Condo-Hotels ? A New Second-Home Alternative to Time Shares

Condo-hotels have evolved as a better, more reliable second home alternative to time-shares. They are usually attractive, high-rise hotels on the ocean or in other prime locations, and range in price from the mid $200,000s to over 1 million, depending on the size, location, and amenities.

Many of the biggest names in the hotel industry have condo-hotel buildings, including Hilton, Four Seasons, Clarion, and Ritz-Carlton. Donald Trump has numerous condo- hotel facilities across the country, including a building in Fort Lauderdale and another in Sunny Isles, Florida.

In general, condo-hotel properties have been highly successful with all or nearly all units selling out within months of the first offering. For example, the Ritz-Carlton Key Biscayne is a beachfront property with 188 condo-hotel units, all of which sold out a year before the building was even finished. Needless to say, the values of the condo-hotels in this building have gone up significantly.

There are several reasons for the popularity of condo-hotels. When you purchase a property, you purchase a condo unit in the hotel. Unlike a time share, you have access to the property whenever you want, and it is put into a rental pool when you are not in residence. Although developers can't guarantee the properties will rent, management by a well-known hospitality group will typically result in several weeks of rental income. This is one of the biggest appeals of condo-hotels because the rental income can offset some of the costs of owning a vacation property.

In addition, the management company takes care of renting the unit, using their connections and expertise. You don't have to worry about any of these details. Most rental agreements split the income 50/50 between the management company and the owner. However, some properties offer more favorable arrangements, and this is another aspect to consider when deciding which property to purchase.

Despite the fact that the property is in a hotel setting, a condo-hotel is considered a private residence, and owners are eligible for mortgage interest deductions and all the other tax advantages that come from owning a second home. However, most condo-hotels do not allow you to live in the unit year round. This is because the management company wants to rent out the unit when you are not there, so both you and they can profit from that rental income.

Each condo-hotel property has its own residence restrictions that indicate the maximum amount of time you can live in the property. This is an important piece of information to consider before purchasing a condo-hotel unit. Most owners do not intend to live in their condo year round, so this is not a concern in typical circumstances.

Why not just rent a hotel room? In addition to the investment aspect, condo-hotels usually offer more room than a standard hotel room. Most suites are one or two bedrooms, and larger units are available. Condo-hotels typically have cooking facilities and other homey features that hotel rooms do not. This makes it ideal to have family stay with you when they come to visit.

With the advantages they offer over time shares, it's easy to see why so many people looking for a vacation property investment they can also enjoy when they want are now looking at condo-hotels.

For more on finding and buying the right condo-hotel, check out Make Your Next Home a Resort, the 2005 Guide to Condo-Hotels, Fractional Shares and Resort Residences. You can download the Guide as a pdf file at http://www.InvestingIN.com/realest ate/resorts/resort4u.htm

Leon Altman is the founder of the InvestingIN Real Estate Letter - http://www.InvestingIN.com/realestate/Lt rSignup3.htm - and its parent website, http://www.InvestingIN.com - a website that provides articles and newsletters about opportunities in different areas.

---

Real Estate Investing - Free Vacations While Searching for Real Estate Acquisitions

Real estate investing professionals look for all possible tax deductions... Read More

Real Estate Bubble: Fact or Fiction?

The real estate market buzz across the country these days... Read More

When is the Best Time to Move?

As Realtors, we are often asked, "When is the best... Read More

Should You Buy Hud Homes?

Buy HUD homes are sometimes the cheapest option available for... Read More

French Property - a Buyers Guide to Purchasing Property in France

The CompromisThis document is the document you will sign agreeing... Read More

Buying a Home in Westminster

The city of Westminster is centrally located in the Denver... Read More

Investment Property Part I: How Not to Become a Slumlord

After riding the ups and downs of the stock market... Read More

Cheap Homes For Sale In Great Towns

Good Homes Under $50,000? My wife Ana and... Read More

Ten Myths Of Real Estate Investing

Is real estate investing only for the wealthy? Can you... Read More

Invest In Real Estate - But Where?

Where should you invest in real estate? If you know... Read More

Is An Old Home for You? ? The Pros

If you prefer a home that is unique and has... Read More

The Listing Contract: Its All in the Details

Now that you've chosen a real estate professional to sell... Read More

Why Real Estate?

Five months ago I was faced with a decision to... Read More

Choosing a Residential Lot

Finding a lotPlanning for your new home is a very... Read More

Budgeting Your Log Home - Creating a Checklist

If you've read my first article, BUDGETING YOUR LOG HOME:... Read More

Searching For Maui Beachfront Houses?

Who wouldn't want to move into a Maui beachfront house?... Read More

Flipping Fixers: Using Transformation Psychology for Top Dollar

Satisfying and lucrative real estate investment depends upon your correct... Read More

Real Estate Disputes And Partition

What if two people pooled their resources and began investing... Read More

A Crash Course On The Payout Options Available To You When Selling A Mortgage Note

Okay, let's take a look at the typical payout options:Full... Read More

Coming to Las Vegas ? the Las Vegas Real Estate Boom

Nobody seems to be 'Leaving Las Vegas' anymore ? in... Read More

Hassle-Free Homebuying

Perhaps you'd like to take advantage of today's great buyer's... Read More

Are You Tired of Tenants, Toilets, and Trash?

Wouldn't you rather go to Tahiti? Are you a landlord... Read More

Realtors: Forget Your Address?

It's a large real estate agency, and the company depends... Read More

Property Investing Secrets 5

Property Investing Secrets:How To Work With Agents And Get What... Read More

Finding A Capable Agent To Meet Your Real Estate Needs

Whether you're a first-time buyer, selling your current home or... Read More

Why is Now the Time to Buy in Turkey?

Turkey is a paradise of sun, sea, mountains, and lakes... Read More

How to Attract Clients in Residential Real Estate

Doesn't it seem like everyone you know has a friend,... Read More

Real Estate Professional in the Palm of Your Hand

GETTING THE MOST FOR THE LEASE-TRACKING YOUR REAL ESTATEIf you... Read More

Real Estate Business

Starting real estate business is not that simple. Multiple aspects... Read More

Real Estate Development Marketing

A Specialist Article For Those Interested In Real Estate Development... Read More

4 Dangers In Flipping Real Estate

If you have recently purchased some real estate for investment... Read More

Home Inspections or Home Warranty?

Homebuyers are a curious lot. They routinely ask thought-provoking questions.... Read More

Selling Houses: Design Psychology and Interior Colors

Interior colors are vitally important to selling your home quickly,... Read More