Is a condo hotel in Orlando, Florida a good investment?

Question

I really want to get onto the property ladder and I found a condo hotel that looks very promising.

This actual Condo hotel that I am looking at is in pre-construction and will be finished in 2010. The development is expected to cost $850 million with a Broadway theater, spa, conference halls, restaurants and lots more

My unit that has been offered to me is in the high $300's and I would have to pay 10% of that by the end of this year and then another 10% at the start of next year. Then I would have to pay the rest (80%) when the construction is finished in 2010.

I was told that the condos will be going up in price in two weeks as the condos are selling out fast. So hopefully I could sell the condo hotel 2010 if it went up quite high for a good profit?

It is a little over my budget but if I work very hard I could afford it. I was just wondering if a condo hotel in Orlando, Florida is a good investment as there are so many hotels in Orlando I am not sure.

This condo hotel is is situated less than one mile from the entrance to Universal Studios, Orlando and only one-and-half miles from the brand new Orlando/Orange County Convention Center.

And do you think the prices in Orlando will rise in 2 - 3 years?

Answer 1

I think if things go your way, you'll make just a little money by 2010 after you pay a realtor, maintenance fees, put in furniture, etc. If things don't go your way, which is quite possible, you'll be trying desparately to unload your condo because you'll have no clue how to pay the huge bill in front of you. Maybe you'll have to sell at a lower price.

I don't want to paint too bleak a picture, but from what you write, this is more than you can really afford, and you have no room to be even slightly wrong about the market. The Orlando area has been growing, but, as others have mentioned, we might be in for a period of little improvement in prices or even a decline in prices. Over time, it will most likely work out, but it doesn't sound like you will be able to wait.

Answer 2

When your gut says "I'm not sure", what you should do is refuse to bet.

Make no mistake, this is a bet on higher prices in the future. Did prices go up in the past? in the long run, yes. Will that continue? maybe. Can anyone be specific about prices in 2010? No.

There are/were plenty of speculators in just such properties in Miami only two years ago. However, the market has changed and now they are trying to void their contracts almost as quickly as they wanted to get into them.

I know it sounds obvious, and the time to get into such things is when your project is the only such thing going. The risk then is that you may be too early and prices won't go up for the first several years you own it. However, that beats the other end of the trend -- when prices go down because there are too many such projects with too many speculators instead of resident owners and they want to get out.


The only sure and near certain way to profit from these things is to be the saleperson who is trying so hard to sell it to you.


Do more research. Find out if there is another one 1/2 mile down the road. Or three of them. Worse, they might be ahead of yours in the rush to get built. That could mean that, come 2010, there'll be few buyers and plenty of sellers -- with prices going down instead of up.

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The other potentially major flaw here is that you do not disclose how this bet might fit into your overall financial and retirement plan. If you do not have such a plan, or do not know how it will fit into it, --- DON'T do it.

Get your plan straight first.


GL

Answer 3

Yes, I think it would be a great investment. It is in a great location even if there are competitors. If you do decide to go through with it I am a loan officer and would be glad to help you with a loan. Sometimes you got to take a chance but investing in property is a money maker from what I have seen. Email me if you want a great rate and a loan soon considering the price going up in two weeks. Good luck even if I don't hear from you, take care.
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Answer 4

There are alot of condos and other real estate available in central Florida right now. You would not have to invest now and wait and hope for a return on your investment if you buy something that is already built. Check my website www.exitbrian.com before you invest.