Question: "What is a Phase 2 Property" ?
Phase 2 properties typically refer to hotel condos. You might see them in the listings online for $100,000, $150,000 or even $200,000, and you think "WOW, that looks AMAZING! ... Why is it so cheap?"
Well, the reason is that with a Phase 2 restricted condo you are only allowed owner use of 28 days in the winter and 28 days in the summer and there are a host of other factors that play into it as well. See the full list here.
For the remainder of the year, you can have the property management company (ie: the hotel) run it for you. However, for their use they take on average, around 40% of the gross revenue as a management fee.
Also, keep in mind that you still have to pay for things like:
- Property taxes,
- Strata fees,
- Homeowner association dues,
- Tourism Whistler fees
As the hotel occupancy rate have risen in Whistler over the past few years, these condos have begun to return in the 2-4% ROI range lately depending on the building. In the past you would have been lucky to break even after all the above expenses were paid.