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, really making the transfer has been a lot tougher than anticipated.
Simply as financially insecure individuals typically inform themselves “just one more year” earlier than retiring, I have been saying “possibly subsequent 12 months” about shifting 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 college, which we consider she’ll additionally get pleasure from. In consequence, 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 house nicely. Though, they complained concerning the warmth, they missed it as soon as we returned.
My considerations about them adjusting to a brand new atmosphere have diminished.
The Challenges of Residing in Honolulu, Hawaii
There are three major challenges of residing in Honolulu: housing, meals, and work. Should you plan to ship your kids to personal college, affording the tutoring and getting accepted are additionally important challenges.
Let’s talk about every problem if you happen to’re contemplating residing and dealing in Honolulu. You probably have ever lived and labored in Honolulu or at the moment do, I might love your insights as nicely.
Honolulu’s Excessive House 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 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, regardless of town. Humorous how that’s.
To afford a median-priced house utilizing my 30/30/3-5 home buying rule, you’d must make between $210,000 and $350,000, have a $210,000 down cost, and keep 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 house costs. Nonetheless, if you happen to’re coming from all over the 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 house 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 house.
Nonetheless, we do not desire a median-priced house; we would like a fantastic home with ocean views or one that’s transformed 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 must promote a number of rental properties. This might simplify our lives as we age, however it will additionally hurt our passive income once more. After chopping our passive revenue by ~29% in 2023 as a result of a money house 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 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 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 vans.
Beneath highlights quite a lot of meals prices in Honolulu, up to date at the very least yearly by a neighborhood of vacationers. Regardless 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 bushes my grandparents and fogeys planted many years in the past, we now have loads of fruit in our backyards.
We’ve a number of mango bushes 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 bushes, which implies we cannot must spend a lot on breakfast if we maintain to a principally fruit morning weight loss plan.
Throughout our journey, our household of 4 principally shared two plate lunches and had leftovers. Many 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 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 recognized to be high-paying industries.
In line with the 2020 Census, the median family revenue in Honolulu was $96,580. The St. Louis Fed data 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 house value of $1,050,000. Consequently, it’s normal for 2 or three generations to stay 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, it’s essential to earn far above common or cohabitate with a number of working people. The monetary assist of oldsters can also be fairly frequent.
We Have Sufficient Passive Revenue For Residing In Hawaii
After saving and investing since 1999, we now have enough passive income to assist a middle-class way of life for a household of 4 in Honolulu because it’s cheaper than San Francisco. The hot button is to maintain our housing prices decrease than they’re in San Francisco. If we wish to purchase a luxurious property, we might must 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 trainer at my kids’s college. Relocating to a brand new metropolis means making new pals and assembly new individuals, and diving headfirst into my kids’s college neighborhood is a perfect method to try 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 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 can not get a job educating at my kids’s colleges, I am going to proceed to jot down from house. However as a substitute of slowly going loopy writing in a darkish room, I am going to get to jot down outdoors on a lanai overlooking the water!
If my subsequent two books do nicely (scheduled for 2025 and 2028), possibly I am going to get one other e book deal that retains me writing till each children graduate highschool. The pay isn’t high as an author, however writing books will present them their outdated man takes lecturers severely.
Honolulu’s Unbiased Grade Faculties
Honolulu has some wonderful unbiased and public schools. Since our children already attend a Mandarin immersion unbiased college, we plan to proceed with unbiased training initially.
My mother and father stay close to two of Honolulu’s finest unbiased grade colleges: I’olani and Punahou. We toured I’olani and Punahou with our youngsters, and located each colleges to be wonderful unbelievable services. Maryknoll additionally affords a Mandarin immersion program, which is enticing if we relocate whereas our children are nonetheless younger. We extremely value learning 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 Okay-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 tough to beat. I am positive the academics are fantastic too. Nonetheless, entering into these colleges shall be difficult and not using a native community to assist us.
Iolani’s major entry factors are Kindergarten and sixth grade, whereas Punahou has entry factors at Okay, 4, 6, 7, and 9.
The issue shall be in entering into colleges
If our expertise with applying to preschool in San Francisco is any indication, getting each children into such unbiased colleges will 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 assist us.
It is doable that one in every of our children 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 Okay, 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 supplies selection from different households who’re principally in medication, regulation, and finance. We additionally do not want tuition help for 2 children and might commonly donate.
Primarily based on the ages of our children and the colleges’ major 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 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 Concern Of Being A Stranger In A New Metropolis Is Overblown
You would possibly concern relocating since you’ll have to begin over making pals. The stronger your friendships and household connections again house, the tougher it’s to maneuver.
Nonetheless, as a faculty mother or father, I’ve realized how simple it’s to fulfill new individuals and make pals if you wish to. There are limitless social capabilities to fulfill different mother and father, together with playdates, birthdays, college 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 private sports club in San Francisco has supplied the most important way of life 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 be certain 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 web price is getting sophisticated and we would not thoughts simplifying.
Given we’d like capital to purchase a brand new house and do not wish to take care of tenant and upkeep points, we in all probability must promote at the very 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 change into extra palatable. I simply can’t get myself to pay greater than a 4% promoting fee price when expertise has lowered commissions in each different trade.
On the similar time, with the tech and synthetic intelligence growth, promoting now could be onerous. I count on AI to spice up housing costs within the San Francisco Bay Space many years to return. Moreover investing in private AI companies, the subsequent finest solution 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 chief west side San Francisco property at present. Subsequently, I want to keep at the very least two funding properties in San Francisco if we relocate. Possibly a property supervisor is the answer, however I’m unsure.
It is Price Residing In The Finest Place Attainable
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 stay within the second half of your life.
There is a purpose why Hawaii residents have the longest life expectancy in America: a greater, extra stress-free 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 residing in Honolulu, comparable to site visitors, increased costs, comparatively excessive state revenue taxes, and island fever. It’ll 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 stress-free. Lastly, the tempo of life is far slower, which may also be onerous to regulate to.
Nonetheless, I consider the positives far outweigh the negatives. As soon as you’ve got constructed sufficient wealth, your purpose must be to stay 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 will be good to swim within the ocean within the mornings and play tennis within the evenings. Residing 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 completely happy.
Honolulu supplies all this stuff. Nonetheless, 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 shall be sending our children to summer time college in Honolulu for at the very least a month so we will strive earlier than we purchase!
Should you stay and work in Honolulu, I might 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
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.
Take a look at How To Engineer Your Layoff, one of the best useful resource to show you the best way 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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