Whistler Ski-in/Ski-out Real Estate For Sale

What is important for property insurance?

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Never underestimate the process and length of time it may take to get insurance coverage, especially if you’re buying a detached house.

In my experience, the insurance agent is most interested in anything that has to do with water: the condition of the roof, the water tanks, the pipes, the plumbing, the water sprinkler system, and any heating system that depends on water. The condition of the wood-burning fireplace and everything connected to it is the second biggest concern for the insurance agent.

When do non-residents pay withholding tax?

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Non-residents who own a nightly rental property in Whistler pay 25% of the gross revenue monthly to the Government of Canada. This is called Withholding Tax.

The 25% holdback on gross revenue can be reduced to 25% of net income after expenses when the non-resident and the rental manager co-sign the NR6 form which is submitted to the CRA for approval. A phase 2 property has a blanket NR6.

Actual income tax is determined when the income tax return is filed by a Whistler accountant, and assessed by the CRA.

How easy for a non-resident to get a mortgage?

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It’s the same process for a non-resident buyer as a resident buyer to get a mortgage in Canada. The main difference is signing the mortgage documents. Now some banks send you the documents to get notarized by a lawyer in your area.

Other Banks add a condition in the approval document that all borrowers must be at one of their Canadian branches to sign the mortgage documents at the closing date. This is something to be considered when adding a family member to the title as part of the assignment term. Is everyone able to be in Canada to sign the required mortgage documents?

What if the property’s intent of use changes?

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When I speak with Buyers about GST I ask them their intent of the use of the property. So, what happens if the intent of use changes over the course of ownership? For example, the intent was to rent out the phase 1 property and generate as much revenue as possible, now the owners want to keep it for personal use. This enacts a change of use, and now GST may be due on the property.

The opposite version is, the intent was to keep the property as residential and now the owners want to rent it out nightly. Once you get to $30,000 gross business revenue you must apply for a GST number. However, renting out your Kadenwood house at $5,000 a night for 7 nights that’s $35,000, is that a change of use? It can be a problem to change the intent of use even for a year.

Do flipping taxes apply on the sale?

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Yes! The days of buying and flipping property in Whistler now have tax consequences imposed by both the BC and the federal governments.

These are two separate flipping taxes with different criteria and consequences. The BC Government carries a penalty of an additional 20% on gains in the first 365 days, and then the penalty decreases to 0% by 730 days. The federal government tax applies 365 days after purchase, resulting in full taxation at the individual’s tax rate. There are many exemptions, and who knows, you might be able to find one that works.