Condo hotels have many qualities that set them apart from timeshares and make them appealing to a unique segment of the second home industry. Following is a comparison between these two types of property investment.
FLEXIBILITY IN USE
Timeshares – When you purchase a timeshare, you choose not only a set location but also a particular week or two that you will use your holiday home every year.
Condo Hotels – Using a condominium resort, you have the flexibility to use your unit when you want. Bear in mind, however, that some condominium hotels do have living restrictions that keep you from making your condo a permanent residence. Visit here If you want to buy Affordable condo hotels.
Timeshares – The typical timeshare has a community pool and a few common areas.
Condo Hotels – Condo hotels have many of the amenities you’d find at luxury hotels.
Timeshares – Timeshares are sold fully furnished. The quality of furnishings depends on the individual development. The cost for the furnishings is built into the price. Check out here, for other kinds of condos.
Condo Hotels – Condo hotel units are sold fully furnished typically with high-end furniture, appliances, and fixtures selected by a professional interior designer. The cost for furnishings is included in the price of the condo hotel unit.
Timeshares – At a timeshare, you’re responsible for your own housekeeping and unit upkeep during your stay.
Condo Hotels – You get daily housekeeping as you would in a luxury resort. The vast majority of condo hotels are operated by big-name hoteliers like Ritz Carlton and Hilton, the consummate professionals when it comes to customer support. Most of the same services available at their luxury hotels are offered in their condominium resorts.
Timeshares – Timeshares are located in highly-desirable resort areas.
Timeshares – Costs for timeshares vary greatly but are typically lower than condo hotel prices since you’re only purchasing a couple of weeks of usage. Additionally, you don’t obtain any of the revenue generated during the 50+ months that your timeshare unit is used by others.
With timeshares, as much as 40%-50% of the cost goes to sales commissions. Why are the sales commissions so high? The developer must maintain a large sales force in order to make approximately 50 sales for every single unit (one for each week of the year).
Condo Hotels – You get deeded ownership to the property. Although more costly, condo hotels tend to give you more for your money than timeshares.
In addition, when not using your condo hotel unit, you can place it in the management’s rental program and receive a percentage of the revenue it generates, helping to offset your maintenance expenses and debt service.