Condo Hotel Trends - A Look at the Big Picture in Vacation Home Ownership
Condo hotels are one of the hottest products in today's real estate market. New properties are cropping up in different parts of the country and new buyers are entering the market daily. Things have been moving so quickly in terms of condo hotels, but sometimes it's worth taking a moment to step back and look at the big picture. Condo Hotels In General: There is a spreading enthusiasm about the condo hotel concept. More people are recognizing its potential and therefore creating demand for more inventory. Condo Hotel Buyers: The average buyer is 35-50 years old. Buyers for Florida properties, where condo hotels are most prevalent, come from all over the U.S. On the international front, most foreign buyers interested in U.S. property are from South America and Europe. The vast majority of buyers want condo hotel units primarily as investments and are focused on the potential for appreciation with the side benefit of hassle-free ownership. They see the ability to actually use their condo hotel unit as a vacation home as important but secondary to their goal of investment diversification. Condo Hotel Market: Virtually every single property that has come on the market to date has sold out in pre-construction. Most of these properties are mega high-rise buildings with on average 200-500 units, and with some in excess of 1,000 units. The speed with which these properties sell out is often as surprising to buyers as it is to the developers themselves. For example, the MGM Grand in Las Vegas, a 576-unit condo hotel, was expected to sell out in two years. It sold out in two months! The Platinum, a 255-unit property in Las Vegas, also sold out in just a matter of a couple months. Hot Areas: South Florida continues to be an extremely popular area and one that has shown strong and steady appreciation. As already mentioned, the condo hotel trend which began in South Florida has now spread out west. Las Vegas is leading the pack with many new condo and condo hotel developments in all price ranges being built. Growth in Florida: Looking at South Florida, it's easy to see what is happening. Miami Beach, the hottest area, is all built up. There just isn't any undeveloped land. That's causing a couple of things to happen. Developers are heading to the northern end of Miami Beach (North Beach) and areas still further north such as to Sunny Isles and Ft. Lauderdale. A new trend is developers buying existing structures in Miami Beach and either upgrading them, as in the case of The Mimosa which was the former Brazil Motel, or knocking them down and starting over, as in the case of One Bal Harbour in which a multi-family, high-rise building (Harbour House) was demolished and a five-star condo hotel built in its place. Finally, some properties are beginning to crop up inland. These condo hotels may not have oceanfront views; however, they're within a few short blocks of a beach. Because they're not on the ocean, these properties tend to be priced more economically. Properties: The most popular properties continue to be those with a franchise name, one that brings a reputation for four- to five-star quality or a name that is already well-known. A prime example is Canyon Ranch Living in Miami Beach. People recognize the Canyon Ranch name and feel confident that this property will be of the same five-star caliber as its Arizona counterpart. Of course, it doesn't hurt that this property will have a 60,000 sq. ft. rooftop spa and fitness center. The Selling Process: A lot of properties take reservations of more than half the total project long before they've even prepared their purchase contracts. This means that many of the best units are reserved months before any money changes hands and often before even the first spade of ground has been turned over. Those early investors are seeing some amazing appreciation on their investments. Prices: Like anything for which there is more demand than supply, prices keep going up, up, up. Developers often raise their prices 3-5 times from when they start selling until they sell out. Developers are no longer discounting prices at the beginning of the selling process when they are anxious to get a few sales under their belt. This used to be common practice; it is no more because demand is so great. There are sometimes, however, some price adjustments made at the very tail end of the sellout phase when developers want to close out their property and move on to their next project. Generally speaking, with regard to price, the best time to get in is usually early on in the first pre-construction offering. Quality: Most condo hotels being built are of four- to five-star quality. The reason is two-fold: 1) There is demand for the types of services provided by four- and five-star properties, and 2) Oceanfront land is so costly that it makes more sense for the developer to put in a luxury property with units that he can sell at a premium price rather than lower priced units. Financing: It's getting a little easier to get condo hotel financing. There was a time when most banks and mortgage companies weren't even familiar with the term condo hotels. They now know it and also recognize the viability of these properties. They are more accommodating in expediting these loans. Contracts: Contracts that allow assignability have become rare. In the past, at some properties buyers could place a deposit on a unit in the pre-construction phase and then flip their unit prior to when they had to close. Developers now want to be sure that they don't compete to sell their last few units with investors who purchased early at pre-construction prices and are now re-selling them at below the developer's current prices. Resales: Some condo hotel unit resales come on the market. Of course, this is to be expected. Some of the earliest buyers now want to move on to something or somewhere else. However, the resale market is still relatively small, and it's hard to find a bargain. Advice to New Buyers: How can buyers choose a condo hotel unit that will be a good investment? It's best if they can work with a real estate broker who specializes in condo hotels and can make them aware of all products on the market. Aside from that, they should look for the following elements: Location: Real estate is all about location. Beachfront properties in South Florida have done exceptionally well in recent years. Their appreciation has been significant. If you prefer a property that is not on the ocean, it's a good idea to select one in an area where you can expect to have business driven to your property, such as near a major convention center or in Downtown Miami near the financial district. Franchise: It's always safest to go with a major company, well-known internationally. Four Seasons, Hilton, Starwood, Rosewood, Setai and Trump are excellent examples. Ask yourself, would you likely stay in a Holiday Inn for $69 or the independent hotel across the street for $62? Many investors or hotel guests will pay a little more for the comfort level they get with a well-known, well-respected franchise. Management Company: Compare the management companies and their rental sharing program. You will likely feel more comfortable investing your money in a condo hotel with an experienced, top-notch management company vs. an independent operator. Also, it's worth noting that an established management company does worldwide marketing and likely has a state-of-the-art reservation system that will help ensure your unit is rented as much as possible. For more information on condo hotels including listings of available properties, visit www.condohotelcenter.com. ### Joel Greene is the President of Condo Hotel Center located in Miami Florida, which specializes in the sale of condo hotels. Visit his information-packed web site, www.condohotelcenter.com., for more on condo hotels and to see condo hotel listings, photos and prices. You can also sign up for his free Property Alert newsletter to be notified when new properties come on the market.
MORE RESOURCES:
London Ontario Real Estate Information
Can I Sell My Private Mortgage Notes?
How to Prequalify a Buyer When You Sell Your Home By Owner
Purchasing Property With No Money Down: My Personal Experience
Budgeting Your Log Home: Where Do You Start?
How to Get Financing after Filing Bankruptcy
Joint Ventures In Real Estate Development; So How Do They Work?
How to Price Your Property?
How to Make the Real Estate Market Work For You and Get The Most Money
Cheap, Bargain, Real Estate; Good Deals, Below Market, Low Priced Properties Are Available...
Real Estate: Reasons and Priorities for Purchasing Property
A Powerful Suggested Technique for YOUR Home & Property Search
Horses In My Back Yard
How To Give Yourself A $20,000/Year Raise Without Asking Your Boss
How Do I Implement The Lease Purchase Plan?
How I Became a Real Estate Investor
Safe, Scenic & Secure Sussex County Delaware
Quality of Life in Sussex County Delaware. Facts, Statistics, Observations and even opinions!
Investing in Real Estate Profitably: Financing Options for Purchase of Rental Houses, Part 1.
Investing in Residential Real Estate: Achieving Positive Cash Flow
Regarding Real Estate On Leased Land
How Much Home Can You Afford In Todays Market?
Why Do Realtors Advertise Your Home in Print,on the Radio, on Television, etc.?
I have a buyer for your property and I can sell it now!
Where Does Your Real Estate Commission Fee Go - Why is The Commission so HIGH?
What We Do To Sell Your Property!
Maximizing Curb Appeal and First Impressions to Sell your Home
Juggling The Day With A Deal
The Many Benefits Of Lease Purchasing
Various Aspects Of The Lease Purchase Business
What Can I Realistically Earn In A Lease Purchase Business?
Real Estate, Real Property and Leased Land; Definitions, Discussion and Explanations
Tax Deferred Exchanges of Investment and Business Real Estate
High Tension for the Buyer and Seller of Real Estate Can Be Reduced
Legal Information About the Real Estate Contract
Real Estate: Buyers Agent, Sellers Agent & Dual Agent (defined and explained)
Landscaping Adds Great Value to Real Estate And Helps You Sell
Are You Profiting From O.P.P.?
The Many Ways To Profit From O.P.P.s Multiple Cash Streams
How Do You Profit From O.P.P.?
Lease Purchasing Is The Perfect Home-Based Business
Buying Country Acreage and Rural Properties, To Buy or Not To Buy
The 21st Century Way To Build Equity
Property Types A, B, C And D
The Psyche of The Seller and The Tenant Buyer
Reprint Rights and How To Use Them To Generate A Steady Income
Seller Objections To Lease Purchase
Tenant/Buyers Have Multiple Options
The Devine Secrets Of The Ya Ya Lease Purchase Hood
How To Get The Best Rental Accommodation In The Area By Using Your Capital
Strata Title Hotel Investments
Why You Should Rent To Live And Buy To Invest
Time Is A Major Real Estate Wealth Growth Tool, So Use IT And Watch Your...
Property Auction & Why You Should Run A Mile From Them
Condo Hotels Offer Luxury and Great Investment Potential
Condo Hotel Trends - A Look at the Big Picture in Vacation Home Ownership
The Benefits of Fractional Ownership in Private Residence Clubs
Real Estate Development Marketing
Buying Land For Development Requires Careful Planning and Execution
Home Inspections or Home Warranty?
Peace of Mind for Home Inspections: Choose the Right Inspector!
Preparing To Make A Zero Down Offer
Using The Internet In Your Lease Purchase Business
Real Estate Local FAQs.
Sell Houses Fast & Top Dollar: Design Psychology
What is a Predatory Lender?
Find Bucks in Yucks! 20-Year-Old Woman Turns Doghouses into Dollars!
Selling by Owner = Saving by Owner?
You Have 15 Seconds to Sell Your Home! 11 Steps You Can Take to Sell Your Home for Top Dollar
Selling by Owner Tips
Using Transformation Psychology to Sell Investment Properties
How to Become a Successful Real Estate Investor
Buying Houses: Types of Bargains to Find
Financing Houses
Using Color Psychology to Sell Your Home
Five Things to Help Sell Your Home Fast, and For More Money
Ten Steps for Becoming a Successful Real Estate Investor
Finding a Great Listing Agent for Your Home: 8 Tips
Selling Houses: Design Psychology and Interior Colors
Interior Design Secrets for Selling Houses
Five Ps of Selling Houses
Selling Houses: The Basics of Design Psychology
The Costs of Transforming Your Home into a Buyers Dream House
Fixing Houses: Mixing Your Own Paint for Savings and Harmony
If Your House Is a Mess, You Dont Have To Sell For Less
18 Easy Steps to Buy a Bargain House
How to Choose Your Real Estate Lender
Create a Sizzling Home Sales Flyer
A Beginners Guide to Flipping Houses
Questions Investors Should Ask When Buying and Selling Investment Property
Real Estate Investing: How to Choose a Lender
Real Estate Investing: Infomercial and Mentoring Scams
Why You Need a Lender to Sell Your Home
Selling Your Home: The Power of a Great Sales Flyer
The Secret to Maximum Real Estate Profits: Lighting
Selling Investment Houses: Props & Profits
Selling Houses: Cutting Edge Design Tips for Selling
Dont be Tempted by We Buy Houses (Updated)
Buying and Selling Distressed Houses for Maximum Profit (Update)
Selling Houses Fast: Basics of Design & Color Psychology
Selling Houses: Flooring & Feelings
Selling Houses: Psychological Effects of Landscaping
Credit Help: Buying Real Estate -- Not the Same as Buying Cars
Fixing Houses: Using Psychology for Profits
Selling Your Home Quickly, Even if You Have No Money For Repairs
Talk to a Lender Before You Sell Your Home
Selling by Owner Escrow or Closing Checklist
Investing in Real Estate Profitably: Eliminating the Need for Mortgage Insurance
How to Make Money in Real Estate Without Doing the Scrunch Work
Achieving Positive Cash Flow from Your Real Estate Investments
Selling Houses: Design Psychology Works!
Selling Your House Fast!
Transforming Doghouses into Dollhouses
Selling Investment Houses: Psychology of Mirrors
A Real Estate Primer
What are the Elements in Real Estate?
Curb Appeal
What to Look Out For When Buying Off Plan
Staging® Your Home for Sale: a Superior Real Estate Home Marketing Technique: Part 1
What Does It Take To Be A Donald Trump in Real Estate?
On the Crossing of Continents
Panama is Hot - A World Class Retirement Haven Thats Ripe For Profitable Real Estate Investment
Personal Branding Techniques for Real Estate Agents and Brokers
Real Estate Investing Myths That Steal Profits From Your Pocket
Budgeting Your Log Home - Creating a Checklist
Do You Want To Sell Your Rehabs Fast?
How Much Should I Pay For This House?
Real Estate Investment 2005 - The Hottest Countries for Investment in 2005
Real Estate Investment - Why it is Big Business?
Tax Free Exchanges: Watch out for the New Residence Rules
Home Inspectors - Negotiating a Lower Price
Finding the Right Real Estate Agent:: A Guide for Seniors
Why it is Important to Hire Just One Real Estate Agent to Buy a Home
The Professional Investors Plan
How to Buy a Home When Your in Your Twenties
Why Invest In Property?
Location, Location, Location
Prepare Your House for a Successful Sale
Pricing your House to Sell
Virtual Agent? Online Real Estate
Curb Appeal
Water, Water Everywhere on the Waterfront
Before Selling Your Home
When Showing Your Home
For Sale By Owner Listings
Should you Sell your Home yourself?
Evil Gains Entry
How to Sell Your Own Home and Save Thousands of Dollars
Home Inspection Checklist - Home Inspectors
The Value of Foreclosed Property
Investing In Commercial Property
Investing In Land
Selling Your Home - A FSBOs Guide to Keeping It Safe
Seven Questions You Should Ask When Buying a Condo Hotel Unit
What is a Foreclosure?
Expenses of Home Ownership
Dealing With Dual Real Estate Agents
At Home In Your Overseas Home
A Real Estate Investing Primer
The Real Estate Bubble Fallacy
Tax Assessment/Appraisal: How Do I Know What My Home is Worth?
How to Build a Real Estate Investing Power Team
How Can the Average Person Build Wealth in Real Estate?
Product Review of Carelton Sheets No Money Down Course
Real Estate News
Types of Listings with Agents
The New First Impression in Home Selling
Buying a House in Scotland
Fixing Houses for Resale: Three Beginning Steps to Increase Profits and Have Fun
Basic Tips for First Time Home Buyers
Homebuyer Heaven Can't Possibly Last
Selling Your Property Without An Estate Agent
Avoid The Traps Of Finance
Big Discounts With Property Investment Clubs?
New or Old House?
How Not To Blow Your Build Budget
Is a Vacation Home Right for You?
Should You Buy Real Estate Now
Staging Homes for Top-Dollar Sales
Real Estate Bankruptcy
How To Negotiate A Higher Price For Your House
Maintaining Small Town Charm In An Ever-Changing World
OPM - The Art of Leveraging
A Difference Between Appraisal, Assessment, Home Inspection
Investing in Real Estate Like a Stock
Getting Raw Land, Not a Raw Deal!
Investing in Real Estate Vehicle for Wealth Building
A Possible Bargain: Foreclosed Properties
How Can I Stop Foreclosure on My House?
Buying New Construction...How Do I Begin?
Dont Sell Your House--Ever!
A Singles Game of Real Estate
Investment Real Estate Done Right -- Your Quickest and Safest Path to Wealth
Atlanta Georgia Real Estate - Marietta - East Cobb, Roswell, and Alpharetta
How to Attract Clients in Residential Real Estate
How to Build Your Dream Home
Property in Bulgaria - Huge Investment Potential
Unravelling The Real Estate Buying Process in Canada
Why Canadian Real Estate is Such Good Value
How To Find Your Dream Home In Belize
Negotiating the Real Estate Contract
Be A Realtor With Curb Appeal
Investment Real Estate -- A New Twist: Be the Bank, Not the Landlord, and Get Rich Without the Work!
Build Your Retirement By Investing In Real Estate
Appraisal vs. Market Value: How to Avoid Pitfalls in the Sale of Your Home
Utah Real Estate
Purchasing Land: What To Look For
If You Cant Afford to Retire...Move
Moldy Homes are a Great Investment
NAR® Broker Will Swear It - Real Pro' Agents Share It - FSBO Truth
How to Get the Best Price for Your House
Flat Fee MLS Listings - Is This The Future Of Real Estate
10 "No Money Down" Ways to Buy Real Estate
Look Past the Bottom Line for a Propertys Potential
10 Tips for Investing in Distressed or Foreclosed Properties
How to Research and Purchase a Good Investment Property
Termite and Moisture Damage Not Reported
Free Tips That Will Dramatically Increase the Selling Value Of Your House (Part 1)
Dont Overpay for a House, Even in Todays Market
What Homeowners Should Know to Stop Foreclosure- Speaking Your Lenders Language
Finding A Capable Agent To Meet Your Real Estate Needs
How to Prepare Yourself for Owning a Dual Purpose Second Home
Conditions Are Right For Buying The Higher Priced Home You'Ve Always Wanted
What To Expect In Closing Costs On A Home Purchase
Avoiding A Bad Investment Is Easier Than You Might Think
Working With Your Real Estate Attorney
What's Your Style? A Guide to America's Most Common Home Styles
XML error: XML_ERR_NAME_REQUIRED at line 1 | 
