Bargain snubbing

When it comes to investing, the Warren Buffetts of the world preach it's time in the market, and not market timing that makes you rich.

But what about buy low, sell high? After all, when a market tanks and there's an opportunity to scoop up a solid investment at rock-bottom prices, why not?

Many Sun readers, such as Eleanor P., want to know if now is a good time to buy recreational property in sunny Florida, where Miami is leading a U.S. housing market collapse, with home prices down a whopping 15.1%, according to the Standard & Poor's/Case-Shiller 10-city composite home price index.

A Canadian dollar close to par, with the loonie trading in the 100-cents-US range yesterday, only makes buying Stateside more attractive.

"My husband and I are seriously considering purchasing an investment/vacation property in the Orlando area," Eleanor wrote in an e-mail.

Believe it or not, fallout from the subprime madness with 2.2 million U.S. homes facing foreclosure, up 79% from a year ago, is scaring off many Canadians who traditionally want to escape the winter blues to soak up the sun in Florida and Arizona. Instead, they're snapping up their winter wonderland properties in B.C., Alberta, Quebec and Ontario, according to the 2008 Royal LePage Winter Recreational Property Report.

"Local buyers and foreign investors alike are taking advantage of Canada's iconic snowy winters, and realizing winter recreational properties are a sound long-term investment," said Royal LePage spokesperson Lisa da Rocha.

These buyers, she adds, are snapping up everything from rustic chalets to spacious lodges and maintenance-free condos. If it's a chalet, the top three features they demand are rustic charm, extra rooms for guests and cosy fireplaces. In B.C.'s popular Whistler, Vernon and Big White areas, discriminating buyers want even more -- such as granite countertops, heated floors and stainless steel appliances.

And even though the jury's still out on whether Canada's real estate market will suffer a correction, these buyers are willing to fork out big bucks for their winter playgrounds. In Quebec, a standard mountainside chalet starts at $180,000 and hits as high as $850,000. In Ontario's Collingwood area, you'll pay anywhere from $405,000 to $1 million. And in B.C., a three-bedroom chalet will set you back by anywhere from $450,000 to $2 million.

Meanwhile, if you want to snap up a deal south of the border, Toronto real estate lawyer Alan Silverstein shares this advice.

First, get a good realtor, who knows the area and is an expert on foreclosure rules, if you're planning to buy one. Using MLS (multiple listing service) websites is a good way to check what's available. If you plan on renting, consider a property management company. A good realtor can help find one.

Get an accountant who understands cross-border issues, and go to www.cra-arc.gc.ca and download pamphlet (P-151) Canadian Residents Going Down South, which gives advice on such matters as taxes and health coverage.