I like the idea of condohotels. You live there 30 days a year, when on vacation, and rent it out as a hotel room, the rest of the year. Any rents collected by the hotel management company is split with you, after expenses.
It does have its risks, and, as this article warns, don’t think you’re going to make back your mortgage payments in rent – unless you get a really small mortgage. Perhaps it’s better to think of it as a investment property, and hope for capital gains, instead of steady income, although some think that’s risky, too.
In the past few years, developers have started aggressively marketing “condo hotels,” which look and feel like regular hotels with one difference — you can buy an individual room. Owners can use that room whenever they want, and they also share in any income when the hotel rents it out to other guests.
For investors, the advantages aren’t as clear-cut. The owner gets income only if their room is rented: If bookings at the hotel drop, so does the room owner’s income. Meantime, the owner still has to cover real estate taxes and often a mortgage, as well as monthly maintenance fees …
… Resale values are also uncertain. “We have no data on whether you can sell it for more in five to ten years” says John Vogel Jr., a permanent adjunct professor at the Tuck School of Business at Dartmouth College.
Complete article: Condo Hotels: The Latest Twist In Buying a Vacation Residence – By Michael Corkery, The Real Estate Journal
Contact me to find to set up an appointment to start your Boston condo buying process.
SEARCH BOSTON CONDOS FOR SALE
- Back Bay Boston condos for sale
- Beacon Hill Boston condos for sale
- Charlestown Boston condos for sale
- Charlestown Navy Yard Boston condos for sale
- Downtown Boston condos for sale
- Dorchester Boston condos for sale
- Dorchester Heights Boston condos for sale
- Fenway Boston condos for sale
- Jamaica Plain Boston condos for sale
- Leather District Boston condos for sale
- Midtown Boston condos for sale
- Seaport District Boson condos for sale
- South Boston condos for sale
- South End Boston condos for sale
- Waterfront Boston condos for sale
For more information please contact one of our on-call agents at 617-595-3712.