Check out the Realtors field guide to the condotels because they "are the latest trend in lodging." A dose of healthy skepticism is necessary. These condotels are 'wonderful' because you can convince yourself that you are buying leisure space while making an 'investment.'Unlike time shares, where owners have the right to visit a property for a few weeks a year, or traditional condominiums, where individuals own the units and can do what they want with them, condo hotels are a hybrid. Investors own a specific condo and pay property taxes, insurance, and maintenance fees. Hotel management companies rent out the rooms, rotating reservations among the various
units and splitting the revenue fifty-fifty with the owners.
Units often come furnished and owners can't make changes to the decor or add personal items such as photos. "You wouldn't know the room is owned by somebody else," says Rick Davis, a Los Angeles attorney specializing in condo-hotel projects. (Business Week, Dec 9, 2005)
Wednesday, February 15, 2006
Realtors Promoting Condotels
The National Association of Realtors is promoting the condotel craze. What exactly is a condotel? provided this
Subscribe to:
Post Comments (Atom)
Posts
As a huge housing bubble believer, I wouldn't necessarily believe it's a bad idea. The only thing that makes me nervous is not being able to change anything, but then the hotel is doing all the work, so maybe that's o.k.
ReplyDeleteThe operative issues, as with the housing bubble, are PRICE and HOW YA GONNA PAY. If this is average Americans with no savings borrowing $500,000 to make it rich, then this is a disaster. If this is slightly better off people paying cash up front at a very low price, then maybe it's o.k.
love the concept. but what happens if the area you own in suddenly falls out of favor with tourists i.e. NOLA hurricaines.
ReplyDeletein other words this is not an investment w/o risk
www.dcbubble.blogspot.com