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.
Marg Scheben-Edey is a Broker with RE/MAX four seasons realty limited, Brokerage in beautiful Collingwood, ON. With three decades of experience, Marg is a leader in the local real estate marketplace and is ready to help guide both Buyers and Sellers in achieving their real estate goals. Email Marg