Question: "What is a Phase 2 Property" ?
Phase 2 properties typically refer to hotel condos. You might see them in the listings online for $50,000, $100,000 or even $150,000, and you think "WOW, that looks AMAZING! ... Why is it so cheap?"
Well, the reason is that with a Phase 2 restricted condo you are only allowed owner use of 28 days in the winter and 28 days in the summer.
For the remainder of the year, you can have the property management company (ie: the hotel) run it for you. However, for their use they take on average, around 40% of the gross revenue as a management fee.
Also, keep in mind that you still have to pay for things like:
- Property taxes,
- Strata fees,
- Homeowner association dues,
- Tourism Whistler fees
At the end of the day, it usually ends up being a break-even proposition or a total of $1000-$2000 in revenue.