My grandparents lived with us for decades before they passed away…I personally think living in a multigenerational home added so much richness to my childhood and adolescence.
I'm for multi generational households if the home can accommodate everyone comfortably. It's gets more difficult if you have, say, eight people in a home that's really only meant to house four people. Sometimes people are crowded into a home. I love my family, but I'm also more introverted and like to have privacy too.
You can't bid on a home with just 20% down and bidding on the listing price. You are going to need to overbid. I saw a four bedroom two bath tragedy of a home that needed at least a quarter of a million dollars to make it livable being listed for a million dollars (above appraisal) it ended up selling for 1.5 million to investors who came with cash ready. None of the families who showed up with me at the open house stood a chance. And this house was in need of severe repairs. So a house that appraised at under a million will end up having to sell for over 2 million later in order for even the investor to recoup their money. What are we doing here? Its ridiculous! If laws arent passed to keep foreign investors from buying everything up, locals will end up homeless or migrating to the Midwest. And dont get me started on HOA prices. In my community they can assess new fees at any time above and beyond the HOA fees and HOA fees have gone up 100% in the last 5 years. I passed on the chance to buy the condo I live in because all I could afford the condo I knew that buying into it would mean basically having a second mortgage made out to the HOA every month.
I own a home in Hawaii...how did I do it? Worked in CA and paid for a house in Hi. It was rented for many years and is all paid off. I paid it off from the rental income. Moving the tenants out next month and moving back to HI by April! You can get partners and buy an apartment or multi-unit building. My first place was a 9 unit apartment building with 8 partners. We moved in and my share of the mortgage was less than rent. Apartments sell differently from single family units. Price is based on a multiplier of gross annual income. Say a 4-plex brings in $1,500/mo per unit. That's a gross annual of $72K. If the multiple is 10 x 72 the selling price is $720,000. 4 people now have a place for $180K each! Put money in to renovate and it's worth more! You may not be able to come up with a down payment on a $800,000 condo, but you can on a $200,000 share of a multi-plex. Get creative! Also consider a home with multiple units. I know someone who bought a 3 unit home (carved up) in Mililani. After rental income his contribution to the mortgage is $200/mo.
You know you’re doing an outstanding job with informing your fellow locals and non- locals about the following major areas of co concerns for our own Aina and our Ohana’s. Keep up the great work you do Braddah. My wife and I tried to co e back to our home in Central Oahu and try and see if we could live here again. We’re both from the Islands, mainly Wahiawa area. We both grew up in Hawai’i but as time moves forward, I enlisted in the military and she did too. Funny thing is how I met her at her sisters wedding and my good friend’s younger brother. We were both in the Marine Corps at that time. Almost 45 years later we’re still going stronger than ever, but also moving a little slower and gently. Get back to my original talk story I was retired for the second time in 2010 and we decided to go home in 2013. Boy that was a definitely wrong move on all counts. 1.. The housing market, 2.. The health care, 3…. The cost of foodstuffs, clothing, furniture and many other necessities that are needed to survive. Oh I won’t forget vehicle repairs and maintenance. Talk about costly. Braddah I’m retired military, retired County worker from San Diego and also I’m a disabled veteran. Sad but true and we left our home for good a year later. Fast forward now, we live in Southern California Riverside area, we bought our home; 4 bedrooms, 1 downstairs, 3 bathrooms, 1 downstairs across the bedroom, 4 car garage, a front covered lanai, front yard, back yard enclosed with a concrete brick wall and a covered lanai with 2 air conditioners. Total square footage is around 2600+ SqFt. Our yard is massive that we could expand our home if we wanted too. Not bad for something less than 400k. Right now we’re definitely not thinking of selling, why because this place is a gold mine. People are moving out of California to Nevada, Utah, Texas, and to Hawaii. Go figure that one out. Well I know that our families are still in Hawaii and are trying to make ends meet but sooner or later they’ll be forced to move to the “Mainland like myself and my two sisters. Again Braddah Big Mahalo’s to you and your family. Aloha’oe!
Congratulations. Sounds great. Not everyone can make it into the service and retire, so its a good life and have a good life. Visiting is always fine and Hawaii is still home to locals away from home. I hope you can put in solar, as my brother mentions the cost of cooling and heating outside of Union City, so it'll save even more.
Mahalo for your service, sir. Asyou are a disabled veteran, if there is anything that my friends and I at Gimme A Break Hawaii can do to help you or your family please let us know. We are a nonprofit that works to help provide home health caregivers (family members who are caring for their parents their special needs children or other family members in their own home) the resources they need. You are a hero, my friend! God bless!
Thank you for reading Civil Beat! I love the way you broke down the calculator! I was hoping it would be comprehensive, fun and interactive, and that's exactly what you made it.
Great breakdown of the current housing concerns in Hawaii. I left Hawaii back in 1978 for better-paying jobs in California. Home prices here are very high as well but we don't pay the high food prices that come with living in Hawaii. I am already retired and would love to move back home, but I got too many roots here with our kids and their families (and Las Vegas not too far). So, I stay stuck here! LOL! Naah, we visit family in Hawaii at least twice a year to get my fill of local foods, kanikapila, and talk story. Mahalo for the video!
I was about to ask if you needed us to send you anything that you miss from here but I see you have family here and come often. I have many friends who live on the mainland for whom I have to send li hing candies and calendars to. If you ever need anything just holla!
@@bombshellonthego Awww.. you are so sweet! Ok. send me poke from Foodland or Tamura's (Wahiawa side)-jk. LOL! Mahalo fo da offer and aloha kine hospitality! That's one thing I miss back home is da people.
Never say never. It just takes discipline. Yes we took advantage of living at home for sometime until we got established at our jobs and were able to save up some cash to put a down payment. Down payments don't have to be 20% all the time for new buyers. There are many programs out there that will allow 10 or even 5% down. We were able to buy something about 10 years ago and the situation wasn't that different. The first year or so was tough but eventually you get used to working around that expense and you build your life around that.
For myself, as a parent, I'm not going to allow my adult kids to live at home for free. If they want to live with me, while they're saving up for their own place, then they have to realize that they're gonna have to pay me some rent money. There ain't no free rides in this world. They're gonna have to contribute. If they want my property upon my death then they're gonna have to contribute to paying for it. What that means is, EVEN if they have their own homes, they're still gonna have to still give me some money if they want to be in my will. They ain't getting nothing for free. If they don't want to pay, then that's fine too. I'll just donate my assets to a charity once I die. I want my kids to EARN what they get. They're not getting anything served to them on a silver platter. No way.
It does take discipline to save but *is it worth buying a home in Hawaii at the current market?* You also have to factor in the average salary which remain stagnant. So if we're looking to purchase a 3Br single-family house (not townhouse/condo). The lowest (not average) price is about $770k. You're lucky to find one below that range (no renovation). If we run the math... $770,000 × .05% = $38,450 (Down-payment) $770,000 - 38,450 = $731,550 (Lend from bank) + 30yr fix rate = $4,300/monthly mortgage (Includes mortgage insurance, home insurance and property tax - except utilities) Salary $40k (Yearly) x 2 (Married couple) = $80k ÷ 12(months) = $6,600 - 4300 = 2300 - Electric - Internet - Phone - Car payment - Insurance - Gas - Food Whatever is left from 2300 goes to savings which is not much for the average salary. And $40k is "gross" income before taxes. So technically, you'll barely make ends meet or fall short. The folks who bought before the market spiked or better yet, over 10 years ago are the lucky one's. But the average Joe who are thinking of buying now are priced out...Best thing to do is wait till the market crash. Hawaii hasn't had one yet but the market is way overpriced and is bound to dip sooner or later.
Like it was mentioned in the comments, the 20% down is often a requirement for affordable units. I'll look into those 5-10% down payment programs you referenced.
@@user-sg8kq7ii3y Yikes, imagine bringing a living being into this world just to say, "Sucks to be you homie, you're on your own". This way of thinking will make generational wealth much more difficult. Don't let your anger over your own lack of opportunities also lower the opportunities that your children, or grandchildren could have. Society grows when old men plant trees in whose shade they will never sit.
We need to at least make the effort, like other states do, to require that those purchasing new condos live at the property for a certain amount of time during the year.
There kinda is. Most mortgage companies require 2 weeks a year if purchased as a second home. That’s it. There arent any other regulations… just a better interest rate.
@@HelloFromHawaii In a way, it’s “enforcement theater “. It really only stops the people who are pretty honest in the first place. At least, it would be a start, though.
I live near Seattle and my fiancé’s Momma is from Hawaii. She moved here to get away from the poverty issues from home and unfortunately now we’re having a really similar issues here on the mainland. Houses on average cost near the 1mil range, and minimum wage is similar. Rent is too costly to save, so buying just isn’t an option. Multigenerational housing is less common than on the island but the gap is starting to close. It’s hard, and I hope it gets better on the island. Unfortunately most of the family that we have left over there are up in age and have moved to condos that are slightly more affordable for them, so we don’t have family there if we ever wanted to move there.
There are some small condos in Oahu that still seem within reach, but the HOA dues are often $500+/month. I love Hawaii and visit often. Sometimes I fantasize about living there, but it seems even more impossible than my native California.
$500 maintenance fee is actually very cheap for Hawaii condos in town. There's many with HOA fees well over $1000. Some of the older condos also have very high fees due to the fact that their aging buildings have many chronic problems with big ticket repair items - plumbing, elevators, etc. A few years ago, I saw a condo that looked very affordable for me. After my down payment, my monthly mortgage would have been around $1700. But the damn monthly HOA fee was $1100 per month! And the worse thing about HOA fees? They will NEVER go down. As the building ages, and things start to break, your fees will likely go up and up and up. That's not something I want once I retire, get older, and have to survive on a fixed income.
Usually I’m looking in the somewhat cheaper areas, like Waianae, Kapolei, or Wahiawa. But you’re right, $800 and up is much more frequent closer to Honolulu. I don’t even look at listings in highrises anymore. The HOA dues for those will make your eyes pop out of your head!
Aloha Nephew, What you say is all true. Housing, and the lack of housing, are symptoms of a larger and more complex problem. The population of people without any homes is a similar symptom of a larger cultural phenomenon. This evolving disaster is not unique to Hawai'i, but it seems more obvious here. The sad truth is that Hawai'i has evolved along a path that is not sustainable. A system that cannot sustain itself will end. The financial disparities that we are experiencing will continue to become more extreme. The model of contemporary life in Hawai'i has failed and we are experiencing the results of that failure. Our contemporary culture is not resilient enough to respond to significant stresses. The pandemic is a good example, but it is something less than the pervasive stress of a life in which meeting the basic needs of survival is increasingly out-of-reach. There is no obvious solution. The uncomfortable solution is a minimum level of change that is not acceptable to most people. Multi-generational living is a first step. Developing communities that live true aloha could be a next focus. We are all in this boat together. Shootz, Uncle
I grew up in Hawaii and lived there until my mid-20s then I moved to the mainland and wow ... first thing don't believe what people say, believe what you can verify on your own. The mainland is more expensive hands-down. That being said, EVERYWHERE is getting crazy expensive. Places you'd never think are worth $1 million dollars for a small house, like Denver or Austin TX or li' dat, are very very expensive now. It's not just Hawaii it's happening everywhere.
@@alexcarter8807 you are right America is 5.44 million homes short of inventory, and the average young family doesn't make enough to pay for what the average home sells for. I'm not really sure how we got into this mess, but it is a nationwide issue it is just that in Hawaii it is more apparent what will happen if we don't solve the problem: more elderly and more young families will find themselves homeless. I work with the homeless and I see some things here that I did not see on the mainland. It is truly sad.
They need to use property taxes to build affordable housing and not housing projects. Adding exclusionary towns like max property is 500k and in these towns/areas property taxes are lowered.
The way for Hawaii to get out of housing issues is to build. And I don’t mean few high rises here and there. I’m talking about HK density. Just build a wall of them along the freeway from HNL to downtown Honolulu. Add tens of thousands of units all at once. This will depress condo market for years to come. Hence prices for regular condo will drop dramatically and become affordable to most people. This will involve eminent domain if government don’t own the land around freeway and of course trade off for people who wants to live close to downtown Honolulu due to work but have to live close to freeway.
Too many NIMBYs wanting to preserve the character of their neighborhood. Also, whatever gets built is "luxury" condos. But as long as the housing supply is super low, it's gonna be hella expensive in Hawaii.
Another local living on da mainland here. I've given up the idea of buying a single family home in Hawaii since I was a teen in the 90s when the median price of a home was in the $300ks, which was already too damn high relative to incomes.
We bought our house just outside of Hilo for $150,000 in ‘92 and sold it for $342,000 in mid 2021. It wasn’t a small house with about 1900 sq ft on a 15,000 lot. If you don’t have to live in Honolulu or Kona or other postcard locations; then there are options for affordable housing.
been having trouble finding a house, looking for over a year... i cant rent forever... started to look at condo/townhome but the fees are pretty crazy... sigh...
Buying a house in Hawaii is easy as long as by "house" you mean one of those rainwater catchment places of dubious legality on the Big Island. But for most of us, the US and this is *not* just Hawaii it's all over the US, owning a house has become hereditary, not something you do on your own. The US has almost no social mobility, so you are either born into the social class that is able to own a house or you are not. This is where Asian culture wins, because in Asian culture the whole family works together and the parents help the kids (and the kids, in turn, help the parents when they get old). American culture loses bigtime in this area because in American culture everyone is on their own. Parents don't help their kids. So the parents might own a house or even more than one house, and their kids can be homeless and the parents don't care. And if you think I am exaggerating, I am not. I've lived on the mainland for years now and .... it's very different from what I thought is normal or is the ideal of how people should be. That being said, there are TONS of places that are *like* Hawaii and are tons cheaper. Florida, coastal Mexico and the Baja Peninsula, other places in the Pacific like Samoa, Guam, etc., the Philippines, the Caribbean, etc. So if you are a mainlander who wants to retire in Hawaii because it's warm and tropical and so on, there are tons of other places that can scratch that itch much more affordably.
THERE USE TO BE SOME MORTGAGE PROGRAMS WHERE YOU DIDNT HAVE TO COME UP WITH THE 20% DOWN. DOWN PAYMENT RANGE FROM 5 TO 15 %. DONT KNOW IF IT IS STILL AVAILABLE.
Great breakdown. It is astonishing how home prices have risen so high and so fast. And it is not just here, it’s in many places on the mainland too. I am hopeful that our governments will respond with plans to solve this growing problem.
@toasteh Probably right. My hope, my dream, is we improve the education system in the country again, to make a smart electorate who will vote for educated and moral politicians.
You have got a solid head.on your shoulders. We are still using our 2000 car, and have college kids driving cars around same year. I have a 2014, only because my 1994 car died (that cheap American mage car!). The flipside, no debt, FI - we have $ to live comfortably and have spare time to watch videos looks yours. Just keep working hard, save, raise your kid(s) right, and enjoy life. SFH will come your way, if it's made to be. Aloha
In 1953 my parents built a home in Kailua for $15,000, today that house is shown on Zillow valued at $2,200,000 and is 3 blocks from the beach, not even on the water!
It’s definitely possible! But just last night I googled the average home price + the average income across each state to see my options as an aspiring software engineer, and brah, Hawai’i not looking too appealing imho…): 2 causes I think for the rise of prices may be due to active duty military/retirees and remote IT professionals. It’s not difficult for these parties to come up with the money.
City had involved in the housing market aggressively in the 90s, building a lot of affordable homes, both for purchase and rental. Problem is bad timing. Housing market took a downturn in 00s and City burnt fingers.
Great topic, great questions, great video. The question of what is 'local' is relevant. It might be related to where military assignments would be counted, as are they 'local'? I know many military active duty assigned here and buy. Then again, I've known local people grew up here and joined, returning to buy after several years away, so counting them non-local isn't fair either. On the pay charts, which were interesting, for many of us, both parents worked, and it was a combined income and not an only source provider. In some cases, grandparents, parents, and children all contributed to helping to pay for the multi-generational home (completely or part of the years). I've had some relatives relate stories of son's sending home money for the parents to save for them during their service time on duty, only to return and find out the parents used it for the down payment of a family home and never given the money or title to the home. So, times have been hard for people earlier but might have been forgotten over the years. Now, given the more affluent times, it's taken for granted that a given goal but not without realizing the sacrifice. We look at some things with rose colored glasses without asking tough questions of how and the costs of achieving it. We might forget that there are prices to be paid for some things and it's not all a weekly sale all the time. We'll have to see how it plays out.
Mahalo for the comment. All great things to consider when determining "local buyer". Sad that the housing situation can create family conflict like what you described.
That's a tough subject. I prefer fee simple. Also need to check the length of the lease for leaseholds. It could be close to the end and you'll be out of luck.
I'm not a local but I did live in Oahu from the age of 18-21 and typically go visit the islands on a yearly basis. Like a lot of other places in the USA, the housing problem has an easy fix but it's not going to be pretty. Why? Because the fixes will end up costing the people that got in on the bottom floor money. Personally, I believe housing is a fundamental human right and should be regulated like an utility, so that everyone that has the means and desire is able to get a decent place to live. In the case of Hawaii, the way to fix the problem is to increase the housing supply and lower the prices on existing units. How do you do that? The quickest way is to not allow non-residents to buy a home in Hawaii. That eliminates the ability of deep-pocketed mainlanders, Chinese, Russians, Japanese, etc..to drive up the cost of existing housing and outbid locals by coming in and paying cash on residential units. My point is that, essentially, if you want to own a home in Hawaii, you have to live in Hawaii. You can always come for vacation, do an AirBnB, etc...but buying a home is off-limits until you're a resident of the state. The other, additional way, and again, this is related to my earlier point about housing being regulated as an utility, is that I would limit the number of residences that any specific entity could own to three. That would free up a large number of units for purchase among the populace and, combined with the other measure, depress the sales prices to something approximating moderate prices. I know that these measures would never get enacted because of the amount of money involved and legal challenges but, if passed, they'd really go a long way to solving Hawaii's housing crisis. Bottom line, the housing situation in Hawaii is reaching the point of an existential crisis. The only way to resolve it is to eliminate the profit incentive and motive surrounding it.
Why not just radically increase the supply of high density housing rather than restricting people's property rights? Hawaii is one of the most transitory states in the country. Are you saying if someone came here and became a resident, bought a home, and then had to move for whatever reason would need to sell their home when moving?
@@salesandnegotiation3401 Yes, that's what I'm saying. Existential problems require existential solutions. I'm all for property rights but property rights aren't a suicide pact. Regarding your comment related to radically increasing the supply of high-density housing, what do you think is going to happen when those units go up for sale? The same things that happen now...real estate investors, deep-pocketed foreigners, hedge funds, etc... will snap them all up with the idea of turning a profit on their purchases. It's been proven that an approach like that doesn't work because the developer, whoever it might be, is always going to want to sell to the highest bidder.
The 3 house limit won’t work because people will buy them in the name of a business entity and when they bought 3 they will start another business and buy 3 more.
@@mindibear Sure it will...all the authorities have to do is pay attention. Plus, I sincerely doubt that persons or corporations would want to go through all the hassle to do things that would be illegal in the first place. This is not like the drug trade, where you're going to get massive profits for the risk you're taking.
Good information. What about the outer islands? Are they just as crazy? My brother bought a place in Volcano a couple of years ago for a good price. There were lots of things that needed fixing but it was something he could handle. Don't think he could afford to live on Oahu though.
The only island where you have prices comparable to the mainland is Hawaii. The main reason for that is that there's plenty of land there and the population is relatively small. You can get decent places in Kailua-Kona and Hilo for between $400-700K.
@@ulical Well, and you got an active volcano on Hawaii island, and the vog that goes along with it. Not good if you have asthma or other respiratory problems or allergies.
The neighbor islands are a little better, but I believe the prices on Kauai and Maui soared over the past two years. Big Island is still the most affordable.
I've heard Maui prices are going off the roof there too. Kauai has been increasing but depending on jobs and what is being sought. Big Island has places but Hilo and Kona are higher than outside and depending where, there may not be sewage lines, water catchment tanks and if its remote, no electrical/telephone lines for some growing area. Roughing it for some communities and far drives for shopping, medical and gas is expensive.
Been living here close to 7 years. Painted 10 lovely murals here -for free- for the public. Bought a lovely 2 story house in Wainaku (1.5 miles north of Hilo) about 250 ft from the cliffs (Hilo Pali Ku'u). My house is wayyyyyyy nice but wayyyyyyyyy overpriced. Still bought it, though! We are lucky, fortunate, blessed and loving it here! (Please do not move here unless you are financially able to.)
I remember in 1978 that a new 3B/2b house in Mililani was selling for $90K. I thought no local person could EVER afford that price. Was I ever wrong! Cost of houses have increased in many mainland cities, almost as quickly as in Hawaii. But they are much bigger houses on more land. There isn’t enough land available to build new houses in Hawaii. You could do like several buyers do and buy a house that’s in really bad shape but for cheap, demolish it and build a new house on a fixed bid. Would your parents let you live with them for about 6 months?
I think you will do fine. Too bad it is so bad in Hawaii. I know I can't afford it. Well, at least I have Hawaii in my heart. The most important thing to me.
I was born and raised on Oahu but moved to Texas after my mother passed away at the age of 12. I am now 48 and buying a home in Hawaii and moving back home. Am I considered a “local”? The only reason we can afford to buy a home in Hawaii is because I have a PhD and my wife has a Masters degree and make a few dollars over 300k. Since we are using my VA benefits no money down just closing costs.
I understand how you want to define local, but local buyers in real estate markets usually mean someone who is a resident, plans to contribute by continuing to live in the community and pays income tax here. Someone who is purchasing to actually live in the home, and not to rent it out to make money. The main issue is actually investors, whether they live on the mainland or overseas, who have no stake in the community, and could care less what happens to any of the locals that live here as long as they make a quick buck. I didn't grow up here, but I contribute to my local community by feeding the homeless and working with schools to ensure students have the tools they need to succeed. I have only been here two years but as an anthropologist I wanted to go back to school and get a degree in Hawaiian Studies and work to help native Hawaiians succeed in a world marginalizing them, rather than celebrating their many contributions by working within government to get laws passed that benefit kanaka. But, it is becoming increasingly clear that I will continue to be outbid by foreign investors who want to rent to tourists by the month. So, instead, I will be heading to the mainland and will have to give up on my dream. I will always love Hawaiians and Hawaiian culture and respect everything they stand for, though. I will never be considered a local, but I hope to be considered a neighbor and friend.
Hawaii Business Magazine just had a couple of articles about some housing problems. One was that condos are often leasehold. They escaped the legislation that made it possible for some people to buy the land under their homes. Also one on a 5 story walk-up in Liliha for "affordable" homes. I learned a lot from reading those. Just thought I'd mention them. Meanwhile I'm enjoy the deluge here in the PNW and anxiously awaiting SPRING! LOL
Hi Chris - just curious why don't move back into your parents' place and live with them? or swap your current place with theirs? or ask them to take a line of equity on their home to help you finance yours? As the last resort, I think you will eventually inherit theirs as long as you outlive them, so there's no need to be too concerned about not being able to afford your own SFH.
I'd probably not buy one just because I don't want to see too much of Hawaii. I'd learn all the dark sides by living there vs the enjoyment of visiting. Plus I like road tripping....
@@HelloFromHawaii I was able to experience the Big Island and thought it was so underrated to just drive and hear the music from the radio. I really liked the Hawaiian music as I was staring at the beaches or trees.
You're only describing Oahu. Not all of Hawaii is impossible to buy a home. If you live on Oahu & Maui, then yeah, it's impossible to buy a home, but if you're on the Big Island, then it is possible. When I was in Oahu, I lived in Millani, Kahala, Pearl City, Alewa Heights & Kailua. I'm done now there & my next move is The Big Island (Hilo). Trying to save as much money as I can & build up my business so that I can one day build my dream home in Hilo.
I am a “local” but live on the mainland. So when/if we buy, would I be considered a mainland buyer or a local buyer? You have the right idea, delay instant gratification for long term gains. We all have to start somewhere. Many in my generation (baby boom) chose to move off island to realize the American dream of homeownership. Back when we were buying, the most we could afford was a 900 sq ft townhouse in Halawa, which was considered the boonies back then. My husband had an uncle in Washington so we stair stepped our way there, got jobs, and bought our first home. For the same money, we got a home twice the size of that townhouse. Fast forward to the present. Education, careers etc behind us, we are the landlords. Washington prices of housing are on par in some parts of Hawaii now. There is still a disparity in size of house and land but for those of us who delayed gratification we are finally in a position where home ownership in Hawaii is finally within reach. Not willing to give up our income tax free status, however, still prevents us from surrendering our out of state residency which then relegates us to the status of “snowbirds”. Young buyers today have got to be creative and look at all possibilities to realize the dream of home ownership. First off, you have to set the goal and commitment for buying a home. Like you said, delay new cars, phones, vacations etc. save save save. pay yourself every month in a mutual fund, Life insurance or some other type of savings vehicle. Take on a part time job with earnings earmarked for that home only. Take advantage of employer sponsored 401Ks. Once your nest egg is built, See if you can take a loan out against your 401 K or you life insurance for your down payment. Look at the different lending programs. If you’ve served in the military, take advantage of a VA loan. No military? Check out FHA. Any specials for the first time home buyer? Research research research. The information isn’t going to land in your lap! Where there’s a will, there’s a way. You don’t have to do anything as extreme as move off island to buy. But you must be willing to make concessions such as living far out and starting small. We all have to start somewhere. After a few years, you’ll have equity and more likely make more money, then you can move up. Avoid condos if at all possible, the maintenance fees will eat you up. If you must do a condo, make sure they include part of your utilities like water sewer garbage and maybe even electricity. Check out public transportation vs commuting in your PV. Using public transportation gives you time to take a nap, read a book,balance your checkbook etc.Try to stay close to bus lines or the soon to be train station. (You know that thing is going to be in service someday!) Take comfort in knowing, your property taxes are some of the lowest in the nation. Fans work as well as AC for most of the year. Mom and dad or anyone else you know buying new furniture? Take the old stuff off their hands. If not, check out Craig’s list. You Can find almost anything you need to furnish your new home there for cheap…until you can afford the good stuff. If you really want your own home, you can make it happen! Get busy, and get creative!
Isn't that why so many families have multi-generational households, to increase the overall income and make things more "affordable"? Also what a lot of people do is buy in more affordable areas and then sell when equity increases and to cut down on unnecessary spending.
What happens if too many people who work in hospitality or service sector move because they cannot afford to continue to live in Hawaii? There would be the well off with a nice house, but in a place with very few supports.
Solution - Invest in real estate...in other markets. You can eventually have the net worth to buy in Hawaii. We invested in real estate in SoCal and the Seattle, WA area. They were all fixers in up and coming areas. Nobody helped us buy anything. It was one property at at time over many years. We will soon have a modest condo in Oahu.
Well, it certainly sounds like a difficult issue for the majority. Would be interesting to see the flip side of those who have made it and where they come from.
I really like your context on your videos. I don’t think all of the younger locals realize it’s getting worse and worse until it affects them and they won’t be prepared for having to pay for their future shelter cost. I was lucky to inherit a house in Kaneohe which is fee simple. My youngest son lives with me but my other 2 kids seems to be doing ok for now but they are welcome to come back if they need to or want too. I was renting in town for over 30 years but it’s an older place so rent wasn’t too bad but the rents these days are ridiculous. I try to explain to my younger child but at times, I feel they just don’t want to save up to make things easier on themselves. I see this with the younger generation when it comes to saving and spending, I guess I’m old school and budgeted all my life. At my age, I would rather rent than to be paying HOA fees and all of the rules that goes with the sale of a home these days. I’m just lucky since my property tax isn’t that bad since I don’t pay any rent or a mortgage. I’m a handyman and so far I could fix anything that came up in the past 14 years living back in this house. I love yard work, it gives me exercise and it’s a stress relief for me. Carpentry, electrical, plumbing I can do myself as I try to teach my youngest son (20ys) how to do the work himself to try and save and not to get ripped off, because it happens. Being a retired auto mechanic and a handyman for an apartment complex for 30+ years in town with 27 units to keep up and only me, well you learn fast. At times I wish I had chosen a different career and studied more and just paid someone but the cost and workmanship has me shocked in what you get and the price you have to pay for it. Yes I’m old school but it’s paying off now in my retirement years by having the knowledge of doing it myself and hoping I can pass these skills to my children so they can keep the place up when I’m not there for them anymore. I tell home owners to at least try, study on the internet and most things they CAN do. Like my mother always told me, have patience, without patients you have nothing (yes she was born and raised in Chiba Japan). They saved and budgeted and had no family to help them and they made it but of course times back then were easier to buy things in Hawaii. The future looks dark for the younger locals in buying a home unless something changes but what? IDK. Too many HOA fees going up and up, the rules they have on your new home and yard, sorry that’s just not for me to deal with, if I buy it I feel people shouldn’t tell me how to live in it or take care of my yard. On top of it, you pay them a monthly fee for this service? I know a lot of people that bought a new home and then sold it 7 to 8 years later so they could find an older home that is fee simple. They all got tired of paying HOA fees and be told what and what not to do (almost like renting?)
Mahalo for the insight and wisdom. Budgeting is so important and I hope that the younger generation understands finances. Not just crypto and investing, but personal finance and budgeting.
So lets do something about it. Lets find a way to change the minds of non locals from buying in Hawaii. Do what we gotta do! Hawaii is NOT for sale, but its being sold.
What's the minimum wage in Hawaii? In Los Angeles, it's $15, and will go to $16.04 July 1. Cost of living in LA is very expensive, Hawaii is more expensive.
Hawai'i is expensive but it only gives you a greater reason to boost up them credit scores, start a savings account and work smarter not just harder. The economy has always sucked but it also comes down to will and determination! If you want something like that beautiful house, Work, save, invest properly and you CAN get it. Blaming Hawai'i isn't an excuse. New York is expensive, California is expensive, Paris is expensive but people still manage because it was thier mindset that changed and they embraced the struggles and worked smarter to get what they want.
Downsized to a condo in town with no regrets, no more pulling weeds or cutting any grass, etc.. Owning a home is possible in HI, many start out in a condo then build equity over time and then trade up to a single family, its best if both parents are working and will also allow the grown kids to share the home (ohana hale) If my parents owned a home here sure would be helping them out by living with them and save them the costs of elec. gas, food, etc.. If you are a veteran or active military from HI use those VA benefits bruddahs & sistahs with no money down! Hope I'm sending a positive vibe! Mahalo nui loa! 🤙😺
And what the slider doesn't show is that yes, $66 per hour is great, and some jobs that I know of do pay that, but will this job actually last til the house is paid off ? I feel "nope" ...
@@HelloFromHawaii With the economy changing so fast, every which way, with present day lay offs, covid or not, yikes, the future (job wise) to buy a home is so scary, who wants to take a chance ? and even those jobs that are supposedly popping up as covid "ends" , those minimum wage jobs, yikes again ... love your vids, so right on, telling like it really is ... arigato !!!
At some point the pull back will have prices under what they were before the climb. The gov has to green light the permits. Figure out how many would like to be in their own independent home. Only those homes get built over the next 5 years. Old fashion neighborhoods, 3bd. After that any builder not producing their share of those homes does not get the permits for the fancy golf course coastal homes after the 5 years. Better yet build a few more hotels and ban AIRB&B. Those units go to long term rentals or put up for sale.
I just got back from HNL and I can see why people love living in 808. One of the problem I see is that everyone wants to buy a house and everyone is ready to pay the market price. A price that is inflated and has a layer of fOMo attached to it. I want you all to beat the system, buy some land and build your own house. It will be 50% of the cost. Get 20 friends together and create a coop of friends that will build each other’s house. By buying at 800,000 a house, you are a slave to the system to pay that off. Get a load to buy land, then get a construction loan for 1 year and build that house and convert the 2 prior loans into a mortgage. I know it is 3 loans but it is half the price and you build your dream house
Not a lot of land available unless you want to live in Waianae. The island is already overdeveloped for the resources available. (I hope they start building desalination plants soon.) Better to buy an old house, tear it down or remodel. The “old” houses in town near where my parents live are still selling for $750k or more and parking is always a problem especially when a multi family dwelling replaces the old one! I agree with the premise of build your own but I’m a city slicker myself and prefer to,live where I can find amenities close by.
Mahalo for the comment. Buying land is quite expensive, unless you are looking at maybe the Big Island. But building your own place is definitely a nice idea.
Land is so scarce that the theory of build your own is cheaper is not necessarily true all the time. We just looked into this. Material prices are so crazy now the material and labor cost could easily eclipse the land cost.
Now you know why so much people live in a house. They help each other pay rent or mortgage. Can't be single unless you make lots of $$$. That's part of the reason so many homeless and single person can't afford.
Thanks for the video, very insightful. We have the same problem going on here in Vancouver, Canada except the "locals" here like to point fingers at immigrants and foreign investors therefore creating racial tensions. I feel the same, even if I am able to afford a house in Vancouver...what about my kids?
Don't let HI fool you. They don't like mainlanders, white people. I know because I've seen it, was called several white racist phrases for no reason. How I'm taking jobs from locals, blah, blah, blah. Sorry if the locals are lazy af, smoke weeds, drink, take drugs all day and can't pass a drug test to make a living.
Banks wanted more money. There is no such thing as a shortage of homes when there was a shortage of house payments or people losing their homes battling covid in the hospital. Greedy real estate companies and rich foreign buyers also drove the hype and costs up unfortunately.
It's hard. Most peeps don't realize that, higher housing prices might not mean that you are doing well and going to make money. It kinda means that you are just paying more taxes, since you can't sell the home that you are living in if you can't buy another one that is matching or better. Sometimes to do better, you actually have to sell and downgrade in order to take that profit. So bragging rights on your home being valued at X, don't mean too much. Go ask the zimbaweans and venezuelans millionaires how rich they truly are.
Good points about the taxes. Having a higher value home doesn't always mean a good thing and it can, like you said, trap you if you can't buy somewhere else.
Let the outside investors continue to out price people in Hawaii, eventually resources will run out on this island as rapid development of condominiums in metro areas.
Keep up the GOOD work MAHALO I AM FROM HAWAII LIKE I SAID IN TIME HAWAII WILL NOT BE PARADISE THERE WILL BE A LOT OF CRIME HAWAII IS HAVING TO MUCH PROBLEM AND IT WILL NEVER STOP IT WILL GET WORSE HAWAIIAN SPIRITS O 9:529:54 F ALOHA WILL BE GONE NO ONE WILL 9:579:57 T 9:57 ONE WILL TRUST EACH OTHER I
9:11 so you are married and have kids. You look past your twenties. You are at least mid 30’s. So you must be renting because you’re saving up. Brah. No good. By the time you can afford the downpayment on a 30 year mortgage, how old will you be? 40? 45? Then the house will be paid off when you’re 70? So you’ll definitely have to work until the mortgage is paid off. That is not a good financial outlook. You should already have a house that you’re paying the mortgage on.
The numbers in Hawaii are bonkers. Our home went up $70k in the last 30 days. Just... Stupid. So unbelievably stupid and sad. Sad for all those that want to buy their first home. Civil Beat had a great article on population. Over 65 crowd grew by 40%. Making the majority of political votes are going to keep the housing market the same. The elderly don't want affordable housing anywhere near where they live.
That's crazy about the price increase. It will be interesting to see how things play out as the older population continues to grow. I suspect higher health care/long-term care demands.
@@HelloFromHawaii indeed. The generation before us isn't going to cut us any slack (at least according to past performance). My hope is that our generation will look out for the next one and helps our kids get ahead and at least have the same opportunities that we did.
When the new economic system is implemented it will be possible. Just wait a bit longer for NESARA to kick in. Wiki has the info on that. Oh and one job will be enough. Soon people soon.
@@HelloFromHawaii The foreign investment factor will continue to drive up real estate cost. It’s the bottle neck to keep things in check from an overpopulation perspective. More wealth will keep the island and developers coming to its shores. I suspect more pac islanders will seek refuge to HI & GU to escape sea level rise in their island homes. This will add further pressure on existing housing. Question is when will the floor drop? Will it take a cat5 Hurricane & subsequent fleeing foreign investment or a hypersonic missile from Nkorea to right size the affordability crisis. Either way things will not change until a life altering man made or natural disaster happens.
I made around 40 an hour and it was enough to rent super small space. Its the people and food that make it worth it. I worked 2 jobs too most of the time but i felt better than I did on the mainland because of the people and food. I saw plenty local Japanese children in 50s waiting on parents in 70s or 80s to psss away. Uncle would always say "Pops, he still going yeah" and roll his eyes lol.. But there was truth in the joke. They really waiting for parents to go, especially when they had 4 generations if obachan is like 90 or something 🤙No judging, my house in WV is 70k. Couldnt buy anything with 70k in Hawaii. 10% down on 700k it would be at best.
If you foresee that your kid won't be able to afford the things people need in life, such as a home when he is grown, why would you have the kid knowing he will struggle through life?
@@HelloFromHawaii My point is, how can people bring kids into this world knowing they will struggle and live a life of hardship as things get more and more difficult, overpopulated, cut throat, expensive, competing for ever depleting resources, etc.
Only the ones that sell lots of homes and/or expensive homes. Get choke realtors in Hawaii. The well-known ones make bank, but the thousands of other ones are struggling just like everyone else.
I guess timing for us was just luck….no way did we see covid…I am a mainland buyer whom bought a house on an agricultural lot on The Big Island with the intention of renting it out to long term renters just until we could move. We have been lucky to find such good people whom will hopefully be our neighbors someday. It is a scary (some call us crazy) thing to take your life savings and buy something you are far away from! We have no interest in selling as we were not motivated to buy as a monetary investment but rather a future lifestyle change to self sustaining farming. As for the house on the mainland, we hope to hold off selling until our adult children finish college and find a path. We couldn’t touch anything on Oahu..totally out of our reach unless we get like a 300 year mortgage …hopefully that changes🍄😃🌈🤙
@@HelloFromHawaii not there yet…we got about 3 years before our 2 kids get college degrees…we feel we need to help them as much as possible while they are figuring things out for themselves…
Mahalo for your sincere views. I am truly a local living in Idaho. Sadly you are not close to the real issues. Due to Hawaii’s one party political system it will only become more severe. Supporting corrupt officials making selfish decisions while ignoring illegal actions is Hawaiian history. I attended Kamehameha when our trustees stole millions from the trust fund. Not a single one was prosecuted because they were appointed by the guv. You elect celebrities who talk nice rather than serious thinkers. You pass law’s benefiting rich and powerful before than the common person. Multigenerational living is counterproductive. Can you name a single state where this is common place, acceptable or encouraged? In 20 years will your son and his family live with you in your 1 bedroom condo? Having spent so much time and attending summer school at Kamehameha My daughter wanted to move home and was just offered a job in Honolulu for $180k. She declined because her $150 k now allows her to SAVE each month for her future but the cost made it impossible in Hawaii . My family living there is very well positioned owning their homes and professional careers but they speak of the difficult for their kids and suspect they will have to live on the mainland. 50 years from now you will be having the same discussion only the numbers with have more zeros. I miss my old Hauula. Live long and prosper. I enjoy your naïve views.
Mahalo for the comment. Interesting that your daughter turned down that job offer since it's well above the median salary and could probably afford her a nice life.
@@HelloFromHawaii I would say that in your video then as it implies the state is Oahu but it’s the state of Hawaii so titling the video “why you’ll probably never buy a home in Oahu” is more accurate because I just bought my first home in September in Mountain View Hawaii for $230k with 30k down so a $200k mortgage with about 730 credit score and it’s a 2 bedroom 2 bath 1200 sq with ocean view yes I got lucky because I’ve been waiting for 5 years studying everything and put an offer on day one probably couldn’t buy that again but with your much higher budget it’s extremely easy for you to buy a house here in Hawaii. I have a small online business and a part time job at the post office at $20 an hour, if I can do it than anyone can. And I did it solo. I always see videos of locals struggling on Oahu / Maui and yet nobody even thinks about Big Island like it’s some horrible place even see Hawaiian natives moving to Vegas before buying land on Hawaii island it’s like bro the volcano isn’t that scary it’s a gem here so maybe I should keep quiet it’s just hard not to comment when it’s as easy as getting a job transfer to Hilo and can be a homeowner in the second biggest city in the state.
These prices are no worse than in areas in California, especially in Silicon Valley and commute areas. I don't think anyone living in NY or CA is shocked by the numbers you present. Thanks for doing such good homework.
You can't say "California" or "New York" as if everywhere in CA and NY is as expensive as Hawaii because it isn't. Maybe Silicon Valley, San Francisco, and Manhattan is just as expensive (or more expensive) than Hawaii, but that's about it. Silicon Valley, Manhattan, etc., are SPECIFIC areas in CA and NY were rent and cost of housing are high. But the vast majority of the rest of those states isn't very expensive. When he says that the "average" price of a home in Hawaii is $1,000,000, he's talking about the median price. So you're gonna have 55 year old, termite eaten, single wall redwood homes in lower Pearl City selling for $900,000. Then you'll have your home on Hawaii Loa Ridge or Diamond Hd. selling for $15,000,000 or even much more!
And, in many instances, $1,000,000 ain't buying you much in Hawaii. Many $1,000,000 homes in Honolulu are NOT move in ready. Many need extensive repairs and remodeling. So, unless you can do home improvements yourself, then you can expect to invest much more on just basic repairs and remodeling.
@@melanieathwal4038 Yes, very true. But I'm guessing that more people are able to work from home these days, so living in the outskirts may work for these people.
In terms of prices, it may not be significantly higher, but there are so many other things that make it tougher because of cost of living and relatively low wages.
My opinion? Hawaii should heavily tax those that have other homes on the mainland and those that are use properties for sort term rentals. Use that money for affordable housing projects.
You're dullusional. People are allowed to use their other home in another state as their primary residence. Sooooooo veterans that get property tax cut are suppost to lose that too?
I think they've talked about doing that, but not sure about the enforcement of that. You'd have to prove that the person was not living in Hawaii for so many days, even if they collect rental income. But I like the idea.
Build a small house behind your parents or grand parents house....so called adu if the lot is big enough? 2022 fed.reserve will raise the rate! Mortgage rate will rise, house price will come down...or Ukraine escalate to war, then stock price will fall and no more cheap money for real estates investment ! Real estate are not good investment...so house price will come down. So I would wait till 2023 or 2024. Maybe Trump or republican will control the house and senate to stimulate economy.... wait and see..
Yep, I'll allow my kids/grandkids to build an ADU on my property. But they'll have to clean yard every weekend, wash my car once-per-week, clean my windows and screens monthly, do my laundry, and come to my house and wash my dishes every single night. And if they don't agree to doing those things, then they can go live somewhere else. Nothing in life is free.
@@user-sg8kq7ii3y grandpa grandma are 50, 60 years old they help your kids to drive to school and all chores,maybe they set up college fund for grandkids, but they get to 70, 80, 90 yrs.old they need help...mutual help among family...old school of thought...old Italian and hispanic custom ?
@@barry3565 Yep, exactly. I'd be willing to help them, but they've got to help me as well. I do not believe in giving kids/grandkids too much because for some of them (not all), giving them too much creates apathy. They feel too secure, and they know they can always rely on you for help, so they don't strive for improvement. They become lazy and irresponsible. And, instead of saving money, they start buying brand new 4x4 Tacomas, even if they don't even go off-roading, and as soon as they bring the truck home, they immediately buy new rims and put on bigger tires even if the rims and tires that came with the truck are perfectly fine. Next comes the body lift kit. They trick out their Tacos, yet they don't think of paying rent to their parents/grandparents. Well that ain't gonna happen in my house. My kids/grandkids are gonna pay me RENT. And when I get old, they're gonna change my diapers and puree my food in the blender for me. And if they object to this, then I'm gonna tell them, "Be sure to buy one camper for your Tacoma because that's where you'll be sleeping!
@@HelloFromHawaii mine took about 2 years from foundation to all fixtures and to roof, landscape behind son's house. We live happily share space! Moved equity to new house.
My grandparents lived with us for decades before they passed away…I personally think living in a multigenerational home added so much richness to my childhood and adolescence.
Mahalo for sharing. Great point about living with grandparents and what they can pass along.
I completely agree!
I'm for multi generational households if the home can accommodate everyone comfortably. It's gets more difficult if you have, say, eight people in a home that's really only meant to house four people. Sometimes people are crowded into a home. I love my family, but I'm also more introverted and like to have privacy too.
You can't bid on a home with just 20% down and bidding on the listing price. You are going to need to overbid. I saw a four bedroom two bath tragedy of a home that needed at least a quarter of a million dollars to make it livable being listed for a million dollars (above appraisal) it ended up selling for 1.5 million to investors who came with cash ready. None of the families who showed up with me at the open house stood a chance. And this house was in need of severe repairs. So a house that appraised at under a million will end up having to sell for over 2 million later in order for even the investor to recoup their money. What are we doing here? Its ridiculous! If laws arent passed to keep foreign investors from buying everything up, locals will end up homeless or migrating to the Midwest.
And dont get me started on HOA prices. In my community they can assess new fees at any time above and beyond the HOA fees and HOA fees have gone up 100% in the last 5 years. I passed on the chance to buy the condo I live in because all I could afford the condo I knew that buying into it would mean basically having a second mortgage made out to the HOA every month.
I own a home in Hawaii...how did I do it? Worked in CA and paid for a house in Hi. It was rented for many years and is all paid off. I paid it off from the rental income. Moving the tenants out next month and moving back to HI by April!
You can get partners and buy an apartment or multi-unit building. My first place was a 9 unit apartment building with 8 partners. We moved in and my share of the mortgage was less than rent. Apartments sell differently from single family units. Price is based on a multiplier of gross annual income. Say a 4-plex brings in $1,500/mo per unit. That's a gross annual of $72K. If the multiple is 10 x 72 the selling price is $720,000. 4 people now have a place for $180K each! Put money in to renovate and it's worth more! You may not be able to come up with a down payment on a $800,000 condo, but you can on a $200,000 share of a multi-plex. Get creative!
Also consider a home with multiple units. I know someone who bought a 3 unit home (carved up) in Mililani. After rental income his contribution to the mortgage is $200/mo.
You know you’re doing an outstanding job with informing your fellow locals and non- locals about the following major areas of co concerns for our own Aina and our Ohana’s. Keep up the great work you do Braddah. My wife and I tried to co e back to our home in Central Oahu and try and see if we could live here again. We’re both from the Islands, mainly Wahiawa area. We both grew up in Hawai’i but as time moves forward, I enlisted in the military and she did too. Funny thing is how I met her at her sisters wedding and my good friend’s younger brother. We were both in the Marine Corps at that time. Almost 45 years later we’re still going stronger than ever, but also moving a little slower and gently. Get back to my original talk story I was retired for the second time in 2010 and we decided to go home in 2013. Boy that was a definitely wrong move on all counts. 1.. The housing market, 2.. The health care, 3…. The cost of foodstuffs, clothing, furniture and many other necessities that are needed to survive. Oh I won’t forget vehicle repairs and maintenance. Talk about costly. Braddah I’m retired military, retired County worker from San Diego and also I’m a disabled veteran. Sad but true and we left our home for good a year later. Fast forward now, we live in Southern California Riverside area, we bought our home; 4 bedrooms, 1 downstairs, 3 bathrooms, 1 downstairs across the bedroom, 4 car garage, a front covered lanai, front yard, back yard enclosed with a concrete brick wall and a covered lanai with 2 air conditioners. Total square footage is around 2600+ SqFt. Our yard is massive that we could expand our home if we wanted too. Not bad for something less than 400k. Right now we’re definitely not thinking of selling, why because this place is a gold mine. People are moving out of California to Nevada, Utah, Texas, and to Hawaii. Go figure that one out. Well I know that our families are still in Hawaii and are trying to make ends meet but sooner or later they’ll be forced to move to the “Mainland like myself and my two sisters. Again Braddah Big Mahalo’s to you and your family. Aloha’oe!
Mahalo for sharing your story. Your home sounds amazing in CA and, HI will always be home 🤙
Congratulations. Sounds great. Not everyone can make it into the service and retire, so its a good life and have a good life. Visiting is always fine and Hawaii is still home to locals away from home. I hope you can put in solar, as my brother mentions the cost of cooling and heating outside of Union City, so it'll save even more.
Mahalo for your service, sir. Asyou are a disabled veteran, if there is anything that my friends and I at Gimme A Break Hawaii can do to help you or your family please let us know. We are a nonprofit that works to help provide home health caregivers (family members who are caring for their parents their special needs children or other family members in their own home) the resources they need. You are a hero, my friend! God bless!
Thank you for reading Civil Beat! I love the way you broke down the calculator! I was hoping it would be comprehensive, fun and interactive, and that's exactly what you made it.
Enjoyed the charts. Great job 🤙
Great breakdown of the current housing concerns in Hawaii. I left Hawaii back in 1978 for better-paying jobs in California. Home prices here are very high as well but we don't pay the high food prices that come with living in Hawaii. I am already retired and would love to move back home, but I got too many roots here with our kids and their families (and Las Vegas not too far). So, I stay stuck here! LOL! Naah, we visit family in Hawaii at least twice a year to get my fill of local foods, kanikapila, and talk story. Mahalo for the video!
🤙 Glad you still get to visit
I was about to ask if you needed us to send you anything that you miss from here but I see you have family here and come often. I have many friends who live on the mainland for whom I have to send li hing candies and calendars to. If you ever need anything just holla!
@@bombshellonthego Awww.. you are so sweet! Ok. send me poke from Foodland or Tamura's (Wahiawa side)-jk. LOL! Mahalo fo da offer and aloha kine hospitality! That's one thing I miss back home is da people.
Never say never. It just takes discipline. Yes we took advantage of living at home for sometime until we got established at our jobs and were able to save up some cash to put a down payment. Down payments don't have to be 20% all the time for new buyers. There are many programs out there that will allow 10 or even 5% down. We were able to buy something about 10 years ago and the situation wasn't that different. The first year or so was tough but eventually you get used to working around that expense and you build your life around that.
For myself, as a parent, I'm not going to allow my adult kids to live at home for free. If they want to live with me, while they're saving up for their own place, then they have to realize that they're gonna have to pay me some rent money. There ain't no free rides in this world. They're gonna have to contribute. If they want my property upon my death then they're gonna have to contribute to paying for it. What that means is, EVEN if they have their own homes, they're still gonna have to still give me some money if they want to be in my will. They ain't getting nothing for free. If they don't want to pay, then that's fine too. I'll just donate my assets to a charity once I die. I want my kids to EARN what they get. They're not getting anything served to them on a silver platter. No way.
It does take discipline to save but *is it worth buying a home in Hawaii at the current market?* You also have to factor in the average salary which remain stagnant. So if we're looking to purchase a 3Br single-family house (not townhouse/condo). The lowest (not average) price is about $770k. You're lucky to find one below that range (no renovation). If we run the math...
$770,000 × .05% = $38,450 (Down-payment)
$770,000 - 38,450 = $731,550 (Lend from bank) + 30yr fix rate = $4,300/monthly mortgage (Includes mortgage insurance, home insurance and property tax - except utilities)
Salary $40k (Yearly) x 2 (Married couple) = $80k ÷ 12(months) = $6,600 - 4300 = 2300
- Electric
- Internet
- Phone
- Car payment
- Insurance
- Gas
- Food
Whatever is left from 2300 goes to savings which is not much for the average salary. And $40k is "gross" income before taxes. So technically, you'll barely make ends meet or fall short. The folks who bought before the market spiked or better yet, over 10 years ago are the lucky one's. But the average Joe who are thinking of buying now are priced out...Best thing to do is wait till the market crash. Hawaii hasn't had one yet but the market is way overpriced and is bound to dip sooner or later.
Like it was mentioned in the comments, the 20% down is often a requirement for affordable units. I'll look into those 5-10% down payment programs you referenced.
@@bromatik6136 I suggest buying land instead. It's better 😌
@@user-sg8kq7ii3y Yikes, imagine bringing a living being into this world just to say, "Sucks to be you homie, you're on your own". This way of thinking will make generational wealth much more difficult. Don't let your anger over your own lack of opportunities also lower the opportunities that your children, or grandchildren could have. Society grows when old men plant trees in whose shade they will never sit.
We need to at least make the effort, like other states do, to require that those purchasing new condos live at the property for a certain amount of time during the year.
There kinda is. Most mortgage companies require 2 weeks a year if purchased as a second home. That’s it. There arent any other regulations… just a better interest rate.
Great suggestion. Enforcement would be challenging, though.
@@HelloFromHawaii In a way, it’s “enforcement theater “. It really only stops the people who are pretty honest in the first place. At least, it would be a start, though.
I live near Seattle and my fiancé’s Momma is from Hawaii. She moved here to get away from the poverty issues from home and unfortunately now we’re having a really similar issues here on the mainland. Houses on average cost near the 1mil range, and minimum wage is similar. Rent is too costly to save, so buying just isn’t an option. Multigenerational housing is less common than on the island but the gap is starting to close. It’s hard, and I hope it gets better on the island. Unfortunately most of the family that we have left over there are up in age and have moved to condos that are slightly more affordable for them, so we don’t have family there if we ever wanted to move there.
There are some small condos in Oahu that still seem within reach, but the HOA dues are often $500+/month. I love Hawaii and visit often. Sometimes I fantasize about living there, but it seems even more impossible than my native California.
Agree 100%
$500 maintenance fee is actually very cheap for Hawaii condos in town. There's many with HOA fees well over $1000. Some of the older condos also have very high fees due to the fact that their aging buildings have many chronic problems with big ticket repair items - plumbing, elevators, etc. A few years ago, I saw a condo that looked very affordable for me. After my down payment, my monthly mortgage would have been around $1700. But the damn monthly HOA fee was $1100 per month! And the worse thing about HOA fees? They will NEVER go down. As the building ages, and things start to break, your fees will likely go up and up and up. That's not something I want once I retire, get older, and have to survive on a fixed income.
500&? No no no ~ at least 800$
Usually I’m looking in the somewhat cheaper areas, like Waianae, Kapolei, or Wahiawa. But you’re right, $800 and up is much more frequent closer to Honolulu. I don’t even look at listings in highrises anymore. The HOA dues for those will make your eyes pop out of your head!
California to Hawaii? Like jumping from the frying pan into the fire!
Special assessment fee is not confined to those old condo buildings. Some new condo buildings in Kakaako require major repair.
Aloha Nephew, What you say is all true. Housing, and the lack of housing, are symptoms of a larger and more complex problem. The population of people without any homes is a similar symptom of a larger cultural phenomenon. This evolving disaster is not unique to Hawai'i, but it seems more obvious here. The sad truth is that Hawai'i has evolved along a path that is not sustainable. A system that cannot sustain itself will end. The financial disparities that we are experiencing will continue to become more extreme. The model of contemporary life in Hawai'i has failed and we are experiencing the results of that failure. Our contemporary culture is not resilient enough to respond to significant stresses. The pandemic is a good example, but it is something less than the pervasive stress of a life in which meeting the basic needs of survival is increasingly out-of-reach. There is no obvious solution. The uncomfortable solution is a minimum level of change that is not acceptable to most people. Multi-generational living is a first step. Developing communities that live true aloha could be a next focus. We are all in this boat together. Shootz, Uncle
I like the idea of developing communities that live true aloha
I grew up in Hawaii and lived there until my mid-20s then I moved to the mainland and wow ... first thing don't believe what people say, believe what you can verify on your own. The mainland is more expensive hands-down. That being said, EVERYWHERE is getting crazy expensive. Places you'd never think are worth $1 million dollars for a small house, like Denver or Austin TX or li' dat, are very very expensive now. It's not just Hawaii it's happening everywhere.
You are a genius, sir. Your comment has me truly considering what a community built solely on Aloha might look like. It would be a beautiful dream.
@@alexcarter8807 you are right America is 5.44 million homes short of inventory, and the average young family doesn't make enough to pay for what the average home sells for. I'm not really sure how we got into this mess, but it is a nationwide issue it is just that in Hawaii it is more apparent what will happen if we don't solve the problem: more elderly and more young families will find themselves homeless. I work with the homeless and I see some things here that I did not see on the mainland. It is truly sad.
They need to use property taxes to build affordable housing and not housing projects. Adding exclusionary towns like max property is 500k and in these towns/areas property taxes are lowered.
Be careful what you wish for…. The only way that will happen is if property taxes on existing homeowners is raised!
@@melanieathwal4038 yes someone pays, nonresidents, second homes and houses over 500k.
Mahalo for the idea. 🤙
Happy Valentine’s Day, Chris!
🤙
The way for Hawaii to get out of housing issues is to build. And I don’t mean few high rises here and there. I’m talking about HK density. Just build a wall of them along the freeway from HNL to downtown Honolulu. Add tens of thousands of units all at once. This will depress condo market for years to come. Hence prices for regular condo will drop dramatically and become affordable to most people. This will involve eminent domain if government don’t own the land around freeway and of course trade off for people who wants to live close to downtown Honolulu due to work but have to live close to freeway.
Interesting suggestion. Maybe they can build along rail.
Too many NIMBYs wanting to preserve the character of their neighborhood. Also, whatever gets built is "luxury" condos. But as long as the housing supply is super low, it's gonna be hella expensive in Hawaii.
Another local living on da mainland here. I've given up the idea of buying a single family home in Hawaii since I was a teen in the 90s when the median price of a home was in the $300ks, which was already too damn high relative to incomes.
We bought our house just outside of Hilo for $150,000 in ‘92 and sold it for $342,000 in mid 2021. It wasn’t a small house with about 1900 sq ft on a 15,000 lot. If you don’t have to live in Honolulu or Kona or other postcard locations; then there are options for affordable housing.
Very enlightening, thank you!
Glad it was helpful!
been having trouble finding a house, looking for over a year... i cant rent forever... started to look at condo/townhome but the fees are pretty crazy... sigh...
Yeah, the fees are high on the older buildings.
Buying a house in Hawaii is easy as long as by "house" you mean one of those rainwater catchment places of dubious legality on the Big Island. But for most of us, the US and this is *not* just Hawaii it's all over the US, owning a house has become hereditary, not something you do on your own. The US has almost no social mobility, so you are either born into the social class that is able to own a house or you are not. This is where Asian culture wins, because in Asian culture the whole family works together and the parents help the kids (and the kids, in turn, help the parents when they get old). American culture loses bigtime in this area because in American culture everyone is on their own. Parents don't help their kids. So the parents might own a house or even more than one house, and their kids can be homeless and the parents don't care. And if you think I am exaggerating, I am not. I've lived on the mainland for years now and .... it's very different from what I thought is normal or is the ideal of how people should be.
That being said, there are TONS of places that are *like* Hawaii and are tons cheaper. Florida, coastal Mexico and the Baja Peninsula, other places in the Pacific like Samoa, Guam, etc., the Philippines, the Caribbean, etc. So if you are a mainlander who wants to retire in Hawaii because it's warm and tropical and so on, there are tons of other places that can scratch that itch much more affordably.
There's a shack on the Big Island that just sold for around $130k. But it's located in a lava flow zone.
@@jzen1455 covered by lava?
THERE USE TO BE SOME MORTGAGE PROGRAMS WHERE YOU DIDNT HAVE TO COME UP WITH THE 20% DOWN. DOWN PAYMENT RANGE FROM 5 TO 15 %. DONT KNOW IF IT IS STILL AVAILABLE.
Great breakdown. It is astonishing how home prices have risen so high and so fast. And it is not just here, it’s in many places on the mainland too. I am hopeful that our governments will respond with plans to solve this growing problem.
Your government wont, because are real-estate investors too.
@toasteh Probably right. My hope, my dream, is we improve the education system in the country again, to make a smart electorate who will vote for educated and moral politicians.
You have got a solid head.on your shoulders. We are still using our 2000 car, and have college kids driving cars around same year. I have a 2014, only because my 1994 car died (that cheap American mage car!). The flipside, no debt, FI - we have $ to live comfortably and have spare time to watch videos looks yours. Just keep working hard, save, raise your kid(s) right, and enjoy life. SFH will come your way, if it's made to be. Aloha
Mahalo. Yeah, I still drive an older car. Probably going to need to get another one soon, but the prices are high for cars too 🤣
In 1953 my parents built a home in Kailua for $15,000, today that house is shown on Zillow valued at $2,200,000 and is 3 blocks from the beach, not even on the water!
$2 million average price home sold in San Jose , Ca… Hawaii seems like a good deal!
It’s definitely possible! But just last night I googled the average home price + the average income across each state to see my options as an aspiring software engineer, and brah, Hawai’i not looking too appealing imho…):
2 causes I think for the rise of prices may be due to active duty military/retirees and remote IT professionals. It’s not difficult for these parties to come up with the money.
@eoublue seniors can be considered retirees.
Yeah, it's tough here. Remote work for a mainland company might make it easier to afford.
City had involved in the housing market aggressively in the 90s, building a lot of affordable homes, both for purchase and rental. Problem is bad timing. Housing market took a downturn in 00s and City burnt fingers.
Great topic, great questions, great video. The question of what is 'local' is relevant. It might be related to where military assignments would be counted, as are they 'local'? I know many military active duty assigned here and buy. Then again, I've known local people grew up here and joined, returning to buy after several years away, so counting them non-local isn't fair either. On the pay charts, which were interesting, for many of us, both parents worked, and it was a combined income and not an only source provider. In some cases, grandparents, parents, and children all contributed to helping to pay for the multi-generational home (completely or part of the years). I've had some relatives relate stories of son's sending home money for the parents to save for them during their service time on duty, only to return and find out the parents used it for the down payment of a family home and never given the money or title to the home. So, times have been hard for people earlier but might have been forgotten over the years. Now, given the more affluent times, it's taken for granted that a given goal but not without realizing the sacrifice. We look at some things with rose colored glasses without asking tough questions of how and the costs of achieving it. We might forget that there are prices to be paid for some things and it's not all a weekly sale all the time. We'll have to see how it plays out.
Mahalo for the comment. All great things to consider when determining "local buyer". Sad that the housing situation can create family conflict like what you described.
What is your opinion on leasehold properties? Is it worth it in your opinion? Because they are cheaper and are more "easy" to buy.
That's a tough subject. I prefer fee simple. Also need to check the length of the lease for leaseholds. It could be close to the end and you'll be out of luck.
@@HelloFromHawaii Thank you!!
I'm not a local but I did live in Oahu from the age of 18-21 and typically go visit the islands on a yearly basis. Like a lot of other places in the USA, the housing problem has an easy fix but it's not going to be pretty. Why? Because the fixes will end up costing the people that got in on the bottom floor money. Personally, I believe housing is a fundamental human right and should be regulated like an utility, so that everyone that has the means and desire is able to get a decent place to live. In the case of Hawaii, the way to fix the problem is to increase the housing supply and lower the prices on existing units. How do you do that? The quickest way is to not allow non-residents to buy a home in Hawaii. That eliminates the ability of deep-pocketed mainlanders, Chinese, Russians, Japanese, etc..to drive up the cost of existing housing and outbid locals by coming in and paying cash on residential units. My point is that, essentially, if you want to own a home in Hawaii, you have to live in Hawaii. You can always come for vacation, do an AirBnB, etc...but buying a home is off-limits until you're a resident of the state. The other, additional way, and again, this is related to my earlier point about housing being regulated as an utility, is that I would limit the number of residences that any specific entity could own to three. That would free up a large number of units for purchase among the populace and, combined with the other measure, depress the sales prices to something approximating moderate prices. I know that these measures would never get enacted because of the amount of money involved and legal challenges but, if passed, they'd really go a long way to solving Hawaii's housing crisis. Bottom line, the housing situation in Hawaii is reaching the point of an existential crisis. The only way to resolve it is to eliminate the profit incentive and motive surrounding it.
Why not just radically increase the supply of high density housing rather than restricting people's property rights? Hawaii is one of the most transitory states in the country. Are you saying if someone came here and became a resident, bought a home, and then had to move for whatever reason would need to sell their home when moving?
@@salesandnegotiation3401 Yes, that's what I'm saying. Existential problems require existential solutions. I'm all for property rights but property rights aren't a suicide pact. Regarding your comment related to radically increasing the supply of high-density housing, what do you think is going to happen when those units go up for sale? The same things that happen now...real estate investors, deep-pocketed foreigners, hedge funds, etc... will snap them all up with the idea of turning a profit on their purchases. It's been proven that an approach like that doesn't work because the developer, whoever it might be, is always going to want to sell to the highest bidder.
The 3 house limit won’t work because people will buy them in the name of a business entity and when they bought 3 they will start another business and buy 3 more.
@@mindibear Sure it will...all the authorities have to do is pay attention. Plus, I sincerely doubt that persons or corporations would want to go through all the hassle to do things that would be illegal in the first place. This is not like the drug trade, where you're going to get massive profits for the risk you're taking.
@@ulical It's not illegal for a business entity to own real estate. And i's not hard to file paperwork to start an LLC, it took me all of 10 minutes!
Good to look at. I could not really afford til I was on the mainland. But now these are grownups. I am here. It is hard- Aloha
I guess local buyers refer to those who want to upgrade, like moving from condo to SFH. Condo price didn't rise as much as SFH.
Good information. What about the outer islands? Are they just as crazy? My brother bought a place in Volcano a couple of years ago for a good price. There were lots of things that needed fixing but it was something he could handle. Don't think he could afford to live on Oahu though.
The only island where you have prices comparable to the mainland is Hawaii. The main reason for that is that there's plenty of land there and the population is relatively small. You can get decent places in Kailua-Kona and Hilo for between $400-700K.
Might as well be on the mainland if they gotta fly to see family.
@@ulical Well, and you got an active volcano on Hawaii island, and the vog that goes along with it. Not good if you have asthma or other respiratory problems or allergies.
The neighbor islands are a little better, but I believe the prices on Kauai and Maui soared over the past two years. Big Island is still the most affordable.
I've heard Maui prices are going off the roof there too. Kauai has been increasing but depending on jobs and what is being sought. Big Island has places but Hilo and Kona are higher than outside and depending where, there may not be sewage lines, water catchment tanks and if its remote, no electrical/telephone lines for some growing area. Roughing it for some communities and far drives for shopping, medical and gas is expensive.
Been living here close to 7 years. Painted 10 lovely murals here -for free- for the public. Bought a lovely 2 story house in Wainaku (1.5 miles north of Hilo) about 250 ft from the cliffs (Hilo Pali Ku'u). My house is wayyyyyyy nice but wayyyyyyyyy overpriced. Still bought it, though! We are lucky, fortunate, blessed and loving it here! (Please do not move here unless you are financially able to.)
I remember in 1978 that a new 3B/2b house in Mililani was selling for $90K. I thought no local person could EVER afford that price. Was I ever wrong!
Cost of houses have increased in many mainland cities, almost as quickly as in Hawaii. But they are much bigger houses on more land. There isn’t enough land available to build new houses in Hawaii. You could do like several buyers do and buy a house that’s in really bad shape but for cheap, demolish it and build a new house on a fixed bid. Would your parents let you live with them for about 6 months?
It's possible, but tough now that we have two young boys.
I think you will do fine. Too bad it is so bad in Hawaii. I know I can't afford it. Well, at least I have Hawaii in my heart. The most important thing to me.
I was born and raised on Oahu but moved to Texas after my mother passed away at the age of 12. I am now 48 and buying a home in Hawaii and moving back home. Am I considered a “local”?
The only reason we can afford to buy a home in Hawaii is because I have a PhD and my wife has a Masters degree and make a few dollars over 300k. Since we are using my VA benefits no money down just closing costs.
Mahalo for sharing. Welcome back home 🤙
I understand how you want to define local, but local buyers in real estate markets usually mean someone who is a resident, plans to contribute by continuing to live in the community and pays income tax here. Someone who is purchasing to actually live in the home, and not to rent it out to make money.
The main issue is actually investors, whether they live on the mainland or overseas, who have no stake in the community, and could care less what happens to any of the locals that live here as long as they make a quick buck. I didn't grow up here, but I contribute to my local community by feeding the homeless and working with schools to ensure students have the tools they need to succeed. I have only been here two years but as an anthropologist I wanted to go back to school and get a degree in Hawaiian Studies and work to help native Hawaiians succeed in a world marginalizing them, rather than celebrating their many contributions by working within government to get laws passed that benefit kanaka. But, it is becoming increasingly clear that I will continue to be outbid by foreign investors who want to rent to tourists by the month. So, instead, I will be heading to the mainland and will have to give up on my dream. I will always love Hawaiians and Hawaiian culture and respect everything they stand for, though. I will never be considered a local, but I hope to be considered a neighbor and friend.
Hawaii Business Magazine just had a couple of articles about some housing problems. One was that condos are often leasehold. They escaped the legislation that made it possible for some people to buy the land under their homes. Also one on a 5 story walk-up in Liliha for "affordable" homes. I learned a lot from reading those. Just thought I'd mention them. Meanwhile I'm enjoy the deluge here in the PNW and anxiously awaiting SPRING! LOL
Mahalo for letting me know. I'll go check out the articles. 🤙
Hi Chris - just curious why don't move back into your parents' place and live with them? or swap your current place with theirs? or ask them to take a line of equity on their home to help you finance yours?
As the last resort, I think you will eventually inherit theirs as long as you outlive them, so there's no need to be too concerned about not being able to afford your own SFH.
Mahalo for the suggestions. Those are all great questions that probably deserve their own video response. 😂
I'd probably not buy one just because I don't want to see too much of Hawaii. I'd learn all the dark sides by living there vs the enjoyment of visiting. Plus I like road tripping....
Yeah, can't road trip here unless you want to go around the island a few times.
@@HelloFromHawaii I was able to experience the Big Island and thought it was so underrated to just drive and hear the music from the radio. I really liked the Hawaiian music as I was staring at the beaches or trees.
You're only describing Oahu. Not all of Hawaii is impossible to buy a home. If you live on Oahu & Maui, then yeah, it's impossible to buy a home, but if you're on the Big Island, then it is possible. When I was in Oahu, I lived in Millani, Kahala, Pearl City, Alewa Heights & Kailua. I'm done now there & my next move is The Big Island (Hilo). Trying to save as much money as I can & build up my business so that I can one day build my dream home in Hilo.
That's true. The graphs primarily focused on Oahu. However, prices have risen dramatically for all islands. Big Island is still the most affordable.
I am a “local” but live on the mainland. So when/if we buy, would I be considered a mainland buyer or a local buyer?
You have the right idea, delay instant gratification for long term gains. We all have to start somewhere.
Many in my generation (baby boom) chose to move off island to realize the American dream of homeownership. Back when we were buying, the most we could afford was a 900 sq ft townhouse in Halawa, which was considered the boonies back then. My husband had an uncle in Washington so we stair stepped our way there, got jobs, and bought our first home. For the same money, we got a home twice the size of that townhouse. Fast forward to the present. Education, careers etc behind us, we are the landlords. Washington prices of housing are on par in some parts of Hawaii now. There is still a disparity in size of house and land but for those of us who delayed gratification we are finally in a position where home ownership in Hawaii is finally within reach. Not willing to give up our income tax free status, however, still prevents us from surrendering our out of state residency which then relegates us to the status of “snowbirds”.
Young buyers today have got to be creative and look at all possibilities to realize the dream of home ownership. First off, you have to set the goal and commitment for buying a home. Like you said, delay new cars, phones, vacations etc. save save save. pay yourself every month in a mutual fund, Life insurance or some other type of savings vehicle. Take on a part time job with earnings earmarked for that home only. Take advantage of employer sponsored 401Ks. Once your nest egg is built, See if you can take a loan out against your 401 K or you life insurance for your down payment. Look at the different lending programs. If you’ve served in the military, take advantage of a VA loan. No military? Check out FHA. Any specials for the first time home buyer? Research research research. The information isn’t going to land in your lap! Where there’s a will, there’s a way. You don’t have to do anything as extreme as move off island to buy. But you must be willing to make concessions such as living far out and starting small. We all have to start somewhere. After a few years, you’ll have equity and more likely make more money, then you can move up.
Avoid condos if at all possible, the maintenance fees will eat you up. If you must do a condo, make sure they include part of your utilities like water sewer garbage and maybe even electricity. Check out public transportation vs commuting in your PV. Using public transportation gives you time to take a nap, read a book,balance your checkbook etc.Try to stay close to bus lines or the soon to be train station. (You know that thing is going to be in service someday!) Take comfort in knowing, your property taxes are some of the lowest in the nation.
Fans work as well as AC for most of the year. Mom and dad or anyone else you know buying new furniture? Take the old stuff off their hands. If not, check out Craig’s list. You Can find almost anything you need to furnish your new home there for cheap…until you can afford the good stuff. If you really want your own home, you can make it happen! Get busy, and get creative!
Mahalo for the comment. Great ideas for getting creative.
housing in hawaii dropped so much lately, some over 40% on freehold estates. crazy
We'll see the long-term effects.
@@HelloFromHawaii the trick is to get to find freehold or any owner financing land . but, Owning in Hi will mostly be profitable if held
Isn't that why so many families have multi-generational households, to increase the overall income and make things more "affordable"? Also what a lot of people do is buy in more affordable areas and then sell when equity increases and to cut down on unnecessary spending.
Great Video Bra.. Mahalo..
What happens if too many people who work in hospitality or service sector move because they cannot afford to continue to live in Hawaii? There would be the well off with a nice house, but in a place with very few supports.
Good question. I suppose there will always be people willing to work in those sectors.
The HOA fees are crazy high for sure n usually there's not really great amenities associated with it.
Yeah, especially for the older buildings.
Yep...love to visit but would hate to live there.
#1 buy property at any cost on Oahu. I own a lot of funeral plots on Oahu. as well as a studio and my dad's home.
Solution - Invest in real estate...in other markets. You can eventually have the net worth to buy in Hawaii.
We invested in real estate in SoCal and the Seattle, WA area. They were all fixers in up and coming areas.
Nobody helped us buy anything. It was one property at at time over many years.
We will soon have a modest condo in Oahu.
Well, it certainly sounds like a difficult issue for the majority. Would be interesting to see the flip side of those who have made it and where they come from.
I really like your context on your videos. I don’t think all of the younger locals realize it’s getting worse and worse until it affects them and they won’t be prepared for having to pay for their future shelter cost. I was lucky to inherit a house in Kaneohe which is fee simple. My youngest son lives with me but my other 2 kids seems to be doing ok for now but they are welcome to come back if they need to or want too. I was renting in town for over 30 years but it’s an older place so rent wasn’t too bad but the rents these days are ridiculous. I try to explain to my younger child but at times, I feel they just don’t want to save up to make things easier on themselves. I see this with the younger generation when it comes to saving and spending, I guess I’m old school and budgeted all my life. At my age, I would rather rent than to be paying HOA fees and all of the rules that goes with the sale of a home these days. I’m just lucky since my property tax isn’t that bad since I don’t pay any rent or a mortgage. I’m a handyman and so far I could fix anything that came up in the past 14 years living back in this house. I love yard work, it gives me exercise and it’s a stress relief for me. Carpentry, electrical, plumbing I can do myself as I try to teach my youngest son (20ys) how to do the work himself to try and save and not to get ripped off, because it happens.
Being a retired auto mechanic and a handyman for an apartment complex for 30+ years in town with 27 units to keep up and only me, well you learn fast. At times I wish I had chosen a different career and studied more and just paid someone but the cost and workmanship has me shocked in what you get and the price you have to pay for it. Yes I’m old school but it’s paying off now in my retirement years by having the knowledge of doing it myself and hoping I can pass these skills to my children so they can keep the place up when I’m not there for them anymore. I tell home owners to at least try, study on the internet and most things they CAN do. Like my mother always told me, have patience, without patients you have nothing (yes she was born and raised in Chiba Japan). They saved and budgeted and had no family to help them and they made it but of course times back then were easier to buy things in Hawaii. The future looks dark for the younger locals in buying a home unless something changes but what? IDK. Too many HOA fees going up and up, the rules they have on your new home and yard, sorry that’s just not for me to deal with, if I buy it I feel people shouldn’t tell me how to live in it or take care of my yard. On top of it, you pay them a monthly fee for this service? I know a lot of people that bought a new home and then sold it 7 to 8 years later so they could find an older home that is fee simple. They all got tired of paying HOA fees and be told what and what not to do (almost like renting?)
Mahalo for the insight and wisdom. Budgeting is so important and I hope that the younger generation understands finances. Not just crypto and investing, but personal finance and budgeting.
So lets do something about it. Lets find a way to change the minds of non locals from buying in Hawaii. Do what we gotta do! Hawaii is NOT for sale, but its being sold.
What's the minimum wage in Hawaii? In Los Angeles, it's $15, and will go to $16.04 July 1. Cost of living in LA is very expensive, Hawaii is more expensive.
$10.10 an hour
Hawai'i is expensive but it only gives you a greater reason to boost up them credit scores, start a savings account and work smarter not just harder. The economy has always sucked but it also comes down to will and determination! If you want something like that beautiful house, Work, save, invest properly and you CAN get it. Blaming Hawai'i isn't an excuse. New York is expensive, California is expensive, Paris is expensive but people still manage because it was thier mindset that changed and they embraced the struggles and worked smarter to get what they want.
Downsized to a condo in town with no regrets, no more pulling weeds or cutting any grass, etc.. Owning a home is possible in HI, many start out in a condo then build equity over time and then trade up to a single family, its best if both parents are working and will also allow the grown kids to share the home (ohana hale) If my parents owned a home here sure would be helping them out by living with them and save them the costs of elec. gas, food, etc.. If you are a veteran or active military from HI use those VA benefits bruddahs & sistahs with no money down! Hope I'm sending a positive vibe! Mahalo nui loa! 🤙😺
Mahalo for the advice. And those VA loans are amazing. Had a few friends take advantage of that.
And what the slider doesn't show is that yes, $66 per hour is great, and some jobs that I know of do pay that, but will this job actually last til the house is paid off ? I feel "nope" ...
Good point 🤙
@@HelloFromHawaii With the economy changing so fast, every which way, with present day lay offs, covid or not, yikes, the future (job wise) to buy a home is so scary, who wants to take a chance ? and even those jobs that are supposedly popping up as covid "ends" , those minimum wage jobs, yikes again ... love your vids, so right on, telling like it really is ... arigato !!!
Hawaii is nice but not that nice.
🤣
At some point the pull back will have prices under what they were before the climb. The gov has to green light the permits. Figure out how many would like to be in their own independent home. Only those homes get built over the next 5 years. Old fashion neighborhoods, 3bd. After that any builder not producing their share of those homes does not get the permits for the fancy golf course coastal homes after the 5 years. Better yet build a few more hotels and ban AIRB&B. Those units go to long term rentals or put up for sale.
Inflation is gonna make it completely impossible soon
I just got back from HNL and I can see why people love living in 808.
One of the problem I see is that everyone wants to buy a house and everyone is ready to pay the market price. A price that is inflated and has a layer of fOMo attached to it.
I want you all to beat the system, buy some land and build your own house. It will be 50% of the cost. Get 20 friends together and create a coop of friends that will build each other’s house.
By buying at 800,000 a house, you are a slave to the system to pay that off.
Get a load to buy land, then get a construction loan for 1 year and build that house and convert the 2 prior loans into a mortgage.
I know it is 3 loans but it is half the price and you build your dream house
Not a lot of land available unless you want to live in Waianae. The island is already overdeveloped for the resources available. (I hope they start building desalination plants soon.) Better to buy an old house, tear it down or remodel. The “old” houses in town near where my parents live are still selling for $750k or more and parking is always a problem especially when a multi family dwelling replaces the old one! I agree with the premise of build your own but I’m a city slicker myself and prefer to,live where I can find amenities close by.
Mahalo for the comment. Buying land is quite expensive, unless you are looking at maybe the Big Island. But building your own place is definitely a nice idea.
Land is so scarce that the theory of build your own is cheaper is not necessarily true all the time. We just looked into this. Material prices are so crazy now the material and labor cost could easily eclipse the land cost.
This is sad.
Now you know why so much people live in a house. They help each other pay rent or mortgage. Can't be single unless you make lots of $$$. That's part of the reason so many homeless and single person can't afford.
Thanks for the video, very insightful. We have the same problem going on here in Vancouver, Canada except the "locals" here like to point fingers at immigrants and foreign investors therefore creating racial tensions. I feel the same, even if I am able to afford a house in Vancouver...what about my kids?
Don't let HI fool you. They don't like mainlanders, white people. I know because I've seen it, was called several white racist phrases for no reason. How I'm taking jobs from locals, blah, blah, blah. Sorry if the locals are lazy af, smoke weeds, drink, take drugs all day and can't pass a drug test to make a living.
@@kimberleyike2168. Eew! With an attitude like that, no wonder you get called names.
I heard it's tough in Vancouver too. How do the local kids and young families afford to live there?
Banks wanted more money. There is no such thing as a shortage of homes when there was a shortage of house payments or people losing their homes battling covid in the hospital. Greedy real estate companies and rich foreign buyers also drove the hype and costs up unfortunately.
It's hard. Most peeps don't realize that, higher housing prices might not mean that you are doing well and going to make money. It kinda means that you are just paying more taxes, since you can't sell the home that you are living in if you can't buy another one that is matching or better. Sometimes to do better, you actually have to sell and downgrade in order to take that profit. So bragging rights on your home being valued at X, don't mean too much. Go ask the zimbaweans and venezuelans millionaires how rich they truly are.
Good points about the taxes. Having a higher value home doesn't always mean a good thing and it can, like you said, trap you if you can't buy somewhere else.
Let the outside investors continue to out price people in Hawaii, eventually resources will run out on this island as rapid development of condominiums in metro areas.
yes crazy prices most workers wont buy a home here except union workers that is and there lies the problem
Who determines the prices here in Hawaii. This is what the next video should be about.
I assume the market determines the price.
I grew up in a dominant minority part of LA and don't think I'll ever be able to afford a home where I grew up 🥲
You can buy a 5 bedroom home in Kansas
😂
Keep up the GOOD work MAHALO I AM FROM HAWAII LIKE I SAID IN TIME HAWAII WILL NOT BE PARADISE THERE WILL BE A LOT OF CRIME HAWAII IS HAVING TO MUCH PROBLEM AND IT WILL NEVER STOP IT WILL GET WORSE HAWAIIAN SPIRITS O 9:52 9:54 F ALOHA WILL BE GONE NO ONE WILL 9:57 9:57 T 9:57 ONE WILL TRUST EACH OTHER
I
This video could've been about Southern California easily.
9:11 so you are married and have kids. You look past your twenties. You are at least mid 30’s.
So you must be renting because you’re saving up. Brah. No good.
By the time you can afford the downpayment on a 30 year mortgage, how old will you be? 40? 45?
Then the house will be paid off when you’re 70? So you’ll definitely have to work until the mortgage is paid off.
That is not a good financial outlook. You should already have a house that you’re paying the mortgage on.
Honolulu is quickly becoming the Hong Kong of the west. Soon most residents will be living in tiny high-rise apartments for their entire lives.
Maybe. But even those tiny high-rise apartments are getting expensive.
There are only 24 hours a day
The numbers in Hawaii are bonkers. Our home went up $70k in the last 30 days. Just... Stupid. So unbelievably stupid and sad. Sad for all those that want to buy their first home. Civil Beat had a great article on population. Over 65 crowd grew by 40%. Making the majority of political votes are going to keep the housing market the same. The elderly don't want affordable housing anywhere near where they live.
That's crazy about the price increase. It will be interesting to see how things play out as the older population continues to grow. I suspect higher health care/long-term care demands.
@@HelloFromHawaii indeed. The generation before us isn't going to cut us any slack (at least according to past performance). My hope is that our generation will look out for the next one and helps our kids get ahead and at least have the same opportunities that we did.
When the new economic system is implemented it will be possible. Just wait a bit longer for NESARA to kick in.
Wiki has the info on that. Oh and one job will be enough. Soon people soon.
Local buyer could mean folks from the other Pacific Islands buying a home on Oahu.
It could.
@@HelloFromHawaii
The foreign investment factor will continue to drive up real estate cost. It’s the bottle neck to keep things in check from an overpopulation perspective. More wealth will keep the island and developers coming to its shores. I suspect more pac islanders will seek refuge to HI & GU to escape sea level rise in their island homes. This will add further pressure on existing housing. Question is when will the floor drop? Will it take a cat5 Hurricane & subsequent fleeing foreign investment or a hypersonic missile from Nkorea to right size the affordability crisis. Either way things will not change until a life altering man made or natural disaster happens.
As a Maui realtor I can help you buy or sell.
I made around 40 an hour and it was enough to rent super small space. Its the people and food that make it worth it. I worked 2 jobs too most of the time but i felt better than I did on the mainland because of the people and food. I saw plenty local Japanese children in 50s waiting on parents in 70s or 80s to psss away. Uncle would always say "Pops, he still going yeah" and roll his eyes lol.. But there was truth in the joke. They really waiting for parents to go, especially when they had 4 generations if obachan is like 90 or something 🤙No judging, my house in WV is 70k. Couldnt buy anything with 70k in Hawaii. 10% down on 700k it would be at best.
Mahalo for sharing. Yeah, 70K might get you a closet 😂
If you foresee that your kid won't be able to afford the things people need in life, such as a home when he is grown, why would you have the kid knowing he will struggle through life?
He may not choose to live here, like so many other locals. Just kind of sad that if he wanted to live here, it would be tough.
@@HelloFromHawaii It will be tough for the next generation in any place that doesn't suck, not just Hawaii.
@@HelloFromHawaii My point is, how can people bring kids into this world knowing they will struggle and live a life of hardship as things get more and more difficult, overpopulated, cut throat, expensive, competing for ever depleting resources, etc.
Dem realtors making bank.
Only the ones that sell lots of homes and/or expensive homes. Get choke realtors in Hawaii. The well-known ones make bank, but the thousands of other ones are struggling just like everyone else.
Shame on them
😂
no can.
I guess timing for us was just luck….no way did we see covid…I am a mainland buyer whom bought a house on an agricultural lot on The Big Island with the intention of renting it out to long term renters just until we could move. We have been lucky to find such good people whom will hopefully be our neighbors someday. It is a scary (some call us crazy) thing to take your life savings and buy something you are far away from! We have no interest in selling as we were not motivated to buy as a monetary investment but rather a future lifestyle change to self sustaining farming. As for the house on the mainland, we hope to hold off selling until our adult children finish college and find a path. We couldn’t touch anything on Oahu..totally out of our reach unless we get like a 300 year mortgage …hopefully that changes🍄😃🌈🤙
Mahalo for sharing. Big Island is the most affordable. Hope you're enjoying it out there. 🤙
@@HelloFromHawaii not there yet…we got about 3 years before our 2 kids get college degrees…we feel we need to help them as much as possible while they are figuring things out for themselves…
Mahalo for your sincere views. I am truly a local living in Idaho. Sadly you are not close to the real issues. Due to Hawaii’s one party political system it will only become more severe. Supporting corrupt officials making selfish decisions while ignoring illegal actions is Hawaiian history. I attended Kamehameha when our trustees stole millions from the trust fund. Not a single one was prosecuted because they were appointed by the guv. You elect celebrities who talk nice rather than serious thinkers. You pass law’s benefiting rich and powerful before than the common person. Multigenerational living is counterproductive. Can you name a single state where this is common place, acceptable or encouraged?
In 20 years will your son and his family live with you in your 1 bedroom condo? Having spent so much time and attending summer school at Kamehameha My daughter wanted to move home and was just offered a job in Honolulu for $180k. She declined because her $150 k now allows her to SAVE each month for her future but the cost made it impossible in Hawaii . My family living there is very well positioned owning their homes and professional careers but they speak of the difficult for their kids and suspect they will have to live on the mainland. 50 years from now you will be having the same discussion only the numbers with have more zeros. I miss my old Hauula. Live long and prosper. I enjoy your naïve views.
Mahalo for the comment. Interesting that your daughter turned down that job offer since it's well above the median salary and could probably afford her a nice life.
Oahu isnt representative of Hawaii go to the big island and you can buy a house easy
Yeah, the BI is a different market, but the job market is also different.
@@HelloFromHawaii I would say that in your video then as it implies the state is Oahu but it’s the state of Hawaii so titling the video “why you’ll probably never buy a home in Oahu” is more accurate because I just bought my first home in September in Mountain View Hawaii for $230k with 30k down so a $200k mortgage with about 730 credit score and it’s a 2 bedroom 2 bath 1200 sq with ocean view yes I got lucky because I’ve been waiting for 5 years studying everything and put an offer on day one probably couldn’t buy that again but with your much higher budget it’s extremely easy for you to buy a house here in Hawaii. I have a small online business and a part time job at the post office at $20 an hour, if I can do it than anyone can. And I did it solo. I always see videos of locals struggling on Oahu / Maui and yet nobody even thinks about Big Island like it’s some horrible place even see Hawaiian natives moving to Vegas before buying land on Hawaii island it’s like bro the volcano isn’t that scary it’s a gem here so maybe I should keep quiet it’s just hard not to comment when it’s as easy as getting a job transfer to Hilo and can be a homeowner in the second biggest city in the state.
You got to be filthy rich to live in Hawaii.
Pray to God he will grant you your greatest desires that only you can imagine.....
These prices are no worse than in areas in California, especially in Silicon Valley and commute areas. I don't think anyone living in NY or CA is shocked by the numbers you present. Thanks for doing such good homework.
You can't say "California" or "New York" as if everywhere in CA and NY is as expensive as Hawaii because it isn't. Maybe Silicon Valley, San Francisco, and Manhattan is just as expensive (or more expensive) than Hawaii, but that's about it. Silicon Valley, Manhattan, etc., are SPECIFIC areas in CA and NY were rent and cost of housing are high. But the vast majority of the rest of those states isn't very expensive. When he says that the "average" price of a home in Hawaii is $1,000,000, he's talking about the median price. So you're gonna have 55 year old, termite eaten, single wall redwood homes in lower Pearl City selling for $900,000. Then you'll have your home on Hawaii Loa Ridge or Diamond Hd. selling for $15,000,000 or even much more!
And, in many instances, $1,000,000 ain't buying you much in Hawaii. Many $1,000,000 homes in Honolulu are NOT move in ready. Many need extensive repairs and remodeling. So, unless you can do home improvements yourself, then you can expect to invest much more on just basic repairs and remodeling.
@@user-sg8kq7ii3y while areas outside those cities maybe cheaper, commute distances are much further.
@@melanieathwal4038 Yes, very true. But I'm guessing that more people are able to work from home these days, so living in the outskirts may work for these people.
In terms of prices, it may not be significantly higher, but there are so many other things that make it tougher because of cost of living and relatively low wages.
BUY BUY BUY >>>:)
My opinion? Hawaii should heavily tax those that have other homes on the mainland and those that are use properties for sort term rentals. Use that money for affordable housing projects.
You're dullusional. People are allowed to use their other home in another state as their primary residence. Sooooooo veterans that get property tax cut are suppost to lose that too?
@@kimberleyike2168 no this would be specifically targeted at really wealthy people buying properties as investments, not as primary residence.
I think they've talked about doing that, but not sure about the enforcement of that. You'd have to prove that the person was not living in Hawaii for so many days, even if they collect rental income. But I like the idea.
Geez, another tax. Must be another Hawai’i democrat.
@@Rahsaun77 A tax that would only apply to the very wealthy. It would not apply to 99% of Hawaiians, including yourself so..........
You CAN afford Hawaii…..if you come to The Big Island and live in Puna
Build a small house behind your parents or grand parents house....so called adu if the lot is big enough? 2022 fed.reserve will raise the rate! Mortgage rate will rise, house price will come down...or Ukraine escalate to war, then stock price will fall and no more cheap money for real estates investment ! Real estate are not good investment...so house price will come down. So I would wait till 2023 or 2024. Maybe Trump or republican will control the house and senate to stimulate economy.... wait and see..
Yep, I'll allow my kids/grandkids to build an ADU on my property. But they'll have to clean yard every weekend, wash my car once-per-week, clean my windows and screens monthly, do my laundry, and come to my house and wash my dishes every single night. And if they don't agree to doing those things, then they can go live somewhere else. Nothing in life is free.
@@user-sg8kq7ii3y grandpa grandma are 50, 60 years old they help your kids to drive to school and all chores,maybe they set up college fund for grandkids, but they get to 70, 80, 90 yrs.old they need help...mutual help among family...old school of thought...old Italian and hispanic custom ?
@@barry3565 Yep, exactly. I'd be willing to help them, but they've got to help me as well. I do not believe in giving kids/grandkids too much because for some of them (not all), giving them too much creates apathy. They feel too secure, and they know they can always rely on you for help, so they don't strive for improvement. They become lazy and irresponsible. And, instead of saving money, they start buying brand new 4x4 Tacomas, even if they don't even go off-roading, and as soon as they bring the truck home, they immediately buy new rims and put on bigger tires even if the rims and tires that came with the truck are perfectly fine. Next comes the body lift kit. They trick out their Tacos, yet they don't think of paying rent to their parents/grandparents. Well that ain't gonna happen in my house. My kids/grandkids are gonna pay me RENT. And when I get old, they're gonna change my diapers and puree my food in the blender for me. And if they object to this, then I'm gonna tell them, "Be sure to buy one camper for your Tacoma because that's where you'll be sleeping!
Good idea. My brother is building at my parent's house. But it's taking forever to get started.
@@HelloFromHawaii mine took about 2 years from foundation to all fixtures and to roof, landscape behind son's house. We live happily share space! Moved equity to new house.