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August 14 2012


Riversails condo at Serangoon launch aug 2012

An estimated 40,000 to 60,000 condo hotels are increasingly being developed for sale in the next 1.Five years. That will buy each one of these condos? Is there a bubble in condo hotels? Does the consumer even demand condo hotel units?

Riversails Condo by Allgreen
Real estate markets might have slowed, but all of us must understand that we have been setting records in product sales. The slow down can be a reversion to a average historical pace.

Riversails Condo by Allgreen
Unlike traditional condos, condo hotels haven't been over-built or older supplied. In the Miami area alone there are 60,000 /- traditional condominiums on the market or arriving at market. The national supply of condo hotel units is lower than this figure. The three largest markets for condo hotels in the usa is Vegas, Orlando and Miami; sorts three of the strongest hotel markets with high demand from baby boomers for retirement residences. 78.Two million seniors will reach retirement in the next 14 years. The interest in condo hotel is just start to awaken and provide is a fraction with the overall retirement home or hotel development market.

Also, unlike traditional condos, condo hotels can produce hassle-free rental income.

The hotel companies are marking another record year and demand is increasing, the forex market underpins the opportunity investment price of condo hotel sales. If supply of new hotel strategy is constrained by construction costs so that as many existing resort rooms are transformed into condo hotel ownership, the economics for condo hotel owners could improve.

As mortgage lenders for the condo hotel consumer, we have had time to get to know many buyers and learn top notch their motivations and demographics. Typically our clients are already real estate investment minded and savvy retirement home clients who would like another home at under two to 8 weeks each year for individual use. They've got owned other styles of rental properties, and lots of have committed to commercial real estate. They often site the will for appreciation and tax benefits before a 'cap rate' nevertheless they often have a comprehensive understanding of the income potential of condo hotels.

There has been an increase inside the number of buyers who are employing funds from a 1031 exchange to buy an apartment hotel unit. The typical age of our borrowers is 51 yrs . old, solidly inside the baby boomer demographic. The majority are self-employed or by having an average of 13-years inside their present employment positions. Notably, a majority of these buyers have expressed curiosity about purchasing several condo hotel unit in a variety of destinations, for private use, diversification and also to stagger seasonal cash flows from properties.

For over Twenty years, the resort industry for condo hotels has proven an affordable solution to traditional condominiums and 2nd homes. One of the most numerous examples will be in ski country, where families have obtained and used condo hotels as second homes having a rental program to offset costs. But this next generation of condo hotel buyers may look different weight loss people view the benefits of this real-estate product.

Broad acceptance of condo hotel being a retirement home market has yet to completely develop. The media is full of conflicting stories about condo hotels, and individuals are reasonably skeptical. The broad market is not early adopters associated with a new concept, the niche buyers are the first customers to embrace any product, and condo hotel is proving exactly the same.

Some projects have niche themes to attract a particular narrow demographic of buyer. For example, college alumni who would like to have condo hotel ownership for sports are purchasing. Downtown pied-a-terre locales that attract suburbanites or corporations who frequently send employees to a city center condo hotel destination are just beginning to arrived at market and attracting a fresh buyer class. Resorts offering lifestyle services and amenities have found 'member-minded' clients who may live around the corner. These new consumers will define the next thing with this industry.

An apartment hotel is much more than real-estate, it's a lifestyle purchase, a long-term investment plus a trend that is just start to identify its demand.

Don't be the product, buy the product!