After taking my household on a nine-day trip to Honolulu, Hawaii, my plan to relocate there may be again within the playing cards! Since 2014, two years after retiring from my finance job, I have been considering transferring again to Honolulu to spend extra time with my dad and mom. Nevertheless, really making the transfer has been a lot more durable than anticipated.
Simply as financially insecure folks typically inform themselves “only one extra 12 months” earlier than retiring, I have been saying “perhaps subsequent 12 months” about transferring 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 college, which we imagine she’ll additionally get pleasure from. Consequently, the inertia of life has stored us in San Francisco.
Nevertheless, with my dad and mom now of their mid-70s, the time to spend extra time with them is now. Our children additionally dealt with their longest time away from house effectively. Though, they complained concerning the warmth, they missed it as soon as we returned.
My issues about them adjusting to a brand new surroundings have diminished.
The Challenges of Dwelling in Honolulu, Hawaii
There are three essential challenges of dwelling in Honolulu: housing, meals, and work. In case you plan to ship your kids to non-public college, affording the tutoring and getting accepted are additionally important challenges.
Let’s focus on every problem in case you’re contemplating dwelling and dealing in Honolulu. When you have ever lived and labored in Honolulu or at present do, I would love your insights as effectively.
Honolulu’s Excessive Residence Costs
Honolulu boasts one of many highest median house costs within the nation at roughly $1,050,000. In the meantime, Zillow has the median Honolulu house worth round $800,000, however I do not belief Zillow. When home searching, it typically appears that properties value rather more than the median worth, irrespective of town. Humorous how that’s.
To afford a median-priced house utilizing my 30/30/3-5 house shopping for rule, you’d have to make between $210,000 and $350,000, have a $210,000 down cost, and keep a $105,000 liquid buffer post-purchase.
In case you come from high-priced housing markets like San Jose, San Francisco, Los Angeles, San Diego, Seattle, New York, or Boston, you may not be as shocked by Honolulu’s excessive house costs. Nevertheless, in case 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 house worth in San Francisco is round $1,800,000, which is about 75% greater than in Honolulu. Subsequently, transferring to Honolulu might save us round 40% if we purchase a median-priced house.
Nevertheless, we do not desire a median-priced house; we would like a unbelievable house with ocean views or one that’s transformed and near the seashore. Sadly, these properties value 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 might simplify our lives as we age, however it might additionally harm our passive earnings once more. After chopping our passive earnings by ~29% in 2023 as a consequence of a money house buy, we do not need to make such a drastic transfer once more.
Luxurious properties 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 danger related to shopping for luxurious actual property there.
In case you 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 costliest in America because of the further 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 straightforward for a household of 4 to spend $80 – $100 for lunch, together with tax, tip, and drinks. Nevertheless, portion sizes are comparatively giant when eating out, together with meals vehicles.
Beneath highlights a wide range of meals prices in Honolulu, up to date at the very least every year 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: “In case you deal with the land, the land will deal with you.” Due to the timber my grandparents and fogeys planted many years in the past, we’ve 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 cannot have to spend a lot on breakfast if we preserve to a principally fruit morning eating regimen.
Throughout our journey, our household of 4 principally shared two plate lunches and had leftovers. Many of the cause is as a result of our kids are nonetheless younger. Nevertheless, my spouse and I’ve at all times been average eaters and are solely about 5% heavier than we have been since faculty.
Honolulu’s Comparatively Low Pay
The commonest 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 accessible, 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.
In line with the 2020 Census, the median family earnings in Honolulu was $96,580. The St. Louis Fed information reveals it was $96,304 in 2022. For 2024, the family earnings is probably going nearer to $105,000 – $110,000.
Whereas not unhealthy in a vacuum, it is not nice in comparison with the median house worth of $1,050,000. Consequently, it is common for 2 or three generations to stay collectively. If a family consists of two-to-four working people, a median family earnings of $100,000 is not excessive.
As of Could 2024, ZipRecruiter stories the common wage in Honolulu is $61,247. To personal a median-priced home and lift a household in Honolulu, you’ll want to earn far above common or cohabitate with a number of working people. The monetary help of fogeys can also be fairly frequent.
We Have Sufficient Passive Revenue For Dwelling In Hawaii
After saving and investing since 1999, we’ve sufficient passive earnings to help a middle-class way of life for a household of 4 in Honolulu because it’s cheaper than San Francisco. The bottom line is to maintain our housing prices decrease than they’re in San Francisco. If we need to purchase a luxurious property, we could have to work part-time or full-time.
Nevertheless, going again to work is one thing I look ahead to as a result of I need to be a trainer at my kids’s college. Relocating to a brand new metropolis means making new buddies and assembly new folks, and diving headfirst into my kids’s college group is a perfect means to do this.
As a trainer, I will get to know many different lecturers and directors, in addition to loads of new dad and mom. I would love to show private finance, entrepreneurship, advertising and marketing, 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 can not get a job educating at my kids’s colleges, I will proceed to write down from house. However as a substitute 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 effectively (scheduled for 2025 and 2028), perhaps I will get one other e-book deal that retains me writing till each children graduate highschool. The pay is not excessive as an writer, however writing books will present them their outdated man takes lecturers critically.
Honolulu’s Unbiased Grade Colleges
Honolulu has some wonderful impartial and public colleges. Since our youngsters already attend a Mandarin immersion impartial college, we plan to proceed with impartial training initially.
My dad and mom stay close to two of Honolulu’s greatest impartial grade colleges: I’olani and Punahou. We toured I’olani and Punahou with our kids, and located each colleges to be superb unimaginable amenities. Maryknoll additionally provides a Mandarin immersion program, which is enticing if we relocate whereas our youngsters 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 youngsters are older, we might pay about 50% much less since costs go up by grade in San Francisco.
The mixture of higher amenities and decrease prices is tough to beat. I am positive the lecturers are great too. Nevertheless, entering into these colleges can be difficult and not using a native community to help us.
Iolani’s essential entry factors are Kindergarten and sixth grade, whereas Punahou has entry factors at Ok, 4, 6, 7, and 9.
The issue can be in entering into colleges
If our expertise with making use of to preschool in San Francisco is any indication, getting each children into such impartial colleges will 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 help us.
It is doable that certainly one of our youngsters will get in and the opposite would not. Logistically, having two children go to completely different colleges is suboptimal. Punahou has extra accommodative entry factors with Ok, 4, 6, 7, and 9. Given our youngsters are three years aside, entry for grades 4 and seven or 6 and 9 would work.
We hope my background now as an writer supplies selection from different households who’re principally in medication, legislation, and finance. We additionally do not want tuition help for 2 children and might repeatedly donate.
Primarily based on the ages of our youngsters and the colleges’ essential entry factors, we’d 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 greatest as a result of our kids will study extra Mandarin at our their college, which matches till the eighth grade. We’ll get to get pleasure from our San Francisco house we simply purchased in 2023 for 9 years.
The Worry Of Being A Stranger In A New Metropolis Is Overblown
You may worry relocating since you’ll have to start out over making buddies. The stronger your friendships and household connections again house, the more durable it’s to maneuver.
Nevertheless, as a faculty mother or father, I’ve realized how straightforward it’s to satisfy new folks and make buddies if you wish to. There are limitless social capabilities to satisfy different dad and mom, together with playdates, birthdays, college occasions, dad and mom’ 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 largest way of life enhance for under $175 a month. It’s been a good way to satisfy fellow tennis and pickleball gamers.
So do not be afraid of loneliness when relocating. Honolulu has heat and welcoming residents. Simply ensure to know the tradition, familiarize your self with Hawaiian language, and respect island traditions. As a brand new resident, attempt to give greater than you’re 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 internet value is getting sophisticated and we would not thoughts simplifying.
Given we’d like capital to purchase a brand new house and do not need to take care of tenant and upkeep points, we most likely have to promote at the very least 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 fee when know-how has lowered commissions in each different trade.
On the similar time, with the tech and synthetic intelligence growth, promoting now could be exhausting. I count on AI to spice up housing costs within the San Francisco Bay Space many years to return. Moreover investing in personal AI firms, the subsequent greatest technique to take part in AI is by proudly owning actual property in cities with the main AI firms.
In 20 years, I am positive I’ll look again with remorse having bought a main west aspect San Francisco property as we speak. Subsequently, I want to keep at the very least two funding properties in San Francisco if we relocate. Perhaps a property supervisor is the answer, however I’m undecided.
It is Price Dwelling In The Greatest Place Doable
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 without doubt one of the greatest locations to stay within the second half of your life.
There is a cause why Hawaii residents have the longest life expectancy in America: a greater, extra enjoyable way of life. As soon as you’ve got collected sufficient wealth, having a protracted and wholesome life turns into a precedence.
Sure, there are downsides to dwelling in Honolulu, akin to visitors, greater costs, comparatively excessive state earnings taxes, and island fever. It should even be more durable “making it in Hawaii” except you’re in medication, legislation, or an entrepreneur. Even then, it is powerful to grind so exhausting when island life is so enjoyable. Lastly, the tempo of life is far slower, which may also be exhausting to regulate to.
Nevertheless, I imagine the positives far outweigh the negatives. As soon as you’ve got constructed sufficient wealth, your purpose needs to be to stay as lengthy and as wholesome a life as doable.
Winding Down In Honolulu In The Second Half Of Life
I need to put on shorts and t-shirts year-round. It might be good to swim within the ocean within the mornings and play tennis within the evenings. Dwelling in a medium-sized metropolis additionally supplies sufficient work alternatives to remain productive, however not a lot that you simply really feel overwhelmed by competitors. Most of all, I would like my household to be protected and glad.
Honolulu supplies all these items. Nevertheless, we cannot 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 growth, and provides us time to house out the sale of our properties.
Within the meantime, we can be sending our youngsters to summer time college in Honolulu for at the very least a month so we will strive earlier than we purchase!
In case you stay and work in Honolulu, I would love to listen to your ideas! What are another negatives and positives we should always learn about earlier than relocating?
Do not Stop Your Job To Relocate To Honolulu
In case you’re planning to go away your job for a brand new one in Honolulu, I would attempt to negotiate a severance package deal as a substitute of quitting. You’ll respect the monetary runway given pay is usually decrease in Honolulu.
Take a look at How To Engineer Your Layoff, one of the best useful resource to show you the way to negotiate a severance package deal. Use “saveten” at checkout to save lots of $10. I’ve up to date the e-book six occasions with new methods and insights since 2012.
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