Snowbirds’ dilemma: to go or not?
For some, spending the winter in Florida is too risky, even if they own a home there
Should they or shouldn’t they spend the winter in the United States? After regularly monitoring the news and COVID-19 trends south of the border, Ontario retiree Bob Bovaird and his wife Gabrielle decided last week that they won’t be heading to Florida and its warmer weather this winter. Their debate is one echoing throughout the Canadian snowbird community.
The Bovairds, who live in Colborne, Ont., have a home in a seniors community north of Tampa. They are concerned about the numbers and practices they see unfolding in the United States generally and in Florida in particular.
“A few weeks ago, the United States had 50,000 to 60,000 COVID-19 cases a day,” Bovaird said. “Now, it’s up to 200,000 a day. The governor doesn’t require residents to wear masks — it’s up to the individual — and, even in our seniors community, there are lots of social activities planned, but no mention of masks or social distancing in the newsletter. People are letting their guard down.
“We’ve been going for the entire winter for 17 years, but this is the right decision this year.”
The Bovairds are fortunate. They have an American neighbour in Florida who checks their house there regularly and will adjust the temperature as needed. They’ve shut off their other utilities and they’ve negotiated an extension on their TV package, since they won’t be using it this winter.
Not every Canadian snowbird is that lucky, and there are many of them. In 2019 alone, Canadians spent $8 billion purchasing property in the U.S., 42 per cent of them buying property in Florida, says the U.S. National Association of Realtors.
If a second home goes unused for the entire year, not every snowbird is prepared for the expense or responsibility. For those who are thinking of renting out their homes this year to cover their U.S. mortgage, insurance and any other house-related expenses, it’s useful to have a property manager, says Alain Forget, head of sales and business development for RBC Bank, N.A. — that’s RBC’s U.S. arm.
“If you’re looking to sell and rethinking your lifestyle across the border, I suggest you obtain advice from a legal or tax specialist with experience in cross-border issues,” Forget said, “and, if you’re thinking to rent, be sure to check your homeowners’ association’s bylaws, in addition to tax and legal implications.
“A third option, however, is to unlock some of your home equity in U.S. dollars” — through a home equity line of credit, or HELOC. That’s a term loan that can be employed on a revolving basis like a credit card, but it uses your home equity as collateral. Many banks make them available to homeowners.
“The interest rate is very low at the moment and, once you are approved, the HELOC is available for a 10-year period. It’s a timely option,” says Forget. “You only pay interest monthly and only for the money you use. Why pay an exchange premium to pay for your U.S. expenses?”
HELOCs generally have no minimum monthly draw, balance or usage requirements, and RBC, for example, allows users to borrow up to 80 per cent of a home’s value.
Meanwhile, as the debate about relocating this winter continues in homes across Ontario, Elliott Silverstein, director of government relations and in
surance for CAA South Central Ontario, says the Canadian Automobile Association is advising against spending the winter in the U.S., even though flights are still operating. Although the aa land borders are closed to nonessential travel, some Canadian snowbirds are having their vehicles trucked across the border and flying over to collect them aa in order to drive south.
The travel insurance industry is divided on covering COVID- 19 outside Canada. CAA won’t offer the coverage while ww there is a level three or four tt federal f travel advisory in place, but other companies, such as Manulife, now have plans that include COVID-19 available.
Silverstein says that, even if COVID-19 insurance is available, accessing care could be a complicated. He is also in charge of CAA’s travel insurance program, so knows ins and outs.
“Our focus has been to adhere to Global Affairs Canada advisories and they’re at level three now, a point where health-care coverage becomes complex,” Silverstein said. “It’s challenging to promote international travel when the government strongly advises against it.
“Many people have the itch to travel but, if you get COVID-19, it may be difficult to get medical care, and repatriation when you’re ill and need support could be difficult; there’s no guarantee that there will be transportation or that ww your destination will have ser- yy vices available.” v
Silverstein said it isn’t a decision that CAA made lightly, but “the entire mandate of our organization is safety.”
For those who do decide to head south this winter, there’s plenty of road safety advice available from Dave Hunter, a Mississauga-based travel writer and author of “Along Interstate 75: the Florida Snowbirds’ Bible,” now in its 20th edition.
He wrote his travel guide in 1997 to give snowbirds all the 11 information they need to enjoy the sights along their route and know what to expect at each kk exit when they stop for gas, food ee and lodging. Hunter’s website, aa available to anyone who buys aa the book and registers their purchase, now offers extensive information on travelling from Detroit to Florida safely during COVID-19.
For example, Hunter advocates getting a hospital-quality (HEPA) air filter for your vehicle to filter out the minuscule aerosol particles that the car’s own system doesn’t handle; he discusses the proper way to remove the plastic gloves that he advocates using each time you fill your tank with gas; and he explains how soap disarms COVID- 19’s spiky molecules.
“When I returned from Florida in April, I spent three months researching COVID-19 and necessary safety precautions,” Hunter said. “I can keep people safe all the way there, but besides my advice, they also need to use situational awareness and change their approach if something isn’t quite right.”
Will Hunter and his wife Kathy, be using these well-researched tips this winter?
“No,” Hunter said. “I know we could do it, but I’d rather stay here and help my readers who decide to go.
“As a travel writer who regularly reads five Florida papers, I’m not comfortable with what’s happening there. There’s a lack of understanding about the dangers of COVID-19.”
Bovaird, who’ll be remaining in Colborne for the first winter in 18 years, puts it this way: “I’m not looking forward to this winter, but I’ll find my long johns.”
Some safe travelling tips during COVID-19
Buy travel medical insurance that covers COVID-19 and includes emergency coverage, whether or not the government wwt ravel advisory is in effect; check Manulife and Medipac.
Reserve your hotel rooms in advance to avoid surprises. When you arrive, clean all sur- WW faces with wipes before touch- f ing them, including the television and alarm clock.
Switch your air system to use recycled air and try to keep windows closed.
Sanitize the interior of your car using wipes, especially door handles, steering wheel and gear lever.
Bring a cooler for bottled water and sandwiches. Have energy bars on hand for snacking and get takeout, rather than eating in restaurants.