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Hi Jessika,
Welcome to Hong Kong!
I have had a look at Hong Lok Yuen school and it is located quite some distance from where your husband will be working, so I think it would be a good idea to decide who you would prefer to travel the most, your husband or your children.
http://www.hlyis.edu.hk/default.aspx?e=88F3C44E-C607-4D9A-A9CF-20239620A4AF
This is the bus route for the school and presuming you will not have a car, at least when you first arrive, it might be good to look at places along the bus route.
I would say that routes 3 and 4 probably offer locations that are also commutable to Hong Kong Island. You might want to look at Gold Coast or Shatin for example.
The New Territories will definitely be a nice place to live with more space, fresh air and usually cheaper than other areas of Hong Kong, but you do compromise with longer travel time to HK island and therefore work for your husband.
Sai Kung is a lovely place, but commuting isn't easy from there. Having said that many people live in Sai Kung and commute to central areas from there. You can get a bus to somewhere like Tiu Keng Leng and take the MTR from there. To Causeway Bay that wouldn't be too bad and your kids could get the bus to school from there too. I would certainly consider that as an option while you are looking around initially.
It's hard to be specific when there are so many options for you to consider, so let me know if you narrow it down at all. Please ask further questions if you need more information.
Good Luck!
Norma