https://www.realtor.ca/real-estate/2...soyoos-osoyoos
Friend of mine got back from Osoyoos as he stayed at the Watermark and sent me this listing as he loved the resort and he wants to pull a HELOC on his house and buy one of the units... He has over $1M of equity in his house.
It's one of those hotels that you can buy a room and you get revenue sharing when you don't stay in the unit.
This one is a one bedroom at $249,000. No mortgage available due to the type of real estate it is, so you need all cash. He got a hold of some of the numbers...
$38,621 Revenue
$16,826 Net, paid to owner after all expenses
$1,982 Property tax
$497 strata/month
= 3.56% annual yield on $249,000
I told him it doesn't seem like a good idea especially when you can get 5-6% on a GIC right now. Any investment right now needs to be making at least 7-8% before you invest otherwise you might as well just get GIC's as they're risk free.
Am I missing anything here?