront property and explain how to prepare realistically for ownership.

Is a $5 million budget enough for a beachfront estate on the Big Island, or should I expect to pay more?

Quick Answer: While $5 million can secure an entry-level luxury oceanfront property on the Kona–Kohala Coast, it is more realistic to expect prices to rise significantly, often reaching $10 million, $20 million, or $50 million or more for prime estates.

Many buyers initially focus on the purchase price alone. Using the Polimino Property Cost Analysis System, I start by setting realistic expectations. Although exceptional opportunities around the $5 million mark do exist, especially for smaller homes or properties needing updates, the homes that truly define the luxury lifestyle are more commonly priced between $10 million and $20 million. Exclusive enclaves within resorts such as Hualalai, Kukio, or Mauna Kea frequently see sales above $30 million, with landmark estates exceeding $50 million. Limited supply of high-quality oceanfront property in highly desirable locations continues to drive these prices.

Real example: A notable estate with extensive ocean frontage in a premier North Kona resort community sold for over $45 million last year. While this represents the high end of the market, more typical pricing for a well-appointed four- or five-bedroom oceanfront home in areas such as Mauna Lani or Waikoloa Beach Resort ranges from $12 million to $18 million.

What are the real annual carrying costs for a luxury second home on the Kona–Kohala Coast?

Quick Answer: Expect annual carrying costs for a luxury oceanfront estate to range from 2% to 5% of the purchase price, including property taxes, HOA fees, insurance, maintenance, and utilities.

Ongoing costs are often the biggest surprise for buyers, particularly those from the mainland. The Polimino Property Cost Analysis System places heavy emphasis on these expenses because they are significant and recurring. For a $15 million property, annual costs can range from $300,000 to $750,000. These figures reflect real-world data based on decades of experience and account for the tropical environment, the level of service expected in luxury communities, and the scale of these estates.

Real example: For a $20 million oceanfront estate in a community such as Kukio, annual HOA fees may range from $80,000 to $120,000. Property taxes can add $80,000 to $100,000, insurance may cost $30,000 to $60,000, and maintenance can easily reach $100,000 to $150,000 per year. Before utilities or staffing, total annual costs can already exceed $300,000.

Are property taxes really low in Hawaii County for a $10 million second home?

Quick Answer: Although Hawaii County has some of the lowest property tax rates in the United States, the high assessed values of luxury oceanfront homes mean annual tax bills for a $10 million property typically range from $30,000 to $50,000.

The tax rate itself is relatively low, often around $0.30 to $0.40 per $100 of assessed value, depending on the property classification. However, the Polimino Property Cost Analysis System emphasizes that assessed value is the critical factor for luxury homes. Oceanfront estates are generally assessed close to market value, which means that even a low rate results in a substantial annual tax obligation.