Big White is AWESOME! UK not Big White.

I just realized with all this education I now have, I am now so clever, that sometimes I don't understand a single word of what I am saying...* Mr. Wilde

So I have spent the last few days in the UK - a four day trip, two are travelling... I was in London, I cannot claim it is my favourite place... I had some free time today and I got myself to a squash club - The Concorde Club. Sounds posh eh? No. 

I miss Big White, I miss, the fresh air, I miss the space, I miss hiking the mountain (I really do, I was in the gym and the thought of getting on the treadmill...) I miss coffee at the Globe, I don't miss being surrounded by 11m people and of course I miss my family.

And even though with the strength of the Canadian dollar I can buy a pound for only $1.60 it is still effin expensive. I played squash like I said, in a place not suitable for the Queen. 

7.2 miles from my hotel 
- taxi $60 return. (every been to Hong Kong? $6 almost anywhere)
- use of facilities $13+/- for 40 mins

$75 for a bit of squash... really? Just a bit of a Victor Meldrew me.

I could go on about the financial pleasures of London or the UK in general, I could talk about the traffic, I could express my disdain for the weather and overall depressive/oppressiveness of the city... I could...

I went into the centre of London (Blackriars) for business, and then I had to get to Guildford. From Blackfriars a taxi saved me a 35 min tube ride, and then 45min on a crowded train (the fast one apparently). I sat and watched the (every day, journey) commuters - did not look like Fun...! I have the option of living at Big White... after my first degree I briefly attempted to work in London - "Good god man, what were you thinking...?"

Property
I met with an old business friend of mine, developer (like me), crashed and burned (like me). Rob had to regroup and he started selling high end property in Saas Fee, Switzerland. Switzerland is an interesting place, you can get a type B residency permit for $2k (plus bureaucratic hoops etc) - gives you permanent residency - you can work, buy property etc. (or so I am told). 

Rob is familiar with Big White and we naturally discussed comparable property values... In Saas Fee an older place will cost around $800 per sq ft, a new place $1200. Further afield prices jump $3300 - $5500 per sq ft. The Edge homes I built with 3800 sq ft would at a minimum be $4.5m, going up to $19m...? You can buy the big Edge, 3800 ft place today for $825k... Interesting times.

Edge at Big White.

I have not done the research to support Rob's stats but the place above is asking Swiss 22m or $24.24m Canadian... discount for cash?

We talked about reasons for the disparity...

Finance-
In the UK you can get a 95% mortgage, government insured - it is called a "Helping Hand" mortgage - if you have 5% the government will kick in 20% of the property value, to allow the buyer to attract low ratio, low interest mortgages (I saw an offer for 1.49%). The 20% is interest free for five years. 

In Switzerland a property buyer can finance their purchase at 2.4% fixed for 20 years, with an amortization period of 100 years - think about that. On at $200k purchase your monthly payment would be $440 per month - fixed for 20 years. Add a little time value of money... i.e. what will $440 buy you in 20 years?

Swiss 1741

At Big White, the banks will not finance Snowpines - the property corporate structure is now a no, no... unless you don't need finance. To buy a duplex property I need more than 25% (trying right now - and being challenged) the interest rate would be okay, but a two to four year term. But god damn it, what do the Brits or Swiss know about banking and finance? Nothing I tell you.

All-Season Activities.
Property values at Big White are below their 2000 levels in some instances. Silver Star managed to hold their levels (more or less - there are foreclosures tho). Sun Peaks, Whistler, Mont Tremblant - year round activity. Big White owners survive with an average of 65% occupancy on a 130 day season = 84 days of revenue... or 77% of the year vacant!

Let me just say here the properties at Big White are world class luxury (not all, yes, but many) 17,000 beds, 77% vacant equates to 1.4m+ vacant days at Big White... but they all pay 12 months of mortgage, tax, utility service (yes I know but there is a connection fee), water, sewer, phone, internet (the smart ones disconnect).

European Access?

Direct flights from London to Kelowna would boost the European tourists to Big White immensely - we don't have it, they go to Whistler or Banff. Getting the flight though... Big White cannot accommodate a charter flight full of holiday makers - we would need someone to build a great big hotel, Ha!

Tax Revenue and Independent Status.
I have said this before - Regional District spend $2 dollars for every property tax dollar collected. This would equate to $8.4m at Big White, Regional District spend $2m at Big White. $6.4m of this years budget goes towards Recreational and Cultural Development - not a single penny is allocated to Big White. Not a single penny over the next five years either.

But this is another reason for ultra low property values - we are considered purely recreational real estate - or in the lenders eyes High Risk.

With independence comes the ability to secure provincial funds, funding mountain growth, funding mountain development funding resort sustainability - without a coherent cohesive voice chasing this goal, Big White will remain in limbo and property values will struggle to reflect their true value.

I am now back at my beloved mountain and off hiking!

Pitch- 
Sólido Properties owns, manages, rents properties and buys (beer) at Big White Ski Resort. If you are looking for long term rental revenue or guaranteed income contact us.

*Oscar Wilde