The question came in a phone call. The lady said she read my blogs, and she wanted to have a simple answer to her simple question.
I did not have the answer. Not that I do not know anything about Plaza Resort & Spa, but the question only sounds like a simple one.
All I could say was “it depends”
It really does.
It depends on your goals and aspirations, on the way you plan to use it, even on the experience you do or do not have with condotels. The lady told me that she would not be renting, but would be staying there occasionally.
And I said “No, don’t buy there”. The lady insisted. She was asking whether by law she could buy the unit and then not rent it… She was very particular, and I did not feel comfortable. There are too often situations that while it can legally be done, it may not be something you would want to do.
Yes, you can often win in court, but would you be willing to spend the money it takes to get through the court? In Plaza there are things in their rental management agreement, that seem unconscionable, and I thought they could be defeated in court, but nobody in all these years went to court.
If she were interested in Plaza as investment, I would probably suggest that she buys. Of course, I would tell her about the risks, but low prices in Plaza, the result of mostly weak management, create opportunity for investors. The value would most probably go up, and there is a great potential there.
So, it depends…