The island of Nantucket is one of the most popular vacation spots and has become a leading second home market in the country.

But since the demand is so big, and the local conservation laws restrict the building on the island, it can be tricky finding the perfect summer home of your dreams there.

If you have set your mind on investing in a vacation home on Nantucket, MA, read on for some useful advice that can help you make the best choice and to plan your finances and future as a potential homeowner on the island.

Island living has its pros and cons

While it may sound idyllic to live on an island, there are some potential downsides to it as well.

First of all, since Nantucket is located about 30 miles from the mainland and Cape Cod, there are risks of not being able to travel to and from it in case of extreme weather.

The ferry services and flights may be canceled during severe storms, and you may be cut off from the mainland until the weather improves.

Plus, since you can get to Nantucket by ferry, plane or boat only, all of the delivery costs for things you order or purchase from the mainland will be a lot higher, and so will most foods, fuels, and other items offered on the island itself. So, the logistics to and from Nantucket can make your life a little more complicated and more expensive.

Keep in mind that, especially during the winter, the residents on the island are quite a few, so the chances are that if you decide to live there, all-year-round, everyone will know you, and you will know everyone.

This is good news for people who want to live in friendly and tightly-knit communities but can be problematic for those seeking more anonymity and privacy.

The atmosphere varies from one neighborhood to another

Just like with any other town or county, the different neighborhoods have different vibes. There are more than 20 neighborhoods on the island, each of which is unique and has its advantages.

Town and the nearby neighborhoods are the central parts where all the hustle-bustle, high-end shopping, and fine dining happen. Plus, it is where there are the most historic landmarks on the island.

Madaket and Cisco are neighborhoods on the west shore of Nantucket and offer excellent surfing conditions and sunsets. Sconset, located on the eastern part of the island, has a European vibe with beautiful coastal cottages with weathered gray shingles and rose-filled gardens, as well as stunning ocean views.

So, make sure to explore the different neighborhoods to find one that will suit your preferences and lifestyle the most.

There are stringent rules for building and renovating in Nantucket

The authorities and the community of Nantucket are 100% dedicated to preserving the beautiful island's historic charm and natural resources and landscapes. This is why the Historic District Commission and other local organizations have implemented very strict regulations for any refurbishments or new buildings in Nantucket.

This means that you will not have the complete freedom to renovate or build a home as you wish there. You will need to follow the rules for the home's design, the shape of the roof, the height, the color and type of shingles, and others.

Thanks to these conservation organizations, the free land on the island is abundant, and the beaches and land are accessible and open to everybody.

The building materials and labor costs are sky high

Due to the difficult accessibility of the island from the mainland, the prices of the building materials shipped to it can be quite hefty. The same goes for the labor prices on the island, as often, you may need to bring people to the island to perform certain construction works.

This means that you should carefully plan your budget before building a new house in Nantucket.

You will have to pay a 2% Land Bank Tax

For the island of Nantucket to remain full of nature and keep all of its lands, beaches, and reserves free to access and visit, the locals need to pay 2% of the price for their homes to the Land Bank and several conservation organizations. So, when calculating your costs for the purchase, do not forget to add this 2% as well.

The upkeep can be very costly.

Keeping your second home in good condition and safe, especially during the winter, can be rather expensive. This is especially true if you do not live in the house all year round.

You will need to pay local services and people for snow moving and removal and for any repairs due to the strong winds, snow, and other harsh weather conditions.

You may want to consider renting your house out

If you will be residing in your vacation home only occasionally, it makes sense to rent it out to vacationers during the rest of the time. This can help you make money for the upkeep and return some of your investments for the purchase.

There is a well-developed residential rental business on Nantucket and some excellent rental companies and agencies you can ask for assistance for renting out your summer home short-term to visitors and vacationers.

Nantucket is a top destination not only for beachgoers and surfers but also for organizing various events, including weddings, anniversaries, bachelor parties, and more, so there are many candidates for renting suitable houses and properties throughout the year.

You will become a part of a very friendly and tight-knit community

As mentioned earlier, the permanent residents on the island of Nantucket are only about 10,000 people. As such, the small community is very close to each other and is dedicated to preserving Nantucket as charming and picturesque as it has been for centuries. This means that people actively donate money to various organizations that benefit the island. Also, they are all interested in keeping Nantucket clean and pleasant to reside in. So you should be prepared to be involved in the community of the island, especially if you want to feel the unique sense of community there.

Get local professionals to help you buy a house

It is best to hire a local real estate broker to find the perfect house for you. The locals are experts and know the property market very well.

You will be able to view the houses closest to your preferences and budget and receive excellent and reliable advice on the specifics like zoning, permitting, building zones, restrictions and regulations, taxes, and more.

For the best results, we strongly advise that you hire local attorneys as well as lenders to close the deal.