Condo hotels is one of the hottest real estate investments around where owners will use their condos as and when they like but will allow it to be rented out, in the hotel’s rental program, when not using it.
However, as inviting as this seems to kill two birds with one stone, here are 4 questions that you should ask yourself before buying a hotel condo:
#1: Does a Condo Hotel work for you?
Condo hotels are not your typical second homes but are actually suites that are well-furnished and are located in some of the most popular resorts and hotels around the country. If you don’t know this already, these are located in high-rise luxury hotels and with prices ranging from $250000 to $1 million to purchase.
#2: Does it have a major franchise?
Who the hotel operator is will determine whether your investment is successful or not. Compared to a non-brand, condo hotels at the Ritz-Carlton, Trump, Hilton or Starwood will do much better and will ultimately make it a good investment.
#3: Is it well-located?
There are two questions about the location you must ask yourself before purchasing the condo hotel. It is located in an area which is a popular tourist destination and which will continue to be so regardless of a change in economic conditions. Yet most of all: Does it give a view of the ocean or the golf course that you’ve always wanted in a vacation home?
#4: Will the condo hotel appreciate in value?
Although you might buy this condo primarily as a place to spend your vacation, it’s a good idea to also check its potential for appreciation in value. For this, all you have to do is look at surrounding properties and their appreciation in values over the past few years.