The Plaza Resort & Spa. December 2018

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

The Plaza Resort & Spa

Got a phone call from a New Yorker. She read my old blog from 2008 about The Plaza Resort & Spa. Wow, that’s a very old one.

But The Plaza is still standing, and, funny enough, the units in this condo-hotel are unbelievably affordable. Yes, they are not as they were at the lowest point, but, honestly, they are again very close to the lowest point. Below is the table showing you resales of units in the resort since they have converted it to a condo-hotel in 2005-2006. This is the reason there were so few resales in 2005-2007. But then the crisis started creeping in. 2009 and 2015 were pathetic. Interestingly, when in March 2013 the prices for condo-hotels and condos started going up like a dough on good yeast, we thought that it was the end of the crisis…

But it could not hold the steam and by the end of 2013 the market slowed down.

While there are general trends, every property is different in some way. For residential condos the worst year, I believe, was 2012.

But when I looked at the table below with the data for The Plaza resort, it was different. The worst years were 2009, and, surprisingly, 2015, 2017, and even 2018.

Wow…

See for yourself. The Plaza Resort & Spa was converted to condo-hotel in 2005, so the first (and only) resale was in 2005. And check the price…

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Resale of Units

Sold In

Units Sold

Sold For

Sold in $20s

Sold in $30s

Sold in $40s

2018

10

$     25,000

3

3

 

2017

14

$     28,000

2

5

 

2016

23

$     30,000

 

14

 

2015

22

$     25,000

1

9

 

2014

20

$     34,000

 

2

 

2013

19

$     47,500

 

 

2

2012

20

$     42,000

 

 

4

2011

26

$     35,000

 

5

 

2010

18

$     31,000

 

5

 

2009

24

$     28,144

1

3

 

*2008

3

$     53,000

 

 

 

2007

1

$   110,000

 

 

 

2006

1

$   110,000

 

 

 

2005

1

$   275,000

 

 

 

           

Back t the caller. She was asking:

- Is The Plaza Resort & Spa a good investment?

It depends.

It depends on your expectations. If you expect decent rental income, then the answer is no. If you want to buy a property, listed for $39,900 for an ocean view studio, which originally was sold in April 2006 for $232,972, and wait when it reaches at least half the original price, then you walk away with triple the value.

So, if this is a game plan, then it is an excellent investment. Even if it does not make you a penny in rental income, as long as it covers the maintenance and taxes, you are great. Looking at 2013, at the numbers there, what if it would take 2 years to get to the half point prices off the peak of the market of 205-2006?

In 2004 right before the condo-hotel market was about to explode, I remember people walking into our office, curious why the prices were so low, and yet leaving with empty hands. They would satisfy their curiosity but would not act. I remember saying that it felt that the only way to sell a unit was to offer to pay for it and give an extra $5K to the buyer…

And 3-4 months later it exploded, and the very same people were paying significantly more for units, and the level of competition between the buyers was incredible… I think people are not motivated when there is a stagnant market. They start running like crazy when others are running.

Anyway, it is a slow season and a relatively slow market. Good prices. Not as low as they were even last year, but do not make a mistake thinking that it should stay this way. Check the inventory, we only have 17 units for sale, and Plaza used to have 3 or more dozen units for sale at a given time.

And the combination of rising prices (last year starting from the $20s, and this year only one for less than $40K) and lower inventory may mean that prices will go up.

And then comes a question:

- Would You Buy a unit in The Plaza Resort & Spa?

close

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Topic:
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Location:
Florida Volusia County Daytona Beach
Groups:
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Tags:
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Ambassador
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Liz and Bill Spear
RE/MAX Elite 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Jon, Interesting review of the stats and trends.  That was quite the slash in prices and I think it makes it clear why so many people from my area of Ohio have a vacation condo in Florida.  Caught at the right time of the market, some serious bargains.  Bill

Dec 17, 2018 03:06 PM #1
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
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Liz and Bill Spear - you got it right. I was not even touching this condo-hotel for a few first years after conversion. And then suddenly saw the listing falling under $100K, it was a foreclosure. Closest next n price was $185K exactly double the foreclosure price. So I called the investor and we grabbed it. But then the next foreclosure went with half of this price and in a very short period of time from really valuable units, we were speculating with the cheapest stuff on the market.

Dec 17, 2018 09:30 PM #2
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jon, nice to hear someone found your 2008 post, and inquired.  Those are some pretty good prices!  

Dec 18, 2018 06:38 AM #3
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Joan Cox - go figure why they found the post from 2008 and not any of the later posts, and there are, probably, 25 written since then about The Plaza Resort & Spa. And you are right about the prices.

Dec 18, 2018 04:10 PM #4
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