Top Seven Questions You Should Ask When Buying a Condo Hotel Unit

Condo hotels are the newest trend to hit the real estate market. Condo hotels mean condominiums that are situated within a four or five star hotel.

The concept involves the ‘condo’ being used by the owners whenever they like that are put up for occupation when they do not want to use it. The revenue generated by renting it out is shared by the hotel and the owner. Although the concept makes economic sense, you should ask a few questions before you engage in the purchase of one.

1. Is it for you? – Do not assume that this is going to be a run-of-the-mill apartment. These are fully furnished luxury condos with all hotel amenities. The price can range from a quarter of a million to about one million dollars.

2. Where is its location? – Being located in a popular tourist area will assure you of regular occupation. However, it should also be in a place, which you like as well. Proximity to an airport is also a point to consider.

3. Is it part of a franchise? – If it is part of a well-recognized chain, you can be assured that there will be constant occupation as well as higher room rates charged. This would bring about better returns on your investment.

4. Are there external attractions? – Nearby theme parks, convention centers, etc will all serve to attract visitors to the hotel.

5. Are there internal attractions? – If the hotel features a spa, golf course, casino, etc it will serve as a big draw for visitors.

6. Are your requirements met? – The unit should meet your personal spatial, aesthetic and practical requirements.

7. Does it have future value? – The property should appreciate as time passes so that your investment grows in value.