Free Buyer Guide

The True Cost of Owning a Resort Suite in Ontario

Most resort buyers know the purchase price. Far fewer know the full picture: what you pay on closing, what it costs to hold the suite each year, and how a rental program can help offset those costs. This guide walks through every line item we review with our own clients at Muskoka Bay, Horseshoe Valley, Blue Mountain and Deerhurst.

Fees and programs change. Treat this as a checklist, then ask us for current numbers on any specific suite.

1. One-time costs when you buy

• Deposits. Pre-construction suites use a staged deposit schedule paid over several months. Resale purchases usually call for a single deposit on acceptance.
• Ontario Land Transfer Tax. Payable on closing for every purchase. Your lawyer calculates it for you.
• HST on new construction. New suites and hotel-residences are subject to HST. Whether it is included in the price, and whether any rebate applies, depends on the project and on how you plan to use the suite. Speak with an accountant before you sign.
• Legal fees and title insurance. Budget for a real estate lawyer who knows resort and condo-hotel closings.
• Blue Mountain Village Association entry fee. Village condo purchases pay a one-time Village Association fee on closing.
• Furnishings. Some new projects include a furniture package; resale suites are often sold furnished. Confirm what is included in writing.
• Muskoka Bay membership. All purchases include a Golf or Social membership. On the Boulevard Estates homes, the builder lists: Golf Membership Included with Any Home Purchase (Up to $40,000 Value)*, some conditions apply.

2. What it costs to hold the suite each year

• Condo or maintenance fees. Usually charged per square foot and cover building insurance, common areas and reserve fund contributions.
• Property tax. Set by the local municipality and assessed on the suite.
• Insurance. A unit-owner policy that reflects rental use if you plan to rent.
• Utilities and internet. Included in fees at some hotel-residences, billed separately at others.
• Village Association annual fee. Blue Mountain Village condos pay an ongoing Village Association fee in addition to condo fees.
• Club dues. At Muskoka Bay, owners maintain at least a social membership each year after the included initiation.
• Financing. Resort and condo-hotel mortgages can work differently from a standard home loan. We will connect you with a mortgage professional who lends on resort property.

3. How rental programs work

Muskoka Bay, Horseshoe Valley, Blue Mountain Village and Freed Blue Mountain all offer professionally managed rental programs. Each has its own rules, so compare these points side by side:

• How rental revenue is shared between owner and operator
• Management, booking and housekeeping fees
• Personal-use rules, booking windows and holiday blackouts
• Furnishing and refresh standards the operator requires
• Guest-paid charges such as the Village Amenity Fee at Blue Mountain, charged to guests on rental stays
• HST registration on short-term rental income, which your accountant can advise on

We will walk you through the current terms for any program you are considering.

4. Lifestyle yield vs. cash-flow yield

We encourage buyers to think about two returns. Lifestyle yield is the value of the weekends, ski days and summers your family actually uses the suite. Cash-flow yield is what the rental program contributes toward carrying costs when you are not there. Most of our happiest owners buy for the first and let the second help offset ownership, rather than the other way around.

5. Questions to ask before you buy

1. What are the current condo fees, and when were they last increased?
2. What is in the reserve fund, and have there been special assessments?
3. Is the membership equity or non-equity, and are dues mandatory?
4. What exactly does the rental program pay the owner, and what does it deduct?
5. How many personal-use nights do I get, and when?
6. What is included with the suite: furniture, parking, passes, storage?
7. Are there rental or resale restrictions in the declaration?
8. Who owns and operates the golf course and amenities, and how healthy is that operator?

6. Resort snapshots

This guide is general information, not legal, tax or financial advice. Speak with a lawyer, accountant and mortgage professional about your situation. Resort Residential, PSR Brokerage.