Up, Up and Away!
The comment most often heard on Kauai these days, from those that have lived here some time, is that they can't believe how high prices have risen. Risen so high, in fact, that anyone wanting to buy in this market will just have to wait for prices to come down to something more reasonable.
 I hate to be the bearer of bad news to these folks but the "inflated prices" they're looking at today are going to look like bargains five years from now and be viewed as an "absolute steal" ten years down the road.
California buyers today represent a good chunk of buyers on Kauai. We're seeing a lot of people purchasing second homes and then renting them out with the idea eventually of selling their California abode and retiring here. Not a bad plan, actually. If they can rent the property here for enough to cover their expense (which is highly likely), they'll have the best of both worlds--two properties appreciating in very hot real estate markets.
And California buyers are not the least bit surprised by property valuations here on Kauai. In fact, if they're from the Bay Area-San Francisco, San Jose, Saratoga, Los Gatos, Palo Alto, etc. or from any of the beach cities, they look at Kauai prices as very good value compared to what they are used to. And although the California market will in time cool down, as it always does, there will continue to be a large number of folks reaching retirement age, that have huge chunks of equity in their homes, who will want what Kauai offers. You just can't beat our open spaces, clean air, low crime rate, friendly people and year round temperate climate!
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