Tremblant Living

Mont Tremblant Chalet Rental to Chalet Owner

Feb 23rd, 2009 by James Fraser | 0

Before you make the switch from a Mont Tremblant Chalet Rental to becoming a Mont Tremblant Chalet Owner at your favourite ski resort, take heed of the benefits – and a few important perils.

There are several upsides to being a Mont Tremblant Chalet owner. The long term gains can be substantial – especially if this is a relatively new resort – such as Mont Tremblant. Whistler & Vail prices are probably double to triple those of Mont Tremblant – making a $450 per square foot purchase at Westin Tremblant condo seem cheap. There is also the novelty factor – once more and more people hear more about the destination/resort this will drive value. This is happening at Mont Tremblant as it is still considered a relatively new resort – people from all over are investing at Mont Tremblant to visit what they feel will be an address of the future – with the best chalets and condos going first – the pristine lakefronts, the best ski-in ski-out chalets/condos and mountaintop homes. Like any asset class the time to buy may be during softening times – like we are currently experiencing.

Other considerations: Will you/your family enjoy going there? – nothing beats those happy faces and special family moments. What revenue can be driven from the chalet or condo? – revenues will help pay for sometimes heavy carrying costs and take the sting out of the wait before cashing in on the gains.

Perhaps the most important questions is during downturns like we are currently experiencing – can you ride out the cash flow weaknesses you will surely encounter. The hospitality industry suffers from less travelers during a recession. Many investors tend to only think in terms of capital gains/upside – which can be substantial over  extended periods of good times (as we recently experienced). An investor will thus need to have enough liquidity to ride out those troughs. As resort properties cost more they also need more maintenance and carrying costs. Cash flow will be tight and it is important to not press the panic button should values soften. Other concerns can be potential tax implications – some countries have severe tax rules – making it less interesting to invest in other countries – check with your accountant and tax lawyers!

Happy, but careful investing.

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