Understanding Condo-Hotel Real Estate

For people who buy second homes or vacation properties condominiums have long been a favourite as they offer relatively low-maintenance, high quality, and good value for money when it comes to luxury vacation homes. This is something the hotel and timeshare industry is not ignorant of, and as they have started to expand into this market a new breed of vacation home has been born; if your real estate agent utters the word condo-hotel don’t worry, they’re not delirious. A condo-hotel is a condo built and run by a resort or hotel, and it’s becoming all the rage!

What is a condo-hotel ?

In essence a condo-hotel is a condo; a home in a high-rise building. What matters is not what a condo-hotel is at the base of things, it’s how they differ from regular condos and what the benefits of these differences are.

Firstly, condo hotel units are still individually owned despite being run by the hotel company… it’s just that the building is branded as, for example, a Hilton, Westin, Garza Blanca etc. The average condominium building lacks the same luxury branding and marketing, and will not have the benefit of the hotel

The typical luxury high rise condominium lacks this same luxury hotel branding and marketing, which sets a condo hotel apart from standard condos. Furthermore you will generally get access to the facilities and services of the hotel or resort which runs the condo-hotel building.

Advantages of a condo-hotel as opposed to traditional condo ownership

So, a condo-hotel is actually much the same as a condo building… why bother investing in one over the other, we hear you ask? Well, when it comes down to it, the ownership of a condo-hotel unit has a few significant benefits to consider. For example, you need not worry about decorating, furnishing, or maintaining your unit as the hotel deals with all this for you (of course if you want to make your mark this might be a downside). Furthermore the management of the hotel ensures that when you’re not using your condo you get rental income from it; you could use this to cover your homeowners association fees, or simply put it to the side. It’s up to you, really.

Better yet, however, you’ll get access to the resort facilities like the gym, spa, and onsite restaurants.

Tax Benefits

Some condo-hotel purchases can have beneficial tax advantages. The implications of this are significantly reduced tax bills in the years you use your unit, but your accountant will be able to give you more specific information as to the benefits of your specific financial situation and tax expectations.

Now that you know what a condo-hotel is and how it can be better, for some, than a regular condo you can start to make an informed decision as to which works best for you.

Ref: http://www.articlemonster.com/finance/real-estate/condo-or-condotel-what-is-the-

Difference.html