Real estate is a business that has been receiving a lot of attention and welcome for many years. The term real estate is a general term, more specifically, it will include many different terms; including the term Condotel. So What is a condotel?? To understand more about this term, please refer to the article below!
What is a condotel? What is Condotel apartment?
There are many interpretations of the concept of Condotel; However, they can simply be understood as a combination of housing and tourist accommodation. This type has just appeared on the market not long ago; but has grown rapidly in recent years.
What is a Condotel apartment? Condotel is an acronym for Condo and Hotel, which means apartment combined with hotel apartment; an apartment building that is operated like a hotel. It will also include: reception, staff and rooms booked as short-term rentals, like hotels. In addition, Condotel apartments also have many resort facilities; including swimming pool, hot tub, gym, restaurant, volleyball court,... Besides, other services such as beach chairs, surfboards or boogie are also available for rent.
At this point, readers must have understood part of what an apartment hotel is, right? Condotel is currently blooming in key tourist areas such as Nha Trang, Da Nang, Phu Quoc, Sam Son, Vung Tau, etc. And of which is Da Nang with the strongest increase in Condotel supply; exceed the rate of hotels and resorts.
Who will own Condotel apartments?
According to current statistics, customers often have the need to own hotel apartments; usually fall into two main groups, which are:
- Investors: This is a group of customers who want to learn about Condotel to buy for investment purposes to increase profits. For them, the attractive point of this hotel apartment is the ability to quickly recover capital. Selling a Condotel product is like selling an apartment, they can be immediately profitable.
- Tourists, successful business people and people with average incomes: This is a group of customers who want to buy or rent hotel apartments to enjoy life. Condotel will help cater for the vacation time of individuals or families. At the same time, it also shows the upper class of the owner; in a fully furnished house at an affordable cost.
What is a condotel? Benefits of owning Condotel as an investment property
Currently, in the field of real estate business, the business model of Condotel apartment projects has been a dominant trend worldwide; by the dual benefits they bring. Including Investment – Vacation – Rental and Exchange with affiliated resorts in other countries. Owning a Condotel, you not only have wonderful vacations in a luxurious and classy "second home"; but they also bring stable profits with high profitability.
Regular monthly cash flow
With Condotel, you will receive a monthly income; increases your overall cash flow, flexibility and liquidity for your portfolio. If you own a lot of real estate, high value portfolio; but always short of cash, then Condotel can be a reliable solution.
Although Condotel is a small property, you can rent it out whenever you don't use it. Of course, real estate is available for rent only and does not always provide a steady income. They will contribute to enhanced cash flow and portfolio improvement.
Using brand value from big companies in the hotel industry
You can take advantage of the brand value generated from reputable accommodation establishments in the market. When buying Condotel property in a large hotel chain; you're essentially working with a well-established, established name in the industry. This helps bring more consistency to your portfolio.
Big, famous, and successful companies all have a reason. So you can use their brand value to work legally, earn extra income.
What is a condotel that helps me?cost saving
Owning traditional rental properties can be a waste of time; annoying by frequent repairs and maintenance. That will erode your potential profits. However, with Condotel, the daily tasks are taken care of by the staff.
This utility also depends on the specific facility where you buy the hotel apartment; staff can very well handle daily amenities such as housekeeping, marketing, service charges, bookkeeping, operational details and administrative expenses, etc. Some places even provide equipment obtain or negotiate this cost; allowing you to save more on your investment.
Less expensive than motels
The price for a motel at a popular resort can be very high. But with Condotel, you can buy an existing property for personal use; It may come with a lower price.
Many Condotel investment opportunities are found in resorts, where skiing, beaches and other attractions are a short walk away. In some cases, they can even be located right in the hotel apartment premises.
Purchases can be made with financing
Yet another reason why these assets are so useful for an investment portfolio. That is, they can be purchased by lending. That means you don't need to liquidate assets; spend a large percentage of cash… just to use this product.
With other investments, you may not be able to make a substantial purchase with financing. But this is entirely possible when you work with the right lender. Supporting high-quality Condotel loans can make these properties more attractive; but consider whether this is really right for you.
What is a condotel? Risks when investing in Condotel investors need to know
The legal framework is not clear
Currently, the legal framework governing real estate in general must be consistent with the Law on Land, the Law on Housing and the Law on Real Estate Business. Condotel alone is a type of both accommodation and tourist accommodation, so it attracts a lot of peoplemany buyers.
However, from a legal perspective, the law has not specified what a condotel is; making trading in reality very difficult. In addition, due to the "hangover" between residential and commercial functions; Therefore, many buyers easily confuse Condotel with residential houses or ordinary apartments.
Limited time ownership
Condotel has many types of ownership, some are granted for long-term use; but there are also projects that are licensed for only 50 years of ownership.
In case some projects are used for a long time as residential land; for the reason that the land allocated to the project owner is originally residential land. In contrast, some projects have land use rights for only 50 years; by the investor is allocated land for commercial projects. Therefore, when granting ownership to homebuyers in that project, it is only 50 years.
What is a condotel?Ho was granted a household registration certificate
Besides what is Condotel, whether Condotel can stay or buy Condotel with household registration is also a concern of many people. According to many experts and lawyers, this is really not easy.
If the nature of the project approval is resort real estate, the approval of the investment policy does not allow the formation of residential units; ie, if residential land is not formed, it is difficult to apply for a residence permit or permanent residence. This may make it difficult for your child to go to school, get a job, etc., so buyers should consider carefully.
Buyers must always be alert
Because there are many risks, when investing in Condotel projects, it is necessary to consider many aspects; How to evaluate your ownership interest. When signing a contract to assign the investor to manage the real estate, it is also necessary to carefully study the terms, conditions and benefits.
Assess the market in terms of the project construction area as well as the project's profitability. There are worst-case scenarios if the investor or management unit is no longer involved in project management; How will Condotel buyers handle the small amount of investment they have spent?
Funding support for businesses to develop projects
Investment holding company Truong Gia Construction was formed during the period when the country was on the way of renovation, the construction of infrastructure was the foundation for socio-economic development. So what do we get from a profitable cooperation with Truong Gia with the Phoenix Villa project?
Investment capital is up to 1600 billion VND and the total investment capital called for in phase 1 is 160 billion VND. The Phoenix Villa resort project is one of the largest projects in the Central Highlands region. The total area is more than 35ha, far from the city center. Pleiku 17km. The peace that the scenery of the mountains and lakes brings will help remove the sorrow deep in the soul with the typical cultural values of the mountain town. Phoenix Villa project promises to bring new and attractive experiences. Future owners of Phoenix Villa real estate will fully enjoy many benefits from this ecosystem.
Profitable cooperation with Truong Gia Construction:
- Secured by loan agreement.
- Free insurance package up to 230 million VND.
- Discounts from 10% - 30% of services exclusively for investors.
- Full legal contract, in accordance with the provisions of the Law.
Epilogue
Hopefully the above sharing is useful, helping readers have more information to answer the question: "What is a condotel?". If you find yourself not having much in-depth experience and willing to take risks; then let's accompany and support capital for business to develop projects to create passive income.
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