Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I don't see any advantage for you in buying an expensive place to retire to. Your current house will most likely appreciate as fast as one in Hawaii, so just hang on to it til you're ready to retire. When that time comes, sell your house, bank the money, and put your stuff in storage. You'll have the resources to make a decision as big as this with the care it deserves.
Rent a furnished place in an area you're considering, for a month or three months. You can afford it. If it doesn't seem right, try somewhere else. Spend a week or two in Bali or The Bahamas, maybe you'd like that better.
Thank you all for your responses, I must say you have raised some issues I had not thought about.
The HOA fees do seem really high to me, in Canada they would usually be much lower and include snow removal! I can only assume the beautiful landscaping which seems typical in Hawaii and which needs attention all year round must account for part of it.
Our house would sell for about $500,000 and we have no mortgage. I realise this will not go far in Hawaii.
Interesting point about the transient/tourist population of Waikiki- I had not thought of that. I had thought of being outside the main Honolulu/Waikiki/ Pearl City area in order to make the housing cheaper, but the range of things to do there is attractive.
I could see us sitting on the lanai enjoying the ocean view with a glass of wine or a rum punch- but you can't do that forever!
My expectation would be that our son and his gf would visit quite often, and perhaps other friends. This means two bedrooms which would be expensive, so maybe other islands are worth a look.
Thanks again.
The HOA fees include insuring everything but the insides of your unit and, at least at my condo, security and on-preimise management. If you choose a smaller condo, especially one that doesn't allow vacation rentals, you might find lower dues.
Have you been to Maui? We chose it because it's quiter than Oahu, but not too sleepy, with things to do and the occasional national celebrities that come to perform. You could buy a 2-bedroom ocean view condo in South Maui (Kihei) with a $500K budget.
We have only been to Oahu, not Maui or the Big Island, and would like to make another visit to do this. I understand each island has a distinct character, but I have to consider access to medical care as we get older, which seems to point to Oahu as the best choice from what I have read.
We have immediate family in Florida, which also has no winter and has ocean, along with lower real estate prices, and that may be another choice. I would be a bit concerned about humidity, hurricanes and possibly shootings!
We have a couple of years or so to think this through, I don't think immigration should be a problem as we would not be competing for jobs, can prove we would not be a burden on tax payers, have no criminal record and no interest in politics, plus family who are US citizens and will vouch for us.
Perhaps I will hang out a bit in the Florida and retirement forums and think things over- and keep buying lottery tickets!
I don't think immigration should be a problem as we would not be competing for jobs, can prove we would not be a burden on tax payers, have no criminal record and no interest in politics, plus family who are US citizens and will vouch for us.
Yeah, you're probably right in your assumptions. I mean, really, if you're wrong, what's the worst that could happen?
Florida becomes an unofficial fourth Canadian territory each winter. I would highly recommend downsizing your home in Canada to something like a apartment or condo with minimal upkeep and then taking extended trips into the warmer areas of the world during winter.
You might even try a bit farther north such as Myrtle Beach, SC. My wife's mother has friends who winter there in a 2 bedroom condo for roughly 900 per month in the winter. When the snow melts and the birds start chirping back home they drive back home to Canada.
Another idea is to take extended cruises around the world. The Canadians seemed to really enjoy the month long cruises below the equator in the winter months.
..
I am 63 years old, so in a few years will be able to retire with both my wife and myself getting Canadian government pensions amounting to a total of about $3,000 per month in US$. This is indexed to the cost of living. In addition we have retirement savings sufficient to provide about $1,000 per month income....
Please let me know if there are other factors to consider.
After briefly reading some replies, I don't know if this was covered. I know CAD has
been pretty stable against USD lately, but even 15-20? yrs ago it wasn't. So...
You may need to see about exchange rate exposure since I'm assuming your monthly
incoming money is in CAD.
Personally, if I were you, I'd just rent a place in Oahu and rent out the already paid
for house in Canada. If the rent there covers your Oahu rent, then great; if not,
just account for the negative cash flow. This gives you a safety net.
I think the first thing I think you need to consider is how long can you stay in the US without legally being a resident? Do you have to return to Canada every six months if you are not a US resident? I heard of cases where people from Canada overstayed their visas and were forbidden to re-enter the US for several years.
You don't have a mortgage, but do you have any other debt? An income of $48K seems a little low for Hawaii, even if you do not have a mortgage. We live on about that much income without a mortgage and live debt free, but make several times that amount. However, we live in an area with a much lower cost of living than Hawaii. So, to maintain our same lifestyle, which is a relatively low lifestyle, in Hawaii, would cost about $80K or $90K per year, assuming we don't have a mortgage in Hawaii.
One thing you could do is to determine how much money you spend each year where you currently live. Then go to a web site where you can compare the cost of living in various locations in Hawaii to your location, or a similar location to where you live. You can then estimate approximately how much income it will take to maintain the same standard of living.
Does the retirement income stream of $48K include or exclude the proceeds from selling the $500K home? If the $48K income stream excludes the $500K, then that puts you in a much better position. Do you have any long term chronic medical conditions? If so, that could restrict you to Oahu or maybe Hawaii isn't an option. Is it going to be a problem living so far away from your relatives in Florida?
It is possible to easily live on less than your income in southern California, if you live in a modular home in a senior trailer park. Living in a single family home in southern California would cost about $500K or more, plus maybe $20K per year in property tax. Buying a modular home in southern California would cost you $30K to $40K, virtually zero property tax, but about $800 a month trailer park rental costs. The trailer senior trailer parks I've seen in southern California were peaceful and quiet. No crazy people running around like the image of trailer parks in movies.
The real estate prices are drastically cheaper on the Big Island than Oahu. The price of real estate on Maui is between the prices on Oahu and the Big Island. Looking at it the other way, the $500K budget will buy you a lot more house on the Big Island than Oahu, and more house than it would on Maui. I think you've been given very wise advise to rent first in different areas. Renting will reduce the risk of making a big financial mistake. You should also consider starting off as a snowbird, not selling your home in Canada right away. You should probably visit the other islands. You might discover you prefer one of the other islands with a lower cost of living.
How does the Canadian healthcare system work? I have a friend who just married a Canadian and I think they have to spend six months or more each year in Canada in order to get and keep their healthcare? Healthcare isn't cheap in the United States. I know a bunch of folks who go to other countries to get stuff done since they can't afford to have it done in the U.S.A.
Five and a half months in Hawaii and six and a half months in Canada might work out? Keep your healthcare and avoid the worst of the winters?
Living in a single family home in southern California would cost about $500K or more, plus maybe $20K per year in property tax.
The real estate prices are drastically cheaper on the Big Island than Oahu. The price of real estate on Maui is between the prices on Oahu and the Big Island. Looking at it the other way, the $500K budget will buy you a lot more house on the Big Island than Oahu, and more house than it would on Maui. I think you've been given very wise advise to rent first in different areas. Renting will reduce the risk of making a big financial mistake. You should also consider starting off as a snowbird, not selling your home in Canada right away. You should probably visit the other islands. You might discover you prefer one of the other islands with a lower cost of living.
Lots of good advice in Dave's post, but I'll quibble on two points:
The $20K property tax estimate seems awfully high. I always use 1.25% for estimating California proprty taxes; it's 1% base plus the inevitable special assessments that vary from county to county. Using that formula, a $500K purchase would have about $6K per year in annual property taxes.
Regarding getting "more house", I got the impression from the OP that he wasn't looking for a lot of space and merely something with two bedrooms to allow visitors. For those of us thinking about retirement, "more house" means "more maintenence" and "more chores" (which is why we chose a condo in Maui instead of a SFR.)
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
