As a Buyer you need to fully understand the issues that may-most likely will-impact the value, the uses and cost of ownership on Kauai. Heading up the list are:

….Property Assessments and Property Tax Rates. You might want to know why condominiums are taxed the same as hotels, at approximately double that of single family residences, and how that impacts the bottom line cost of ownership (it’s not all bad news!)?

….Property Zoning /Usages. There is raging debate between and among the county governing body, the local community and absentee owners about the rights and limits one could/should place on personal decisions about property uses. We need to watch the bouncing ball.

….Which way VDA (Vacation Destination Area)? Limits on where properties can be used as “vacation rentals” is central to the prior subject. The proposed regulation for limitations is before the Kauai County Council but is expected to be mired down by legal issues unless some overall “ground rules” can be agreed upon by the island stake holders.

….Buyer’s rights for properties with ADU (Additional Dwelling Unit) clearance. This right for adding living space to existing properties has a short shelf life, and careful planning is required to preserve this right.

….How about Agricultural land, “dedicated” and otherwise ? Here again there are issues that Buyers need to understand, from taxation, usage, ability to sub-divide (via the CPR -Condominium Property Regime-process) or to add dwellings (guest house or ADU).

The nuances of these topics will be addressed in detail in future postings but suffice it to say that they are here and now issues for Buyers.

Leave a Reply