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. David, As a realtor and owner of a few rental properties myself, I would say the best way to advertise is definitely online. I have used rentalspacenetwork.com and think it is a fantastic service, this is a company to look out for because electronic signatures are the way of the future. If I were you I would also post on Craigslist.

    1. Max I completely agree with you. More and more buyers are searching online for homes. A majority of my sales were generated off of an online search. With the <a href="http://www.homesincentralsandiego.com/"California market being so competitive, without an online presence, one is missing out on a large market. And with the new technologies available, such as features on Google Maps, online realty is becoming more and more popular.

      1. 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.

  2. Thanks for the tip David…I just went to the rentalspacenetwork.com and posted a free listing. I called to find out more info and they said they are about to launch a new product on their site in conjunction with TransUnion. They said it will let landlords check credit without having to mess around with all fcra laws like the onsight inspections. I’ll be keeping my eyes posted for that.

  3. Yeah I’ll be looking for that too…the FCRA has made it very difficult to screen tenants. I can understand because of ID theft and all but it’s about time someone came up with something better than what’s out there.

  4. I’m gonna interject here if you don’t mind. I got approved for tenant screening and it costs me $75 and took two weeks. If rentalspacenetwork.com can really offer something like than it’s definitely worth it.

  5. It is really good, i have never listen about these “Condo hotels” before.but it is good for investment. Thnx David ….

    ratan saini
    http://www.money4property.co.uk

    Money4Property – UK National commercial property investment buyer and UK cash property seller offers you for sell your own UK home property on best sales value. It’s a quick property cash sale home.

  6. I thought this post was very useful, thank you. I read something similair on Don Tishman’s blog: http://tishmangroup.com/

    He is a real estate developer with 40+ years experience, and he writes about investing in the market. I recommend the site to readers who want to an alternate perspective.

    1. 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.

  7. Our market in Summit County Colorado is still strong and investing in our market still yields 10-17% per year. There are few reasons for that:
    1. Limited land availability
    2. Summit County is reaching build-out in 2012
    3. Breckenridge is a very popular destination for skiers from all over the world and vacation rental income is great. Most properties produce 10% of their value in annual rental income.

  8. Lease Agreements may be the way to go. Also when it comes to moving your belonging, customers seems to have questions regarding that as well. I have personally researched numerous companies to recommend to clients regarding their packing and moving once they’ve found a home. A very credible company that I’ve used in the past was JJ Metro. Just make sure that any other company that you personally recommend to your client is in fact a trustworthy company or else it makes you look bad.

  9. This article is interesting. In the Diablo Valley Real Estate area, we are experiencing some unusual pockets of growth. We think it has to do with San Francisco residents downsizing from their $2million dollar condo’s to $1.3k homes.

  10. As long as this area has the potential of having plenty of snow for the next 20 years or so it will be a good idea to invest in such locations. Twenty years ago property prices in Breckenridge, Colorado. where so low and today the area is almost becoming unaffordable. Ski areas are a great for real estate investment opportunities, nevertheless condo hotels are much more difficult to finance for some strange reason and I would look for a house if possible and in most cases rental income from a vacation home property is great and it can offset the majority of loan payments if not all of it.

  11. This is a very interesting article I look forward to reading other articles on your blog. Maybe I can be a guest writer for one of your stories. Check out my blog at http://reitvshow.com It is all about real estate investing and my experience. Let me know what you think

  12. Another interesting idea is for those perhaps have a second house on the market, but want to offset some costs, is to make it available as a vacation rental. If you want to boost bookings – but lower advertising expenses (who doesn’t??) check out the free resources on Skipjump.com.

    Skipjump.com allows you to post your vacation rental listing for free, and will automatically feed your property information into Twitter, Google Base, and RSS. Check it out! http://www.Skipjump.com

  13. hey that’s interesting how ever you have a lot of places where you could posts your rentals
    however you don’t find more free stuff its really great

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  15. Nice Post. Your information will be useful to people who like to know about real estate market investing. The new comers of real estate market can learn secrets and tricks from experts. Books, CDROM course and training course in online are available to get valuable information about real estate market. To escape from recession, real estate marketers have to know about secrets of investing in real estate market.

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  16. 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.

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