Enzo, Home Buyer in rome,italy

is it wise to buy a condo hotel for a foreigner coming 3 or 4 weeks per year?

Asked by Enzo, rome,italy Sun Mar 16, 2008

Help the community by answering this question:

Answers

6
Pamela Mayers’ answer
Condo Hotels have alot of good qualities when it comes to making you money and the flexibility to use it when you want. When the hotels are in season they are quite often booked in the Grove and you want to tell them ahead of time if you are coming across the ocean to use it. The catch is the mortage if you are financing, you must put 20% down. So that will effect your ability to resale it fast one day. The Mutiny is a good building and are very nice to their clients about using their units. Another question that can be costly is if you must have special furniture in it to rent. Most of the time if you buy a unit that has been rented you can get the furniture free!! But otherwise it might cost you thousands of dollars. The realtor you decide to use can find out this information ahead of time for you since your time is limited over here. Good Luck and ask questions.
1 vote Thank Flag Link Thu Mar 20, 2008
BEST ANSWER
Enzo~

Condo-Tels are becoming more and more popular. The obvious reasons are use it / rent it. Another option is "fractional ownership" that is starting to make it's way to South Florida. Coconut Grove, as Ramesh points out- is a fantastic location. Look into South Beach, Miami Beach, Sunny Isles Beach also. I like the idea of being on the beach! Many European & American vacationers would like to spend their time on the beach. As a vacationer going to a ski resort would want to be as close to the slopes as possible. Beach or Water is the key in South Florida.

Most important is who & how the property is managed. Carefully review the management documents along with the purchahse and sale agreement. There may be restrictions and limitations that may not be to your liking or travel plans. Many condo/hotels require that you "pool" your condo with the "front-desk" ~ meaning that you would not has the right to rent the unit or have friends stay there at will. The management style and "cut" is also critical, usually the house and owner have a "split" 50/50, 60/40 and the expenses may be taken from the owners (YOUR) end of the revenue.

All in all, I do believe that the condo-hotel investment makes alot of sense. Usually vacation location condo owners only use thier apartment 3-7 weeks per year- so why not generate revenue when it's not in use!
0 votes Thank Flag Link Sun Mar 16, 2008
Enzo,
If you're thinking about Northeast Coconut Grove, a Realtor in that area can give you specific info about the market situation that might help you make a decision for that locale.

In some markets, having a condo you own and visit 4 weeks per year could be a good way to invest and at the same time, have a place to stay when you visit.
If the rental market is strong, especially 'executive' rental market or vacationing renters are available then you may have a good fit.
I recently sold a condo in downtown Boulder, Colorado to a buyer that visits Boulder for 3 to 4 weeks at a time but spends most of her time out of the U.S. It's a perfect fit for her and the market has been strong for many years here (both resale and rental) so she should see reasonably good appreciation on her investment as well as have the fall-back position of renting if she feels she needs the added cash flow on the property.
If you have a similar situation where you're considering buying, it could be good for you also.
Web Reference: http://www.boulder-buzz.com
1 vote Thank Flag Link Sun Mar 16, 2008
Hello Enzo,

We work a lot with the foreign owners interested in purchasing condotels (or short term vacation rental units). This is generally more profitable than the regular annual rent. We see 8 to 11% returns in the beach/across the beach areas.

It could be done through the hotel rental program (they vary but generally you get 45 to 50% of net income - after subtraction of management fees and expenses of operation). Or, it could be done privately - by yourself or through your private manager - who advertises on popular American vacation rentals by owners sites like Rentini, Homeaway or VRBO.

When buying with us, we provide you with a quality property manager.
He puts people in, makes sure the unit is clean & the guests are happy.
You visit when you want to in this case (some rental programs have black out dates - when you can not visit - usually major holidays).

You got to read the details of the condo documents and rental program guidelines to see if you the terms are acceptable to you.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Tue Aug 13, 2013
An excellent idea for foreign nationals for a couple of reasons:
a) management
2) Rental income
3)locations
Most of then are located in areas where most tourist are attracted to.
Regards,
0 votes Thank Flag Link Mon Aug 5, 2013
Dear Enzo,
I agree with Zachary - work with a Realtor in the area. I grew up in the Grove/South Miami area. It is, and always be, a strong rental market, as we have lots of people who come down from up north during the winter months to vacation. Being right on the water with a major marina, excellent shopping,dining, and nightlife makes Coconut Grove a great place, so I don't think you can go wrong with any real estate investment there.
Feel free to contact me for further information.
0 votes Thank Flag Link Sun Mar 16, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer