I am looking for an investment to get the maximum return on my money. What do you think about a condo hotel purchase?

Much as I would like to sell you a condo hotel unit, I don't think it would meet your criteria as an investment. From what I've seen, from what I've read and from what I've heard, the returns on a condo hotel, in terms of revenue in your pocket each year may be nominal and probably no more than 5%-7%. If you are getting some use out of your unit, then you have to factor the value of that use into your equation. The place where you will see your greatest return on your investment is down the line when you are likely to get the appreciation on the sale of your property. Condo hotels tend to be built on prime oceanfront real estate that has traditionally shown a high rate of appreciation. Keep in mind, there is literally no more vacant oceanfront land left in Miami Beach, as well as in cities going north in South Florida. Additionally, the appreciation may be greater in a condo hotel than in a straight condominium building because the resort offers the services of a 4-5 star hotel like concierge, room service, etc. When you sell your condo hotel, those services definitely add value. It is worth noting too that with a traditional condo, you would have to find your own renters and deal with them and all their requests. Furthermore, traditional condo buildings have policies restricting the renting of your unit without homeowner association approval--something you wouldn't want to go through more than once or twice a year and certainly not daily or weekly! In a condo hotel, a professional management company finds renters through its extensive national and international marketing efforts, and is on site to maintain the property and deal with any problems relating to the unit and the property as a whole.

The above question was submitted via e-mail by a visitor to www.condohotelcenter.com. The answer was prepared by Joel Greene, a licensed real estate broker with Condo Hotel Center which specializes in the sale of condo hotel units and fractional ownerships in private residence clubs.