We hear so many people say, there’s no way we can afford a place down south. They feel it is so far out of reach. Well the truth is, it may not be out of reach at all. They just don’t know how to make it happen.
There are many ways you can make snowbird living affordable and a reality. We often go with the simple rule of not saying…We can’t afford it, but rather by saying ‘How’ can we afford it? (As you read on this thought will become much clearer.) As they say, where there’s a will there’s a way!
Sometimes people get caught in one mindset and don’t realize there are things they can do that they may not have thought of. Or they just don’t put the effort into making the changes necessary to make it happen. This can also be due to fear and not knowing what or how to do it. Well we have a few options that might help you out.
Here are 10 Things You Can Do to help send you on your way to that second home in the Sun whether you rent or buy.
- What is your Goal?
- Have a Budget
- What will you be spending?
- Transportation – driving vs flying
- Choose an affordable Location
- Length of Time
- Cost of Renting vs Owning
- Use the Money You Already Have
- Work remotely
- Rent out your House
- Move to the cottage
- Downsize and Move to a condo
- Move to an existing rental property or buy a rental property
- Rent out your Vacation property
1. MY GOAL?
Ok so we know you want to become a Snowbird. That’s obvious! But we also need to determine the following:
- Where would you like to Snowbird?
- How long would you like to go?
- How much money are you going to be spending, realistically?
- HOW are you going to come up with the money?
2. HAVE A BUDGET – WATCH YOUR SPENDING
First and foremost you want to review your budget and determine what your costs might be.
To create your budget, think about how long you’ll be gone and ask yourself what would you be spending if you were at home? Going down south isn’t going to be that different in cost.
What will You Spend your Money On?
- Health Insurance – Granted you will need to think about things like making sure you have adequate health insurance and travel insurance before you go. Approximate costs may run you at $1,000 for the two of you per year if going for up to 6 months. However, it’s possible to offset these expenses with what you will be saving on things like heat and power while you’re away. Turn your heat right down to a minimum and virtually no power will be used other than maybe a few timer lights here and there for safety. And if you’re still working you may have medical coverage through your work. Be absolutely sure you understand the coverage and how it works. Make sure it’s adequate for your needs and top-up your insurance as you feel is necessary.
- Meals – Find a place to rent in a location with a full kitchen and make your own meals; begin to see it as a way of life not a vacation where you have to eat out everyday. Eating out is ok once in awhile. Keep in mind even with the exchange rate if you are from Canada, groceries in Arizona are relatively inexpensive.
- Sites/Attractions – You’ll want to go see the sites but there are many free places you can experience that are well worth it. Keep the pricey attractions to a minimum.
- Daily Activity – Find a location with lots of amenities and activities that are included in the price, that way you won’t have to come up with a bunch of extra money for keeping yourself busy and having fun.
- Travel Expenses – Determine how you will get there and back and what makes the most sense based on the time you will be there. Driving vs Flying.
Transportation – Driving vs Flying
If you plan to spend a month or more down south you will likely want to drive. Renting a car for that long just wouldn’t be worth it. You can get some good deals on rental cars for around $300 CAD for two weeks (is the cheapest we’ve found so far), so for a month would cost you $600 or more plus your flights. Look on Truo.com for a great car rental alternative without a bunch of extra car rental fees. Sign up for priceline.com, booking.com and others a few weeks in advance and put in your search details. They’ll keep emailing you offers for those dates and sometimes they are great prices.We’ve been able to get flights for as low as $308 return per person, but x 2 and a rental car for a month is $1200 and up, just for one month.
So if you plan to stay for 1-3 months your best bet is driving. Although you’re probably looking at a day or more drive and a hotel stay or two there and back. Fortunately, gas is much cheaper in the US than Canada and you can find reasonably priced hotels for under $100 that include breakfast. Overall it may cost you around $1,100, but then you have your car the entire time. Now if you decide to buy a place in Arizona, you can eventually take a car down and leave it there provided your insurance isn’t compromised by doing so. However, most Snowbirds we know still drive back and forth each year.
Choose an Affordable Location
There are many places to rent in Arizona that are without a doubt 5 stars, and so is the price. However, those are for the people that probably aren’t reading this blog in the first place. I’m sure you’re here because you truly want some tips on how to make it work for you.
If you are looking for the most affordable bang for your buck then you are wanting to head straight to the manufactured park model homes in the RV Resort Parks, or as they say, ‘Trailer Parks’. This may not sound as eloquent as you’d like but believe me you will enjoy every minute of your stay and won’t be disappointed. As these parks cater to Snowbirds, you will find they have top notch amenities, activities and social interactions with like minded people. We absolutely love our park model in our Arizona park. You will feel right at home too and instantly feel like you’re a part of the community vs. renting a house and not meeting anyone your entire stay, it could get very quiet and lonely.
In these 55+ parks you can find rental prices ranging from $1,100 per month to $2,800 per month. At the high end price you are looking at a newer manufactured home in one of the larger parks with 2-3 bedrooms and 2 bathrooms possibly backing a golf course, if the park should have one. Not to mention, many rentals include the golf cart as part of the deal, and the golf cart is a means of transportation in and around the parks (next to walking and cycling of course) – it doesn’t get any better than this! See our post on Where to find a Park Model for rent and Why you need a Golf Cart.
Length of Time
Of course affordability depends on how long you want to stay. If starting off a month at a time is all you can swing, then try it out once and then determine if next year you can stay for two or three months. You never really know until you get there. But there are ways to determine an approximate cost. January through March are the peak times when Snowbirds flock and the prices may go up during that time, so if you’d rather head out November, December you can probably get your rental at a discounted rate.
Cost of Renting vs Owning
Keep in mind, if you plan on being down south every year, renting on a seasonal basis could cost you up to $9,000 per year on the high end if you stay for 3 months. That $9,000 you just spent on renting would pay for an entire year expenses if you choose to buy! That way you can go anytime you want throughout the year and as many times as you want.
If you’re thinking about buying, you can buy a park model for as low as $3,999 US and can range up to $250,000 for both new and pre-owned homes in Privately-Owned parks. Many buy into Arizona Active Resort living for less than $30,000. Today’s prices are extremely affordable.
3. USE THE MONEY YOU ALREADY HAVE
We have friends that don’t hesitate to spend $3,000 to $5,000 on a warm 10 to 14 day beach vacation every year. And if you’re like them, what if you took that $3,000 and stretched it out to one full month in Arizona or stretch the $5,000 to two months. Wouldn’t you rather be in warm climate for two months rather than two weeks. By taking what you spent on the 10 day vacation plus what you’d spend for the next 20 days at home, it should work out to about the same.
TIP: Trade a 10 day sun vacation and 20 days cold at home for 30 days in Active Living in warm weather.
Remember, this is a lifestyle you’re creating, not a dream vacation where you go shopping everyday and spend all your money! So you see, you already came up with the money as you do each year, you just have to redirect where it goes. And if you’re not sold on buying just yet, you can definitely rent for that amount.
4. WORK REMOTELY OR PART-TIME DOWN SOUTH
If you are still working or working part-time, many companies today will allow you to work from home or on-line. This will allow you to enjoy the warm sun while putting in the hours. Just pickup your laptop, your mobile phone and go.
And, if you are retired already and feel you need a little extra income, there are many odd jobs or small home businesses you can do right in the RV Resort parks. For example, people are always looking for drivers to take them to and from the airport; or someone to repair their bicycle or fix their faucet. Maybe you know how to do small sewing alterations. The list is endless and keeps you busy too! See our post entitled “Start Your Own Business in Your Retirement Park” HERE (link will open a new tab)
5. RENT OUT YOUR HOUSE
Whether you have your house paid off or you are still working on those mortgage payments, there are always monthly expenses like insurance, taxes and utilities. A great way to combat these expenses while you’re away is to rent out your house. Yes we know, we’ve heard it before – to most of you the thought of someone being in your home while you’re not there isn’t that appealing.
Well maybe it’s someone you know, ask around, maybe it’s a friend’s relative that is going to school and needs a place for a few months. Find a couple of quiet University or College students that are just there to study. The benefits of having someone in your home are worth it, not only for insurance purposes but the extra money you will be making is now paying for your stay down south.
6. MOVE TO THE COTTAGE
If you’re already retired and you still own your home in the city and have the cottage at the lake, you may want to consider moving to the lake permanently. The thought of giving up residence in the city can be a bit scary and will depend on a few factors like: the location and how far it is from the city, family and friends? Do you need to winterize your cottage? And if so, what are the costs nechessary to do this?
There are things you need to consider when moving to the lake but selling your home to free up money to have a place down south is well worth it. We are in the process of making this happen. Although we are only 20 mins out of the city which makes for an easier transition. But the freedom of not having your money tied up in your house is a wonderful feeling.
7. DOWNSIZE AND MOVE TO A CONDO
Many people insist on hanging onto their 2500 square foot home. They say they need it for when the grandchildren come over and they need to have the space for everyone at Christmas, or they stay because the mortgage is paid off. When all you’re really doing is tying up your hard earned money that you could be using to enjoy your time down south, while your health is still good and you can enjoy it. If you really want to make the transition to warmer weather, selling your house and using the equity to buy something smaller, can allow you to buy two properties. One at home and one in the southYou’ll have money to spare.
A smaller condo is not the end of the world and you can find very inexpensive condos these days. There are also many advantages to condo living. Condos allow you to just get up and go. No more worrying about having someone look after your place while you’re gone. The shovelling and outside maintenance is all done for you. And I’m sure your family won’t mind when they’re spending Christmas in your new winter home down south!
8. MOVE TO A RENTAL PROPERTY
If you’re not keen on the Condo living because you still want a yard and room for the toys, then you may want to consider buying and moving to a property that you can rent out a portion of. Finding a rental property with a basement suite can be a perfect option. There are many new and old houses these days with up-down suites. Moving to a house with a basement suite allows the tenant to pay for most, if not ALL of your living expenses while you enjoy your home and yard. Plus, now you’ve free’d up money to purchase that place down south.
Having a tenant in a basement suite does not invade your privacy. Just be sure they have their own entrance and you probably won’t see them much at all. You may have to share your patio space at times but rules and restrictions can be set out for that. A tenant also gives you the freedom to lock up and go when heading down south. Your tenant can take over the outside chores and bring in your mail.
TIP: Live in your basement suite and rent out the upstairs to get more money for rent.
9. RENT OUT YOUR VACATION PROPERTY
Not fully retired yet and don’t have the vacation time to go all winter? Buying now will allow you to still enjoy your winter place whenever you can get away but won’t cost you anything and you’ll basically be vacationing for free! For just a small investment, you can find a great park model in one of the amazing 55+ parks that Arizona has to offer for under $30,000. You don’t have to spend $100’s of thousands to have that winter home. Of course there are the Annual pad fees that can run you anywhere from $2,500 to 7,500 U.S per year depending on the size of park you are in.
SInce there are over 300,000 Snowbirds flocking to Arizona each year, there is no shortage of renters. Here’s where you come in. Renting out your park model for a few months will easily absorb the cost of the Annual pad fees and still allow plenty of time for you to enjoy it. That way when you go down it will be like staying for free.
Renting during the months of January to March is the high season allowing you to get the highest rates. However there are many that enjoy the hotter weather and want to rent in April, October and November. Either way you won’t have a problem finding someone to rent as there is usually a long waiting list at the parks. Just ask around and I’m sure you’ll know someone looking for a place, or they will know of someone. Preparing your place for rent isn’t that difficult once you’ve done it a time or two and are familiar with the rules and regulations of the park. Here is more information on preparing your park model for rent that you may find helpful.
CONCLUSION
Living the Snowbird lifestyle doesn’t have to be just something you think about. There are many affordable ways to get there. Look at your options and decide which one is best for you. Taking the first step is the most difficult thing like calling a realtor and getting an appraisal on your home. Realizing what you can get for your home may help you to take the next step to listing your house for sale. Once you’ve got the ball rolling it’s very hard to stop!