For many Western Canadians, spending several weeks a year at a second home in the U.S. sunbelt is the highlight of a typical winter. Photo: Tim Correa
THE SNOWBIRD’S DILEMMA Keep, sell or change your business model? We look at the options confronting B.C. owners of sun properties in the U.S. By Catherine Dunwoody
Around this time last winter many B.C. residents were relaxing in the sunshine, possibly poolside with a nice frosty something-or-other in their hand. That’s the fortunate lifestyle many so-called snowbirds experience at their vacation homes in America’s sunbelt. A year later, still under global travel restrictions due to the pandemic, it’s a challenge for B.C. owners to spend time in their second homes in places like Arizona and California. At the same time, snowbirds from colder Canadian provinces such as Ontario or Manitoba are flocking to B.C., either to rent long-term or perhaps buy, making our provincial property market in areas like the Okanagan and Vancouver Island more robust than ever. So what does a snowbird do, with clipped wings? Do you sell your U.S. property and put the proceeds into lifestyle purchases, property or investments in Canada? Or do you keep the U.S. property and patiently ride out the pandemic recovery? We talked to two experts who offer solid advice at this unpredictable time. 48
Right Sizing
Winter 2020/2021
OPTION 1: SELL AND RE-INVEST Not being able to spend several weeks annually in your U.S. home is a dealbreaker for some. With land borders still closed between the U.S. and Canada, driving across is not an option and flying for some is still out of the question, health-wise. Listing your property, in what is presently a strong seller’s market, then taking those funds and investing them at home—in a Gulf Island cottage, perhaps, or building that sundeck you keep putting off at your primary residence—might be smart. David Sung, president of Nicola Wealth, envisions an owner of a $300,000 condo in Scottsdale that can’t currently be used. “They could sell it and invest it in a real estate investment trust; a well-structured pool could generate about six per cent income
