10 Pros and Cons of Being a Snowbird | Real Estate

The snowbird lifestyle used to be primarily for retirees. However, in response to the pandemic, more people are working remotely full-time. This gives people of all ages the opportunity to divide their time between his two cities or locations. Often people who live primarily in the northern part of the country choose to flee to areas with warmer climates during the winter.

This setup won't work for everyone. You may be a remote employee who can work from anywhere, but if you have school-age children, being a snowbird means you have to pull them out of school or homeschool them for months on end. It may mean not. However, if you don't have such constraints, the snowbird lifestyle may work for you.

Some people who call themselves snowbirds own homes in northern states and take refuge in warm short-term rentals for a month or so. For the purpose of this discussion, when we talk about being a snowbird, we talk about owning two different homes. Here are some pros and cons of becoming a snowbird to keep in mind.

If you own a home, you may be able to sell it for a profit in the long run. If he owns two houses, his chances are doubled.

Ivan Choney, a partner and real estate advisor with Ivan and Mike's team at Compass in South Florida, has seen some real estate values ​​skyrocket in his corner of the woods. If you can afford to own a second home, you will have more financial options in the future.

You're not the only one looking to escape the cold. If you own a vacation home in a warm-weather destination, you can travel there on a whim, Choney says. You don't have to worry about not being able to find accommodation or stress about shelling out big bucks for a hotel room for the weekend.

Larry Mastropieri, a real estate broker in Boca Raton, says that in his area, “it can be difficult to find a rental when you want it. … If you don't get ahead of the curve, you could be locked out after a few months of rental.” Owning a place guarantees that you'll be able to stay whenever you want.

When you own a home in a certain area, you can get to know your neighbors and potentially make friends over time. The benefit of owning a second home in another area is that you can build a second social network.

“You know everyone on the same street. … You get to know the same people and build relationships,” Choney says. Doing so will give you a more fulfilling experience than repeating various short-term rentals in warm-weather destinations.

Mastropieri agrees. “It’s nice in a way to be able to build two separate communities,” he says.

If you only use your second home for a few months of the year, you could potentially turn it into a source of income. If you decide to go this route, you should proceed with caution and it will raise many questions about maintenance issues and becoming a landlord. You should also be aware that depending on the type of second home you purchase, you may struggle with restrictions imposed by condominium boards and homeowners associations. But if you buy a home in a popular region with a warm climate, you may have a chance to save a lot of money.

Many people think of home base as an expense rather than an investment. They then put their money into stocks, bonds, and other similar assets for investment purposes.

The benefit of owning a vacation home is that you can diversify your portfolio, Choney says. It's not easy to sell your home base when you're in a bind because you're stuck with nowhere to live. However, you can always sell your second home for cash if the need arises. In the current economic climate, it's a benefit to have the option of waiting out higher interest rates or forgiving an expensive mortgage.

Both Choney and Mastropieri believe that owning a vacation home in a warm climate that is comfortable for them can be beneficial from an inheritance perspective.

“If you're passionate about the area, your family will love it too.'' “You could also buy a property that stays in the family, and if you can afford it, it might also have sentimental value.'' “No,” Mastropieri said.

On the other hand, if you are not investing in a second home and have a desire to vacation there or spend time there when your children grow up, it may not be affordable without free accommodation. I don't know.

When you own real estate, you must maintain it. However, maintaining a home that is unoccupied for many months of the year can be difficult and expensive.

Most of Choney's snowbird clients pay a property manager to keep an eye on their homes while they're away. “They tend to hire someone to come check on the house once a week,” he says. But Chorney also warns that even if you hire a property manager, something can still happen during the visit.

“Even if you have cameras and security systems, there's always a risk when you're not home every day,” he says.

Mastropieri agrees with this opinion. “Managing real estate from a distance can be a headache.”

In Choney's experience, one of the pitfalls of owning a second home is that it's not utilized as much as you hoped. That can feel like throwing money down the drain, he says. This is especially true for people who buy a condo as a second home and pay monthly fees for various amenities they don't normally use.

Mastropieri says if you don't feel confident using your second home often, it can be much cheaper to rent from time to time. “If you're a snowbird and you're not using your property, you're spending a ton of money,” he says.

Maybe you're a New Yorker who loves escaping to Miami. That may be true for now. But what do you do if you get tired of the food and entertainment scene after a while?

When you own a second home, you are committed to the property. If you're already covering two separate mortgages, you may not be able to afford a one-season short-term rental elsewhere.

“Owning a second location means you are obligated to go to that location multiple times,” Mastropieri says. However, your lifestyle preferences may change over time. You don't want to get stuck in a place that no longer serves you.

If you can only use your second home for a limited period of the year, you might consider renting it out when you're not there. But Mastropieri warns that the plan could face some problems. In addition to local regulations, there is a risk of property damage during multiple short-term rentals.

“It's the people who are ruining your stuff,” he says.

Mastropieri points out that another problem you may run into is that you “want to use your place whenever someone else wants to use it.”

You'll probably want to move in during the peak housing season, so you might be looking to rent out your home when demand is least. It may be difficult to find a tenant on that schedule. If you rely on rental income to afford a second home, you may want to choose a seasonal rental that you can return to year after year.