{"id":8204,"date":"2019-02-13T00:48:26","date_gmt":"2019-02-13T00:48:26","guid":{"rendered":"https:\/\/www.canadianrealestatemagazine.ca\/cash-flow-resort-properties-the-right-way\/"},"modified":"2023-10-24T04:05:10","modified_gmt":"2023-10-24T04:05:10","slug":"cash-flow-resort-properties-the-right-way","status":"publish","type":"post","link":"https:\/\/www.canadianrealestatemagazine.ca\/news\/cash-flow-resort-properties-the-right-way\/","title":{"rendered":"Cash flow resort properties the right way"},"content":{"rendered":"<p>According to a REMAX report, ski resort properties have strong cash flow potential, however, interest among western Canadians is low.<\/p>\n<p>\u201cThe \u2018Airbnb phenomenon,\u2019 for lack of a better description, provides the opportunity for some return when [owners] are not using the property themselves, and that\u2019s where four-season amenities become important,\u201d said Elton Ash, REMAX\u2019s regional executive vice president. \u201cThe properties cash flow through winter and summer months.\u201d<\/p>\n<p>But, according to a survey conducted by Leger Marketing on REMAX\u2019s behalf, 67% of western Canadian respondents believe the price of a resort property is proscriptive. Ash, on the other hand, says that they\u2019re relatively affordable.<\/p>\n<p>\u201cWe know a large proportion of Canadians want to buy properties,\u201d he said. \u201cSeventy-one percent of western Canadians interested in purchasing ski properties want four-season amenities, but that number drops down to 23% who believe they could afford it. It\u2019s interesting because with recreation properties in general, Canadians love the outdoors.\u201d<\/p>\n<p>In the last 20 years, resort properties have diversified and now boast year-round amenities like golf courses. The report also revealed that all-season resort capabilities trumped snow level, snow quality level, mountain elevation, and proximity to restaurants and retail as respondents\u2019 interest in resort properties.<\/p>\n<p>\u201cWhat we noticed with this report is more and more Canadians are looking at ski resorts as <a class=\"wpil_keyword_link\" href=\"https:\/\/www.canadianrealestatemagazine.ca\/news\/recreational-properties-surge-in-value-despite-sales-decline\/\"   title=\"recreational properties\" data-wpil-keyword-link=\"linked\">recreational properties<\/a>, as opposed to just lakeside properties like you find in the Muskokas, Northern Ontario or the Okanagan.\u201d<\/p>\n<p>According to mortgage broker Iain Macfadyen of Vanderkamp Vancouver, resort properties are financing headaches and, if part of a hotel, they don\u2019t cash flow especially well.<\/p>\n<p>\u201cThey\u2019re not super coveted,\u201d he said. \u201cPeople realize that they take on a lot of the property risk with these, and if it\u2019s part of a hotel the running costs are high enough that they won\u2019t see much money on renting it out. The financing on these things is also more expensive. When they see the extra interest that they will have to pay, it no longer seems like a good option.\u201d<\/p>\n<p>However, short-term rentals may prove to be the solution to both cash flow woes and inflationary housing prices.<\/p>\n<p>\u201cShort-term rentals are more popular, even out in Whistler,\u201d he continued. \u201cThey\u2019re restricted but people find ways around it. There are more people buying rental property as a hedge against further housing inflation because it\u2019s been a down market.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to a REMAX report, ski resort properties have strong cash flow potential, however, interest among western Canadians is low. \u201cThe \u2018Airbnb phenomenon,\u2019 for lack of a better description, provides the opportunity for some return when [owners] are not using the property themselves, and that\u2019s where four-season amenities become important,\u201d said Elton Ash, REMAX\u2019s regional [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":21715,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8204"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=8204"}],"version-history":[{"count":2,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8204\/revisions"}],"predecessor-version":[{"id":21714,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8204\/revisions\/21714"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/21715"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=8204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=8204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=8204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}