Condo Hotel Investments in the Las Vegas Real Estate Market

Condo Hotel Investments in the Las Vegas Real Estate Market by Seb Jay

Good real estate investment is all about finding opportunities that deliver high rental yields and solid capital appreciation. It's a simple concept, but one that is sometimes difficult to implement 'in the field'. The principal barrier for many an investor is simply finding these high yielding real estate investment opportunities in the first place. If you find yourself in this position then what I'm about to reveal to you could literally change your life forever!

The Condo Hotel Investment Opportunity

Picture this: You buy a room in a hotel. You then rent it out to hotel guests via the hotel management's rental program. The guests stay in the room and use the hotel facilities. The hotel management company looks after the guests, they tidy the hotel room, replace worn or broken fixtures and fittings, and generally maintain the room to a high standard in line with the hotel's policies. Your sum total responsibility is to put the rental money in the bank. Simple!

Intrigued? If you are then I welcome you to the world of condo hotel investments!

The idea of investing in a hotel room is nothing new. The concept has been around for years. It is only recently though that the real estate investment community at large has woken up to the opportunity - that is with a rather large prod from the construction companies who build these hotels. They (the hotel developers) have found that if they sell hotel rooms as pre-construction investment opportunities, they get a new low-cost way of financing the project. In reality it's a win-win situation. The construction company gets to build the hotel at a lower cost, while investors get their hands on a piece of real estate that could be worth double its value by the time its built, and is virtually guaranteed to bring in a high level of rental income too!

Investors who are already playing the condo hotel investment route are finding out just how profitable a condo hotel room can be. James Fox, a condo hotel room owner based in the UK, purchased his Florida condo in February 2004 on a pre-construction deal. In the last year he's garnered a rental return of 6.8%, and at the same time has seen his investment increase in value by more than 20%. Another investor from Colorado has made over $2,000,000 in the last three years by just buying up pre-construction condo hotel rooms, holding on to them and reselling them for a profit once they are built.

Hot Condo Hotel Investment Locations

As with all types of property investment, the old adage 'location, location, location' rings true when it comes to selecting a condo hotel to invest in. Florida, New York and Las Vegas are all hot locations at present for condo hotels in the US, primarily because of their attractions - Florida for its climate and theme parks, New York for its famous city sights and for its shopping, and Las Vegas for its glitzy casinos. Outside the US condo hotels are not so well established. Nevertheless there are opportunities to invest in hotel rooms - one such scheme is the French leaseback opportunity currently running at Hotel Bruyeres in the French ski resort of les Menuires. The management company running this French condo hotel leaseback opportunity guarantees a rental return of 4% - 4.5% every year for the next 9 years! - (source: http://www.french-property-1st.co.uk )

And the best condo hotel opportunity of the lot? Well, it has to be the Downtown Athletic Club in Lower Manhattan, New York. The management company running the condo hotel operation in this soon-to-be-converted 1930s art deco style hotel building suggest rental yields of 6.25% and upwards, in addition to a conservative capital appreciation estimate of 30% over the next 3 - 5 years! - (source: http://www.propertymagnate.com )

About the Author
Article written by Seb Jay on behalf of www.propertymagnate.com

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