- It’s a losing battle …
I received this in the email today. The owners of a unit in The Plaza Resort & Spa think “the biggest issue is that room rates are extremely low plus the number of nights rented per month is also low. Add these together and it’s a recipe for a huge ongoing loss. The monthly maintenance fees are high and there is always something extra that is charged to your monthly statement…”
It is difficult do disagree. I do not have the crystal ball and I do not know how the rental management company is operating, that it resulted in loss of income for the owners. At a time when the Hotel/Motel Association is bragging about significant growth in tourism, and the County states that the bed tax, collected from hotels is at a level they never had before, The Plaza is experiencing lower occupancy and lower rates…
But when people call me and ask what I would recommend, and I say “Plaza”, they look at me in disbelief. Am I serious?
Well, the way I see it is that this was the most expensive condo-hotel in the area. Prices started in mid $200s for units with City view, and went into $300s and even $400s for oceanfront.
Use it as an indicator for the future. Even when skeptics say it would never go back to where it was in 2006, I know that I heard that before, and not only it went back, but went higher… So, never say never…
But even if it does not go that high, it would go up higher than any other condo-hotels in the area. So, buying to day a direct oceanfront unit for $65K with a good chance to be able to sell it in 2 years for $165K, how bad is that?
- Yes, but with all the troubles they have now, the rental income might not even cover the expenses!
Yes. So, let’s say they will be short by $80 - $100 a month on average. So, you will reach into your deep pocket and bring $1,000 to the Association. In 2 years it would have cost you $2K. And you only sell it for double what you pay. Is it so bad?
Why it is a good time to buy in Plaza now? Well, it is because there is a little trouble. So the prices are wonderful.
To read the full blog and see every unit for sale in Plaza, follow the link to the blog on my website
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