I own a hotel unit in Canmore but although I don`t mind making money on it, it was for me a stepping stone into Canmore. First it is an investment and second it is the enjoyment of use for my family. We`re using the place on family weekends – a few times a year we`re staying the weekend for skiing and we just spend a week over there during Christmas.
The capital appreciation has been tremendous (close to 30% in a year and a half). But poor occupancy forecasts, poor marketing by the rental manager resulted in very poor cash flow - you don`t want to mortgage the place.
There is the GST issue, commercial taxes they all put a damper on things. I ended up going on both the condo board and the rental pool to help clean up things. So everything Thomas Beyer, Todd and Don warn you about is true. As usual, an investment should fit in your dreams and plans. If not, do not buy it.
For us, the experience was mixed. But it convinced us that Canmore will likely become our retirement home. The appreciation cushioned our cash flow pain and so we`re not that bad off. Yet, I can think of a lot simpler and more profitable investment alternatives. You know whatever you decide to do in life, in the end, nothing you do is for nothing even if it turns out that your move was only a hard lesson in reality!
