I have been selling condo-hotels for 11 years. Every time I ask my Buyers how they intend to use a condo-hotel unit. Usually they say it is their vacation getaway, that they do not plan to retire in Daytona, would rent it when not in use by them, which is what condo-hotels are for.
But time from time they tell me they are not going to rent, and will be staying there either full time, or months and months at a time, and I try to explain to them that this is the wrong use for condo-hotel, and they are not going to be happy.
And they choose not to hear me...
So far in 11 years I have one letter from the buyers, praising their decision to buy a condo-hotel, not rent it and use for themselves. There are a lot of good points, minus one and the major one. They just bought it. I want to see the same letter in 2 years. I could safely bet money on it, that there wouldn’t be one.
Usually they say that the reason they do not want to go for a higher priced residential condo is because they do not want mortgage. I always ask whether they could afford a small mortgage, which separates the right type of property from the wrong one, and the answer is usually “yes”. But they insist on a condo-hotel and no mortgage, even when I tell them that it may not only cost them money and headaches. And the probability of it is very high…
But at this moment all they see is the affordability and location. Yes, on the ocean and for $50K, how can you beat it? This is the logic behind this choice.
But does it make sense?
For the answer please, follow the link to my condio-hotel WP blog.
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