1. What is a condo hotel or condotel?
Think of a condo hotel (also sometimes called a condo or condo hotel) when buying a condo, although it is part of a four star hotel. Therefore, as an owner, when you are on vacation, you will receive more four-star services and amenities than you will be in a typical condominium.
2. What types of services and amenities will you find in condo hotels?
If you can imagine the subtleties that you will find in a high-class hotel, you can imagine a condo hotel. Features often include resort-style pools, a full-service spa, modern fitness centers, gourmet restaurants, concierge services and room service.
In some places, such as Las Vegas, you will find hotels with their own casinos, shopping areas and entertainment venues. In places like Orlando, you will find condo hotels with water parks and conference rooms.
3. What is the difference between a condo hotel and a traditional condo?
The big difference between a hotel and a condo hotel is that the hotel usually has one owner, individual or corporate, but the condo hotel is sold for a unit. Thus, a 300-room condo hotel can have up to 300 owners.
4. Is this obvious to hotel guests, whether they are in a condominium or in a traditional hotel?
The hotel guest will most likely never know that the hotel has several owners, because the property is managed in the same way as a traditional hotel, and often operated by a well-known hotel company, such as Hilton, Hyatt, Starwood, Trump or W. Except In addition, each of the individual hotel rooms will look the same in design and decor to each, as in a traditional hotel.
5. Who usually buys condo hotels?
They are mainly sold to people who want to spend a vacation, but do not want to deal with the troubles usually associated with second-home property, such as maintaining property or searching for tenants in the off-season.
6. What is the demographic characteristic of a typical condo buyer?
The range of buyers of hotels in a condominium is quite wide. There are families who want to get a second home on vacation. There are baby boomers who are on or near retirement and want to be able to “winter” somewhere. There are also many investors who buy a condo hotel with little intention to ever use it; they are in it for the potential recognition of real estate.
7. Can you live in a condominium?
Condo hotels are usually not offered as primary residences. In fact, many of them limit the use of the owner of the apartment unit in a condominium (usually 30-60 days a year), because the device is expected and necessary in the nightly rental program of the hotel, where it can be offered to guests and earn income.
8. Who gets paid when an apartment is rented in a condominium?
The hotel management company shares rental income with the owner of the individual condominium. While exact percentages vary from property to property, a typical rental split is in the range of 50-50%.
9. Who will find hotel guests, and then clean and meet apartments in a condominium?
The hotel management company sells the hotel and hotel guests. It also supports the device and ensures the smooth operation of all services and facilities of the hotel.
10. What are the advantages / disadvantages of a condotel purchase over the acquisition of typical leased facilities?
Benefits:
Seamless ownership; no problem with the landlord
· Rental income to compensate for some or possibly all property expenses.
· A fantastic holiday home that you can use whenever you want.
· Real estate investments at a time when other investments may seem less attractive.
· Strong probability of recognition
· Pride of Ownership - “I own a piece of Trump”
Disadvantages include:
· Annual cash flow may be equal to or less than annual ownership costs.
· Pets are usually not welcome.
· Owner-owned condominium can be rented when the owner wants it, so prior reservation is required to ensure accessibility.
· A condo-hotel is subject to the same market crashes that affect all hotels in a competitive market: hurricanes, terrorist threats, warm winters to the north, gas prices, etc., All of which can affect a unit; the level of employment and the amount of income it generates.
11. Is it difficult to finance condo-hotel complexes?
Not at all, but they usually take 20% down, while apartments can be bought less money. It is also important to make sure that you use a mortgage broker who has succeeded in obtaining condominiums. Many banks still do not make them, but they are more and more involved as condo hotels become more affordable.
12. How long do condo hotels exist and where are they located?
Condo hotels have been around for several decades, but a huge surge in four-star and five-star condo hotels that have been making their way across the country began around the year 2000 in the Miami area. In the Miami-Fort-Lauderdale area, there are still the most condominiums, but areas such as Orlando and Las Vegas are developing the properties of condominium hotels at even faster rates and are likely to exceed South Florida in the near future. Other promising areas are places like the Bahamas, Panama, the Dominican Republic, Mexico, Canada and Dubai.
13. How much do hotel rooms in a condominium cost?
This may ask how much a car costs. There are various quality condo hotels. Obviously, some require more money than others.
There are cheap condo hotels for only $ 100,000. They are usually found in properties that have turned their use into an existing hotel. These are rooms in the hotel that do not have a kitchen, luxury franchises and other first-class amenities.
Then there are four stars or higher properties that can start in the range of 300,000 to 400,000 dollars, but can go all the way up to 800,000 dollars only for the studio unit. One and two bedroom units cost significantly more than a studio. Of course, the studios are really fully furnished and finished, and they will be significantly larger than a typical hotel room, and may attract guests because of its name, such as St. Louis. Regis, Ritz or W.
14. What are the typical maintenance costs?
On average, about $ 1.00 to $ 1.50 per square. Feet, but the range can exceed $ 2.00 sq. Feet in the most luxurious properties.
15. Do you buy apartments in a condominium after they have been built, or can you purchase condo hotels in pre-construction?
If you are not in a hurry to start to rest or you need to complete the exchange of 1031, it is best to buy condo hotels in predesigning as soon as possible. This is when the prices are the lowest, and the choice of units is the biggest. You will probably wait two years or longer before closing and getting hold of your condo hotel, but you will be locked in the price and get the maximum rating.
16. Is there anything else that investors need to know about condotels?
There is more than buying this type of property than the old phrase “location, location, location”. While most condo hotels are located in the desired resort locations and business districts, the most important is a good franchise with a strong booking system.
Also, do not be fooled by an aggressive rental split. One way or another, a real estate developer will serve, maintain and manage the hotel and its services, such as restaurants, bars, resorts and swimming pools from its share in the proceedings. If he gives you a very profitable rental share, he is also more likely to charge you a higher monthly service charge. Of course, this happens in both directions. If the proposed service split is closer to 50-50, then your maintenance should be more reasonable.
17. Any offers to investors for choosing which condominium to buy?
Get good advice. This means that you just do not want the field provided by a local vendor in a condo hotel. You want to talk to a broker who specializes in condo hotels and knows and understands the entire condo hotel, not just the facts related to one property. He or she will listen to your wishes and needs, and then offer recommendations on which properties best fit your needs. You will have the opportunity to compare the store and consider the pros and cons of every available property.
A good broker can make the difference between buying a condo hotel that will be problematic and not meeting your expectations or one that will provide you with years of big vacations, a good annual income and a significant profit when you sell.
18. Is it worth using a real estate broker to buy a condo hotel more than buying a unit on your own?
No. With the new properties of a condominium, prices are always set by the developer and are exactly the same, regardless of whether you buy directly from the seller on site or with a broker.
Broker's commission is always paid by the developer and is already built into the price regardless of whether the external broker participates in the sale or not. Since a brokerage is free for buyers, it makes sense to enlist their help and benefit from their advice before making a purchase.
19. How can potential buyers find a good hotel broker?
Ask your friends about a broker’s recommendation or search the Internet for a condo-broker. Visit the condo hotel websites and see if the information they provide is complete and unbiased. If their website is focused on selling homes or office space, the information about the condo hotel seems to be overdue. It is best to work with a condo broker hotel that specializes.
20. How will buyers learn about new types of condominium housing?
Condo-hotel brokers can be good sources of information, as they often learn about properties before they are released to the general public. Another option is to subscribe to a newsletter in a condominium, such as the one we publish as Condo Hotel Property Alert. We offer it for free on our website http://www.CondoHotelCenter.com, and it presents another condo hotel, entering the market of each edition.
