I am interested in a property described as a “Condotel” or Condo-Hotel. Can you give me an idea how these are operated and how they work as investments?
Condo or Condotel – What are the major Differences?
The word condotel is relatively new to the real estate vocabulary, but it is an important term for buyers to understand if they are interested in purchasing a condo in a resort location. High rise condos overlooking beautiful stretches of coastal shoreline have long been a favorite type of real estate for second homes, vacation getaways, real estate investments, and for those who are looking for a new type of well located, low maintenance, luxury home. The introduction of condotels has created a new dimension to the typical condo that will be explained in this article.
What is a Condotel?
To begin with, we need to understand what a condotel is and how it differs from a standard condo. Sometimes referred to as condo hotels or hotel-condos, this popular new type of real estate consists of high rise condos that are operated and managed as luxury hotels. This means that the condo units are individually owned, but branded together as a Westin, Ritz-Carlton, or other luxury hotel chain.
The typical luxury high rise condominium lacks this same luxury hotel branding and marketing, which sets a condotel apart from standard condos. The hotel works as the management company for the building, scheduling short term or long term stays around the times that you are occupying your condo. In addition, you get all of the luxuries of a world class hotel at home. Room service, gym and spa facilities, and a friendly staff to help answer your questions are just a few of the added perks that are missing from most traditional condo towers.
Advantages of a Condotel Over Condo Ownership
There are many reasons why condo hotels have become so popular over the last few years, especially when compared to a typical condo purchase.
Headache Free Investment Property or Second Home
When it comes to furnishing, maintaining, or renting out your hotel condominium, you are free from the decision making process. The hotel management company maintains the condo as they would any hotel room in one of their prestigious locations. This means that design and décor is kept similar from condo to condo, and the day to day running of the hotel takes the burden of making sure your property is well maintained out of your hands, while ensuring rental income when you are not using the property yourself.
Tax Advantages
Condo-hotel ownership that is not used as a primary residence can have an accelerated depreciation schedule that reduces the 39 year period to 27.5 years, 15, and even as little as 5 years. This accelerated depreciation means significant tax bill reductions in the years it is used. Your accountant will be able to explain how this can be helpful when applied to your specific financial situation and tax expectations.
Disadvantages of a Condotel
There are a few differences potential condotel owners need to know about before they decide to make their purchase. To begin with, many people prefer to add their own personal touches to their second homes and vacation properties. This isn’t possible with a condo hotel because the décor is mandated by the hotel to ensure that rooms are similar in look and amenities across the entire complex. In addition, those owners who would like to spend time in their condotel must make reservations weeks ahead of time for their own properties because the hotel service may book the room far in advance.
Now that you have a better understanding of what condotel means and how they differ from an average condo, you can make the decision as to what type of real estate will work best for you.
Jency Halls is an Online marketer. This article was provided by Preston Guyton – a realtor and Custom Home Builder serving the surfside beach real estate market. For more information on Surfside Beach homes and properties, contact Preston Guyton today or visit http://www.PrestonGuyton.com.
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The following information is generic and may not be applicable to the particular property you are interested in, as some of these matters are treated differently in some projects. However, they are generally the norm for this sort of property. Be sure you review the Declaration of Condominium and By-Laws for the specific project you have in mind. What is a condo-hotel? A condo-hotel offers the opportunity to own an elegant and exquisitely furnished hotel room in some of the most desirable locations in the world. Since this is a purchase, the buyer not only gets a deed to a property, allowing the sale or transfer of the unit, but also tax and real estate appreciation benefits. When using the unit, the owner has access to all of the amenities of the hotel. When not in use, the unit can be a available to rent through the hotel’s rental program. What are the major benefits to an owner of a condo-hotel unit? Most important is hassle-free ownership. When the unit owner, his family or friends
