Hawaii is renowned for it's seemingly endless sprinkling of breathtaking beaches, some of the most exotic flora and fauna on the planet, active volcanoes, awesome surfing, a beyond laid-back culture and outrageous shirts. But is it a wise area to invest? Steve Rowland finds out

Peel back those iconic images, and a much-less exposed version of Hawaii emerges, one that pretty much echoes that of the rest of the world. Opinion abounds that Hawaii is better equipped than most other US states to weather the financial storm: there’s a lack of available land to build on, the islands are appealing and, although tourism has dipped, it has traditionally been a strong industry. Economically however, Hawaii is suffering: businesses are closing and there are mass lay-offs. It’s an expensive place to get to, and far more expensive to buy a property there. House prices are falling and even the most optimistic of commentators reckon that the market won’t pick up for a good few years. When property prices fell by 50 percent in 1991, it took the market 10 years to recover fully. All things considered, Hawaii doesn’t seem the canniest of choices right now.

And yet there’s one bright feather in Hawaii’s cap: it’s a completely astonishing place. Mark Twain called it “The loveliest fleet of islands that lies anchored in any ocean” and if parts of Hawaii aren’t paradise, then they’re pretty damn close. Lying smack in the middle of the Pacific Ocean, some 2,500 miles south-west of the coast of mainland US, the Hawaiian Islands are a treat for pretty much all of the senses. Officially admitted to the union on August 21, 1959, the 50th state has had a rich, vibrant and often troubled past since being discovered by Captain Cook in 1778. The traditional Polynesian culture remains very much intact and integral to the people and the island’s charm, yet over the last few hundred years there has also been some influence by the Japanese, British, Russians and, of course, the Americans who have all, at one time or another, greedily given the eye to these unique smattering of islands stuck out in the middle of nowhere.

Out of this vast archipelago, there are eight main islands, and of these the only ones you are likely to visit are Maui, Kauai, Molokai, Oahu, Lanai and the Big Island (otherwise known as Hawaii).

The Big Island
The Big Island is, rather unsurprisingly, quite big and it’s still growing. It’s twice the size of all the other islands combined and home to some very big things indeed, including Mauna Kea, which is, measured from its base on the ocean floor, the tallest mountain in the world, and the world’s largest telescope. It is also vastly diverse, and contains eleven of the world’s thirteen climatic zones, from sandy beaches to snowcapped mountains. Little wonder then, that there’s plenty to do here, from diving in the underwater caves to staring in awe at the lava flowing directly from Volcano Kilauea, the most active » volcano in the world (the island, incidentally, was formed by five volcanoes) and visitors are still able to hike around it.

Compared to, say, Oahu, which is home to 75 percent of Hawaii’s residents, the population of Big Island is relatively tiny, but, like the island itself, it is expanding. The main industries on the island are tourism, orchids, coffee and macadamia nuts and it seems that the economy of the island is in pretty decent shape. Like much of the US however, the housing market has suffered lately and house prices dropped some 12.7 percent in 2008. Many of the agents on the island are keen to trot out the line that “it’s a buyers market” and predict that 2009 is expected to be “a much better year”. Considered to be one of the more reasonably priced islands, the median house price is still a hefty $345,000.

Kauai
Spanning roughly 550sq m and six million years old, Kauai is the oldest and arguably the most beautiful of the Hawaiian Islands. Peppered with over 60 beaches and lush tropical foliage, Kauai – also known as the “Garden Isle” – is as close to heaven as you can get for many of the 60,000 or so residents. Fans of cinema will no doubt have caught glimpses of Kauai on celluloid: since the 1930’s it has been a well-used location for Hollywood and has served as a backdrop for more than 40 films.

The property market isn’t quite as robust on some of the bigger, more heavily populated islands, but there are some gems, and basic one bedroom condos can be bagged for around $100,000. Generally, buyers aim their money at one of three resort-type areas: Princeville and Hanalei Bay on the north shore, Poipu Beach in the south or the Coconut Coast on the east. All three areas provide good all year round rental income as there isn’t really a low season. Princeville and Hanalei are greener and more popular with golfers – and less popular with those who don’t like being seasoned by the more than occasional downpour – while Poipu Beach and Coconut Coast are ideal for those more at home flopping around on splendid beaches.

Maui
Terryl Vencl, Executive Director of the Maui Visitors Bureau said that it was “Maui’s stunning natural beauty, our cherished host culture and the gracious aloha of our people” that makes Maui so attractive. And he’s right. In a group of islands of outstanding natural beauty, Maui stands out. Every year, from December to April, 10,000 or more Humpback whales migrate from Alaska to the warmer Hawaiian waters where they mate, nurse their newborn calves and delight the thousands of observers on the shore or on special cruises. Whales aside, there’s plenty of other stuff to look at, from vast rainbows of tropical fish in deep clear blue water, to extraordinary valleys to swanky boutiques and luxurious hotels.

Naturally the place isn’t cheap – Maui is the most expensive island in Hawaii – although there is welcome financial respite to be found. For a start, property taxes are among the lowest in the country. Broadly speaking, modest condos hovering around the $100,000 mark can be picked up just about anywhere, even in the more up market areas of Wailea, Makena and the resorts punctuating West Hawaii. That’s not to say that if you do happen to have a few million to splurge on a property that you’ll be hard pressed to do so. As Jack London pointed out: “Hawaii is a paradise and I can never cease proclaiming it; but I must append one word of qualification: Hawaii is a paradise for the well-to-do”.

Oahu
Oahu is the third largest island and the most populous. Around three quarters of the Hawaiian population live here and yet the place has managed to retain a surprising and admirable amount of wilderness. Famous for, Pearl Harbour, surfing on the North Shore (where waves in the winter can comfortably exceed 25ft) and the state capital, Honolulu, which is the government, trade, technology and education centre. The climate is excellent all year round (the temperature rarely ventures out of the 22oC – 29oC bracket) the people (rather predictably) friendly, and it is the most visited of all the islands. Honolulu is a refreshingly vibrant, multiethnic metropolis with plenty of bold architecture and although the city has one or two raggedy areas that have been hysterically highlighted by the media, it isn’t especially dangerous. Indeed, it was voted the safest place to live in the US by Forbes.

Oahu is the most affordable of the islands and many people relocating here see it as “better” in terms of access, infrastructure and employment. Unfortunately, you still have to pay “paradise tax” to live here. The cost of living in Hawaii is higher than on the mainland – due in part to shipping costs, land availability and differences in regulation – and in general wages are lower.

Molokai
Molokai may only be 32 miles from the coast of Oahu, but having experienced the glamour and the grime of Honolulu’s suburbs, it can seem like a different world. Or, at least, the same world, but 50 years older. Half of the population is of native Hawaiian ancestry and the culture is more traditionally Polynesian; like Maui, Kauai, and the Big Island were before development. It’s the least visited of all the major islands and very happy to stay that way: there are few tourist amenities and development is discouraged. There’s not a single traffic light on the island. There are no malls, no neon and no building taller than a palm tree. What this 10 mile wide, moccasin-shaped island does have is rugged jungle, rain forests, long white sandy beaches with no-one else on them and 7,500 of the happiest people who live on this fascinating archipelago. To me, this really does sound like paradise.