The Vacation Property Guide

Condotels or Condo Hotels are typical condominiums in a resort or downtown community. Though Condotels are mostly in lined with hotels, there is a difference between the two. A typical hotel has only one owner while condo hotels have many since they are sold by unit. Condotels are not typically sold as primary residence, that is they are sold as second, third or fourth homes.

In a Condo hotel unit, you can place it in a rental program offered by the hotel; from which you do not have to worry about its maintenance and other matters. Sounds interesting right? As a condo unit owner you will receive revenue shares from your condo hotel’s rental. It is like your second home now becomes an investment property. Since it is already the job of the hotel employees to handle marketing and promotion, you don’t have to be anxious of anything or keep track of maintenance, and you get the added benefit of having your condo unit marketed as part of a well known and respected hotel.

The condotel owner sees the advantage of having a second home that has the potential to produce income for them. It can also build long term equity and can be used for other investment expansion plans. In addition to the above mentioned advantages of owning a condo unit, you can still keep your job or any other regular routines without additional responsibilities in taking care of the unit. It is also a great vacation home where you can stay at any time for a family getaway or with a special one. Another thing, it is a secure real state investment. Above all, there is pride and personal pleasure in owning such property.

Some disadvantages of buying a condo unit can be seen in various circumstances or if the buyer has impractical expectations. For example your pets may or may not be welcome in the hotel. Other issues like earthquakes, terrorist threats etc. can also affect the hotel’s occupancy rate and apparently your revenue inflow.

One interesting issue about Condotels is the availability of financing options. Generally, units can be owned with lesser cash down. Also more and more banks are now getting involved in condo hotel financing deals as it becomes widely available.

Condotels like other property investment requires careful thinking and consideration of pertinent details. Economic indicators, market trend, natural disasters and other inevitable events may affect its value over time. GP

This post is tagged Condotels