So we are moving to SD from Hawaii next summer for a multitude of reasons. Thinking of renting or maybe selling our house here in Hawaii and renting or buying a small town house or house there in Encinitas, La Costa, or Rancho Bernardo areas (for the schools). Any thoughts on economy in Hawaii compared to SD? I’m an educator not a financial “expert” and so just wanted to hear any ideas. So far the word here is that “Hawaii is different from the mainland.” (No we are not military)
Yes Hawaii is MUCH different than the mainland….in as much as it is a 6 hour plane ride from the mainland and real estate investments SUCKS there…..good luck selling your house….by the time you sell it (IF you sell it) then there will be PLENTY of cheap homes here for you to rent or buy if you can preserve your credit. If you can, then it will be a wonderland of cheap real estate opportunities for you and your family.
As I say….GOOD LUCK….hopefully you had a rich uncle die and leave you a fortune so you wont have to try to get a mortgage here.
Rent………rent……….rent…………..until 2010 (at the earliest). Then take a look at how much prices have fallen and decide if you should rent for another year or two. Prices are falling and are not going back up anytime soon so you’ll have plenty of time to make a decision that could cost you $100’s of thousands of dollars when you add up the sales price, taxes and interest that you will pay for a house that will substantially drop in value over the next three to five years.
Good luck…………and RENT…..don’t buy!
Such a nice reply, Lookout. You don’t sound too bitter…
Actually, RE in the islands IS much different for a variety of reasons including conforming loans being 50% higher than CA, the abundance of foreign investment in RE (dollar falling is great for HA RE), the second home market, and of course the scarcity and expense of entitling land. As for investment, I have a friend who bought a Wailea oceanfront condo about 12 years ago and it cash flows like crazy and has increased about 500%. Apparently it was a horrible investment although he always sounds very happy when I talk to him about it.
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