Nowadays, many people use condotel as an investment instrument. Can condotel or condominium hotels produce a large return? How does it work? Are you interested in condotel investment? Let’s look at the explanation together. Aside from that, if you’re looking for a high-quality condo in Singapore, we recommend you to buy the Pullman Residences condo.
Just as the name suggests, condotel or condominium hotels are buildings that are similar to apartments. Depending on the type, a condotel unit can have several types of rooms such as bedrooms, living rooms, kitchens, and bathrooms. In addition to these units, the condotel is also equipped with public facilities like those provided in five-star hotels, for example, restaurants, swimming pools, spas, and meeting rooms.
The way these investment works is not much different from the way apartment investment works. As an example, investors buy a Pullman Residences condominium unit for later rent to guests who stay or just stay a few days in this condotel. It can be concluded if this condotel is rented like a hotel but has a complete room like an apartment.
Like other investments in property, condotel investment provides several benefits. One of them is the income obtained from rent. In contrast to apartments where you can get rent every month or year, you can get rent every week or every day by owning a condominium unit. The facilities in this condominium can also be used free of charge, including the convenience of a free stay. Furthermore, each condotel unit prices tend to increase every year and can reach an increase of up to 20% per year. If you only need loan money, you can use this condominium unit as collateral for your loan at the bank.
However, there are some things to consider in investing in a condominium hotel, especially if it isn’t placed a strategic location and it doesn’t have many good supporting facilities. That’s why people tend to buy condos in strategic locations like the Pullman Residence Newton. It’s very good if you have a condotel unit in tourist areas, where many people need a stopover. The concept of the building is also important to note. The other two factors are hotel managers and developers.