Frequently Asked Questions
Here are some frequently asked questions from Whistler buyers.
Q. I'm a non-Canadian resident (Foreign Buyer). Can I purchase property in Whistler?
A. Yes. There are no restrictions on foreign ownership. Over the past number of years we have worked with buyers from many different countries (USA, Mexico, UK, Japan, Singapore, Hong Kong, China, Australia etc). For detailed information read the NON-RESIDENT BUYER INFORMATION on our HELPFUL LINKS page.
Q. I'll need some financing to purchase a property. How do I get a mortgage?
A. If you intend to register a mortgage against your Whistler property you must apply to a Canadian lender. Foreign banks cannot register mortgages in Canada. Working with a local Mortgage Broker is the best method of securing the right mortgage for the type of property you are purchasing. See the MORTGAGE INFORMATION on our HELPFUL LINKS page.
Q. What expenses am I responsible for as a condominium owner? What are Strata Fees?
A. Please read the document "OWNING A CONDOMINIUM" located in the BUYER'S GUIDE on the HELPFUL LINKS page.
Q. I hear about Phase One and Phase Two condos. What are they?
A. Phase One: The owner has unlimited personal use and the condo can be rented on a short term basis for nightly or weekly vacation rentals. When it’s not being occupied by the owner it must be made available for nightly rentals. You'll find Phase One properties are townhomes and condos located in the Village, Benchlands and Whistler Creek. Flexibility and owner control are the key points. In most cases owners may choose their own rental manager or self-manage their rentals. Some buildings may have an in-house rental front desk and others will not. Basically you are in control of your condo and you make the decisions that best suit your needs.
A. Phase Two: Phase Two buildings are mainly hotel-style condos like the Holiday Inn, Four Seasons Resort, Westin, Pan Pacific Lodge or Alpenglow. The main purpose of the Phase Two zone is to operate a hotel. In many ways you are a silent owner. If the owner wants to use the condo it can only be used for a maximum of 28 days in the winter and 28 days in the summer (56 days per year). The rest of the time it must be made available for nightly rentals through the hotel operator.
Q. How do rentals work in the Phase Two hotel condominiums like the Westin, Holiday Inn, or the Four Seasons Resort?
A. The Phase Two condo-hotel buildings are operated on a pooled shared revenue basis. This means that every day the revenue for the entire building is pooled together and allocated to each unit according to that unit's "Interest Upon Destruction" value (IUD Factor). The higher the IUD value for the unit, the larger piece of the revenue pie you get. Even if your place is vacant you still share in the revenue pool. The only time you do not receive revenue, is when your condo is blocked off for personal use. A few buildings like the Holiday Inn share revenue on a 'unit square footage basis' however the majority hotels use IUD factors. The hotel rental manager in these buildings has the contract to handle the entire building and you must use the rental management company that is in place.
Q. How does the rental income work in most Phase One buildings?
A. In the case of Phase One townhomes or condos, you receive rental income when your place is rented and no income when it is not rented. Simply put, no rental, no income. This is generally referred to as 'Rent Specific Income' as compared to 'Pooled Rental Income'.
Q. I've heard of Tourism Whistler (TW) Fees. What are these?
A. Properties located on Resort lands are subject to a small 'bed tax'. The property tax is based on the number of beds in your unit. Commonly called a 'pillow tax'. Most of these properties are in Tourist Rental Zones and the pillow tax (paid per quarter) contributes to the overall marketing budget used by Tourism Whistler to market Whistler to the World.
Q. I have heard Whistler has a 'Bed Cap'. What does this mean?
A. Whistler has had a 'Development Bed Cap' in place since the late 1970's. It has been modified over the years however the basic principal has been strongly enforced. At the present time (2005) the 'Bed Cap' has almost reached build out. Raw land zoned for development with the required 'bed units attached' is almost non-existent.
Q. I want to buy a chalet and rent it out for vacation rentals. Can I do that?
A. Unless you purchase a home that is specifically zoned for nightly rentals (TA Zoned) you cannot rent your chalet on a nightly or weekly basis. Most chalets, cabins and homes are in residential zones. You can only rent these on a monthly, seasonal or yearly basis. However there are a few areas in Whistler where homes are zoned for nightly rentals (TA Zoned).
Q. What areas are zoned for Vacation Rentals?
A. All properties in Whistler are regulated by 'Municipal Zoning'. You can only conduct nightly rentals of your condo or chalet in areas that are zoned for this purpose. These areas are Whistler Village, Blackcomb Benchlands, select areas of Whistler Creek, parts of Green Lake Estates (Nicklaus North Golf Course), Kadenwood Estates and a few spot-zoned areas through out the valley. Additional Tourist Accommodation (TA) Zones: These are Chalet Homes, Bed and Breakfast Chalets and Pensions that have been spot-zoned through out the valley to conduct nightly vacation rentals.
Q. What do most rental managers charge for managing nightly rentals?
A. Most rental managers will charge anywhere from 35% to 50% of the gross revenue as a management fee. This includes the marketing and housekeeping expenses of your condo.
Q. Will the rental income carry my property expenses and mortgage payments?
A. Most resort rental properties are not a money making machines. If you are looking for your Whistler revenue property to break even or give positive cash flow then you will need to pay cash or put approximately 50% or more cash down. The best way to approach buying in Whistler is to think of your Whistler property as a long term investment for capital growth and an investment in yourself and your family. Having a great place to play year round!
Q. Prior to buying, I want to review the revenue statements for some of the condos. Can you send these to me?
A. We request this information from the rental manager. Typically a summary of the past 2 or 3 years is available so we can review the historical rental history of the unit. These can be emailed to you as a PDF Document.
Q. How much are legal fees on closing?
A. Generally you should budget for approximately $1,500+/- for legal fees to have a lawyer or notary public handle the transaction. Complex transactions in a company or trust name may be higher. See LAWYERS on the HELPFUL LINKS page for information.
Q. What other costs or fees are there at closing?
A. British Columbia has a provincial property transfer tax (PTT). This tax is payable at closing and is 1% on the first $200,000 and 2% on the remainder. In addition you'll need to budget for adjustments to some utilities like annual property taxes and municipal sewer and water charges. This could be anywhere from a few hundred dollars to a couple of thousand depending on the property and time of year.
Q. Am I required to pay GST (Goods and Service Tax) on the purchase of my property?
A. There is no single answer to this question as it depends on the property type, it's current use and your intended use. However in general, if you are purchasing a Phase 2 condo-hotel unit or Phase 1 condo (and the nightly rental use remains the same) you can register as a GST Registrant and not pay the GST on acquisition. Read the document GST MEMO located in BUYING A WHISTLER PROPERTY on the HELPFUL LINKS page or discuss your specific situation with a qualified GST tax advisor.
Q. Do I pay income tax on rental income? I’ve heard about something called Withholding Tax. What is it?
A. Canada Customs and Revenue Agency (CCRA) requires non-residents to pay twenty-five percent (25%) of the gross rental income from the property to CCRA. You may obtain a reduction in such withholding tax if you complete a government form called an NR6 setting out that the projected income are offset by the anticipated expenses associated with the property. Most rental managers will assist in the completion of the NR6 return. Upon having filed NR6, you are obligated to file an annual Canadian tax return with respect to the property with CCRA. CCRA will only allow expenses to be claimed if the returns are filed and will disallow any expenses incurred more than two years prior to the time of filing the return. It’s very important that your returns are kept current to avoid expenses being disallowed and tax being paid on the gross rental income. Please refer to BUYING A WHISTLER PROPERTY on the HELPFUL LINKS page for more details or visit one of the ACCOUNTANT links on the HELPFUL LINKS page.
Q. Will the Vancouver 2010 Winter Olympics affect the Whistler real estate market?
A. Predicting the future has always been a challenge! However we can draw some conclusions from things we know will happen. The short term and long term benefits from the capital improvements and world wide exposure the Olympics will bring will have a positive impact on our resort and the region for years to come. Vacation rentals will see a spike and the pre-olympic contruction years should have an impact on residential rentals for housing construction workers. The overall impact on real estate values should be very positive as we approach 2010.
Q. Is there land or acreage available to build a home or cabin?
A. Because of the 'Development Bed Cap' and the topography of Whistler, vacant land is becoming increasingly hard to find. And residential acreage does not exist in Whistler. Today it is more common to purchase an older chalet, tear it down and build your new home. Alternatively the town of Pemberton, located 30 minutes north of Whistler offers a fine selection sprawling acreages and residential building lots.
Q. What is Quarter-Ownership?
A. Simply put, four owners share the ownership of the condo. The title is split into four quarters so it is like owning a condo with three other partners. You get to use the condo one week per month with every year slowly rotating so that every fourth year you’ll get Christmas and New Years etc. Quarter-Ownership was introduced to Whistler in the late 1990's and has proven to be an excellent form of casual recreational ownership. An owner gets approximately 12-13 weeks of ownership use each year and when it is not being used, it can be put into a rental program. There are currently three quarter ownership buildings in Whistler; Horstman House on Blackcomb Benchlands, Legends at Whistler Creek and Montebello II in Village North.
Sutton Group West Coast Realty.