Is buying an hotel apartment a good investment?

Question

I am wanting to buy an investment property. Is buying an hotel apartment a good investment? And what might be the downfalls?

Answer 1

If you are talking about a condotel, good luck with the financing. If not, I am not sure what you are talking about.

In this market, I would stay away from anything too exotic. It could be hard to sell, may not hold its value or appreciate and of course the person selling it is going to tell you it is a good investment. They don't care about you or anything else except the sale.

I don't even like condos. Same reasons plus a bad experience living in and trying to sell one years ago. Too much c**p and expense to put up with to end up losing money.

Answer 2

Depends.  If I had $5M I would buy an apartment in the Plaza NYC.

Answer 3

hi

personally i think you should look into buying something thats on its own land and that you are buying the land also.i think theres the most money to be made in house or units specially when you get the land also

Answer 4

Hi,

I was looking into that few months back. It seemed like a great option as the place i was looking at guaranteed the rental income also. The great thing about it is it doesnt cost much and the income is really good.

The main downfall is that generally you cannot do anything to it like change wall colours or add/delete furniture cause it has to look the same as the rest. BUT, check into it cause not all hotels like that.

Also check with your bank, some banks dont loan 100% for them there may be more of a deposit that you have to have.

Good luck with it, also ask if you can stay there on holiday and if it can be perminantly let so that you have a seady income. CHeck out the fees that the hotel charges you. Check the previous rental history for that particular appt you are interested in.

Regards

Carla

Answer 5

With a hotel apartment you will have ongoing strata fees & the room might only be rented for part of the year.