Should I buy a house in Hawaii, or is it better to just rent? Honestly, if you live here, you've probably thought about this at least once.

I felt the same way. Living in Honolulu, with kids and a stable job, I thought, 'Should I buy a house now?' So, I really went around looking into it. To cut to the chase, it's not an easy question.

First of all, why are house prices in Hawaii so high? It's simple. There's no land...

Since it's an island, that's expected, but with foreign investors, second-home buyers, and short-term rental investors flocking here, house prices have skyrocketed.

These days, if you want to buy a decent condo in Honolulu, it's around $700,000 to $900,000, and single-family homes start at over $1 million, often reaching $1 million to $1.5 million. If you want something a bit larger and well-maintained, there are plenty of places over $1.5 million. At this point, you might think, 'If I buy a house, won't I hit the jackpot?' But... the reality is different.

Is renting cheaper then? Rent prices are also outrageous these days.

Typically, a 1-bedroom condo rent is around $2,300 to $2,800, a 2-bedroom townhouse is over $3,500, and a 3-bedroom single-family home is $4,500 to $6,000, with beach properties often exceeding $7,000.

Plus, when you add in maintenance fees, water, and electricity, you often find yourself thinking, 'Am I really paying this much to live in someone else's house?' In short, saving money by renting is a thing of the past.

So, I crunched the numbers.

My income is about $120,000 a year, and I had saved about $150,000 for a down payment. When I inquired at the bank, they said with a 30-year fixed rate, the interest rate is 6.75%, and with that, I could barely afford a $750,000 condo.

The problem is the monthly expenses. When you add up the mortgage, property tax, and HOA fees, it comes to about $4,300 to $4,500 a month. But similar-level rent costs about the same. So, a question arises.

"Why not buy my own house if I'm paying the same amount?"

Of course, there are downsides. When you buy a house, you have to pay property taxes, insurance, and repair costs regularly, and Hawaii is at risk for hurricanes and floods, so insurance can be quite expensive. However, on the flip side, property taxes in Hawaii are lower than the national average, and mortgage interest deductions can provide significant tax benefits at year-end.

In the end, I decided to buy. Because I planned to live in Honolulu for a long time, and if the monthly payments are similar, I thought it would be better to own my own home.

If you're considering buying a house in Hawaii, here are a few tips. Make sure to get bank pre-approval. The market moves quickly, and without it, you might miss out on a property. Check the HOA fees. Some condos have HOA fees over $800 a month, which adds up to $10,000 a year. Consider accessibility to work or school. Traffic can be heavy in Hawaii, so the location of your home is important.

Of course, there's no right answer. But if you honestly evaluate how long you plan to live here, your monthly spending capacity, and what's more important to you, you'll find 'the right answer for you.'