If the City Of Whistler Doesn’t Believe – Why Should Investors?

BAW4.2For those of you who are either current investors in Whistler Phase 2 real estate or thinking about buying it….. observing our situation should tell you what you need to know. We are a group of investors from B.C., Ontario, California, the United Kingdom, South Africa and Singapore who purchased Phase 2 units in Whistler and we feel compelled to warn others about the risks.

Phase 2 is one of the most popular ways of buying Whistler real estate. The problem is that the Whistler Phase 2 model not only has the usual economics risks associated with any real estate purchase but it has some additional political risks which potentially jeopardize the whole model (and your investment).

It is estimated that almost 5000 units in the City of Whistler are classified as Phase 2. Some of these include the Pan Pacific, The Four Seasons, The Westin and of course, our project, the Nita Lake Lodge (see full list of Phase 2 properties here).

Phase 2 means that, you the buyer, have an restrictive covenant attached to your property by the City of Whistler (RMOW). The covenant governs how your property can be used. For example, you can use your property up to 28 days in the winter and 28 days in the summer. Otherwise your property must be made available for rental to Whistler guests under a Rental Pool Management Agreement (RPMA) and a revenue share paid back to the owner.

However, things can go wrong and with Whistler real estate investments they often do. In our case we had an investor buy into our project (the Nita Lake Lodge) and then unilaterally appointed himself as manager, rent our rooms out for over a year and pay us nothing. After he announced that our rental agreements had been terminated (which we disagreed with), he has locked us out of our rooms saying that if we won’t allow him to use them than neither can we. We remained locked out of our own property today.

If the City of Whistler (RMOW) doesn’t believe enough in their own real estate model to take a stand on the blatant abuse of their own covenant then what happened to us can happen to you!

So how could this happen? Isn’t Whistler a world class resort? Isn’t their some recourse for investors who are treated this way?

Well, this investor has cleverly counted on the City to take no action to prevent the abuse of their own covenant and has stated that since there can only be one manager for each Phase 2 project…..that it must be him (Remember – he installed himself as manager without the approval of other unit owners).

Since this is Whistler’s covenant, you’d expect that they would provide clear leadership and oversight of these rules. After all, it’s their rules that are being abused to force investors out of their own property. What do they say? ….nothing.

Until the City shows leadership and commitment to their own Phase 2 real estate model, potential investors should be very careful.

If the City of Whistler (RMOW) doesn’t believe enough in their own real estate model to take a stand on the blatant abuse of their own covenant then what happened to us can happen to you!

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