Hello all...
I had a very good question asked from one of my customers the other day, and thought it would make for good public knowledge...
We just had a closing at one of our High Pointe (Hwy 30A) units fall through due to financing. We were told that "hotel-like" properties are difficult to finance. Have you had any experience with this sort of situation?
The answer is....
YES, that is absolutely true. If your complex offers on site rental mgmnt, or short term (nightly) fees...it is now classified as a "Condotel" through a lender's eyes!
This has been a big problem in this area, because the only terms you can get on these type units right now have higher rates and require 20-30% down...Also, it is almost impossible to get a FIXED rate on these making it even less attractive for buyers. I believe this is one of the main reasons that the condo market is so saturated! It almost takes a cash buyer...
There are only a handful of developments in PCB that qualify as NON-Condotels...and I mean like 3!! They all do not offer short term stay options and do not have rental mgmnt companies. They are more like residences...
Hope this answers some of your questions regarding this very relevant issue in our area. For more info and answers visit www.freepanamacityhomesearch.com
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