Thinking about buying real estate in Hawaii? Many visitors are so impressed by the natural beauty of the islands that they dream of buying vacation or retirement property there. However, it’s important to know the facts.
The cost of living in Hawaii is approximately thirty percent higher than the mainland, due to the cost of shipping in everyday necessities. Real estate prices are also extremely high–with median home prices approaching a million dollars in popular areas. Even the lowest priced real estate–on the Big Island–has a median price approaching half a million dollars. Because of high real estate prices, Hawaii has one of the lowest home ownership rates in the country.
The median income in Hawaii is around $50,000 per year. The economy has traditionally been based upon agriculture and tourism. However, since many tourism dollars do not stay on the islands, but go to foreign or mainland investors, and economic challenges significantly reduce tourism, the state is turning to science and technology to boost the economy.
If you have children, you may be concerned by the fact that spending on the state and local level for education is the lowest of all the American states.
Violent crimes against persons are lower than the national average. However, property crimes, such as theft, are higher than the national average.
In recent years, Hawaii real estate values have dropped along with the rest of the country. The state ranks 15th in the nation in foreclosures, so there are bargains available for homebuyers. Most experts also believe that the trend of decreasing value is coming to an end, with the market poised to again see significant appreciation in value, especially in desirable locations.
Moving to Hawaii from the mainland requires a great deal of advance planning. For example, shipping a single vehicle can cost $1000 or more. If you have pets, you will need to contact the Animal Guarantee Section at least four months before your moving date.
If you will be temporarily renting while you shop for a home, you will find that rental homes are often furnished, including cooking and dining utensils. It is recommended that you bring as few personal possessions as possible.
There are a wide variety of options to suit any lifestyle, from the bustling nightlife of Waikiki to the peace and solitude of Molokai. However, many areas do not offer many opportunities for employment. For example, the state’s highest unemployment rate is on the island of Molokai, and many residents travel by ferry to Maui in order to work ( a bumpy three-hour round trip).
You can review MLS listings online. However, an experienced Realtor can help you find the perfect home to meet your family’s needs.
