assle-free Vacation Homes
before even the first shovel-full
of dirt is overturned.
Interested in getting in on
the condo hotel trend? Perhaps A Deposit Holds Your Condo Hotel
you've heard about this new type Unit
of vacation home ownership, and
it sounds right for you. After In some cases, you simply place a
all, a condo hotel unit is reservation with a deposit of
typically located in a great usually 10% to 20%. The deposit
vacation destination. goes into an escrow account of
the developer.
It's in a three-star or higher
property. And a management The funds are invested in a
company takes care of all the low-interest passbook account,
hassles typically associated with and any interest paid on the
ownership, including finding account (usually minimal) is
renters when you're not using applied to the purchase price.
your condo hotel unit.
You can expect to go to contract
Buy Condo Hotels in once the developer has sold
Pre-construction Phase enough units to meet lender
requirements (usually about 50%
With many new condo hotel of the total number of units?)
properties coming on the market, and has applied for his
when is the best time to buy? The construction loan.
answer is easy. In
pre-construction. That's right, At that time, your reservation
most condo hotels begin selling will be converted into a hard
their units long before the contract, a binding agreement.
property is built, and often Depending on the recission period
of the individual state in which ground floor when prices are
the property is located, you'll lowest and unit selection is
typically have 7 to 15 days to greatest.
decide whether you want to
proceed with the purchase or As the condo hotel is being
cancel. built, it is gradually
appreciating. Developers
The Construction Process implement planned price increases
at various stages of the selling
How long does it take to build a process. If you purchase your
condo hotel? Well that depends on unit at a pre-construction price,
a number of factors such as it potentially could be worth
whether the property is to be significantly more at completion.
built new or whether it's a When you sell, that translates
conversion of an existing hotel into a higher profit for you. The
or resort, the weather and the actual profit of course depends
permitting process. Generally, on the general market conditions,
for a new property, it takes interest rates and competition.
close to two years to build;
conversions take six months to a Subscribe to a Condo Hotel
year. Newsletter
Appreciation Makes If buying a condo hotel unit in
Pre-construction Appealing the early pre-construction phase
is best, how you do you find out
Some people wonder why they about projects? After all, it's
should buy in pre-construction. not as if there's a building
After all, your deposit monies structure to catch your eye as
are tied up for one to two years. you drive by.
The answer is you get in on the
Your best bet is to find a hotels coming on the market, as
realtor who specializes in condo well as building trends and hot
hotels or to sign up for a condo developers.
hotel newsletter, one that will
keep you apprised of new condo
About the Author:
Joel Greene is the President of Condo Hotel Center located in Miami Florida, which specializes in the sale of condo hotels. Visit his web site, http://www.CondoHotelCenter.com to see condo hotel listings, photos and prices. You can also sign up for his free Property Alert newsletter to be notified when new condo hotels come on the market.
Source: www.isnare.com
