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. Nonetheless, really making the transfer has been a lot tougher than anticipated.
Simply as financially insecure folks typically inform themselves “only one extra 12 months” earlier than retiring, I have been saying “possibly subsequent 12 months” 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 obtained into a college he enjoys immensely, and now our daughter has joined the identical college, which we imagine she’ll additionally get pleasure from. In consequence, the inertia of life has saved us in San Francisco.
Nonetheless, with my dad and mom 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 dwelling properly. 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.
The Challenges of Residing in Honolulu, Hawaii
There are three essential challenges of dwelling in Honolulu: housing, meals, and work. Should you plan to ship your youngsters to non-public college, affording the schooling and getting accepted are additionally vital challenges.
Let’s talk about 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 might love your insights as properly.
Honolulu’s Excessive Dwelling Costs
Honolulu boasts one of many highest median dwelling costs within the nation at roughly $1,050,000. In the meantime, Zillow has the median Honolulu dwelling value round $800,000, however I do not belief Zillow. When home searching, it typically appears that properties price way more than the median value, irrespective of the town. Humorous how that’s.
To afford a median-priced dwelling utilizing my 30/30/3-5 dwelling shopping for rule, you’d have to make between $210,000 and $350,000, have a $210,000 down cost, and preserve a $105,000 liquid buffer post-purchase.
Should 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 dwelling costs. Nonetheless, in case you’re coming from in every single place else in America, put together to really feel the ache.
Proudly owning Actual Property in San Francisco Makes Shifting To Honolulu Simpler
The median dwelling value in San Francisco is round $1,800,000, which is about 75% larger than in Honolulu. Subsequently, transferring to Honolulu may save us round 40% if we purchase a median-priced dwelling.
Nonetheless, we do not need a median-priced dwelling; we would like a implausible dwelling with ocean views or one that’s reworked and near the seaside. Sadly, these properties 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 might simplify our lives as we age, however it could additionally harm our passive revenue once more. After slicing our passive revenue by ~29% in 2023 because of a money dwelling buy, we do not wish 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 better funding danger related to shopping for luxurious actual property there.
Should 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 as a result of 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.
Anticipate 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 massive when eating out, together with meals vehicles.
Under highlights quite a lot of meals prices in Honolulu, up to date at the least every year by a neighborhood of vacationers. Irrespective of the place you come from, you’ll positively really feel the burden of excessive meals prices in Honolulu.
We Develop Our Personal Fruit in Honolulu
In Hawaiian tradition, there is a saying: “Should you handle the land, the land will handle you.” Due to the timber my grandparents and oldsters planted many years in the past, we now have loads of fruit in our backyards.
We now have 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 maintain to a principally fruit morning weight-reduction 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 youngsters are nonetheless younger. Nonetheless, my spouse and I’ve at all times been reasonable 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 out there, 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 line with 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 unhealthy in a vacuum, it is not nice in comparison with the median dwelling 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 revenue of $100,000 is not excessive.
As of Might 2024, ZipRecruiter reviews 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 help of fogeys can also be fairly frequent.
We Have Sufficient Passive Revenue For Residing In Hawaii
After saving and investing since 1999, we now have sufficient passive revenue to help 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 could have to work part-time or full-time.
Nonetheless, going again to work is one thing I stay up for as a result of I wish to be a instructor at my youngsters’s college. Relocating to a brand new metropolis means making new associates and assembly new folks, and diving headfirst into my youngsters’s college neighborhood is a perfect approach to try this.
As a instructor, I will get to know many different academics and directors, in addition to loads of new dad and mom. I might 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 will proceed to write down from dwelling. 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 properly (scheduled for 2025 and 2028), possibly I will get one other ebook 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 Faculties
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 dwell close to two of Honolulu’s finest impartial grade colleges: I’olani and Punahou. We toured I’olani and Punahou with our youngsters, and located each colleges to be wonderful unimaginable amenities. Maryknoll additionally provides a Mandarin immersion program, which is engaging 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 difficult to beat. I am positive the academics are great too. Nonetheless, stepping into these colleges will likely 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 will likely be in stepping into colleges
If our expertise with making use of to preschool in San Francisco is any indication, getting each children into such impartial colleges may even be tough. 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 youngsters will get in and the opposite does 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 gives selection from different households who’re principally in medication, legislation, and finance. We additionally do not want tuition help for 2 children and might frequently donate.
Primarily based on the ages of our youngsters and the colleges’ essential 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 youngsters will be taught extra Mandarin at our their college, which matches till the eighth grade. We’ll get to get pleasure from our San Francisco dwelling 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 associates. The stronger your friendships and household connections again dwelling, the tougher it’s to maneuver.
Nonetheless, as a college dad or mum, I’ve realized how simple it’s to satisfy new folks and make associates if you wish to. There are countless 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 a part of meetups or golf equipment associated to your hobbies. My non-public sports activities membership in San Francisco has offered the largest way of life enhance for under $175 a month. It’s been an effective 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 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’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 web value is getting difficult and we would not thoughts simplifying.
Given we want capital to purchase a brand new dwelling and do not wish to cope with tenant and upkeep points, we in all probability have to promote at the least two properties earlier than we relocate. At the moment, 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 turn out to be extra palatable. I simply cannot get myself to pay greater than a 4% promoting fee charge when know-how has lowered commissions in each different business.
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 come back. In addition to investing in non-public AI firms, the following finest strategy 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 right this moment. Subsequently, I want to preserve at the least two funding properties in San Francisco if we relocate. Perhaps a property supervisor is the answer, however I’m undecided.
It is Value Residing In The Greatest Place Doable
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 without doubt one of the finest 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 way of life. As soon as you have accrued sufficient wealth, having a protracted and wholesome life turns into a precedence.
Sure, there are downsides to dwelling in Honolulu, resembling site visitors, larger costs, comparatively excessive state revenue taxes, and island fever. It’s going to even be more durable “making it in Hawaii” until 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 will also be exhausting to regulate to.
Nonetheless, I imagine the positives far outweigh the negatives. As soon as you have constructed sufficient wealth, your objective must be to dwell as lengthy and as wholesome a life as potential.
Winding Down In Honolulu In The Second Half Of Life
I wish 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. Residing 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 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 growth, and provides us time to house out the sale of our properties.
Within the meantime, we will likely be sending our youngsters to summer time college in Honolulu for at the least a month so we will attempt earlier than we purchase!
Should you dwell and work in Honolulu, I might love to listen to your ideas! What are another negatives and positives we must always find out about earlier than relocating?
Do not Stop Your Job To Relocate To Honolulu
Should you’re planning to depart your job for a brand new one in Honolulu, I might attempt to negotiate a severance package deal as a substitute of quitting. You’ll admire the monetary runway given pay is commonly decrease in Honolulu.
Try How To Engineer Your Layoff, one of the best useful resource to show you tips on how to negotiate a severance package deal. Use “saveten” at checkout to avoid wasting $10. I’ve up to date the ebook six instances with new methods and insights since 2012.
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