Real estate: News
Golfers vacate in luxury vacation/investment hybrid 14/08/2006
Author: Lianna Brinded
South of Florida has domiciled a new luxury property that has got golfing enthusiasts and big investors buying up vacation home and luxury resort hotel property at the same time, in either Miami or Fort Lauderdale.
The combination of a golf vacation home and a luxury resort hotel has resulted in a new deluxe Resort Hotel Condominium which would provide investors the investment security as well as a holiday hot spot at the same time. It boasts complimentary tickets to a major golfing event, world renowned golfing school teaching, five championship golf courses (Miami), while the resort hotel condominium located in the Fort Lauderdale, Florida area offers two championship golf courses.
The hotel and condominium hybrid, a condotel, is a clear response to the increasingly active part of the private equity industry that is growing in popularity for investors.
"This is a new lifestyle concept combining the luxury, service, and amenities of a world-class hotel with the ownership benefits of a high-end condominium. This new real estate approach is ideal as a second or third vacation home, or a premier golf vacation residence," says Mr. Kevin D. Wright, a South Florida Realtor and Licensed Mortgage Broker.
The idea that an owner of a resort hotel condominium enjoys all of the benefits of owning a home as well as investing for the future, has also the added value that the owner has the ability to re-sell their condominium unit in the open market. The owner pays real estate taxes, maintenance fees, and the usual insurances. Under certain circumstances, these typical payments could represent tax deductions. Obviously one would consult a tax specialist for specifics concern tax deductions. Mr. Wright added, "Some buyers may find that purchasing a resort hotel condominium can be an excellent vehicle for 1031 tax deferred exchanges. We have the resources to put something like this together."
As an owner of a resort hotel condominium, each owner has the option of allowing their unit to be placed in a rental management program when they are not using their golf vacation residence. The golfers like this part because it can lower the carrying costs of their vacation home. When their home is not in use, a resort hotel condominium could generate hotel income.
"One should never leave an asset under-utilized. This is the part that attracts many golfers. Many golfers use it as a second or third vacation home that doubles as a real estate investment. Generally speaking the net revenue, after expenses, generated from the rental of an owner's suite is paid directly to the owner by the hotel management company," says Mr. Wright.
