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Buying a Resort Condo At Ontario’s Blue Mountain Village Merits Your Consideration

Posted by Sherry Rioux on April 13, 2018
| 5 Comments

With humble beginnings that started in 1941, the Blue Mountain Resort area has expanded to become one of Canada’s premiere 4-seasons resort destinations. Nestled at the base of the Niagara Escarpment, the area today attracts more than two million visitors today and the hub is undoubtedly, the Village at Blue Mountain.

This picturesque pedestrian village features turn-of-the century architecture in a collection of condo-hotel units, unique shops, restaurants and services that are enjoyed by day trippers and increasingly, longer stay guests who come for vacations, conferences and getaways where there is an endless array of activities both on and off the Village grounds.

Condominium units in the Village are individually owned and, owners who opt in can enjoy the benefits of a fully managed rental program that brings in revenue to offset their ownership costs. Their units are enrolled in a rental pool which means that for every night it is available and not in use by the owner, whether it is occupied or not, owners receive the revenue that comes into that building that night.  Owners in the pool are able to use their units for up to 10 days per month (6 in the Westin Trillium House).

When you purchase a unit in the Village, there is a 2% (of the purchase price) Blue Mountain Village Association fee plus a small annual fee for membership which is well worth the investment.  The BMVA runs the programs that keep your units in demand with everything from beautification and animation/events to operating the free shuttle that keep bringing people back to this special place.

There are a variety of room styles ranging from bachelor units to larger 3 bedroom apartment style homes.  All units are turn key meaning they are fully furnished right down to the linens and dishes.  Every 6-8 years, the units are fully refurbished at a cost to owners and ensures that the guest experience is kept to a high standard at all times.

In the village, your condo fee includes heat, hydro, cable, internet and an underground parking spot.  Management related fees for the managed rental program are deducted from your rental income and owners are left to pay realty taxes, insurance and condo fees.  In general, with minimal owner usage, most units generate a 3-4% return after all operating costs (before appreciation or debt financing) with zero hassle and the ability to enjoy the unit yourself.

As the area has increasingly been attracting international interest, it is also worth noting that Ontario’s non-resident speculation tax does NOT apply in Grey County!

As Village units have commercial zoning, they do attract HST to the purchase price however, buyers who utilize the rental program, can defer this cost to the next buyer buy becoming an HST registrant which almost all owners do.  Financing a purchase can be a little trickier due to the commercial nature however, CIBC Collingwood will do so with 30-40% down and a 20 year amortization schedule.  We are happy to connect you with the right person.

If you are looking for an opportunity to enjoy the Blue Mountain vacation lifestyle and offset the costs of your ownership, The Village at Blue Mountain offers a unique opportunity and merits your serious consideration of this option.

5 thoughts on “Buying a Resort Condo At Ontario’s Blue Mountain Village Merits Your Consideration

  • Pingback: So You Want To Buy An Investment Property in Blue Mountain or Collingwood | Marg Scheben-Edey

  • armaghan salehian
    on September 22, 2019

    Hello

    How do I access the statements for the owner share of revenue on a monthly basis for a unit I am buying. I already know the annual net income but like to have it on a monthly basis for the unit.

  • Marg Scheben-Edey, Broker
    on September 23, 2019

    You could ask your Realtor to request that from the owners and if it is not available prior to making an offer, you could make it a condition in the offer that it be provided to you.

  • Rasbinder (Rasu) Rosario
    on November 3, 2019

    Mary, what % of the rental income does the Owner get at Blue Mountain. I am referring to the properties owned by Skyline.

  • Marg Scheben-Edey, Broker
    on November 4, 2019

    There is not really a straightforward answer that will get you to the bottom line. They charge 50% of the gross rental income as a management fee but in addition, there are fees for credit card charges, travel agent commissions, cleaning fees, etc. Generally I find these add up in total to somewhere around 60-62% of gross income. Be aware that from the balance remaining, owners will still need to pay for things like property taxes and condo fees. Again, very generally, a unit with minimal owner usage will generally show a return of about 3-4% before any mortgage financing. I hope that helps and thanks for visiting the blog.
    Marg

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