Website design By BotEap.comCondo hotels have evolved as a better and more reliable second home alternative to timeshares. These are typically attractive high-rise hotels on the ocean or in other prime locations, ranging in price from the mid-$200,000 to more than 1 million, depending on size, location, and amenities.

Website design By BotEap.comMany of the biggest names in the hotel industry have condominium buildings, including Hilton, Four Seasons, Clarion, and Ritz-Carlton. Donald Trump has numerous condo-hotel installations across the country, including a building in Fort Lauderdale and another in Sunny Isles, Florida.

Website design By BotEap.comIn general, condo-hotel properties have been very successful with all or nearly all units selling within a few months of first listing. For example, the Ritz-Carlton Key Biscayne is a waterfront property with 188 condo-hotel units, all of which sold out a year before the building was completed. Needless to say, the values ​​of the condo-hotels in this building have gone up significantly.

Website design By BotEap.comThere are several reasons for the popularity of condo hotels. When you buy a property, you buy a condominium unit in the hotel. Unlike a timeshare, you have access to the property whenever you want, and it is placed in a rental pool when you are not in residence. While developers cannot guarantee that properties will be rented out, management by a well-known hotel group will typically result in several weeks of rental income. This is one of the biggest draws of condo hotels because the rental income can offset some of the costs of owning a vacation property.

Website design By BotEap.comIn addition, the management company takes care of renting the unit, using their connections and experience. 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 deals, and this is another aspect to consider when deciding which property to buy.

Website design By BotEap.comEven though 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 other tax advantages that come with 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 benefit from the rental income.

Website design By BotEap.comEach condo-hotel property has its own residency restrictions that indicate the maximum amount of time you can live in the property. This is important information to consider before purchasing a condo-hotel unit. Most homeowners do not intend to live in their condo year-round, so this is not a concern under typical circumstances.

Website design By BotEap.comWhy not rent a hotel room? In addition to the investment aspect, condo-hotels often offer more space than a standard hotel room. Most suites are one or two bedrooms, and larger units are available. Condo-hotels often have cooking facilities and other homey features that hotel rooms don’t. This makes it ideal for family to stay with you when they come to visit.

Website design By BotEap.comWith the advantages they offer over timeshares, it’s easy to see why so many people looking for a vacation ownership investment that they can also enjoy whenever they want are now looking to condo hotels.

Website design By BotEap.comFor more information on how to find and purchase the right condo hotel, see Turn Your Next Home Into 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/realestate/resorts/resort4u.htm