These increases in property values are becoming significant and values are increasing at a faster pace in the larger condominiums.
North Myrtle Beach, SC (PRWEB) November 06, 2013
Everybody knows about the market drop, and the real estate market nationwide is finally starting to make its way out of the financial hole. This makes condominiums in North Myrtle Beach, South Carolina an excellent investment at the moment.
Terry Adams, the Broker In Charge of CondoLux Properties LLC in North Myrtle Beach, South Carolina, stated “in the newer ocean front condominium buildings in North Myrtle Beach, we are starting to experience a steady increase in values, tied to excellent rental revenue and sales comparables. These increases in property values are becoming significant and values are increasing at a faster pace in the larger condominiums.”
--- The condominium prices per square foot are comparable to the condotels in the Myrtle Beach market, if not more attractive.
--- The rental revenue is fantastic, and due to the lower HOA fees and significantly lower rental management fees, the net revenue ratios are as good if not better than condotels.
--- Another major reason for the popularity of the true condominium rather than the condotel is the size of the units, which makes them very attractive for large family vacations, and the condominium owner can experience very strong occupancy rates with significantly less wear and tear.
A condotel, also known as a hotel-condo, is typically a high-rise building that is developed and operated as a luxury hotel, which maintains a front desk for checking guests in and out. These condohotels have condominium units which allow someone to own it as a vacation home, and when they are not using it, they can leverage the marketing and management done by the hotel chain to rent and manage the condo unit as it would any other hotel room. Condotels can be rented on a nightly basis where condominiums usually are booked on a three to four night minimum occupancy.
Financing options are different as well for the two products:
Condotels usually require a 25% or more minimum down payment, and the terms are tied to an adjustable rate mortgage (i.e., three year ARM, five year ARM, or seven year ARM). Interest rates are often high than conventional rates; and
True condominiums can be financed under Fannie Mae guidelines, which means lower down payments, 30-year fixed rate financing, and lower rates on average.
Either type of property will work as an investment vehicle, but it will be worth your while to investigate both condos and condotels with your Realtor®.
For more information about CondoLux Real Estate or to speak with a licensed Realtor®, phone 800-624-6418.