Attention investors! This unit yields a solid 6.5% net return on your investment. Instead of...
Many condominiums in Whistler (particularly those that offer rental management) have a covenant (restriction) on title which outlines the permitted amount of personal use available with ownership.
A Phase 1 Zoning allows the owner unlimited use of the property, however, when not being used personally, the condominium must or can be made available for rental through a recognized rental management company(the requirement to rent varies from property to property, check with your realtor® for the exact situation).
Phase 2 Zoning is very restrictive with respect to the Owner’s usage.
The purpose of the zoning is to make sure there are always a large number of properties available to resort guests at any given time.
The zoning allows the owner to do the following:
- You have personal use of your property for up to 28 days in the summer season (April 15 to Oct 15) and up to 28 days in the winter season (Oct 15 to April 15) Change over occurs at 2:00PM
- You can book a maximum of up to 21 days at any time in each season
- You can make short term bookings which the hotel can honour if the occupancy rate is less than 80%. This does not affect your long term booking days.
- As the property must be made available for nightly rental they are considered commercial ventures and taxed at the commercial rate. As well, all Phase 2 properties have a hotel management contract and pooled revenue sharing that you must accept as part of your purchase.
You cannot live in a phase 2 hotel condo full time and 30-35% equity is usually what the lenders are looking for if a mortgage is required.