Investing in Whistler Property

Many fortunes have been made investing insale at prices that in many cases are significantly
property in Whistler, BC, which now has the mostbelow the price originally paid to the developer,
expensive real estate in Canada, and some of theimplying a substantial loss for the original investor.
more expensive in the whole of North AmericaSo are there still attractive opportunities for
(one not particularly large home is on the marketinvestors in Whistler? If you are willing to make a
for $20m). But is this game over, and should thebet on a turnaround in visitor demand for the
canny investor be long or short on Whistlerresort (surely the underlying driver of investment
property in their portfolio? And if you are thinkingvalue), then there may be. But where should you
of investing in Whistler property, what types oflook? One very noticeable factor in the recent
property offer the best bet both for currentdownturn was that the periphery suffered more
yields and for capital appreciation?than the centre: visitors wanted to be in the
In the past, the smart money has invested inVillage or within a short walk of the Village, and
off-plan condos and townhomes. Theseproperties that fell outside this area suffered
developments have offered investors the chancedisproportionately. So if you need the yield as you
to buy a property before the ground has evenwait for the upturn, focus on homes near the
been broken with a small deposit, with furthercentre. There are opportunities at homes in
payments due as construction has proceeded.Northern Lights, where you can pick up a 4-5
Time and again, these properties have beenbedroom townhome within an 8-minute walk of
'flipped' before further payments fell due forthe Village and the gondolas for $1.6m. In the
substantial profits. If you have only had to put upmiddle of the Village itself, you can find a
10%, but the value of the property has increased2-bedroom apartment for around $600k. Yields on
by 20%, you could see a 200% return on yourthese properties are around 3-4%, much better
money in just a few months. This was done againthan on properties in outlying areas, which seldom
and again; it was a game in which fortuneexceed 1%. If you are more of a speculator and
favoured the bold. One famous investor turnednot so concerned with short-term yield, you might
$10,000 into $50m in 10 years playing this gamelook for a property in Taluswood on the lower
repeatedly.slopes of Whistler Mountain at a deep discount.
Of course, this is a leverage game and whenIn any event, you should look for advice from a
prices start falling the leverage works rapidly inseasoned and sceptical realtor, and at the same
the other direction. This is starting to happen intime talk to a professional property manager
Whistler now, where investors in the Fourabout how much your property can really be
Seasons have taken a severe haircut as pricesexpected to generate while you wait for the
did not climb as expected. As a result themarket upturn.
secondary market is now stuffed with rooms for