Building vs Buying a Home in Hawaii
When it comes to finding your dream home in Hawaii, you’re faced with a crucial decision: should you build or buy? Both options have their pros and cons, and understanding the costs and considerations can help you make an informed choice. In this article, we’ll delve into the average costs of building a home in Hawaii, the breakdown of expenses, and explore financing options. Let’s dive in.
Average Cost to Build a House in Hawaii
Building a house in the Aloha State comes with its own set of considerations. On average, it costs approximately $206 per square foot, excluding expenses like land costs, permit fees, and excavations. The total average cost of building a house in Hawaii is $412,840, but this figure can range between $400,000 and $600,000 depending on various factors.
Breaking Down the Costs
Framing Lumber: According to Forbes Home, framing a 2,000 sq. ft. home costs about $33,000. However, it’s important to note that material costs can fluctuate due to factors like supply chain issues and rising labor costs.
Contractor Charges:
Hiring a contractor can range from 10% to 20% of the total construction value. This fee covers the overseeing of the construction process and hiring other professionals involved in the project.
Electrical Costs:
The average new construction electrical cost per square foot is between $3 to $6, including both rough-in and finishing work. Electrical costs vary based on factors like property size and wiring type.
Roof Installation Costs: The cost of roofing depends on factors like roofing material, roof slope, and house size. For instance, asphalt shingle roofing can range from $265.12 to $430.82 per 100 sq. ft.
Plumbing Costs:
Installing plumbing fixtures typically costs around $4.50 per sq. ft., or approximately $4,080 on average. This includes the installation of toilets, faucets, wash basins, and more.
HVAC Installation Costs:
Installing a new HVAC system can range from $1,500 to $12,500, depending on factors like system type, size, and additional features.
Soft Costs
Land Cost: The average price per acre in Hawaii is around $10,000. Additionally, you’ll need to budget for land preparation costs, which can range from $1,500 to $3,000.
Permit Costs:
Building permits are crucial for any construction project. In Hawaii, permit costs can vary based on factors like construction type, occupancy, and project scope, with an average range of $5,000.
Home Interiors:
Furnishing your new home can add up quickly. For a 2,500 sq. ft. home, budgeting at least $20,000 for interior furnishings is recommended.
Interior Designer Costs:
If you opt for an interior designer, budget an average of $5,400 for their services. This cost may vary depending on your specific requirements.
Financing Options
If you don’t have the full funds upfront, there are various financing options available:
Home Construction Loan:
Options include construction-to-permanent loans, which cover both land purchase and construction costs, and construction-only loans, which focus solely on construction expenses.
Personal Loan:
This can be used to finance specific parts of the construction process that may have been overlooked in the initial budget.
Home Equity Loan:
For homeowners with existing properties, leveraging home equity can be an effective way to finance the construction of a new home.
Conclusion
Ultimately, the decision to build or buy a home in Hawaii depends on your preferences, budget, and timeline. While building a home offers customization and the potential for cost savings if you already own land, buying an existing home may be a more straightforward and cost-effective option. Carefully weigh these factors before making your decision, and you’ll be on your way to living the Hawaiian dream.