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Despite fact that property is in a hotel setting, a condo-hotel is considered a private residence, and owners are eligible for mortgage interest deductions and all other tax advantages that come from owning a second home. However, most condo-hotels do not allow you to live in unit year round. This is because management company wants to rent out unit when you are not there, so both you and they can profit from that rental income.
Each condo-hotel property has its own residence restrictions that indicate maximum amount of time you can live in property. This is an important piece of information to consider before purchasing a condo-hotel unit. Most owners do not intend to live in their condo year round, so this is not a concern in typical circumstances.
Why not just rent a hotel room? In addition to investment aspect, condo-hotels usually offer more room than a standard hotel room. Most suites are one or two bedrooms, and larger units are available. Condo-hotels typically have cooking facilities and other homey features that hotel rooms do not. This makes it ideal to have family stay with you when they come to visit.
With advantages they offer over time shares, it’s easy to see why so many people looking for a vacation property investment they can also enjoy when they want are now looking at condo-hotels.
For more on finding and buying right condo-hotel, check out Make Your Next Home a Resort, 2005 Guide to Condo-Hotels, Fractional Shares and Resort Residences. You can download Guide as a pdf file at http://www.InvestingIN.com/realestate/resorts/resort4u.htm
Leon Altman is the founder of the InvestingIN Real Estate Letter - http://www.InvestingIN.com/realestate/LtrSignup3.htm - and its parent website, http://www.InvestingIN.com - which provides articles and newsletters about opportunities in different areas.