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 transferring again to Honolulu to spend extra time with my mother and father. Nonetheless, really making the transfer has been a lot tougher than anticipated.
Simply as financially insecure folks usually inform themselves “just one more year” earlier than retiring, I have been saying “maybe next year” about transferring to Honolulu for the previous 10 years!
The factor is, life retains getting in the best way. First, we had a son in 2017, then a daughter in 2019, and the pandemic made us crave stability and familiarity. Our son received into a faculty he enjoys immensely, and now our daughter has joined the identical faculty, which we imagine she’ll additionally get pleasure from. Consequently, the inertia of life has saved 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 effectively. Though, they complained in regards to the warmth, they missed it as soon as we returned. My issues about them adjusting to a brand new setting have diminished.
For background, my grandparents had been born and raised in Honolulu, so was my dad. My grandmother is half native Hawaiian as effectively. Each my mother and father are retired in Honolulu.
The Challenges of Dwelling in Honolulu, Hawaii
There are three most important challenges of dwelling in Honolulu: housing, meals, and work. In the event you plan to ship your youngsters to non-public faculty, affording the schooling and getting accepted are additionally important challenges.
Let’s focus on every problem should you’re contemplating dwelling and dealing in Honolulu. When you’ve got ever lived and labored in Honolulu or presently do, I would love your insights as effectively.
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 value round $800,000, however I do not belief Zillow. When home searching, it usually appears that properties value rather more than the median value, irrespective of the town. Humorous how that’s.
To afford a median-priced residence utilizing my 30/30/3-5 residence shopping for rule, you’d must make between $210,000 and $350,000, have a $210,000 down fee, and preserve a $105,000 liquid buffer post-purchase.
In the event you 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, should 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 value in San Francisco is round $1,800,000, which is about 75% larger than in Honolulu. Due to this fact, transferring to Honolulu might save us round 40% if we purchase a median-priced residence.
Nonetheless, we do not desire a median-priced residence; we would like a implausible residence with ocean views or one that’s transformed and near the seaside. Sadly, these properties value over $4 million, with actually no higher restrict.
To pay for such a house with money, we would must promote a number of rental properties. This is able to simplify our lives as we age, however it will additionally harm our passive earnings once more. After reducing our passive earnings by ~29% in 2023 resulting from a money residence buy, we do not need to make such a drastic transfer once more.
Luxurious properties in Honolulu usually take 3 – 6 months to promote, in contrast to in San Francisco, the place promoting in a single month is frequent. Given the less high-paying jobs in Honolulu, there is a higher funding danger related to shopping for luxurious actual property there.
In the event 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 most costly in America as a result of further transport 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. Nonetheless, 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 not less than yearly by a neighborhood 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 take care of the land, the land will take care of you.” Because of the bushes my grandparents and oldsters planted many years in the past, we now have loads of fruit in our backyards.
Now we have a number of mango bushes that produce over 500 mangoes a yr. By relocating to Honolulu, my household of 4 will guarantee these mangoes do not go to waste. We even have guava, orange, and pomelo bushes, which suggests we can’t must spend a lot on breakfast if we hold to a principally fruit morning food plan.
Throughout our journey, our household of 4 principally shared two plate lunches and had leftovers. A lot of the purpose is as a result of our kids are nonetheless younger. Nonetheless, my spouse and I’ve at all times been average eaters and are solely about 5% heavier than we had 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 identified to be high-paying industries.
In accordance with the 2020 Census, the median family earnings in Honolulu was $96,580. The St. Louis Fed knowledge 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 residence value of $1,050,000. Consequently, it is common for 2 or three generations to dwell 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 might 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 Earnings For Dwelling In Hawaii
After saving and investing since 1999, we now have sufficient passive earnings to help a middle-class life-style for a household of 4 in Honolulu because it’s cheaper than San Francisco. The secret’s to maintain our housing prices decrease than they’re in San Francisco. If we need to purchase a luxurious property, we might must work part-time or full-time.
Nonetheless, going again to work is one thing I stay up for as a result of I need to be a trainer at my youngsters’s faculty. Relocating to a brand new metropolis means making new associates and assembly new folks, and diving headfirst into my youngsters’s faculty neighborhood is a perfect method to do this.
As a trainer, I am going to get to know many different academics and directors, in addition to loads of new mother and father. 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 am unable to get a job instructing at my youngsters’s colleges, I am going to proceed to jot down from residence. However as an alternative of slowly going loopy writing in a darkish room, I am going to get to jot down exterior on a lanai overlooking the water!
If my subsequent two books do effectively (scheduled for 2025 and 2028), possibly I am going to get one other guide deal that retains me writing till each youngsters graduate highschool. The pay is not excessive as an creator, however writing books will present them their outdated man takes teachers severely.
Honolulu’s Unbiased Grade Colleges
Honolulu has some wonderful unbiased and public colleges. Since our children already attend a Mandarin immersion unbiased faculty, we plan to proceed with unbiased schooling initially.
My mother and father dwell close to two of Honolulu’s greatest unbiased grade colleges: ‘Iolani and Punahou. We toured ‘Iolani and Punahou with our kids, and located each colleges to be superb unbelievable 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 ‘Iolani and Punahou is about $13,500 lower than what we pay in San Francisco, and Maryknoll is $23,000 cheaper. The schooling can also be the identical from Ok-12, so if we transfer when our children are older, we would pay about 50% much less since costs go up by grade in San Francisco.
The mixture of higher services and decrease prices is difficult to beat. I am certain the academics are great too. Nonetheless, entering into these colleges can be difficult with no native community to help us.
Iolani’s most important 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 youngsters into such unbiased colleges 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 help us.
It is potential that considered one of our children will get in and the opposite would not. Logistically, having two youngsters go to completely different colleges 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 creator gives selection from different households who’re principally in medication, regulation, and finance. We additionally do not want tuition help for 2 youngsters and might frequently donate.
Based mostly on the ages of our children and the faculties’ most 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 greatest as a result of our kids will study extra Mandarin at their faculty, which matches till the eighth grade. We’ll get to get pleasure from 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 may concern relocating since you’ll have to begin over making associates. The stronger your friendships and household connections again residence, the tougher it’s to maneuver.
Nonetheless, as a faculty guardian, I’ve realized how straightforward it’s to satisfy new folks and make associates if you wish to. There are limitless social capabilities to satisfy different mother and father, together with playdates, birthdays, faculty occasions, mother and father’ nights out, and fundraisers.
As well as, you’ll be able to be part of meetups or golf equipment associated to your hobbies. My personal sports activities membership in San Francisco has offered the most important life-style increase 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 be sure that 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.
As for the youngsters, it’s higher in the event that they relocate to a brand new metropolis after they had been youthful. Will probably be powerful to go away their associates in SF, however they are going to make new associates. Apart from, their faculty solely goes to the eighth grade, which suggests they finally need to reapply anyway.
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 price is getting sophisticated and we would not thoughts simplifying.
Given we’d like capital to purchase a brand new residence and do not need to cope with tenant and upkeep points, we most likely must promote not less than two properties earlier than we relocate. At the moment, I handle all properties in San Francisco, which is straightforward and offers me one thing to do.
With actual property commissions coming down after the NAR price-fixing settlement, promoting now has turn out to be extra palatable. I simply can’t get myself to pay greater than a 4.5% promoting fee fee when know-how has lowered commissions in each different trade.
On the identical time, with the tech and synthetic intelligence increase, promoting now could be onerous. I anticipate 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 greatest approach 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 offered a first-rate west aspect San Francisco property as we speak. Due to this fact, I wish to preserve not less than two funding properties in San Francisco if we relocate. Perhaps a property supervisor is the answer, however I’m unsure.
It is Price Dwelling In The Finest Place Attainable
I’ve lived overseas for 13 years in 5 international locations, labored in worldwide equities for 13 years, and traveled throughout America for the previous 47 years. Honolulu is likely one of the greatest locations to dwell within the second half of your life.
There is a purpose why Hawaii residents have the longest life expectancy in America: a greater, extra enjoyable life-style. As soon as you’ve got amassed sufficient wealth, having a protracted and wholesome life turns into a precedence.
Sure, there are downsides to dwelling in Honolulu, corresponding to visitors, larger costs, comparatively excessive state earnings taxes, and island fever. It can even be more durable “making it in Hawaii” except you’re in medication, regulation, or an entrepreneur. Even then, it is powerful to grind so onerous when island life is so enjoyable. Lastly, the tempo of life is way slower, which may also be onerous to regulate to.
Nonetheless, I imagine the positives far outweigh the negatives. As soon as you’ve got constructed sufficient wealth, your objective needs to be to dwell as lengthy and as wholesome a life as potential.
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 gives sufficient work alternatives to remain productive, however not a lot that you just really feel overwhelmed by competitors. Most of all, I would like 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 house out the sale of our properties.
Within the meantime, we can be sending our children to summer season faculty in Honolulu for not less than a month so we will strive earlier than we purchase!
In the event you dwell and work in Honolulu, I would love to listen to your ideas! What are another negatives and positives we must always learn about earlier than relocating?
Do not Give up Your Job To Relocate To Honolulu
In the event you’re planning to go away your job for a brand new one in Honolulu, I would 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.
Take a look at How To Engineer Your Layoff, the most effective useful resource to show you methods to negotiate a severance package deal. Use “saveten” at checkout to save lots of $10. I’ve up to date the guide six instances with new methods and insights since 2012.
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