After taking my household on a nine-day trip to Honolulu, Hawaii, my plan to relocate there’s again within the playing cards! Since 2014, two years after retiring from my finance job, I have been considering shifting again to Honolulu to spend extra time with my mother and father. Nonetheless, truly making the transfer has been a lot more durable than anticipated.
Simply as financially insecure individuals typically inform themselves “only one extra 12 months” earlier than retiring, I have been saying “perhaps subsequent 12 months” about shifting to Honolulu for the previous 10 years!
The factor is, life retains getting in the way in which. First, we had a son in 2017, then a daughter in 2019, and the pandemic made us crave stability and familiarity. Our son bought into a faculty he enjoys immensely, and now our daughter has joined the identical faculty, which we consider she’ll additionally take pleasure in. Consequently, the inertia of life has stored us in San Francisco.
Nonetheless, with my mother and father now of their mid-70s, the time to spend extra time with them is now. Our youngsters additionally dealt with their longest time away from residence properly. Though, they complained concerning the warmth, they missed it as soon as we returned.
My issues about them adjusting to a brand new atmosphere have diminished.
The Challenges of Residing in Honolulu, Hawaii
There are three important challenges of dwelling in Honolulu: housing, meals, and work. If you happen to plan to ship your kids to personal faculty, affording the schooling and getting accepted are additionally vital challenges.
Let’s focus on every problem in the event you’re contemplating dwelling and dealing in Honolulu. You probably have ever lived and labored in Honolulu or at the moment do, I might love your insights as properly.
Honolulu’s Excessive Residence Costs
Honolulu boasts one of many highest median residence costs within the nation at roughly $1,050,000. In the meantime, Zillow has the median Honolulu residence worth round $800,000, however I do not belief Zillow. When home searching, it typically appears that houses price way more than the median worth, regardless of town. Humorous how that’s.
To afford a median-priced residence utilizing my 30/30/3-5 residence shopping for rule, you’d have to make between $210,000 and $350,000, have a $210,000 down fee, and keep a $105,000 liquid buffer post-purchase.
If you happen to come from high-priced housing markets like San Jose, San Francisco, Los Angeles, San Diego, Seattle, New York, or Boston, you won’t be as shocked by Honolulu’s excessive residence costs. Nonetheless, in the event you’re coming from in all places else in America, put together to really feel the ache.
Proudly owning Actual Property in San Francisco Makes Transferring To Honolulu Simpler
The median residence worth in San Francisco is round $1,800,000, which is about 75% increased than in Honolulu. Due to this fact, shifting to Honolulu may save us round 40% if we purchase a median-priced residence.
Nonetheless, we do not desire a median-priced residence; we would like a improbable residence with ocean views or one that’s reworked and near the seashore. Sadly, these houses price over $4 million, with actually no higher restrict.
To pay for such a house with money, we might have to promote a number of rental properties. This is able to simplify our lives as we age, however it might additionally harm our passive revenue once more. After slicing our passive revenue by ~29% in 2023 as a result of a money residence buy, we do not wish to make such a drastic transfer once more.
Luxurious houses in Honolulu typically take 3 – 6 months to promote, not like in San Francisco, the place promoting in a single month is frequent. Given the less high-paying jobs in Honolulu, there is a larger funding threat related to shopping for luxurious actual property there.
If you happen to purchase property in Honolulu it is best to consider the home extra as a consumption expense than as an funding.
Honolulu’s Excessive Meals Prices
Produce in Honolulu is the most costly in America because of the additional delivery prices. For instance, a bag of cotton sweet grapes I purchased prices $18 at Safeway in Honolulu, in comparison with $14 in San Francisco.
Count on to pay $20 – $25 for a plate lunch, making it simple for a household of 4 to spend $80 – $100 for lunch, together with tax, tip, and drinks. Nonetheless, portion sizes are comparatively giant when eating out, together with meals vehicles.
Under highlights a wide range of meals prices in Honolulu, up to date no less than annually by a group of vacationers. Regardless of the place you come from, you’ll undoubtedly really feel the burden of excessive meals prices in Honolulu.
We Develop Our Personal Fruit in Honolulu
In Hawaiian tradition, there is a saying: “If you happen to care for the land, the land will care for you.” Due to the timber my grandparents and fogeys planted many years in the past, we have now loads of fruit in our backyards.
We have now a number of mango timber that produce over 500 mangoes a 12 months. By relocating to Honolulu, my household of 4 will guarantee these mangoes do not go to waste. We even have guava, orange, and pomelo timber, which implies we can’t have to spend a lot on breakfast if we hold to a principally fruit morning weight loss plan.
Throughout our journey, our household of 4 principally shared two plate lunches and had leftovers. A lot of the motive is as a result of our kids are nonetheless younger. Nonetheless, my spouse and I’ve at all times been reasonable eaters and are solely about 5% heavier than we have been since faculty.
Honolulu’s Comparatively Low Pay
The most typical suggestions from locals is the decrease pay in comparison with the mainland. We’re speaking 40%-60% decrease pay for a similar jobs. There are additionally fewer six-figure jobs obtainable, particularly in comparison with San Francisco’s tech sector. The primary industries in Honolulu are tourism, protection, agriculture, fishing, and manufacturing, which are not recognized to be high-paying industries.
Based on the 2020 Census, the median family revenue in Honolulu was $96,580. The St. Louis Fed knowledge exhibits it was $96,304 in 2022. For 2024, the family revenue is probably going nearer to $105,000 – $110,000.
Whereas not dangerous in a vacuum, it isn’t nice in comparison with the median residence worth of $1,050,000. Consequently, it’s normal for 2 or three generations to dwell collectively. If a family consists of two-to-four working people, a median family revenue of $100,000 is not excessive.
As of Could 2024, ZipRecruiter experiences the typical wage in Honolulu is $61,247. To personal a median-priced home and lift a household in Honolulu, you want to earn far above common or cohabitate with a number of working people. The monetary assist of fogeys can also be fairly frequent.
We Have Sufficient Passive Revenue For Residing In Hawaii
After saving and investing since 1999, we have now sufficient passive revenue to assist a middle-class way of life for a household of 4 in Honolulu because it’s cheaper than San Francisco. The secret is to maintain our housing prices decrease than they’re in San Francisco. If we wish to purchase a luxurious property, we might have to work part-time or full-time.
Nonetheless, going again to work is one thing I look ahead to as a result of I wish to be a instructor at my kids’s faculty. Relocating to a brand new metropolis means making new buddies and assembly new individuals, and diving headfirst into my kids’s faculty group is a perfect manner to try this.
As a instructor, I will get to know many different academics and directors, in addition to loads of new mother and father. I might love to show private finance, entrepreneurship, advertising, branding, and communications to center or highschool college students. I spent three years teaching highschool tennis and loved it for probably the most half.
If I am unable to get a job instructing at my kids’s faculties, I will proceed to write down from residence. However as an alternative of slowly going loopy writing in a darkish room, I will get to write down outdoors on a lanai overlooking the water!
If my subsequent two books do properly (scheduled for 2025 and 2028), perhaps I will get one other e book deal that retains me writing till each youngsters graduate highschool. The pay is not excessive as an writer, however writing books will present them their outdated man takes teachers critically.
Honolulu’s Unbiased Grade Colleges
Honolulu has some wonderful impartial and public faculties. Since our children already attend a Mandarin immersion impartial faculty, we plan to proceed with impartial training initially.
My mother and father dwell close to two of Honolulu’s finest impartial grade faculties: I’olani and Punahou. We toured I’olani and Punahou with our kids, and located each faculties to be superb unimaginable services. Maryknoll additionally provides a Mandarin immersion program, which is enticing if we relocate whereas our children are nonetheless younger. We extremely worth studying a second language.
As a bonus, the annual tuition at I’olani and Punahou is about $13,500 lower than what we pay in San Francisco, and Maryknoll is $23,000 cheaper. The tutoring can also be the identical from Ok-12, so if we transfer when our children are older, we might pay about 50% much less since costs go up by grade in San Francisco.
The mix of higher services and decrease prices is difficult to beat. I am certain the academics are fantastic too. Nonetheless, entering into these faculties can be difficult with out a native community to assist us.
Iolani’s important entry factors are Kindergarten and sixth grade, whereas Punahou has entry factors at Ok, 4, 6, 7, and 9.
The problem can be in entering into faculties
If our expertise with making use of to preschool in San Francisco is any indication, getting each youngsters into such impartial faculties can even be troublesome. Demand is at all times excessive, and we’re coming from San Francisco, the place we do not have a neighborhood Honolulu community to assist us.
It is attainable that certainly one of our children will get in and the opposite would not. Logistically, having two youngsters go to totally different faculties is suboptimal. Punahou has extra accommodative entry factors with Ok, 4, 6, 7, and 9. Given our children are three years aside, entry for grades 4 and seven or 6 and 9 would work.
We hope my background now as an writer gives selection from different households who’re principally in medication, regulation, and finance. We additionally do not want tuition help for 2 youngsters and may usually donate.
Primarily based on the ages of our children and the colleges’ important entry factors, we might apply within the Fall of 2029 for our daughter to enter as a 4th grader and our son to enter as a seventh grader at Punahou in 2030. Or we will apply within the Fall of 2031 for sixth grade and ninth grade in 2032.
Relocating to Honolulu in 2032 might be finest as a result of our kids will study extra Mandarin at our their faculty, which fits till the eighth grade. We’ll get to take pleasure in our San Francisco residence we simply purchased in 2023 for 9 years.
The Concern Of Being A Stranger In A New Metropolis Is Overblown
You would possibly concern relocating since you’ll have to begin over making buddies. The stronger your friendships and household connections again residence, the more durable it’s to maneuver.
Nonetheless, as a faculty guardian, I’ve realized how simple it’s to fulfill new individuals and make buddies if you wish to. There are infinite social capabilities to fulfill different mother and father, together with playdates, birthdays, faculty occasions, mother and father’ nights out, and fundraisers.
As well as, you possibly can be part of meetups or golf equipment associated to your hobbies. My personal sports activities membership in San Francisco has offered the most important way of life enhance for under $175 a month. It’s been a good way to fulfill fellow tennis and pickleball gamers.
So do not be afraid of loneliness when relocating. Honolulu has heat and welcoming residents. Simply be certain to grasp the tradition, familiarize your self with Hawaiian language, and respect island traditions. As a brand new resident, attempt to give greater than you are taking.
Promoting Property Earlier than Relocating To Honolulu
We have been accumulating properties in San Francisco since 2003. We now have 4 rental properties and one main residence in San Francisco, plus a trip property in Palisades Lake Tahoe. Our web value is getting sophisticated and we would not thoughts simplifying.
Given we want capital to purchase a brand new residence and do not wish to take care of tenant and upkeep points, we in all probability have to promote no less than two properties earlier than we relocate. Presently, I handle all properties in San Francisco, which is straightforward and provides me one thing to do.
With actual property commissions coming down after the NAR price-fixing settlement, promoting now has change into extra palatable. I simply cannot get myself to pay greater than a 4% promoting fee charge when expertise has lowered commissions in each different business.
On the identical time, with the tech and synthetic intelligence increase, promoting now’s laborious. I count on AI to spice up housing costs within the San Francisco Bay Space many years to return. Apart from investing in personal AI corporations, the following finest technique to take part in AI is by proudly owning actual property in cities with the main AI corporations.
In 20 years, I am certain I’ll look again with remorse having bought a first-rate west facet San Francisco property immediately. Due to this fact, I want to keep no less than two funding properties in San Francisco if we relocate. Perhaps a property supervisor is the answer, however I’m unsure.
It is Value Residing In The Finest Place Potential
I’ve lived overseas for 13 years in 5 nations, labored in worldwide equities for 13 years, and traveled throughout America for the previous 47 years. Honolulu is likely one of the finest locations to dwell within the second half of your life.
There is a motive why Hawaii residents have the longest life expectancy in America: a greater, extra stress-free way of life. As soon as you’ve got accrued sufficient wealth, having a protracted and wholesome life turns into a precedence.
Sure, there are downsides to dwelling in Honolulu, comparable to visitors, increased costs, comparatively excessive state revenue taxes, and island fever. It can even be harder “making it in Hawaii” except you’re in medication, regulation, or an entrepreneur. Even then, it is powerful to grind so laborious when island life is so stress-free. Lastly, the tempo of life is far slower, which can be laborious to regulate to.
Nonetheless, I consider the positives far outweigh the negatives. As soon as you’ve got constructed sufficient wealth, your objective must be to dwell as lengthy and as wholesome a life as attainable.
Winding Down In Honolulu In The Second Half Of Life
I wish to put on shorts and t-shirts year-round. It will be good to swim within the ocean within the mornings and play tennis within the evenings. Residing in a medium-sized metropolis additionally gives sufficient work alternatives to remain productive, however not a lot that you simply really feel overwhelmed by competitors. Most of all, I need my household to be secure and pleased.
Honolulu gives all this stuff. Nonetheless, we can’t know till we attempt to relocate in 2030 on the earliest. Ideally, we relocate in 2032 when our son is in ninth grade and our daughter is in sixth grade. This timeline will maximize our time in our new home, profit from the AI increase, and provides us time to area out the sale of our properties.
Within the meantime, we can be sending our children to summer time faculty in Honolulu for no less than a month so we will attempt earlier than we purchase!
If you happen to dwell and work in Honolulu, I might love to listen to your ideas! What are another negatives and positives we must always learn about earlier than relocating?
Do not Stop Your Job To Relocate To Honolulu
If you happen to’re planning to go away your job for a brand new one in Honolulu, I might try to negotiate a severance package deal as an alternative of quitting. You’ll recognize the monetary runway given pay is usually decrease in Honolulu.
Try How To Engineer Your Layoff, the perfect useful resource to show you methods to negotiate a severance package deal. Use “saveten” at checkout to avoid wasting $10. I’ve up to date the e book six occasions with new methods and insights since 2012.
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