Real Estate Talk:
Vacation rental condos
The alternative country rental and/or purchase
By Joseph Marovitch
Often, I am asked about short-term rentals in the country. The requests usually come just before the summer or winter holidays. On short-term notice it is difficult to find these properties as they are usually reserved months in advance, and during the high season, which is the holiday seasons, these properties can be quite costly.
However, this past weekend, my wife had her birthday and asked if we could spend it in the mountains by a lake. Being the loving husband I am, combined with the fact that her wish is my command, I immediately began to search for a property. Lo and behold, I found a gem by the lake near Mont-Tremblant. It was short notice, but I booked the space, at a very reasonable price. We departed Montreal late on Friday for the one-and-a-half-hour drive to Lac Supérieur. As we left the city, all our tension began to ebb away. I was not certain what to expect, especially considering we were arriving in the dark of night. Upon arrival we could see nothing of the landscape as it was pitch black. The light of the building led us to the room we would be staying in. The property was self check-in. All we had to do was find the room, press the code on the door and enter.
What I found to be extraordinary… is that the apartments are all condos individually owned as investment properties.
What we found was not what we expected. The room was actually a suite with a beautiful bedroom and king size bed, bathroom with a waterfall shower, living room with gas fireplace, kitchen and dining table. We even had a terrace. The décor of our suite was organic in nature with shiny pine wood floors and cabinets. The layout of the space was open, airy and breathable. It was late and we were tired and hungry. We broke out the food and wine, ate dinner and retired for the night.
In the morning I awoke first. I walked to the window to see what I could outside. From the window, the scenic view was stunning. Before me was the panoramic site of the pristine glass-like water of Lac Supérieur, and tall mountain crest views. It drained any remaining tension away. I decided to step out on the terrace. As soon as I did, I focused my eyes to see two wild deer in front of our patio, eating grass. The deer stared at me and then continued to feed.
The property was beautiful and consisted of three wood panelled buildings with what I found out later are condos, not simply rental apartments. There was a lake access, a pool, gym and canoes, kayaks and pedallos available and included. There was even a yoga studio with classes offered complimentary.
‘People… purchased the condos with the agreement that the condos would be rented by the rental manager when the owners were not using them.’
On site are cross-country trails and biking paths. Minutes from our stay are Mont-Tremblant ski resort, Saint-Faustin and Saint-Jovite.
What I found to be extraordinary, upon leaving, as I went to the front office to collect a brochure for my friends and family, is that the apartments are all condos individually owned as investment properties. People from Montreal and around the world purchased the condos with the agreement that the condos would be rented by the rental manager when the owners were not using them. All the condos had to keep the same organic décor and were to be maintained by the rental manager. The owner could reserve their condo for their own use within certain guidelines.
In the agreement between the owner and the rental manager, the owner receives a percentage of the income based on the amount of square footage purchased, can use the condo up to 36 days per year and, for the most part, is worry free of condo maintenance.
The condominiums are beautiful and well priced. The location is excellent, as are the facilities and service. The entire concept is cost effective and an excellent getaway retreat.
Next article: Marketing your property in Winter
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Have a great week!
STATE OF THE MARKET
According to a recent report by RBC economists, being able to afford a home in Canada is the worst it has been in 28 years and is likely to become more difficult with rising interest rates and stringent mortgage rules. What appears to be described here is a housing bubble. In every situation there is a down side, but there is almost always an opportunity as well.
Right now, prices are high, and it is a seller’s market. However there has also been a growing economy and rising average household incomes. It is true that mortgage rules are tougher to overcome than in the past, but this is a positive check and balance, so the Canadian economy is not overrun with homeowners who cannot afford to pay their mortgages thereby causing another recession. With prosperity there comes rising interest rates, which will cause real estate prices to reduce.
One can be scared to move forward or come to the realization that economics is a cycle of expansion, peak, trough and recovery. In each phase there is opportunity. One just has to know when to duck and weave.
Read also: Real Estate Talk: Proper photo shoots
Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible to, Joseph applies this to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or firstname.lastname@example.org