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 “perhaps subsequent yr” 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 received into a college he enjoys immensely, and now our daughter has joined the identical faculty, which we consider 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 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 Residing in Honolulu, Hawaii
There are three most important challenges of residing in Honolulu: housing, meals, and work. Should you plan to ship your kids to non-public faculty, affording the tutoring and getting accepted are additionally important challenges.
Let’s focus on every problem in the event you’re contemplating residing and dealing in Honolulu. In case you have ever lived and labored in Honolulu or presently do, I might love your insights as effectively.
Honolulu’s Excessive House 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 worth round $800,000, however I do not belief Zillow. When home looking, it usually appears that properties price rather more than the median worth, irrespective of town. Humorous how that’s.
To afford a median-priced residence utilizing my 30/30/3-5 home buying 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.
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 residence costs. Nonetheless, 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 Shifting To Honolulu Simpler
The median residence worth in San Francisco is round $1,800,000, which is about 75% increased than in Honolulu. Due to this fact, transferring to Honolulu may save us round 40% if we purchase a median-priced residence.
Nonetheless, we do not desire a median-priced residence; we would like a fantastic home with ocean views or one that’s reworked 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 might must promote a number of rental properties. This is able to simplify our lives as we age, however it might additionally hurt our passive income once more. After slicing our passive earnings by ~29% in 2023 attributable to 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 larger funding danger 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.
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 massive when eating out, together with meals vehicles.
Under highlights quite a lot of meals prices in Honolulu, up to date at the 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.
![Cost of food in Honolulu, Hawaii - various items](https://i2.wp.com/financialsamurai.com/wp-content/uploads/2024/06/cost-of-food-honolulu-1.png)
We Develop Our Personal Fruit in Honolulu
In Hawaiian tradition, there is a saying: “Should you maintain the land, the land will maintain you.” Because of the timber my grandparents and fogeys planted many years in the past, we’ve got loads of fruit in our backyards.
We’ve a number of mango timber 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 timber, which suggests we can’t must spend a lot on breakfast if we hold to a largely fruit morning food regimen.
Throughout our journey, our household of 4 largely 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 have 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 principle industries in Honolulu are tourism, protection, agriculture, fishing, and manufacturing, which are not identified to be high-paying industries.
In keeping with the 2020 Census, the median family earnings in Honolulu was $96,580. The St. Louis Fed data 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 isn’t nice in comparison with the median residence worth 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 earnings of $100,000 is not excessive.
As of Might 2024, ZipRecruiter stories the typical wage in Honolulu is $61,247. To personal a median-priced home and lift a household in Honolulu, you must earn far above common or cohabitate with a number of working people. The monetary assist of fogeys can be fairly frequent.
![](https://i2.wp.com/financialsamurai.com/wp-content/uploads/2024/06/honolulu-salary-average-2024-670x500.png)
We Have Sufficient Passive Earnings For Residing In Hawaii
After saving and investing since 1999, we’ve got enough passive income to assist a middle-class life-style 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 need to purchase a luxurious property, we could must work part-time or full-time.
Nonetheless, going again to work is one thing I sit up for as a result of I need to be a instructor at my kids’s faculty. Relocating to a brand new metropolis means making new mates and assembly new folks, and diving headfirst into my kids’s faculty neighborhood is a perfect means to try this.
As a instructor, I am going to 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 can not get a job educating at my kids’s colleges, I am going to proceed to jot down from residence. However as a substitute 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), perhaps 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 teachers critically.
![Challenges of working in Honolulu, Hawaii - Sam Dogen, Financial Samurai writing from a deck in Laie, Oahu](https://i2.wp.com/financialsamurai.com/wp-content/uploads/2024/06/IMG_4420-667x500.jpg)
Honolulu’s Unbiased Grade Colleges
Honolulu has some wonderful impartial and public schools. Since our children already attend a Mandarin immersion impartial faculty, we plan to proceed with impartial schooling initially.
My mother and father stay 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 superb unbelievable amenities. Maryknoll additionally gives a Mandarin immersion program, which is engaging 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 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 mixture of higher amenities and decrease prices is difficult to beat. I am certain the lecturers are great too. Nonetheless, moving into these colleges will probably be difficult and not using a native community to assist us.
Iolani’s most important 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 moving into colleges
If our expertise with applying to preschool in San Francisco is any indication, getting each children into such impartial colleges will even be tough. 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 potential that certainly one of our children will get in and the opposite does not. Logistically, having two children go to totally 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 gives selection from different households who’re largely in drugs, regulation, and finance. We additionally do not want tuition help for 2 children and might recurrently donate.
Based mostly on the ages of our children and the colleges’ 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 finest as a result of our youngsters will study extra Mandarin at our 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 would possibly worry relocating since you’ll have to start out over making mates. The stronger your friendships and household connections again residence, the tougher it’s to maneuver.
Nonetheless, as a college guardian, I’ve realized how straightforward it’s to satisfy new folks and make mates if you wish to. There are infinite 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 possibly can be a part of meetups or golf equipment associated to your hobbies. My private sports club in San Francisco has supplied the most important life-style 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 web price is getting difficult and we would not thoughts simplifying.
Given we want capital to purchase a brand new residence and do not need to take care of tenant and upkeep points, we in all probability must promote at the least two properties earlier than we relocate. Presently, 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 turn 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 increase, promoting now’s laborious. I anticipate AI to spice up housing costs within the San Francisco Bay Space many years to return. Apart from investing in private AI companies, the subsequent finest approach 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 chief west side San Francisco property as we speak. Due to this fact, I want to preserve at the least two funding properties in San Francisco if we relocate. Possibly a property supervisor is the answer, however I’m unsure.
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 among 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 life-style. As soon as you have accrued sufficient wealth, having an extended and wholesome life turns into a precedence.
Sure, there are downsides to residing in Honolulu, equivalent to visitors, increased costs, comparatively excessive state earnings taxes, and island fever. It is going to even be harder “making it in Hawaii” until you’re in drugs, regulation, or an entrepreneur. Even then, it is robust to grind so laborious when island life is so stress-free. Lastly, the tempo of life is way slower, which may also be laborious to regulate to.
Nonetheless, I consider the positives far outweigh the negatives. As soon as you have constructed sufficient wealth, your aim ought to be to stay as lengthy and as wholesome a life as potential.
![Life expectancy by state in America according to the CDC - Hawaii is the state with the longest life expectancy](https://i2.wp.com/financialsamurai.com/wp-content/uploads/2024/06/life-expectancy-by-state-CDC.png)
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. 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 happy.
Honolulu gives all these items. 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 area out the sale of our properties.
Within the meantime, we will probably be sending our children to summer season faculty in Honolulu for at the least a month so we will attempt 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 Give up Your Job To Relocate To Honolulu
Should you’re planning to go away 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.
Take a look at How To Engineer Your Layoff, the very best useful resource to show you learn how to negotiate a severance bundle. 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.
![How to engineer your layoff - learn how to negotiate a severance package and be free](https://i2.wp.com/financialsamurai.com/wp-content/uploads/2023/07/Book-stack-6th-edition-copy-640x500.jpeg)
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