Property tax rates for O'ahu houses and apartments were tentatively lowered even more, and may go even lower after a City Council vote next month.

In 2009 The Oahu real estate property tax rate for residential property will be from $3.29 per thousand dollars of assessed value. So consider how much lower your payment on a $1million house in Oahu is compare to the same price house in CA or TX or WA. Most states charge at least 1% of the purchase price for property taxes, if not 2%.

So if you buy a home in Oahu for a million dollars, it's likely going to be assessed around $800k-$1million. That would make your tax about $3200 a year. The tax will be over $12,000 a year in CA. So you're going to save about $9,000 a year by buying real estate in Hawaii compared to buying in California!

The Honolulu City Council is also trying to keep a tax discount that was approved in 06, that gave a $200 credit for residents who qualify for a homeowner exemption.

So while Hawaii real estate may seem expensive to some, if you examine the total cost of ownership, it's probably a lot lower than you think.