A fresh and innovative approach to buy to let investing is capturing the imaginations of property investors around the world. Apart-hotels or Condo hotels as they are otherwise known on the other side of the Atlantic are out performing traditional buy to let investments because they are not solely reliant on domestic markets or the local economy. Instead they focus on something everybody needs and takes; holidays and travel.
Apart-hotels consist of freehold apartments that are utilised effectively for short stay accommodation including holidays, business trips or visiting friends and family. Possible reasons for people to travel are numerous and naturally a place to stay is top of their list of requirements. Investing in a good Apart-hotel is as much about investing in travel and tourism as it is bricks and mortar.
The key to seeing a good return with an Apart-hotel investment is its location. If demand for short stay accommodation is consistently high all year round a significant income can be generated to pay off the mortgage or even expand the property portfolio. It can also be leveraged to encourage banks to look favourably on mortgage applications.
Another key aspect of this investment model that is converting traditional buy to let investors is its hassle free nature. The hotel resorts are fully managed and marketed by an experienced management team who split the income 50:50 with the investor.
Investors also enjoy a generous 56 days personal use at no extra cost. If personal use is not required the properties can be purchased via a SIPP (Self Invested Personal Pension) making it an extremely tax efficient investment.
A prime example of an excellent Apart-hotel investment is the Royal Suites Marbella, a luxury resort located in the heart of the Costa del Sol where average hotel occupancy (the number of people who stay over the course of the year) is running at around 60%. Official figures for August 2007 show that over 85% occupancy was achieved and according to local press the first quarter of 2008 is looking even better with reports of significant increases on the previous year.
