Buying an Investment Condo at Blue Mountain
So many people suddenly seem to be interested in buying an investment condo at Blue. Most people I talk to are looking for something they can rent out as a recreational unit in or around the Village at Blue Mountain.
I’ve written a number of blog posts on this topic such as this 4 part series but there still seems to be some confusion about the money side of things so hopefully this video helps somewhat.
Generally, recreational condos are great for people who want personal use of a vacation home and who wish to offset their operating costs by renting it out when they are not using it. As a straight investment though, the expenses associated with a vacation condo really reduce the cash flow. When you have short term guests, you are paying for things like the rental management, utilities and cleaning fees every time someone checks out. In an annual rental, residential property, you don’t have many of those expenses so the return is usually better.
It comes down to what you are trying to accomplish with your purchase. Are you looking for cash flow? Return over time? Are you counting on property appreciation? Are you risk tolerant? do you wish to just offset some costs in your vacation home?
It makes sense to know your goal first and if it is straight investment for wealth creation, this may not be the very best option. If it is to offset operating costs with personal usage the rest of the time, then it’s perfect.
I am interested in a vacation property and the possibility of renting it out when I am not using it. Ideally I am trying to keep the cost of the property less then $800 monthly and if short term rentals can help with that then I would be really happy.
I don’t really know where to start with gathering information. There are rules around zoning of properties that I can rent I don’t know how to find a management company or their costs etc.
Hi David and thanks for visiting the blog. It is a bit complex to understand all the various rules around the issue of personal use and rentals of condos in Blue Mountain but it is a great way to offset personal costs once you understand how it works. A good place to start may be to watch this video I did last year: https://youtu.be/xlS0ifeeKVk You may want to consider units in the village if you’d like them to be fully managed and, the monthly costs depend on how much financing you need and how much personal use you plan to have. Feel free to email me with your personal goals and perhaps I can suggest things more tailored to your needs.