Acquisition Costs Beyond Purchase Price
The 2% Land Bank fee is the largest single acquisition cost unique to Nantucket. In addition: attorney fees ($3,000-$6,000), title insurance ($5,000-$10,000 on a $5M purchase), inspections including structural review ($2,000-$5,000). Total acquisition costs above purchase price on a $5M property typically run $110,000-$125,000 before any mortgage costs.
Annual Carrying Costs: $5M Property Illustration
| Cost Category | Estimated Annual Range |
|---|---|
| Property taxes | $20,000-$35,000 |
| Insurance (homeowners, flood, wind) | $15,000-$40,000 |
| Maintenance reserve (1.5-2% of value) | $50,000-$100,000 |
| Utilities (oil/propane, island rates) | $10,000-$20,000 |
| Travel (ferry/air, family, 15 summer weekends) | $8,000-$20,000 |
| Association fees (if applicable) | $2,000-$8,000 |
| Total Estimated Annual | $105,000-$223,000 |
Analyst note: These ranges are illustrative. The specific property's age, location, and your use pattern drive the actual numbers. Use this as a framework and verify each line item for any property you are evaluating.
Island Cost Premiums
Everything costs more on an island. Building materials are ferried over. Skilled contractors are in high demand and often booked months in advance. Natural gas is unavailable in most of Nantucket - heating is typically oil or propane at island delivery costs. Budget a meaningfully higher maintenance reserve than you would for a comparable mainland coastal property.