All Topics / Help Needed! / Is it good? Or isn’t it?

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  • Profile photo of giagia
    Join Date: 2005
    Post Count: 1

    O.K, The fact is, I’ve only just realized the importance of investing money in real estate and the many advantages. I understand about buying homes for rentals but what about hotel rooms? I only came across one recently while searching the net. Are they good or aren’t they? Does anyone have any idea how it works?

    Profile photo of AceyduceyAceyducey
    Join Date: 2003
    Post Count: 651

    Hi gia,

    Look at the vacancy rate for hotel rooms.

    Think about what improvements you can make to add value to the room.

    Think about the fluctuations in the tourism industry.

    Think about the land you own (remember, generally land appreciates, structures depreciate).

    Think about the management fees you’ll pay & your flexibility in changing PMs.

    Overall hotel rooms, time-share apartments and the like are niche investments best suited to those who have thorough understandings of the niche. And even then I’d find it hard to believe a case where they were as safe an investment as houses.



    In theory, there is no difference between theory and practice. But, in practice, there is.

    – Jan L.A. van de Snepscheut

    Profile photo of DerekDerek
    Join Date: 2004
    Post Count: 3,544

    Hi Gia,

    And getting finance on a ‘hotel room’ is usually not a standard 80% lend. More oftern than not you need to put in more equity (% wise) than you otherwise would.

    [email protected]

    Property Investment Support Available.

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