Quote:
Originally Posted by m4k4v4li
is whistler a good investment? my parents want a vacay home but also don't want to hold a non performing asset. the builds around the village are so old, high strata / taxes
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Everyone's situation is different, but we were also looking at Whistler as an investment because we love going up to Whistler with the family just because it's a nice easy getaway and we enjoy the environment and outdoor activities throughout the year. Which is why we were considering a place up there.
We do not have enough net worth to buy a place and not rent it out, so if we were to buy a place in Whistler, we would have to have some sort of rental income. This left us with two options:
a) buy a one bedroom and airbnb
b) buy a phase two hotel property (most likely the pan pacific Whistler), where you get four weeks of rentals in the summer and four weeks of rentals in the Winter
I run an airbnb locally in Vancouver and I did not want to deal with a place in Whistler as I've had emergencies in our Vancouver Airbnb that I had to deal with personally, you could hire a short term rental management company but the fee's were almost 40%, so I didn't think that was viable or worth the hassle.
For the Phase two hotel property if we bought the one bedroom suite at the Pan Pacific and paid all cash up front (~$500k), after looking at the revenues of the room, we would make a modest 3-4% ROI . If you have to get a mortgage for the phase two hotel property you would be negative cashflow. Also, to even get a mortgage for one of these rentals, the bank wants 50% down payment because of the type of property it is.
If you're counting on appreciation, then as an investment it could possibly make sense.
For us, the risk-reward didn't make sense based on our situation.
Instead, we just rent the hotel we want for the weekend or week and have no stress and I just put more money into our investment account, after everything I feel like that's the better investment for us.