Canadian Fire Sale in Snowbird Parks & Resorts

Interesting, down here (Sarasota) had on the news yesterday that real estate prices and rental prices at an all time high....a clear vision of the have's and the have not's.
Sher

We had to go to Florida this winter for a family matter. While there I noticed the huge increase in people.

I don't think it's so much the have's and have not's, but more like the eastern seaboard people selling their highly priced real estate and buying cheaper full time residences in Florida. They still all leave the bar when happy hour is over. ;)

Like someone said to me, "if I can sell my half million dollar home in the north, buy a home with a pool and hot tub in FL for 200K, and bank $300K why wouldn't I do that?" My answer to him was, I don't know why you wouldn't.

Seems like a lot of retiring east coast baby boomers are asking that exact same question.

rockhillmanor wrote:
Certainly not limited to the exchange rate of just Canadians! Everyone is bailing out.

Prices on 'real' houses is at an all time low. So the 'values' of permanent sites at resorts with or without an RV have been driven way down to an all time low.

I just bought a 3/2 'real' house in Florida on an acre for FAR FAR less than any snowbird park/resort site. Why stay at a cramped CG for winter when I can stay in a beautiful house with my MH for the winter? It was a no brainer for me!!:C

That's what is driving down the prices overall and the increase of resort property for sale.

Interesting, down here (Sarasota) had on the news yesterday that real estate prices and rental prices at an all time high....a clear vision of the have's and the have not's.

Sher

In touring a few parks in the Phoenix East Valley area, we found a common theme. Canadians are putting places up for sale in big numbers. Prices are down. The US rents are killing them in CDN dollars.

The real question then is, are the US retirees buying? I'm thinking no. So any early perceived capital gains on park models will disappear given the supply vs the demand.

Now S&B's that appreciate, that could be a whole different story.

Jack_Diane_Freedom wrote:
The Canadian sellers may not be getting that much of a return once they pay Canadian capital gains and perhaps US capital gains as well since it is not their principal residence. Good luck to them.

Your should have a look here!

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/127/rsdnc/dsgntng/mr-eng.html

Snowman9000 wrote:
I had not thought about the appreciated property angle. The people I talked to were all mentioning feeling the hit of the monthly cost. There is a 55+ housing development here (Montesa, next to Gold Canyon RV and Canyon Vistas RV parks), that has a monthly lot rent of $600, which is about $1000 CDN. There are 70 homes for sale there.

$800CDN would be more accurate!

If one lives long enough, they will notice that prices go up and down, not always in the same direction. We "Boomers" enjoyed a lot of "ups" in our time.

The Canadian sellers may not be getting that much of a return once they pay Canadian capital gains and perhaps US capital gains as well since it is not their principal residence. Good luck to them.

I had not thought about the appreciated property angle. The people I talked to were all mentioning feeling the hit of the monthly cost. There is a 55+ housing development here (Montesa, next to Gold Canyon RV and Canyon Vistas RV parks), that has a monthly lot rent of $600, which is about $1000 CDN. There are 70 homes for sale there.

I talked with a realtor here in Tucson who was very open with me. She said, yes a lot of Canadians are putting their park models, homes and RV lots up for sale. She said it was pretty evenly divided between those not being able to afford exchange rate and those seeking to make a profit on appreciated property. She also said as we all know that the demographic segment that has owned this property is aging out.

Given the internet, it is so much easier to drive and rent a place, then own and let sit idle for six months.