Condo hotels are the latest rage in the real estate market. Off late, they have been very popular and there has been a sudden and a sharp rise in their demand and prices.
Most of the Condo hotel buyers treat them as an investment. They prefer single ownership so as to escape from all sorts of hassles. Also, there are people who buy them for vacation purposes.
Seeing the rise in demand, it is not surprising that most of the condo hotels are sold out at the initial stages of construction itself. Mostly, the size of the property ranges from 200-500 units. In some exceptional cases it has been more than 1000 units too. It is not surprising that both the buyers and the suppliers are minting money out of this whole venture.
Some of the places which are quite popular for buying Condo hotels are South Florida and Las Vegas. South Florida has been tremendously popular with people but now the craze is also spreading in West. Las Vegas is popular for providing numerous options under all price ranges.
But, as South Florida is over developed now, the Condo hotel makers are now exploring the Miami Beach's northern end, Sunny Isles and Ft. Lauderdale. This has led to a certain kind of stagnation in South Florida these days. To reduce the initial cost, many developers are buying the already constructed properties in Miami and renovating and giving them a new look. This makes them prepare a Condo hotel in a much economical way. However, if the hotel is ocean facing then the cost could sore any high.
The price of the Condo hotel rests mainly on the development of the area around it. Generally, the Condo hotels are four and five star in terms of quality. This also increases the cost of these hotels. But, as the hotels are well furnished and luxurious, the owners are able to generate huge profits by renting them in the peak season.
So, if you are planning to invest your money in the real estate then investing in a Condo hotel is the best option available. However, the US government holds a slightly different perspective. It has restricted the advertising of a property as a condo hotel in the real estate market since its value is not very clear.