Condo Hotel projects are on the rise. From skyscraper hotels to luxury resorts, condo hotels dot the landscape of popular vacation destinations, such as Florida and Las Vegas. And big hitter personalities like George Clooney and Donald Trump, wanting to capitalize on its popularity, can’t wait to attach their name to a condo hotel project. Even Nicky Hilton is jumping into the condo hotel craze. Her boutique style condotel, befittingly named Nicky O, opens this November in Miami, and she has plans for another condotel in Chicago.
Condo Hotels: What Investors Need to Know
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CondoHotels – Is A CondoHotel Right For You?
It’s the latest rage in the hospitality industry, a condominium that acts like a hotel room. A condotel. A person owns a condotel much like a condo. The owners pay regular condo association fees, property tax, and all the other fees associated with owning real estate. Unlike time-shares, the owners are free to rent their condotels as often or as little as they like. The hotel rents out the condotel units much like a regular hotel, handling reservations and guest services. The hotel then splits the income equally with the condotel owners.
A Lifestyle Choice – A condotel is not right for everyone, and it takes a person or family wanting a specific lifestyle to get the most out a condotel. People must understand that this is not traditional real estate, and they are getting into the hotel business. Condotel owners are subject to check in and Read the rest of this entry »
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Why We Love Our Condo Hotel
It’s summer and vacation season is here again? We will leave tomorrow after work for an ‘up north’ Michigan weekend at Bay Harbor and will once again ‘check into’ our condo hotel unit at Inn at Bay Harbor. This is truly a vacation home, without hassle. Our journey to condo hotel ownership began this way… In fridgette mid-January 2003 we drove up north to our single family cottage in Charlevoix on the shores of Lake Michigan for a fun weekend of skiing. The normally 3.5 hour drive from Birmingham took us 5.5 hours in blizzard ‘white-out-white-nuckle’ conditions this Friday night. We arrived to find the drive was not plowed. I shoveled my way into the cabin to find the furnace had died, and some pipe had burst (even though I painfully drained the pipes before departing on the last trip south).
That weekend, we checked into the Inn at Bay Harbor by Marriott/Boyne down the road, the ski weekend was still on, but the headaches were just beginning. Throughout the next spring and summer, on weekends, my highly skilled Dad and I renovated, and fixed up our cottage (again). My Father-in-law, being much handier than I also came up north and helped. My step-Dad stopped by and lent a hand. My buddy Brian, a carpenter and real pro, helped me out. And by the end of summer, the cottage was back in shape. Read the rest of this entry »
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1031 Like Kind Exchanges And Condo Hotels
How would you like to defer the capital gain taxes you would pay from selling your property? Well, according to Section 1031 of the Internal Revenue Code, certain tax advantages can be realized if “like-kind” properties are exchanged. “Properties are of like-kind if they are of the same nature or character, even if they differ in grade or quality.” Therefore, an exchange of real estate for another piece of real estate is an exchange of “like-kind” properties. “It doesn’t matter where the real estate is located (but foreign and U.S. real property can’t be like-kind) or whether it is improved or not.” Fortunately for investors, Condo Hotels can qualify as a “like-kind” property.
In a typical real estate sales transaction, the property owner is taxed on any gains on the sale of that property. However, through a 1031 Exchange, the tax on the gain is deferred until the replacement property is sold. At that time, taxes will be due for the gains on both the relinquished and replacement properties Read the rest of this entry »
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Live The Dream In A Condo Hotel
As you might have read in the news, the biggest trend in the current real estate market is the vast number of Condo Hotels being built. However, prior to Donald Trump announcing several new Condo hotel developments in the next few years, many people had never heard of the term Condo Hotel. While its name seems to imply what it consists of (half condo, half hotel), there are several less obvious rewards to Condo Hotels. Unlike traditional condominiums, Condo Hotels offer their owners and guests several key advantages.
Advantages for Owners:
Not only are Condo Hotels being developed around the world, but they are being built in the most desirable places imaginable. Such as Hawaii, Florida, Las Vegas, New York City, Belize, and Dubai, just to name a few. Unlike timeshares and fractional ownerships, buyers of Condo Hotels are buying the real estate, and not just a piece of time. Who wouldn’t want to own a piece of Read the rest of this entry »