Plaza Resort & Spa has 82% positive reviews according to Tripadvisor.com as of September 21, 2015. Which is darn good, by the way. And it tells you that this is one of the best condo-hotels overall. And if I say that it is in trouble, that may raise eyebrows.
But it is true. Plaza Resort & Spa and Oceanside Inn are both underpriced today, and it is because both have problems.
One problem is Special Assessment. Both resorts have some concrete restoration work going on, and Buyers tend to shy away from the work in progress.
Funny, as when the work is completed, then prices go up by $20K-$25K within couple of months. And then people buy…
The classic example for me was Hawaiian Inn, where during the restoration work the prices fell to $15K, and there were quite a few units for sale for less than $20K…
And then the price went to the $60s.
But until it is all done, we will be watching this crisis of one of the best (in the past and, hopefully, in the fuiture) condo-hotels in Daytona Beach area.
The other problem is inadequate management. But this is a topic of another blog.
So, let’s look at the numbers.
There are 37 units for sale in Plaza Resort & Spa as of today.
Starting price is $39K. Originally sold by developers in January 2006 for $254,614. You can buy it now for 15.3% of the original price.
And if you think that this gotta be something wrong with this unit, think twice. It is an ocean view unit, 3rd from the ocean, so one of the better views in the resort, 7th floor, 372 sq. ft.
If buying for 15% of the peak price is not a good deal, tell me what is?
10 units are priced under $50K. Lowest priced direct oceanfront unit is $51K… simply unbelievable…
But when the rental management company runs the business into the ground and people have to bring money as they do not even break even, that’s what people do, they flee…
Of course, paying the least for the best is wonderful, but it is a dream. Reality is that we usually pay the least for the least desirable, and pay a lot more for the best.
So if buying at 15.3% of the peak value is paying the least, this is because Plaza is not at their peak performance.
And this is what it means to catch the bird by the tail. Bad times come and go, so if you understand the science of investing, then you buy in bad times and sell in great times.
I hope you see why, with all management issues, I consider The Plaza Resort & Spa worth buying?
If you are interested in Plaza Resort & Spa, or any other condo-hotel, call me at 386-405-4408.
First posted on my personal blog at www.Daytona-Condos.com