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 shifting again to Honolulu to spend extra time with my mother and father. Nevertheless, truly making the transfer has been a lot tougher than anticipated.
Simply as financially insecure individuals typically inform themselves “only one extra yr” earlier than retiring, I have been saying “perhaps subsequent yr” 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 acquired into a faculty he enjoys immensely, and now our daughter has joined the identical faculty, which we imagine she’ll additionally take pleasure in. Consequently, the inertia of life has stored us in San Francisco.
Nevertheless, with my mother and father 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 dwelling nicely. 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 surroundings have diminished.
The Challenges of Residing in Honolulu, Hawaii
There are three primary challenges of dwelling in Honolulu: housing, meals, and work. Should you plan to ship your youngsters to personal faculty, affording the schooling and getting accepted are additionally important challenges.
Let’s talk about every problem in the event you’re contemplating dwelling and dealing in Honolulu. When you have ever lived and labored in Honolulu or presently do, I might love your insights as nicely.
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 rather more than the median value, regardless 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 won’t be as shocked by Honolulu’s excessive dwelling costs. Nevertheless, 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 dwelling value in San Francisco is round $1,800,000, which is about 75% increased than in Honolulu. Subsequently, shifting to Honolulu may save us round 40% if we purchase a median-priced dwelling.
Nevertheless, we do not need a median-priced dwelling; we would like a unbelievable dwelling with ocean views or one that’s transformed and near the seashore. Sadly, these properties price over $4 million, with actually no higher restrict.
To pay for such a house with money, we would have to promote a number of rental properties. This might 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 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 higher funding threat related to shopping for luxurious actual property there.
Should you purchase property in Honolulu it is best to think about 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 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.
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. Nevertheless, portion sizes are comparatively giant when eating out, together with meals vans.
Beneath highlights a wide range of meals prices in Honolulu, up to date a minimum of every year 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: “Should you care for the land, the land will care for you.” Due to the bushes my grandparents and oldsters planted a long time in the past, now we have loads of fruit in our backyards.
We now 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 implies we cannot have to spend a lot on breakfast if we maintain to a principally fruit morning food plan.
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 reasonable eaters and are solely about 5% heavier than we have been since school.
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 principle industries in Honolulu are tourism, protection, agriculture, fishing, and manufacturing, which are not identified to be high-paying industries.
Based on the 2020 Census, the median family earnings in Honolulu was $96,580. The St. Louis Fed information exhibits it was $96,304 in 2022. For 2024, the family earnings is probably going nearer to $105,000 – $110,000.
Whereas not dangerous 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 earnings of $100,000 is not excessive.
As of Could 2024, ZipRecruiter experiences the common wage in Honolulu is $61,247. To personal a median-priced home and lift a household in Honolulu, you have to earn far above common or cohabitate with a number of working people. The monetary assist of oldsters can be fairly frequent.
We Have Sufficient Passive Earnings For Residing In Hawaii
After saving and investing since 1999, now we have sufficient passive earnings to assist a middle-class life-style 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.
Nevertheless, going again to work is one thing I sit up for as a result of I wish to be a trainer at my youngsters’s faculty. Relocating to a brand new metropolis means making new buddies and assembly new individuals, and diving headfirst into my youngsters’s faculty neighborhood is a perfect means to try this.
As a trainer, I will get to know many different lecturers 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 youngsters’s faculties, 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 exterior on a lanai overlooking the water!
If my subsequent two books do nicely (scheduled for 2025 and 2028), perhaps I will get one other guide 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 previous man takes teachers critically.
Honolulu’s Impartial Grade Colleges
Honolulu has some glorious unbiased and public faculties. Since our youngsters 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 faculties: I’olani and Punahou. We toured I’olani and Punahou with our kids, and located each faculties to be wonderful unimaginable amenities. Maryknoll additionally presents 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 be the identical from Okay-12, so if we transfer when our youngsters are older, we would 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 certain the lecturers are great too. Nevertheless, entering into these faculties will probably be difficult with out a native community to assist us.
Iolani’s primary entry factors are Kindergarten and sixth grade, whereas Punahou has entry factors at Okay, 4, 6, 7, and 9.
The problem will probably be in entering into faculties
If our expertise with making use of to preschool in San Francisco is any indication, getting each children into such unbiased faculties may even be troublesome. Demand is at all times excessive, and we’re coming from San Francisco, the place we do not have an area Honolulu community to assist us.
It is doable that one in every of our youngsters will get in and the opposite would not. Logistically, having two children go to totally different faculties is suboptimal. Punahou has extra accommodative entry factors with Okay, 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, regulation, and finance. We additionally do not want tuition help for 2 children and may commonly donate.
Primarily based on the ages of our youngsters and the faculties’ primary 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 are able to 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 faculty, which works till the eighth grade. We’ll get to take pleasure in 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 would possibly worry relocating since you’ll have to start out over making buddies. The stronger your friendships and household connections again dwelling, the tougher it’s to maneuver.
Nevertheless, as a faculty mother or father, I’ve realized how simple it’s to fulfill new individuals and make buddies if you wish to. There are limitless 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’ll be able to be a part of meetups or golf equipment associated to your hobbies. My non-public sports activities membership in San Francisco has supplied the most important life-style enhance for less than $175 a month. It’s been an effective way to fulfill 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 major 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 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 a minimum of two properties earlier than we relocate. At the moment, I handle all properties in San Francisco, which is simple and offers me one thing to do.
With actual property commissions coming down after the NAR price-fixing settlement, promoting now has develop into extra palatable. I simply can’t get myself to pay greater than a 4% promoting fee price when know-how has lowered commissions in each different trade.
On the identical time, with the tech and synthetic intelligence growth, promoting now could be arduous. I count on AI to spice up housing costs within the San Francisco Bay Space a long time to return. Apart from investing in non-public AI firms, the subsequent greatest method to take part in AI is by proudly owning actual property in cities with the main AI firms.
In 20 years, I am certain I’ll look again with remorse having bought a major west aspect San Francisco property as we speak. Subsequently, I wish to preserve a minimum of 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 Greatest Place Potential
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 cause why Hawaii residents have the longest life expectancy in America: a greater, extra stress-free life-style. As soon as you have amassed sufficient wealth, having a protracted and wholesome life turns into a precedence.
Sure, there are downsides to dwelling in Honolulu, resembling visitors, increased costs, comparatively excessive state earnings taxes, and island fever. It should even be more durable “making it in Hawaii” until you’re in medication, regulation, or an entrepreneur. Even then, it is robust to grind so arduous when island life is so stress-free. Lastly, the tempo of life is far slower, which may also be arduous to regulate to.
Nevertheless, I imagine the positives far outweigh the negatives. As soon as you have constructed sufficient wealth, your purpose needs to be to dwell as lengthy and as wholesome a life as doable.
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 simply really feel overwhelmed by competitors. Most of all, I would like my household to be protected and completely satisfied.
Honolulu gives all this stuff. 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 area out the sale of our properties.
Within the meantime, we will probably be sending our youngsters to summer season faculty in Honolulu for a minimum of a month so we are able to strive 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 Give up 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 bundle as a substitute of quitting. You’ll respect the monetary runway given pay is commonly decrease in Honolulu.
Try How To Engineer Your Layoff, the very best useful resource to show you how one can negotiate a severance bundle. Use “saveten” at checkout to save lots of $10. I’ve up to date the guide six occasions with new methods and insights since 2012.
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