Many fortunes have been made investing in property in Whistler, BC, which now has the most expensive real estate in Canada, and some of the more expensive in the whole of North America (one not particularly large home is on the market for $20m). But is this game over, and should the canny investor be long or short on Whistler property in their portfolio? And if you are thinking of investing in Whistler property, what types of property offer the best bet both for current yields and for capital appreciation?

In the past, the smart money has invested in off-plan condos and townhomes. These developments have offered investors the chance to buy a property before the ground has even been broken with a small deposit, with further payments due as construction has proceeded. Time and again, these properties have been flipped before further payments fell due for substantial profits. If you have only had to put up 10%, but the value of the property has increased by 20%, you could see a 200% return on your money in just a few months. This was done again and again; it was a game in which fortune favoured the bold. One famous investor turned $10,000 into $50m in 10 years playing this game repeatedly.

Of course, this is a leverage game and when prices start falling the leverage works rapidly in the other direction. This is starting to happen in Whistler now, where investors in the Four Seasons have taken a severe haircut as prices did not climb as expected. As a result the secondary market is now stuffed with rooms for sale at prices that in many cases are significantly below the price originally paid to the developer, implying a substantial loss for the original investor.

So are there still attractive opportunities for investors in Whistler? If you are willing to make a bet on a turnaround in visitor demand for the resort (surely the underlying driver of investment value), then there may be. But where should you look? One very noticeable factor in the recent downturn was that the periphery suffered more than the centre: visitors wanted to be in the Village or within a short walk of the Village, and properties that fell outside this area suffered disproportionately. So if you need the yield as you wait for the upturn, focus on homes near the centre. There are opportunities at homes in Northern Lights, where you can pick up a 4-5 bedroom townhome within an 8-minute walk of the Village and the gondolas for $1.6m. In the middle of the Village itself, you can find a 2-bedroom apartment for around $600k. Yields on these properties are around 3-4%, much better than on properties in outlying areas, which seldom exceed 1%. If you are more of a speculator and not so concerned with short-term yield, you might look for a property in Taluswood on the lower slopes of Whistler Mountain at a deep discount.

In any event, you should look for advice from a seasoned and sceptical realtor, and at the same time talk to a professional property manager about how much your property can really be expected to generate while you wait for the market upturn.