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Vacation Homes and Investment Properties

The latest trend in vacation homes or second homes is the condo hotel. Investment homes accounted for a quarter of all home purchases in 2004, and vacation home purchases an additional 13 percent. Condo Hotels first started appearing in places like Metro Manila and Cebu. They have increased tremendously in popularity and can now be found in places like Belize and Dubai.

As the owner of a condo hotel unit, you can keep your condo hotel as long as you’d like. Use it as a get-away-from-it-all vacation home if desired, all the while building equity for when you want to sell it. Marketed as a condominium located in a hotel setting, these private residences offer a practical way to own a vacation home, and offset some of the costs when you’re not there.

If you’re seriously considering buying investment property, a second home or vacation home consider a condo hotel. Condo-Hotels statistics show that the market for homes with rental income potential is nearly twice the size of the market for vacation homes that are seldom rented. The typical condotel produces higher levels of income than the traditional vacation home (and less headaches), making it all the more appealing to buyers.

Here’s how it works. You purchase a condominium in price ranges from as low as $34,000 to $275,000 that is located in a hotel. After purchasing it, you tell the hotel when you intend to stay in your condo and they reserve those dates for you. When you are not there, your condo goes into a rental program, managed by the hotel, and is rented out as a hotel room.

The beauty of this type of arrangement is that you get a condominium in a hotel setting, but don’t have to worry about maintenance and upkeep when you’re not there. Another plus is because the hotel is renting out your condo, your vacation home becomes an investment property. Because hotel employees handle marketing and promotion, you don’t have to, and you get the added benefit of having your condo marketed as part of a well-known and respected hotel.

The condotel unit buyer sees the benefit of owning a vacation property that also has the potential to produce income for them and build equity long term. 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. 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 to, are now looking at condo-hotels in the Philippines.

In Philippine hotspots such as Metro Manila, and Cebu, where the condo hotel market is considered to be extremely lucrative, typical buyers are investors looking for promising real estate deals in an area with a proven track record of appreciating in value. Many buyers in Metro Manila are from America, Australia and Europe, places where Philippine real estate prices are seen as bargains, and the Philippine Condotel market with the Lancaster Brand of condotels adopting International standard escrow trust account banking, is considered a safe place to invest.

Condo-hotel-unit purchasers are in essence unique in the opportunity to buy into multimillion-dollar hotel developments for a relatively small cost, and not just investing in a single unit. Buyers can choose to lease their units when they are not occupying them. Most condo hotel units include hotel services in the package deal. Buyers at the Lancaster Condotels are treated as guests, and able to enjoy amenities such as room service.

Investors choose the condotel route for different reasons. Some enjoy ownership of real estate, with attractive amenities someone else maintains for them. Others look at the potential the long-term appreciation value, with little investment of time and attention, offering them the financial stability that may one day afford them the ability to enjoy retirement.

Beth Collingz

Director - PLC International Marketing Networks

Article Source: http://www.topicinfo.com

Pacific Concord Properties Inc., Manila Head Office Shaw Boulevard. Mandaluyong City. Metro Manila. Philippines 1552 Phone: Manila [63 2] 717 1958 Fax: Manila [63 2] 718 1828 Email: plcsales@pldtdsl.net www.lancastersuites.com www.plcglobalpinoy.com www.condotel-rentals.com

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