Depending on where you live and what school district you’re in, you are either anticipating spring break or have already embarked on a great spring getaway. The summer will be here before you know it, and if you learn one thing from your spring break plans, it is that people are returning post-pandemic to a thriving rental market with a lot of competition. It is critical that you get started now, or you could be left without any options. But first – consider whether it might be smarter to consider investing in a condotel instead of throwing more rental cash out the window. These are the reasons to make a condotel yours today!
What is a Condotel?
A condotel combines a hotel with a condo. It is a multi-unit dwelling that gives you, the unit owner, all the comforts of being at home with the amenities of a hotel, as well as the investment of having your own vacation rental to rent out as you see fit. It is like the best of all worlds. The problem with a condotel is that they are harder to qualify for a mortgage to purchase. Some mortgage companies either have higher restrictions for loans or prohibit them altogether.
What are the Advantages of a Condotel?
If the pandemic taught us one thing, it is that being stuck in one place stinks. Those who had their own vacation homes might not have been able to profit from renting them out, but on the bright side, they were able to get away and see different scenery! Another advantage of a condotel is that instead of throwing out your rental budget on a vacation, you use that money to own something that will either be yours forever, or when you are ready to trade in or up, you can recoup the money that you invested in it. It combines the appeal of a hotel with the comfort of a home, which makes for a familiar stay with an upgraded amenity package.
What are the Disadvantages of a Condotel?
With every positive, there is usually a negative. If there was another lesson learned during COVID, it was that the rental market comes with the inherent risk of your rental staying vacant. Although there are hopes that we can put better safety measures in place if shutdowns happen again, there will always be the potential that a condotel’s mortgage will not be enhanced by rental income. That is why they are harder to get funding for. The best way to avoid that, however, is to make sure to buy something that is within budget and have a back-up plan if things go south again!
If spring break is already behind you and you are looking to your summer plans, then a condotel is the answer. It is a fantastic way to build an investment for the future and also offers a great place to vacation. The good news is HomeSpring Mortgage not only sees the value in condotels – we are here to help you make your dream a reality! Contact our office today to start the process of owning your vacation home away from home!