There are only so many below zero days the human body, mind, and spirit can take before you start wondering why you put up with it. For some, the time and money spent on investing in real estate in a warmer climate is comparable to the time and money spent on rotating winter parkas, high utility bills, Vitamin D pills, Vitamin D lights, new tires, heating blankets, space heaters, and the backbreaking hours spent shoveling, shivering in a cold car, or shaking your head at the lack of consistent plowing.
Whether you are ready to retire, sell your business, work remote, or ditch the cold, the snowbird lifestyle is ready to embrace you. But like all business ventures, it requires a bit of planning before making the plunge — or in this case, flight.
From finding a property to leaving one behind, we are uncovering what you need to know before becoming a snowbird.
While seemingly self-explanatory, a lot of the cost calculations associated with making the snowbird transition can get lost in the shuffle. You have to consider more than just the mortgage. Depending on the snowbird route you choose, taxes, travel and moving expenses, insurance, furnishings, upkeep, renovations, repairs, and any fees for living in a dedicated resort or community should all be accounted for in your expense estimations. Assuming you go the less permanent, mobile snowbird route, what you save in home décor, car rental, property tax, and property upkeep, you make up for in RV purchase, full gas tanks, and campsite parking.
Assessing and calculating all elements of the snowbird migration allows you to better gauge the average annual cost of being a snowbird and where strategic budgeting may be necessary.
After calculating the costs and deciding which snowbird route is right for you — RV, short-term rental, or home purchase — it comes time to weigh the taxes associated with those costs. Owning your home means paying two property taxes. Depending on how much time you spend in another state, you could also end up paying two income taxes. It is becoming more common, especially for the flocks leaving Minnesota, to establish primary residency in their snowbird state to save on these taxes. So be sure to look into each states' rules on residency and taxes well before deciding where you will call home.
Keep in mind that if you stay south for April 15th, you will need to bring all your income tax paperwork and hope you didn't forget anything.
If you have not already, becoming a snowbird is the perfect time to go paperless. While mail forwarding may still be necessary for a few items, e-mail and auto-pay is the way to go for most of your bill-paying needs. You'll save yourself the headache of shuffling physical bills between two addresses and missing payments left in a deserted mailbox.
There are three imperfect ways to go about mail forwarding: 1.) through USPS, 2). through third-party mail forwarding services, or 3). having a friend or family member collect and send in batches. The option you choose relies on if you will be on the move or not. Some RV parks will not accept mail intended for temporary visitors and most campsites do not have an option to receive mail at all, in which case, you will need to become friends with the nearest post office.
You may not want to pay for the cable, internet, and phone service of a property that you will be leaving behind for months on end. Keep in mind that stopping and starting your utilities can be tricky, so look into what your individual provider offers and give them enough notice. Unplug every appliance you can, even if that means ditching or consuming the contents of your refrigerator and freezer. Similarly, you will want to turn your heat down, but still at a reduced temperature that will keep your pipes from freezing or bursting. Or you can hire a plumber to drain all the water and turn the water off at the source — something you will then also have to take care of upon your return.
a.k.a. Your home and your pets.
Though out of sight, the home you are leaving behind should not be out of mind. Ensuring primary home maintenance is more than just locking the doors and turning off the lights. You may need to arrange for people to shovel snow, mow the lawn, water plants, control weeds, maintain pool chemicals, and just generally check up on the house every once in awhile, make sure it's still there.
Additionally, if you have a pet you are leaving behind - turtle, fish, bird, snake, etc. - you will either need someone to frequently come by to make sure it is okay or foster it while you are gone. If you know the challenges that come along with moving a pet, and are willing to take them on, then please take your pet with you. This means staying on top of vet visits and shots, traveling despite animal temperament and costs, and limiting your rental options.
Add to your already long packing list of flipflops and swimsuits, your full medical records and prescriptions. If you use private health insurance, you'll want to research the doctors and hospitals in your snowbird destination that will be covered by your healthcare network. If you are over 65 and on Medicare, you should be able to be taken care of wherever you go in the United States.
Having already invested in real estate and leaving a property empty presents an opportunity for snowbirds to bring in some extra cash flow. Renting out as a temporary residence or Airbnb will bring in a passive income stream that can help cover the costs of the two mortgages, or whatever other snowbird associated expenses you'll find on the road.
Whatever selfish intent for becoming a snowbird, be ready to pack your selflessness along with you for the nonstop onslaught of visitors also looking to escape the cold.
"You learn how many new friends you have that want to come visit. Make time between visitors so you can get into normal rhythm of life. Visitors are on vacation and it's hard to keep up with that vacation mentality for the long run."
— Jeff, Florida Snowbird
There is a lot to consider before calling it quits on the cold. Our team of lenders can help you on the path to becoming a snowbird, from financing another property to exit planning for your small business.