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Whistler Real Estate Expert Dean Linnell answers several frequently asked questions.
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Can a U.S. or foreign investor purchase property in
Whistler? ANSWER >
Can I get a mortgage for the purchase from my local bank in Seattle, London or Tokyo?
ANSWER >
How do rentals work in hotel condominiums like The Westin Whistler, Holiday Inn Sunspree,
or the Marriott on Blackcomb? ANSWER >
What about rentals in a ski-in/ski-out townhome?
ANSWER >
I want to buy a chalet and rent it out. Can I do that?
ANSWER >
What are some of the fees involved if I conduct nightly rentals in my suite?
ANSWER >
Can I get positive cash flow from my Whistler rental property?
ANSWER >
I want to physically see what revenues are like for some of these suites. Can you send me
a summary? ANSWER >
How much are closing costs? ANSWER >
How do think hosting the 2010 Winter Olympics will affect the Whistler real estate
market? ANSWER >
What’s the best area of Whistler to invest in?
ANSWER >
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I want to buy a lot to build my dream home on. Where can
I find one? ANSWER >
I hear a lot about Phase 1 and Phase 2. What does this mean?
ANSWER >
I’m looking at the properties on your website but I’m
confused. Which ones are Phase 1 and which are Phase 2?
ANSWER >
There are some “shared owner” condos listed. What does
this mean? ANSWER >
Is there any available real estate to the north of
Whistler? ANSWER >
I just want a nice, cozy cabin in the woods. Where can
I find something like that? ANSWER >
I see a few cabins listed for a lot less than I expected.
Why is that? ANSWER >
I now have an accepted subject offer on my Whistler dream
home. What happens next? ANSWER >
Now we have a firm contract and our subjects have been
removed. What do we do now? ANSWER >
I’ve heard about something called Withholding Tax on
rental income. What is it? ANSWER >
What does Strata Titled Condominium mean?
ANSWER >
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Q. Can a U.S. or foreign investor purchase
property in Whistler?
A. Yes, in fact there are no restrictions to
foreign ownership here. I deal with investors from Canada,
the U.S., Mexico, the U.K., Japan, Singapore, Hong Kong,
Australia, New Zealand, Germany, the Middle East – you name
it. Click on Rave Reviews
for some great testimonials from around the world.
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Q. Can I get a mortgage for the purchase from
my local bank in Seattle, London or Tokyo?
A. Foreign banks cannot register mortgages
in Canada. The best suggestion is to go to my mortgage broker’s
website at
www.garibaldimortgage.com
. Annie de la Chevrotiere is a fantastic mortgage broker
who will secure financing for you here in Canada at the very
best interest rate and terms. Best of all, her services are
free!
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Q. How do rentals work in hotel condominiums
like The Westin Whistler, Holiday Inn Sunspree, or the Marriott
on Blackcomb?
A. The hotel style suites are run on a pooled
revenue basis. This means that every month the revenue for the
entire building is pooled together and divided out to each
owner according to that suite’s size, view, floor plan, etc.
The rental manager in these buildings has the contract to
handle the entire building and you must use the rental
management company that's in place.
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Q. What about rentals in a ski-in/ski-out
townhome?
A. In the case of a townhome or a suite in
a non-hotel building like the Town Plaza, you can interview
various independent rental managers to take care of the
rentals, marketing, cleaning, etc. However, you don’t benefit
from the pooled revenue system and only receive revenues
from your individual suite.
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Q. I want to buy a chalet and rent it out.
Can I do that?
A. Unless you purchase Bed and Breakfast,
Pension, or a home that’s in an area specifically zoned for
nightly rentals you cannot rent your chalet on a nightly
basis. You can rent it out by the month but no less. There
are areas of Whistler where homes are zoned for nightly
rentals (like Muirfield Drive in Nicklaus North or Horstman
Lane on Blackcomb) but be prepared to pay a premium for such
a house.
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Q. What are some of the fees involved if I
conduct nightly rentals in my suite?
A. The rental manager will take anywhere from
35 to 40% of the gross revenue coming into your suite as a
management fee. Also, you’ll need to pay a condo maintenance
fee that could be anywhere from $100 to $550/month depending
on where you buy, its size and whether it has an outdoor
heated pool and hot tub. This maintenance fee covers
landscaping, snow removal, garbage removal, pool & hot tub
maintenance & heating, building exterior, lobby, hallway
upkeep, etc.
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Q. Can I get positive cash flow from my
Whistler rental property?
A. Rental property here is not the money
making machine you would think it is. If you’re looking for
your Whistler revenue property to break even or give positive
cash flow then you would need to put from approximately
40 to 50% down – even more in some cases. Think of your
Whistler investment as a place in North America’s #1 resort
that you can call your own with a healthy upside for capital
appreciation.
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Q. I want to physically see what revenues
are like for some of these suites. Can you send me a
summary?
A. I can PDF, Hotsend, or fax you the actual
historical revenue figures for any currently listed nightly
rental suite. I’ll even break down all the revenues versus
expenses on an easy to read Excel spreadsheet so you have all
the information you need to make an informed choice. I can
either send you samples or you can pick a few that you think
might fit the bill from my
Properties Page.
Then just
email me and
we’ll get them right out to you.
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Q. How much are closing costs?
A. You should allow approximately $1,500 for
legal fees to have a lawyer convey the transaction to your
name with the B.C. Land Titles Office. You’ll also need to
budget for adjustments to the taxes and sewer/water. This
could be anywhere from a few hundred dollars to a couple of
thousand depending on the property and time of year. Also,
don’t forget about our provincial Property Purchase Tax,
which amounts to 1% on the first $200,000 and 2% on the
remainder.
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Q. How do think hosting the 2010 Winter
Olympics will affect the Whistler real estate market?
A. It’s hard to gaze into the crystal ball on
this issue. I do know that our winning the bid has been
nothing but positive for our resort community and the Sea to
Sky Corridor in general. Our already robust real estate
market is already benefitting from the capital improvements,
legacies, and worldwide advertising that the Games will bring
to our community. Just think of Lake Placid and Squaw Valley.
Tourists from all across the globe still flock to these
places because they once hosted the Winter Olympics.
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Q. What’s the best area of Whistler to
invest in?
A. Well, that depends on your personal
preference.
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Q. I want to buy a lot to build my dream home
on. Where can I find one?
A. Vacant land is a rare commodity here in
Whistler and it doesn’t come available that often. Some
investors will even buy an older chalet and tear it down so
they can build to suit. Call or
email me
for the most current list of what’s available.
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Q. I hear a lot about Phase 1 and Phase 2.
What does this mean?
A. You can conduct nightly rentals of your
suite in only a few areas of Whistler. These areas are
Whistler Village,
Blackcomb Benchlands,
certain sections of
Whistler Creek,
Nicklaus North,
and a few other spot-zoned
areas around the valley.
Of these nightly zoned properties there are three types.
Phase 1: The owner has unlimited owner use
or can rent it on a nightly basis. When it’s not being
occupied by the owner it must be made available for nightly
rentals. Phase 1 suites are mainly townhomes and some of the
larger condo buildings.
Phase 2: The owner can only use it 28 days in
the winter and 28 days in the summer for a total of 56 days
per year. The rest of the time it must be made available for
nightly rentals. Of course, if you’re not going to use all 56
days then you just put those days back in the rental pool.
Phase 2 buildings are mainly hotel-style condos like the
Westin or Alpenglow.
TA (Tourist Accommodation) Zoned: These are
homes such as B & B’s and Pensions that have been spot-zoned
to conduct nightly rentals.
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Q. I’m looking at the properties on your
website but I’m confused. Which ones are Phase 1 and which
are Phase 2?
A. The Phase 2 buildings in Whistler exist
only in
Whistler Village and
Blackcomb Benchlands
and are as follows:
Alpenglow
Cascade Lodge
Delta Whistler Village Suites
Timberline Lodge
Marriott Residence Inn
(also known as The Blackcomb Springs)
Four Seasons
Westin Whistler
Holiday Inn Sunspree
Pinnacle International
The Pan Pacific
All the other buildings in the rest of Whistler Village,
Blackcomb Benchlands, and some sections of Whistler Creek are
zoned as Phase 1.
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Q. There are some “shared owner” condos
listed. What does this mean?
A. Some of the shared owner listings on the
“Properties page” of this site are timeshare as you can see
by the prices. Another kind of shared owner is Quarter
Ownership and it’s not timeshare at all. You see, title to
the suite is split into four quarters so it’s like owning a
suite with three other partners that you don’t know. You get
to use the suite one week a month with every year rotating
so that every fourth year you’ll get Christmas and New Years.
This is a relatively new concept for Whistler that was
spearheaded by Intrawest Corporation and it’s really taken
off. There are currently three quarter ownership complexes in
Whistler:
Horstman House
is ski-in at Blackcomb Benchlands.
The Legends
is right at the base of the gondola at Whistler Creek.
Montebello II
is a high-end, luxury townhome complex in Village North.
The major advantage to quarter ownership is that you only
pay for the amount of time that you use it. If you’re it one
month then you can put your suite into the rental program
and receive some revenue for it. This is not timeshare
– this is real ownership and you get actual title to your
quarter.
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Q. Is there any available real estate to the
north of Whistler?
A. There are some great buys in a small town
just 25 minute’s drive north of Whistler in
Pemberton.
A home or condo can be purchased there for far less than Whistler.
Don’t expect to rent it out nightly when you’re not here –
it’s monthly rentals only. A monthly tenant in the summer
might work leaving the winter for your own personal use.
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Q. I just want a nice, cozy cabin in the
woods. Where can I find something like that?
A. There’s plenty to choose from in the
rugged, cozy cabin department far from the buzz of Whistler
Village – maybe even on a quiet, calm mountain lake. Going
further up the road
north past Pemberton
and into the
southern Chilcotin Range you can find just what you’re looking
for at a fraction of the cost of Whistler. Areas like D’Arcy,
Birken, Poole Creek, Seton Portage, Lillooet Lake, Bralorne,
Gold Bridge, and Gun Lake are all excellent places to find
your own private mountain hideaway. Plus, you’re only 1 to
2 hours away from Whistler!
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Q. I see a few cabins listed for a lot less
than I expected. Why is that?
A. These cabins are priced low for a reason.
They’re in areas (listed above) are 1 to 2 hours from Whistler
to the north. Great as a private mountain hideaway but not
really what you’re looking for if you want quick and easy
access to Whistler Village.
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Q. I now have an accepted subject offer on
my Whistler dream home. What happens next?
A. You can relax while I handle all the hard
stuff. I’ll take care of everything from tracking down all
the strata meeting minutes, AGM minutes and Form B from the
strata manager (if you’re buying a condo) to accompanying
the building inspector into the property (if you plan to
have a building inspection). All the while I’m making
absolutely sure that every one of your questions have been
answered. I’ll do my very best to make sure you’re comfortable
with the buying process so that everything moves forward as
smoothly as possible.
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Q. Now we have a firm contract and our
subjects have been removed. What do we do now?
A. The hard part’s over. Now I handle getting
all the required documents out to your lawyer. He’ll draft
all the applicable transfer papers and courier them out to
you. You’ll need to sign, have them notarized, and courier
it all back to your lawyer as quickly as you can. Time is of
the essence here and we don’t want to miss our closing date!
If you live close to your lawyer in Vancouver or Whistler you
can just go over to his/her office to sign the paperwork.
You’ll also want to take care of some of the little details
like arranging for electricity, phone, and cable hookup.
Click here for a complete to-do list.
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Q. I’ve heard about something called Withholding Tax on rental
income. What is it?
A. Canada Customs and Revenue Agency (CCRA) requires non-residents
to pay twenty-five percent (25%) of the gross rental income from the property to
CCRA.You may obtain a reduction in such withholding tax if you complete a government
form called an NR6 setting out that the projected income are offset by the
anticipated expenses associated with the property. Most rental managers will assist
in the completion of the NR6 return. Upon having filed NR6, you are obligated to file
an annual Canadian tax return with respect to the property with CCRA. CCRA will only
allow expenses to be claimed if the returns are filed and will disallow any expenses
incurred more than two years prior to the time of filing the return. It’s very
important that your returns are kept current to avoid expenses being disallowed and
tax being paid on the gross rental income.
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Q. What does Strata Titled Condominium mean?
A. As the owner of a shiny new Whistler condo
you’ll be responsible for paying monthly maintenance fees to
cover the upkeep of all the common areas outside of your four
walls. The Strata Corporation (council of owners) is also
entitled to levy special assessments for extraordinary expenses
should there not be sufficient money in the contingency reserve
fund. When purchasing, you should review the strata meeting
minutes carefully to determine whether there are any
extraordinary expenditures coming down the road. I can also
help you determine what rights you have to use the common
areas such as parking stalls and lockers, if applicable.
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