Recession forcing Snowbirds to leave retirement states
It’s been the rite of passage for Americans for years: get married, have kids, work hard and get the hell out.
Flying the coop hadn’t been so much an option as it’d become a lifestyle for U.S. retirees looking to leave their wintry hometowns for sunny locales.
It was the “other” American Dream. After a lifetime of cold weather misery, sixty-somethings wanted nothing more than to trade in snow shovels for shuffleboard cues and retire in peace. Warm, sunny peace.
But such a sacrament appears in jeopardy for the latest generation of Boomers, and the recession is to blame.
According to the Wall Street Journal, the downturn has reversed the traditional migration patterns of Americans.
Because of a burst housing bubble (and dried-up job prospects), Yankees are fleeing retirement hotspots like Florida and Nevada where once they flocked.
In the year ending July 1, 2009, Florida lost more than 31,000 residents, compared to a gain of 141,448 in 2006. Nevada, the state that brought in 41,640 new residents in 2006, similarly lost 4,000 last year.
What’s to blame? The WSJ suggests a lot of people are “stuck” with houses impossible to move in the current market, locking retirees into their homes in the northern U.S. when they’d like to move south.
Compounding the issue is the struggling labour market in the Sunbelt states, which has largely evaporated in line with the rest of the recession. Where do people then look to move? To states with less tax and higher employment – like Texas, which has proved itself a hotbed for both entrepreneur and corporate business despite the downturn.
In any case, bleak affairs in the Snowbird states have analysts spooked and wondering about their recovery.
“The real question is when (they) are going to be able to come back,” one sources tells the WSJ. “These new numbers suggest no end in sight.”
By Jason Buckland, MSN Money
Posted by: ann | Dec 31, 2021 12:37:19 PM
we are looking for A condo to rent for feb 2010 one bedroom is fine .we have A 5lbs yorkie well train does not bark
if you have info please E-MAIL me thank
Posted by: Paul | Dec 31, 2021 12:54:11 PM
Some very good information on here, Jim from Arizona can you e-mail me. Is there a forum or website where this information is shared?
Posted by: s. sinanan | Dec 31, 2021 1:26:50 PM
I have been travelling to South Texas for the past ten years and found it still very cheap for a vacation. The places to consider is McAllen, Brownsville and Harlingen, very close to the Mexican border, cost of living is still relatively cheap and also rv accommodations. Beautiful South Padre Island is also someplace to consider, lots of good fishing and fresh seafoods available. Lots of Winter
Texans specials from November to March. real estate presently is very affordable, check it out.
Posted by: Ralph Rack | Dec 31, 2021 1:46:29 PM
SO SORRY for the AMERICANS who are slaves to their country.
The US doesn't have what we have in Canada ... That is NON - RESIDENT status - that means sell off everything - go to a warm climate country BUT NOT THE US and not to a tax treaty country with Canada.
As a NON- RESIDENT you can retire TAX FREE from Canada and receive your CPP and OLD AGE wherever you choose to live. There are other perks as well. Some countries will grant TAX FREE resident status to retirees from Canada as those retireees will help that economy with their purchasing power.
Retirees are leaving Canada quite quickly.
BEWARE WHERE YOU MOVE TO. CONSULT THE PROPER PROVIDER. i'VE SENT MANY TO GREAT ADVISOR / CONSULTANTS FOR THESE PURPOSES.
Posted by: Don N | Dec 31, 2021 3:36:36 PM
Responding to Tom S
Is there a web site for punta gorda location? I would like to rent there for this coming february. $2000/mth sounds about right.
Posted by: carol edward | Dec 31, 2021 5:55:43 PM
especially mcguinty raising our taxes and he is sitting drinking margarita without one iota of we are living in a recession
Posted by: R.Jackson | Dec 31, 2021 6:02:56 PM
Some of you people need to do some research. I have owned mobile homes in Florida for10 years. A 55 plus park where the fully furnished homes sell for 20,000. or less, and the annual rent for the lot is less than 6000. My taxes are 65.00 a year. Electric bill is less than half what Ont Hydro charges. The sun sets on the lake across the street from me every evening. A 3 bedroom home no less. How can renting be cheaper? It's always clean because I leave it that way. Insurance? If it blows away, I will wave goodby and buy another one that did not blow away. What are the odds. Hurricanes in Ontario this year so where are you safe? Health insurance purchased in Ontario is around 1000. for the 6 month season and you can easily drive in 2 days with one overnight in Motel 6 for less than 50.00 I cannot figure where some people get their numbers from. Just another pensioner enjoying life in the sunshine here.
Posted by: Gilles | Dec 31, 2021 6:05:38 PM
Jean Melnyk, Jim
could you please email me your email address as I would like to investigate your snowbird area's/ideas as I am very interested
Thanks Gilles
gmorin004@gmail.com or gmorin004@sympatico.ca
Posted by: gilles | Dec 31, 2021 6:34:58 PM
Jean Melnyk , Jim
Could you please forward me more info on your snowbird adventures I'm very
interested
Thks Gilles
gmorin004@gmail.com or gmorin004@sympatico.ca
Posted by: Garnet | Dec 31, 2021 7:12:43 PM
There is a place close to Orlando that rents cottages in a 55 plus village. They were once a part of Disney World before they built their Billion dollar complex. The rent is for a year and the cost is $4500 plus $30 a month for maintenance while you are there. They have a pool and rec hall with many of the usual senior social events such as Bingo and holiday celabrations etc. Look it up on the net as www.villageflorida.com I have never been there but have searched out for the future. Many Canadians spend their winters there and you know ahead of time what your costs will be with no surprises.
Posted by: ANN | Dec 31, 2021 10:23:53 PM
jean melnyk you have certainly got our attention. could you forward some more information-security, health facilities, water condition, all the stuff that is everyday that we hear of in mexico. thanx! ann
Posted by: Ron Sale | Dec 31, 2021 10:34:26 PM
Ah, to buy or to rent when you retire. What should you do? If you've visited all of the places in the warm south you've wanted to before you settle down to one place, then purchase. But remember, purchasing holds you to that paricular area. If you rent before you buy, you can experience many different areas before you decide to settle down in one place. You would be surprised, how many places are the perfect place to buy. Florida, Texas, Arizona, Los Cabos Mexico etc. If you haven't experienced these places, do so before you buy. If your heart is to purchase in Florida because of distance and area, spread your wings a bit and travel first. I did this and was sure glad I did. I couldn't believe how many places were good enough to settle down in. I finally decided on Mexico. As I live in Canada, I can't drive there in two days, but there are so many more advantages, reasonable rent and home prices, the weather, only 4 days of rain a year, never gets too hot. Warm in the day and cool at night to sleep. Goggle the weather forecast. Great golf, fishing, restaurants, shopping and the health care is reasonable. Settle where you like, but make sure you travel a bit. Just to get a real perspective of what there is out there. You'll be pleasantly surprised.
Have a "Happy New Year"
Posted by: K. D. | Jan 3, 2022 6:13:13 PM
AS A CANADIAN AND LONG TIME OWNER OF A FLORIDA PROPERTY, I CAN SAY THAT OWNING IS NO MORE EXPENSIVE THAN HERE IN CANADA. OF COURSE, IT DEPENDS UPON WHERE YOUR PROPERTY IS LOCATED. BEACH FRONT, YOU ARE IN THE TOP PERCENTILE, NOT ONLY FOR RENTS BUT FOR EXPENSES. NATURALLY, ASSUMING THE SAME KIND OF PROPERTY HERE AT HOME, WOULD NOT EXPENSES SUCH AS PROPERTY TAXES, UPKEEP ETC. BE IN THE HIGHEST PERCENTILE, AS WELL?
FLORIDA OFFERS EVERYTHING ANY PERSON COULD WANT. BEACHES, SHOPPING, SPORTS (ALL MAJOR LEAGUES ARE REPRESENTED), GOLF (AS INEXPENSIVE AS ANYWHERE), BOATING, TOP RESTAURANTS, ENTERTAINMENT, YOU NAME IT.
CAN YOU GET ALL THESE THINGS 12 MONTHS A YEAR ANYWHERE ELSE? NOT ARIZONA!! CERTAINLY NOWHERE IN CANADA!!
EVEN WITH THE 'GREAT RECESSION' TAKING ITS TOLL ON HOME VALUES, MY PROPERTY HAS STILL TRIPLED IN VALUE (THIS FOR THOSE WHO LOOK AT THINGS IN THE LONG TERM). IF YOU FACTOR IN THE ENJOYMENT.....WHAT'S IT REALLY WORTH?
IN THE SHORT RUN PRICES MAY DECLINE FURTHER......BUT, IF YOU PLAN ON BEING THERE FOR THE LONG RUN, SAY 10 YEARS OR MORE, THEN, NOW, OR, IN THE VERY NEAR FUTURE, IS THE TIME TO BUY.
LIKE OTHER COMMENTS THAT HAVE BEEN POSTED.....I'M NOT A REALTOR, HOWEVER, I AGREE WITH THOSE SUPPORTING THE IDEA OF A PURCHASE. SNOWBIRDS WILL COME BACK!! MOST LIKELY SOONER RATHER THAN LATER!!!
Posted by: PKinCalgary | Jan 3, 2022 6:56:18 PM
Interesting comments from many but let me suggest the following:
1) demographics do indicate retirement and the lure of southern destinations; however this same demographic also indicates that many will be needing to sell their 'second' property to help finance the retirement years. If you did not purchase a second property years ago when boomers were driving this vacation property market then you missed that opportunity.
2) I have been involved in the preparation of personal tax returns for decades and in reality the rental of vacation properties that also serve as personal use properties are almost invariably a loss. The ability to mitigate that loss through good property acquisition decisions and low debt levels were always key. In the past the upside of property value increases were the motivating factor. This benefit is dubious for the next 5 years.
3) our experience at renting in Florida and California has been very good. Good value, little hassle.
4) If you have a long term investment strategy, say 10 years minimum, then perhaps a southern location "may" be worthwhile.
5) Interest rates will be increasing significantly. This is a certainty. Do not get overly leveraged on your acquisition if you cannot afford this. Do not be over optimistic on your assumptions.
Posted by: VJ | Jan 3, 2022 8:26:41 PM
Are there web sites to find fair prices for renting and golfing in Florida and Arizona?
Posted by: Brian Goodman | Jan 3, 2022 9:39:31 PM
Anyone bought investment housing properties in Maricopa, Az?
Posted by: mono1 | Jan 3, 2022 10:17:08 PM
I was in Florida for the month of December. The price for houses are really great. 100 thousand for a 1200 sq ft, two bedrooms, two bathrooms, nice living room, kitchen, one car garage, large backyard end lot, tiles all through house, beautiful designed front of house. But 5 thousand dollars a year for property taxes. 3 thousand in insurance for one year. Now if you are an investor and decides to rent out this property for 1500.00 monthly, 150.00 monthly for a property manager also your house insurance goes up higher.
1500 monthly rent 18000 5000.00 property taxes
4000.00 insurance
1800.00 property manager
2400.00 HOA
-----------
13200.00
18000.00- 13200.00 = 4800.00 profit
You buy a few of these houses for rental, one for yourself for the winter months and your life is ok as a retired person.
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Posted by: Lauralee | Mar 16, 2022 11:30:39 AM
I followed all posts with great interest and as I was officially retired back in 1996 but had to go back to work due to my spouse not being able to work, I am feeling as a slave in order to keep up all the house maintenance, taxes etc. I have had no holidays since my late 50s which was a one week holiday to Niagara Falls and that was about it. These postings caught my attention and wish to get some kind of resting nest in a warmer place.
I presently own my home where taxes are way too high and to opt to rent or buy a smaller place before my health deteriorates is scaring me half to death. I've worked (since age 12) approaching 65 and I truly want to find a place to rest and enjoy before it is too late.
My main concern is once we find a comfortable place to stay what happens to Canadians when they fall ill or need immediate health assistance? I've heard of horrible stories where one had to be hospitalized for so many days and had to paid out of their pockets? Are we forced to return back to Canada?