Buying Overseas Property

Apart-Hotels Safer Option in Credit Crunch?

Apart Hotels also known as Condo hotel or even condotel seem to becoming more and more popular with overseas property investors in a credit crunch. So what is making this type of investment so attractive to seasoned investors?

Apart Hotels are  typically a three-star or higher hotel property with a management company that takes care of all the hassles typically associated with ownership, including maintenance and finding hotel users or renters. They offer the investor to own a city hotel room that will give in many cases guaranteed return on investment.  

Much of the Apart Hotels available are ready for purchase off plan or pre construction. This element alone can be instant equity once the hotel or apartment block is finished. Apart hotels offer a

The vast majority of buyers want condo hotel units primarily as investments and are focused on the potential for appreciation with the side benefit of hassle-free ownership. They see the ability to actually use their condo hotel unit as a vacation home as important but secondary to their goal of investment diversification.

The speed with which these properties sell out is often as surprising to buyers as it is to the developers themselves. For example, the MGM Grand in Las Vegas, a 576-unit condo hotel, was expected to sell out in two years. It sold out in two months! The Platinum, a 255-unit property in Las Vegas, also sold out in just a matter of a couple months. Its clear that the armchair investor feels secure in this type of development and one that appears to look after itself
 

CHOOSE WISELY. According to financial planner Alan Locke of Locke Financial Services in Palatine, Ill., the hotel’s amenities could be a good barometer for appreciation. "It’s better to invest in a hotel that offers something valuable and long-lasting, like a great ocean view or a PGA championship golf course," says Locke. "For the same reason, getting a place right on the Las Vegas strip is a good idea because that strip is always going to have the best casinos."

Choosing a premium property managed by a recognizable brand can also improve a unit’s chances of increasing in value

Apart-Hotels For Sale
 

• Frankfurt Germany Apart-Hotel 
• Marbella Spain Apart-Hotel

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