Comments on: Condotels – Good or Bad Investment? http://financialhighway.com/condotels-good-or-bad-investment/ Personal finance blog discussing investments, savings, insurance and financial planning ideas to grow wealth Mon, 21 May 2012 11:00:10 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Mike http://financialhighway.com/condotels-good-or-bad-investment/#comment-4909 Mike Thu, 29 Jul 2010 21:31:18 +0000 http://financialhighway.com/?p=3267#comment-4909 I've owned a few condotels and have had mixed reviews. There are definitely unique advantages and disadvantages to a condotel, some of which are noted by the author of this blog. For me, the key to success is to be sure a) the management company is reputable, b) that you don't overpay for these (currently there are numerous in foreclosure so do your research), and c) be sure that the HOA fees or assessment fees are being drawn from the revenues PRIOR to disbursement. I'm involved in a community currently that does not do that and the HOA is in trouble due to failed investors bailing on their properties and keeping the funds being generated. Horrible news for the remaining investors who did their homework and have the assets to sustain a down market. They're not for everyone but there is definitely large upside potential if done right. Good luck! I’ve owned a few condotels and have had mixed reviews. There are definitely unique advantages and disadvantages to a condotel, some of which are noted by the author of this blog. For me, the key to success is to be sure a) the management company is reputable, b) that you don’t overpay for these (currently there are numerous in foreclosure so do your research), and c) be sure that the HOA fees or assessment fees are being drawn from the revenues PRIOR to disbursement. I’m involved in a community currently that does not do that and the HOA is in trouble due to failed investors bailing on their properties and keeping the funds being generated. Horrible news for the remaining investors who did their homework and have the assets to sustain a down market.

They’re not for everyone but there is definitely large upside potential if done right. Good luck!

]]> By: Denny http://financialhighway.com/condotels-good-or-bad-investment/#comment-2581 Denny Mon, 15 Feb 2010 02:58:30 +0000 http://financialhighway.com/?p=3267#comment-2581 They are a good investment if you rent them out to locals by the week - any other arrangement, and they are total losers...The condo fees will eat you up if they are not frequently rented...Sometimes in order to do that, the front desk will have to rent them at a reduced nightly rate - a rate that is too low, the owner and the house loses money...Buy one to live in, or rent it by the week to locals..the only way you can get a good return on investment..And rent it yourself, don't go through the front desk if you don't have to - check the bylaws.. They are a good investment if you rent them out to locals by the week – any other arrangement, and they are total losers…The condo fees will eat you up if they are not frequently rented…Sometimes in order to do that, the front desk will have to rent them at a reduced nightly rate – a rate that is too low, the owner and the house loses money…Buy one to live in, or rent it by the week to locals..the only way you can get a good return on investment..And rent it yourself, don’t go through the front desk if you don’t have to – check the bylaws..

]]> By: Stuart http://financialhighway.com/condotels-good-or-bad-investment/#comment-1929 Stuart Wed, 02 Dec 2009 03:22:00 +0000 http://financialhighway.com/?p=3267#comment-1929 I always thought that these were just classified as strata units? I am a commercial real estate appraiser and my partner deals with these types of units all the time in hotels. He just refers to then as strata units and there market price is determined from direct comparable sales. Maybe Condotel is just not used in the Canadian market. I always thought that these were just classified as strata units? I am a commercial real estate appraiser and my partner deals with these types of units all the time in hotels. He just refers to then as strata units and there market price is determined from direct comparable sales. Maybe Condotel is just not used in the Canadian market.

]]> By: Daniel http://financialhighway.com/condotels-good-or-bad-investment/#comment-1928 Daniel Tue, 01 Dec 2009 14:36:06 +0000 http://financialhighway.com/?p=3267#comment-1928 I have to agree - it doesn't seem like a great investment. If you have the money, why not invest in something that's more likely to have solid gains? This seems more risky, has a lot of hidden costs, and depends on a lot of factors. I have seen these in Las Vegas, where I presume occupancy is high (along with price). I would be surprised to see occuapncy be very high in other areas of the country. I have to agree – it doesn’t seem like a great investment. If you have the money, why not invest in something that’s more likely to have solid gains? This seems more risky, has a lot of hidden costs, and depends on a lot of factors.

I have seen these in Las Vegas, where I presume occupancy is high (along with price). I would be surprised to see occuapncy be very high in other areas of the country.

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