A lady called me in the morning. She was calling about her mom, an older lady, who would love to live in a warmer climate closer to the ocean. They see the prices in the $30s in Hawaiian Inn, and they like the way the property looks, so they are interested.
Do you know that bad feeling, when people are looking for something, and they are genuinely interested, but you know already that they are not going to be happy there? I got it often. Today was not the exception.
So, who should buy, or, better, who should not buy a condo-hotel in Daytona Beach? Well, if you plan to live here, and not just come for a few weeks, then it is not for you. Even if you can homestead it and get the tax benefit, and there are only two homesteadable properties in this area (more on homestead and condo-hotels in the next installment of this mini-series), this is not a good idea.
Why is that? Well, the concept of a condo-hotel is owning a piece of a hotel where you come and spend time and then leave and have the guests help you pay your expenses. The moment you start changing this formula, it stops working.
If you come and not leave but stay, the first disadvantage is that your maintenance fee is paid by you, not by the guests. In Fountain Beach Resort it is now $338 per studio. So what? Wouldn't you have to pay maintenance in a residential condo? You sure would, but look at the numbers: 385 sq. ft. unit in Fountain at $338 a month means that you are paying 88 cents per sq. ft. A luxurious 3 bdr/3baths condo unit in Bella Vista with 2,300 sf at $576 per month comes to 25 cents. In Hawaiian Inn this number is more than a dollar. The smaller the place, the more you pay per sq. ft.
The lady told me that her mom has a house in another state and she can afford it, but she is not happy there. There is nothing for senior citizens.
Wow, wow, wow! If that's the case, you need to stay away from any condo-hotels. They are vacation places. You will not make friends there, you will see new faces every week or every day. Not only that. You are not going to have the so called quiet enjoyment. During the spring break, the kids are partying until 3-4 AM. they are running the hallways, banging on doors, in search of a girl they met in the morning but forgot her room number. They will also jump to your balcony from another balcony in search of adventures.
Bike events are always fun, but they are accompanied by the roar of their engines and the smell of their exhausts. Is that what we want for our moms? And while you would quickly get used to the beautiful view of the ocean from your balcony, you would have difficult time adjusting to living in the hotel environment. This is not a place to live. Even if you can buy it cheap.
In today's market, there are so many choices for older people to be close to the ocean, yet enjoy a quiet Florida lifestyle and be surrounded by your peer and being able to say: "Oh, there is so much to do. I am so busy with my life and I enjoy it".
The best part is that it wouldn't really cost a lot. Today, as it sure will tomorrow. And I am here to help you make the smart and intelligent choice.
Read other blogs in this mini-series:
Understanding Condo-Hotels. What Is It?
Understanding Condo-Hotels. A Glimpse At History
Understanding Condo-Hotels. Association Fees
Understanding Condo-Hotels. Simple Math
Jon Zolsky, you Daytona Condo-Hotel guru
www.DaytonaCondoHotel.com
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