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britexpat
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Any owners in Whistler?

Sun Dec 13, 2015 8:14 am

Is there anyone on this forum who owns a condo in Whistler?

We're looking at buying a 2-bed condo in the Benchlands area. To use it for personal use about 50 days per year, and rent out via Airbnb/VRBO for the rest of the time. We have 2 small kids so its getting harder and harder to find a hotel room that works for us.

I understand the cap rates on Whistler condos are pretty poor, but we're thinking it will be worth it to have somewhere of our own to stay whenever we go.

Is there anyone here in the same situation?
 
franksin
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Re: Any owners in Whistler?

Sat Dec 19, 2015 9:57 am

I think about it often as I have a 6 year old and we frequently drive up for the day.

I would like to have a rec property there that I rent out. My concerns is about the amount of work of trying to manage a vacation rental remotely. Particularily in an expensive place like Whsitler. I would imagine that I would have hire some of that management out. I tend to like to make last minute decsisions on when to go to whistler and question whether I'd have it rented when I want to be there.

I am curious what kind of vacancy one has on a vacation rental in whistler. But this is also dependent on how aggressive one is in marketing it.

I then think that it might be better to have another property in the city that would easier to manage. But it does not capture my imagination like owning a whistler property. I'm beginning to ramble, but I think that I am having a hard time figuring out how much of a recreation property vs rental property I want, and thus how much of the whislter property I am willing to carry from a cash flow point of view. I want a net 0 cash flow on the property and the ability to stay there sometimes.
 
Arrow
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Re: Any owners in Whistler?

Tue Dec 22, 2015 8:36 am

 
westcoastfella
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Re: Any owners in Whistler?

Tue Dec 22, 2015 11:05 am

From the listing:
Monthly all inclusive fee: $2,029 ($507.43 per quarter share) Residential property tax classification.
$24,000 in maintenance per year, ouch.
 
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thompson2
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Re: Any owners in Whistler?

Wed Dec 23, 2015 12:19 pm

what is the daily rental rate there for such apartment?
 
Arrow
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Re: Any owners in Whistler?

Wed Dec 23, 2015 2:06 pm

thompson2
The ad I posted includes the financials for the unit.
 
westcoastfella
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Re: Any owners in Whistler?

Thu Dec 24, 2015 8:33 am

thompson2
The ad I posted includes the financials for the unit.
Assuming that the FY ends on Dec 31, I got the following back-of-an-envelope numbers:

* FY14 net revenue for owner: $16,500
* FY15 net revenue (YTD): $17,304, extrapolate to $23,000 for the year

Minus $24,000 per year for maintenance fees, leaves you with a negative income stream. In some years a potentially large negative income stream. I honestly don't know why people buy into these sorts of hotel-apartment-quarter share ownership situations. Unless you see significant gains in value, or its in a highly desirable place and sees steady rental, it tends to be a losing proposition for the owner.

Instead of losing 2-8K per year on your investment, why not use that money to simply rent what you need, when you need it? You still spend the same money, but you don't worry about owning and maintaining another property.
 
VanLord
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Re: Any owners in Whistler?

Mon Jan 04, 2016 9:40 pm

Arrow wrote:
thompson2
The ad I posted includes the financials for the unit.


Assuming that the FY ends on Dec 31, I got the following back-of-an-envelope numbers:

* FY14 net revenue for owner: $16,500
* FY15 net revenue (YTD): $17,304, extrapolate to $23,000 for the year

Minus $24,000 per year for maintenance fees, leaves you with a negative income stream. In some years a potentially large negative income stream. I honestly don't know why people buy into these sorts of hotel-apartment-quarter share ownership situations. Unless you see significant gains in value, or its in a highly desirable place and sees steady rental, it tends to be a losing proposition for the owner.

Instead of losing 2-8K per year on your investment, why not use that money to simply rent what you need, when you need it? You still spend the same money, but you don't worry about owning and maintaining another property.
Agreed I would not want to buy into these types of "timeshare properties" However there are different classes of properties in Whistler, so if you buy a phase 1 property the numbers are very different. Phase 2 Hotel style condos are money losing ventures for sure, but again Whistler has 3-4 different property classifications, including Phase 1 and 2 properties zoned for nightly rental, plus residential properties zoned for 30 day min rentals and other properties zoned for Whistler residents only.

If you are looking at Phase 1, such as Benchlands, this could be a good investment for the OP. Rentals have been very strong and increasing over the past year with the low loonie, which have also started to increase the prices, which have risen quite a bit off the lows of a few years ago. I self manage my Phase 1 condo and do have a positive cash flow, which is great. The problem is I don't get to use the condo as much as I would like. However, at some point I will do some renos and dial back the rentals. You can always block off the dates you want to use the condo and fill in the gaps around your usage. The rentals do take a toll on the condo and you can't really have "nice" stuff in the condo, but it beats a hotel, and you do have a lock-off to hold skiis and other stuff.

Also Whistler is very strong for rentals in the summer and decent in the off-season as well. Whistler is a year-round resort, which is much better than other ski resorts in the interior. If your primary goal is to have a recreational property, which you can cover most, or maybe all of the costs, this is a good bet. Also a decent chance to make some capital gains, probably not a huge gain, but at this stage still room to move up.

There is some work in the self management, but if you set it up correctly its very manageable. Mostly responding to inquiries, arranging cleaning and logistics...fending off friends who want to use your condo, and small maintenance items and some problem solving when things go off the rails with the odd guest.

If you buy in Whistler, you don't ever have to worry about trying to book a place and you will be in Whistler a lot more than you ever would be, if you didn't buy. Sounds like a great way to spend quality time on the slopes with your family...and in the summer hanging at the beach, biking, hiking, strolling, etc, etc.

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