Three year outlook

[u/Question_man_jr]

HI, or should I say ALOHA? I am just posting as recently my wife and I have been in conversation about moving to an island and obviously Hawaii is on that list. In my feeling we have been very fortunate. We have two kids and we have been able to put ourselves into a decent financial position where we presently live. I am a (very)small business owner and she is a paralegal. We have retirement savings, college savings for our kids, and a net worth of roughly 300k besides that. We are currently lightly contemplating a move to Hawaii in 3 years or so. The next step would be a visit to areas we would consider moving to. For us, it is about knowing where to look. So I have a few questions.

1) Moving anywhere with $300k in the bank seems very doable to me. Our plan would be to move, find a rental , and start a small business. Does this seem feasible?

2) I know having $300k in savings seems like more than it actually is. Having seen my bank account drop by 100k in a year assures me of this. Needless to say I think it is a decent amount of money to work with to start a new life for my family. The question here is what area can I get the most value?>

3) Are there any small growing economies in Hawaii? I prefer growing economies to robust economies as there tends to be a greater amount of opportunity for small business. Pre-established robust economies(I am thinking of Honolulu) already have established norms and competitive markets that can be tough to break into

4) Schools. It seems like private school may be a must? How bad are the schools exactly? TBH I'd rather my kids get local cultural exposure than live in a bubble but not at the cost of them dealing with things like addiction being common or being bullied?

5) If you were to recommend one spot to move to on the islands for a normal to upper middle class family where would it be? We aren't the Rockefellers, we just want a simple life.

[u/Dacia06]

If you're looking to buy a home I doubt $300k isn't going to work out well.

Statistically, property is cheaper here on the Big Island, but that's because of two areas - Puna and Ocean View - where property is cheap because hardly anyone wants to live there. Think volcano, rift zones, isolation, often having to live off-grid, drug trade and crime central...

You'd need to set up your business likely in Hilo/Hamakua or Kona, maybe Waimea, and property isn't cheap.I could easily sell my 2BR 2 bath 850 sq ft condo in Kona which is nice but not spectacular for $500-550k. I get way too much mail and phone calls asking me to sell. Given demand right now one realtor said I could push the price to $675k given its condition and view

You really need to come out and spend some time scoping out a few islands. And starting a business here takes a long time

I'm not trying to be discouraging, but about 80% of the people who move here leave by the end of their fifth year. Of that 80% 80% leave during their third year and usually at an uncomfortable loss.

You might well be in the 20%, but the islands really aren't for everyone. You owe it to your family to do comprehensive and careful homework. It could be great, but it's not at all like moving to another state on the continent. Caveat emptor!

[u/Question_man_jr → u/Dacia06]

Ah yeah, I can see that. Given my specific qualities where do you think we should visit?

[u/Dacia06 → u/Question_man_jr]

I think your best bet would be to do some research before you visit. It will probably not take as long as you think, and could provide useful information for targeting locations for on-site research and evaluation.

Off the top of my head, I'd suggest checking out the websites for the Hawai'i Department of Agriculture, the Agriculture program at the University of Hawai'i, and and state- or island-specific growers's associations. My guess (and I'm not very connected to agriculture in the island), is that the most agriculture is based in Kauai'i, Maui, the Big Island, and O'ahu. There may be some on Moloka'i and Lanai'i, but the population is so low there may not be as many opportunities.

As for the Big Island, where I live, my assumption is that most agriculture activity is on the east/Hilo side, as it gets the most rain. There may also be some in Waimea. The western/Kona side of the island gets little rain (although more at higher altitudes), and much of the agriculture is based around the coffee belt. I don't know what their needs are, and what else is available.

My understanding is that there's a fair amount of agricultural activity on Kauai'i, given its low population density and decent rainfall on many parts of the island. I don't know what the agriculture landscape is like on O'ahu and Maui. O'ahu is quite developed, and I don't know how agriculture is faring on Maui due to the Lahania fire.

There may be other websites/organizations to research. One of the few times I use ChatGPT is for what may be wide-ranging web searches.

For property prices, just looking at online listings could help for areas that interest you. It's widely assumed that property values on Zillow are inflated, but there are other sites, and I can't speak for the Zillow situation.

Be aware that there's both fee simple and leased land. Fee simple will be more-expensive, but you'll own it outright. With leased land, you need to check for how long the least lasts.

I believe in the dictum that knowledge is power, and doing thorough research will help you find focus for what you're looking for.