# Florida Vacation Real Estate



## kcowan (Jul 1, 2010)

There was a good article in the National Post by Patirica Lovett-Reid about their experience in buying a snowbird home in Naples Florida.
http://www.nationalpost.com/related/topics/Second+home+about+dollars+sense/4741151/story.html
She had run the numbers and concluded that it did not make sense. However, her husband, Jim Lovett, had arranged for the developer to lease back the house because it was the model home. So I sent her an email saying that the article was good but that she should have pointed out that the developer will have to withhold 30% of the payments to cover income tax liablility for a non-resident alien.

(I also mentioned that neither she nor her husband could do any improvements to the property personally unless they had a US work permit.)

Anyway she replied to the email thanking me and noting that neither she nor her husband knew about these issues. She is thinking of writing a followup article once they have sorted everything out.

Don't believe everything you read in the national papers!


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## iherald (Apr 18, 2009)

kcowan said:


> There was a good article in the National Post by Patirica Lovett-Reid about their experience in buying a snowbird home in Naples Florida.
> http://www.nationalpost.com/related/topics/Second+home+about+dollars+sense/4741151/story.html
> She had run the numbers and concluded that it did not make sense. However, her husband, Jim Lovett, had arranged for the developer to lease back the house because it was the model home. So I sent her an email saying that the article was good but that she should have pointed out that the developer will have to withhold 30% of the payments to cover income tax liablility for a non-resident alien.
> 
> ...


They hold back 30% until you pay your taxes, and if you pay less than 30% in taxes, then the government gives you a refund.

Agreed about the working on the property issue.


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## sags (May 15, 2010)

Isn't Florida rather humid? How does that go along with the aching bones?

A doctor was squirting cortisone out of the end of a very long looking needle, when he suggested I might be better to think about spending some time in the "dry heat" of Arizona, instead of getting jabbed with this needle every so often.

I asked if the needle was painful, he said "oh yea", and I scooted out of there with Arizona on my mind, or maybe Las Vegas.


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## andrewf (Mar 1, 2010)

kcowan said:


> There was a good article in the National Post by Patirica Lovett-Reid about their experience in buying a snowbird home in Naples Florida.
> http://www.nationalpost.com/related/topics/Second+home+about+dollars+sense/4741151/story.html
> She had run the numbers and concluded that it did not make sense. However, her husband, Jim Lovett, had arranged for the developer to lease back the house because it was the model home. So I sent her an email saying that the article was good but that she should have pointed out that the developer will have to withhold 30% of the payments to cover income tax liablility for a non-resident alien.
> 
> ...


Whenever I watch her program on BNN, I get the distinct impression that she's not very bright or well-informed. I don't know if this is just because it is scripted--some people don't come across well on television.


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## financialnoob (Feb 26, 2011)

sags said:


> Isn't Florida rather humid? How does that go along with the aching bones?
> 
> A doctor was squirting cortisone out of the end of a very long looking needle, when he suggested I might be better to think about spending some time in the "dry heat" of Arizona, instead of getting jabbed with this needle every so often.
> 
> I asked if the needle was painful, he said "oh yea", and I scooted out of there with Arizona on my mind, or maybe Las Vegas.


Just for a joke, we looked at Vegas and found really nice places for under $100K. The problem is lack of jobs, but for retirement, strongly leaning that way. Plus I can take up chain-smoking and slots as hobbies.

Arizona has similar climate, but as I'm not white, that could lead to other problems in that state.


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## Four Pillars (Apr 5, 2009)

I don't think the article was meant to be a complete guide to buying Florida real estate. The main point was the emotional vs financial factors in their decision making.

Including a pile of tax/reno facts would just turn people off. I thought it was fine the way it was.


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## LondonHomes (Dec 29, 2010)

kcowan said:


> Don't believe everything you read in the national papers!


If you have ever been at an event and then later seen it reported in the media. I am always amazed at how badly they always seem to butcher a story.


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## canadianbanks (Jun 5, 2009)

kcowan said:


> Don't believe everything you read in the national papers!


I don't .

It looks like the US real estate is going into a nasty double-dip. I wouldn't buy there for a few more years, until it's clear that home prices have bottomed. Even then I wouldn't expect a quick appreciation.


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## I'm Howard (Oct 13, 2010)

We winter in Lakeland, 30 minutes from Dunedin and Tampa.

Our Manafactured Home, fullt furnished would ell for about $35,000, we pay $420 a month to rent the land, $90 for annual license, No Propery Taxes, Insurance is $600.

I will not committ a lot of money to Foreign Property Ownership as some are prepared to do, at any time they can stop you at the border, there gooes your Investment.

Florida is humid, but you don't slip on the ice in January.

30%+ of our Community are Canadians, the social life is great, always something going on, if you want to.

The good part is we can drive in two days, with our Yorkie, but soon will start flying as many more airports are offering direct flights.

Dad is 92, Florida keeps him alive.


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## I'm Howard (Oct 13, 2010)

A hint on Florida, if you want your kids to visit, tell them you are thinking of Divorce, they will fly down to talk you out of it.


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## kcowan (Jul 1, 2010)

Four Pillars said:


> Including a pile of tax/reno facts would just turn people off. I thought it was fine the way it was.


Leaving out essential financial facts is why snowbirds get into trouble financially. Pattie agreed that the issue had sufficient import to she and her husband that perhaps a followup article was warranted.

I suppose that means that they do not file US tax returns and have never completed a W-8Ben like I have. They also do not have a US SSN and will have to apply for an ITIN. I did all this just to get interest on an Escrow account in Florida for my Mexican condo purchase.

But yes I suppose that would be too much information for the average NP reader of another fluff piece!


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## I'm Howard (Oct 13, 2010)

I just wrote the owner a cheque, Park Manager did a background cheque on us, gave them a cheque for monthly withdrawals, moved in.

No IRS crap, WBN Forms etc, keep it simple, you are buying in a foreign country, they can change the rules, and if a Hurricane takes it, no big deal.

Treat your winter Home like a cottage, that is all it is, and when I start looking at Golf Course Homes, My Wife reminds me, it's a Cottage.


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## sags (May 15, 2010)

I have been following a mobile home park called Alligator Park.

http://www.alligatorpark.com/

It is a cooperative membership owned park, so you can't get turfed out because somebody sold the park............as has happened in the past.

I noticed they lowered the cost of buying a membership, and some of the mobile homes sell for barely more than the membership cost.

For us, that is the way to go, I think.

Does anyone remember that little mobile home park that was nestled between the ocean on one side and the waterway on the other? The park was sold and everyone was going to become overnight millionaires.

The deal fell through when the recession hit, and the developers defaulted on the purchase. Unfortunately for them, some of the people immediately purchased sailboats and other properties...........and then got left holding the bag.

Overall though, if you are going into a mobile home park, I think it is wise to invest in a cooperative type of park, as I remember a story a friend of mine told us. He was visiting some friends in a Florida park, and when he arrived the park was in dissarray with trailers being hooked up etc. They told him the park was sold and people had to move out their trailers by a certain date. It wasn't an easy job to find a new park and move the old trailers. A lot of people just walked away and the park demolished the old trailers and sent them a bill.


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## sags (May 15, 2010)

Do Canadian banks offer financing on a US mobile home?

Edit.........I googled to look for an information and this is the first entry that came up......please note the date.........November 2007 and the fact that Canadians could get loans with a 25% down payment, no proof of income and no credit check...........

A prime example of subprime.

http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2007/11/us-mortgages-fo.html


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## marina628 (Dec 14, 2010)

Canadian Banks don't want to Finance Canadian Mobile homes lol. Our friend bought a $120,000 Mobile Home only needed $45,000 from her bank rest was paid in cash.Her bank would not touch it but the home sales people set her up with 'special financing ' of 11% .She did not have a choice but she had it paid off in a year and a bit.

Howard has the right idea on how to buy in Florida , You can get really nice manufactured homes with all the bells and whistles for under $40,000.


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## kcowan (Jul 1, 2010)

marina628 said:


> Howard has the right idea on how to buy in Florida , You can get really nice manufactured homes with all the bells and whistles for under $40,000.


Same thing in California. A friend from Alberta bought a doublewide 20 minutes drive from Palm Springs for $32k. She owns a 3br condo in PV but when she rents it out, she heads up to the CA location.


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## Square Root (Jan 30, 2010)

andrewf said:


> Whenever I watch her program on BNN, I get the distinct impression that she's not very bright or well-informed. I don't know if this is just because it is scripted--some people don't come across well on television.


She has been doing television for many years so I suspect she is pretty well accepted by her target market. The issue is that her target market is pretty unsophisticated. This is probably what you have noticed. I have too.


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## I'm Howard (Oct 13, 2010)

sags, if a park gets sold, the rseidents get a chnace to match that price, but unfortunatly, many of them are eledrly so rarely do they.

I would caution that you investigate the park, if it has a lot of Snowbirds and Canadians, that is good, if they are mainly full time, that is not.

Snowbirds have money and live there because they want to, Full Timers generally don't have money and live there because they have to.

We live in Lakeland, 40 minutes to Disney or Tampa, slightly more to Dunedin, Spring Training for Detroit Tigers,, Tampa is base for the Yankees.


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## Four Pillars (Apr 5, 2009)

I'm Howard said:


> A hint on Florida, if you want your kids to visit, tell them you are thinking of Divorce, they will fly down to talk you out of it.


Lol - very funny!


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## Four Pillars (Apr 5, 2009)

kcowan said:


> Leaving out essential financial facts is why snowbirds get into trouble financially. Pattie agreed that the issue had sufficient import to she and her husband that perhaps a followup article was warranted.
> 
> I suppose that means that they do not file US tax returns and have never completed a W-8Ben like I have. They also do not have a US SSN and will have to apply for an ITIN. I did all this just to get interest on an Escrow account in Florida for my Mexican condo purchase.
> 
> But yes I suppose that would be too much information for the average NP reader of another fluff piece!


I hear what you are saying - but she does have a pile of disclaimers at the end of the article.

To me it reads like a description of her experience with buying in the US. I can't imagine someone reading that article and then not doing any other research.


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## OhGreatGuru (May 24, 2009)

kcowan said:


> ...
> 
> (I also mentioned that neither she nor her husband could do any improvements to the property personally unless they had a US work permit.)
> 
> ...


Do you have a source reference for that? Doing work for no pay on your own home is not normally considered "employment". Are we confusing "work Permit" with "Building Permit" here? (I notice some states use "Work Permit" instead of Building Permit.)


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## marina628 (Dec 14, 2010)

Somebody better tell my brother in law that as he built a shed ,upgraded the A/C and painted their house inside and outside plus did all new doors .


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