Real Estate Investing in Tremblant – Is it Worth a Look?

Looking for a blissful winter wonderland vacation home in a location that most people have never heard of? Up until a few days ago, I have never heard of it either but now I’ve got the urge to go.

For those of you not familiar with Tremblant, it is located about one and a half hours northwest of Montreal, Canada. It’s a large year round resort and Mont Tremblant is best known as a ski destination, but also features a lake suitable for swimming, and a golf course in the summer months. The name of the mountain, Mont Tremblant, means “trembling mountain” in French.

For Mont Tremblant Real Estate to be an attractive place to invest, the prices need to be in an affordable range. After doing some searches online I found a nice site which lists all types of Mont Tremblant Properties. Some of them are rather high which are out of most people’s price range ($1 million +) but this site also lists Mont Tremblant Condos in the $175k + range. These are called condo/hotels which is a fairly new concept.

Condo hotels are usually large, high-rise, luxury hotels operated by big names including Fairmont, Westin, Four Seasons, Ritz-Carlton, and more. Condo hotels have condos that are sold to individual investors who may use their unit as a vacation home whenever they like. When they’re not using their unit, owners have the option of placing it into an organized rental program. Rental revenue, which is shared with the operator, helps defray the owner’s expenses.

This is a wonderful way to own real estate and that’s why I started looking for vacation-type locations that offer condo hotels. The best way to better understand how it works is to actually visit one. That’s exactly what I did in Lake Tahoe and toured the Marriott Grand Residence condo hotel. It was a wonderful property in a great south shore location and I almost ended up buying a one fourth share. I’ve also been tempted to explore by the Italy real estate market but the distance alone (I live in CA) might be too much of a barrier for me.

What stopped me you ask? Well, at the end of the day when I ran the numbers, it just wasn’t coming out cash-flow positive. In most cases it probably wouldn’t anyhow but I didn’t want to lose $500+ a month especially when I thought the prices were a bit high at the time (2007). I’m glad I didn’t buy b/c the prices have dropped so I might reconsider again. What really gets you is the fee the Marriott takes out each month. Of course they rent it out for you but at a steep cost.

UPDATE 10/14/09: It’s been one year since I went and looked at the Marriott Grand Residence and I’m very glad I didn’t end up buying back then. I was up there two weekends ago and the prices have fallen roughly 40%! I would’ve taken a huge hit if I purchased one last year and I was thinking about buying now but decided against it. I spoke with a time-share agency up there and they said it’s tough to rent them out. Also Marriott takes 40-50% of your rental income if they market and rent it out. Most weeks it would be vacant with no rental income and I wouldn’t use it that often myself. It’s a great idea for someone who works non-traditional shifts like on the weekends who could use it during the week, and then rent it out on the weekends.

So if you’re interested in this condo hotel concept of real estate investing, I recommend checking out a location near you. I really love the pictures of Tremblant and will hopefully get a chance to buy a place out there soon!

85 thoughts on “Real Estate Investing in Tremblant – Is it Worth a Look?”

  1. Thnaks all the same but I’d rather play golf here in Sarasota Florida than wade thru the snow of Canada. interesting information you present in any case. Thanks,

  2. I just happened upon this article and noticed that Connie, a friend of mine, had just commented a few minutes ago on prefering Sarasota Florida to Canada in the Winter. Wjat a coincidence!!

    I have to tell you I agree with her but the Mont Tremblant area is indeed a wonderful place to visit in all other seasons.

  3. I am glad you did not spend a lot of money buying condo being that the prices dropped dramatically. It is a hard time in real estate right now due to the tough economy.

  4. It’s interesting how the content of this post changed through time. In 2008 when it was written, the question was more about “is this overvalued?” Now the question is “Is this a good enough bargain compared to other bargains” or maybe even “will this market ever recover sufficiently?” I think so.

    It’s the same with other luxury markets like the New York condo market or San Francisco or the boston luxury apartments market. Did they drop low enough, and if so, will they recover soon enough?

  5. Though i don’t have much of the knowledge about the place but still investing in here will be no harm. Moreover the information provided id also very helpful in taking the right decision.

  6. The Tremblant market is a tough one, it is a real estate deal and with the development of the South Side, there are more and more residences being built.

    Demographically, less people are skiing now and interestingly enough, their hot season is the summer and winter, for years it was only the winter. The winter season has slowed though, compared to previous years.

    Don’t think this is a good financial investment, but pending your lifestyle, could be a great LIFE investment!

    G

  7. WoW! What a great destination place to own property, whether high-end or these new condo/hotel properties!

    Too bad Santa Barbara with similar home prices doesn’t also have options for small units at more reasonable rates.

    Very interesting.

  8. Being about to rent out your second home or holiday house when you are not using it is a great idea. Most people tend to force themselves to vacation a certain number of times a year to their second home just to reinforce the need to have it. This takes the guilt out of choosing to vacation somewhere else from time to time.

  9. Hi! I do agree! Online websites of real estate listings are now very popular nowadays. Online MLS is easily accessible and potential home buyers can conveniently make initial assessment of the house because of the photos and virtual tours featured in there. Please visit the online MLS of Irvine Homes for Sale if you are interested in home investing.

  10. true that. I think that this concept is cool. though it might be hard to realize this plan. Well, starting a new concept in the real estate business might give one a success, like this condo hotel concept, but of course with right planning and execution.

    Please visit Federal Way Homes For Sale if interested.

  11. A good way to buy is to visit free classified ads at classifiedsinn.net.We believe that a beautiful place to stay is Abano Terme a beautiful city Near Venice. We here have found a beautiful property but we can not buy http://www.classifiedsinn.net
    We visited it and was fascinating!

  12. Being able to invest small quantities of money means that you can make a gradual investment. If you have a $1000 in savings it can be invested straight away, and as more becomes available, subsequent amounts can be invested. With property, however, it’s all or nothing. This makes shares ideal for individuals who are just starting up and don’t have much to invest.

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