An Article by Beth Collingz, February 5, 2006

Condotels are probably the fastest growth areas in the hotel industry today. Condotels have been around for quite a while now, and have been "Hot Investment Properties In The US" for some time. Condotels that used to be available in vacation locations are now popping up all over the US thanks to the biggest names in the industry like Donald Trump as well as smaller companies who are making huge profits in less known areas. In the United States the highest concentration of Condotels today can be found in Las Vegas or Florida. In the Philippines Condotels can now be found in Manila and Cebu. Pacific Concord Properties Inc., The Lancaster Cebu Resort Residences in Mactan, Cebu and Lancaster Suites Manila are prime examples of the new breed of Smart Real Estate Investment Properties now available in the Philippine Real Estate Market.

But what exactly are "Condotels". A Condotel or Condo Hotel, is a combination of hotel and a condo. You can think of it as the best of all worlds. Operating like a hotel, usually with more amenities that a normal residential condominium building, the Condotel units are individually owned by many different owners. While different complexes and resorts may vary, most give you the choice of renting the units out or using them for personal use. Many of them have a rental program and management on the premises, getting rid of all the hassles that landlords always encounter.

Benefits of owning a Condotel

What are the benefits to owning a Condotel rather than other real estate investments? There are many!

Rent Revenue: Condotel units will produce rental revenues. That revenue can partially or completely offset the costs of owning and maintaining the Vacation Home

Appreciation Potential: The best selling point of Condotels as investment property is the rate at which they appreciate. Especially when purchasing at the pre-construction stage of the project. The rate of appreciation throughout the Philippines is generally negative especially in rural areas. However, cities such as Metro Manila and Cebu see annual property appreciation rates depending upon locations between 10% to 18%. Most Condotels are located specifically in areas that have seen and continue to see high appreciation rates such as Metro Manila and Mactan, Cebu. Furthermore, it is the Condotel Properties that are seeing higher appreciation rates than traditional single family homes and condos.

Diminished Supply Of Available Land: Desirable locations to build in the Philippines are not limitless. There is a dwindling supply of available land in key markets such as Metro Manila's much sought after Ortigas Center and Makati locales. In Cebu, the highly desirable Mactan is an Island and available building land at prime locations are fast being sold which ensures that Condotels built in these locations will have seen significant real property appreciation.

Condotels Appeal To International Investors: Condotels are particularly attractive to International Investors whom wish to own a Vacation Home and an Investment Property in the Philippines and yet don't have any of the hassles of maintenance or renting out the property when they are not using it. With property values flattening off and rental incomes weakening in US the Philippines, only 16 hours away, offers an idea alternative at prices far less than anything available in the US. Less than $45,000 will purchase a reasonable, fully furnished, 400sqft Studio at the Lancaster Cebu with projected Annual ROI through Rental Incomes of some 16-18%. The new Lancaster Suites Manila Atrium Tower II presents an even better purchase opportunity for International Property Investors. Studio Suites, at the Initial Launch Price can be purchased from $26,650 with projected Real Property Appreciation of some 60-80% during construction and a projected 100% Appreciation on turnover of the unit in 2010. Purchasing at this Launch Price would give a projected Annual ROI through future Rental Incomes of some 20-22% per annum when operational from later part of 2010. Additionally, the value of the Philippine Peso has enabled many European and American Investors to obtain upscale Condotel units for what amounts to "Bargain Prices" or for the same price as a "Garage" back home.

What most people do is have the management rent the units out for them to defray the costs, and sometimes even creating a positive cash-flow, it becomes a "Self-Liquidating" investment free from maintenance expense. If you feel like going on vacation, simply call up the management company and let them know that you'll be using your unit on specific dates, and they set it aside so no-one else uses it. Normally 30 days per annum are allowed for Owner Use of the units enrolled in a Condotel Rental Pool. Most Condotels now operate on a common or cooperative basis with rental incomes equitably divided between the unit owners irrespective of actual unit usage. This means that even if your unit was not rented out during any particular month you will always receive an equal share of the rental income from the pooled net operations income.

The Smart “Self-Liquidating” Investment Advantage !

Many of our clients are now purchasing the fully furnished “Ready-For-Occupancy” Condotel Suites at the Lancaster Cebu Resort Residences that will be become operational within the year, thereby realizing Rental Incomes, and using the rental income to Purchase a Studio Suite at the Lancaster Suites Manila Atrium Tower II on a “No-Down Payment” 5 year Interest Free Payment Plan with only $538 Monthly Installments enthuses Beth Collingz, Director, PLC International Marketing Networks. Condotels also have been appreciating in value at rapid rates in the last few years. Many investors have made incredible profits just purchasing and selling these units, which is known as flipping.

Where would I normally find Condotels?

PLC International Marketing Networks together with the PLC Global Filipino Agency focuses on the sale and marketing of Condotels in Manila & Cebu. If you want to learn more about where you can find condotels, check out Pacific Concord Properties Lancaster Cebu Resort Residences and Pacific Concord Properties Lancaster Suites Manila and the Mactan, Cebu

How much do Condotels cost and can you finance them?

Condotels have a vast range in price. This is another benefit of Condotel investments. Most offer Studio, One Bedroom, Two Bedroom, Three Bedroom and Penthouse Suites. No matter what your price range is, there is something out there for almost anyone. In the Philippines, Lancaster Suites Manila range between $26,000 and $220,000, Lancaster Cebu Resort Residences range between $42,000 and $95,000 so regardless of your price range, there should be something for you.

Although financing has been difficult in the past on real estate investments in Philippines especially for Foreign Nationals through local Banks, they have been getting much better in the past several years. Not too long ago, you would have to cough up a minimum of what amounts to 50% down in order to be able to finance the purchase of a unit. Now, developers have their own "In-House" No Qualification Finance Purchase Arrangements. Pacific Concord Properties adopts the International Standard of Escrow Trust Account Banking for all buyer's payments and units at the Lancaster Suites Manila may be purchased on No Down Payment Plans with payment periods up to 12 years. Interest Free No Down Payment Plans are also available for payment periods of up to 5 years. Whilst the Lancaster Cebu Resort Residences may also be purchase on minimal 15% Down Payment Plans with payment periods up to 5 years. Interest Free No Down Payment Plans are also available for period of up to 2 years. For more information on Pacific Concord Properties 'In-House No Pre-Qualification" financing plans, contact Beth Collingz of PLC International Marketing Networks in Manila or Cebu.

What is the best time to buy a Condotel unit?

There is a limited inventory of Condotel units, and there selling fast. Pacific Concord Properties The Lancaster Suites Manila Tower 1 "Sold Out" in record time. Most Condotels are sold out during the pre-construction and construction phase. As word continues to spread about the Condotel Developments of Pacific Concord Properties in Manila and Cebu, more and more investors from around the World, and not only Filipino Americans, are looking to participate in these solid investment opportunities.

Furthermore, because demand is outpacing supply, appreciation has been significant and rapid. In less than 24 months Pacific Concord Properties Lancaster Suites Manila Tower I saw prices appreciate from [Pesos] 43,000 to the current price of 76,000 per square meter or some 78% whilst the Lancaster Cebu Resort Residences have seen prices appreciate during the past 6 months alone from [Pesos] 64,000 to 76,000 per square meter or some 20% during which time the Philippine Peso maintained an average exchange rate to the US Dollar of around $1.00 to 53.00 Pesos. With Foreign Exchange Rates stabilized, now is the best time to act. Better yet, Pacific Concord Properties Inc provides Buyer’s the opportunity to avail of “Fixed Price” US Dollar denominated Contracts taking out any risk in Exchange Rate Fluctuations.

If anyone is interested to Join our Marketing Network to sell our developemnts either full-time or part-time  or for further information on Condotel Investments in the Philippines, please contact us

PLC International Marketing Networks
Pacific Concord Properties Inc.,
plcsales@pldtdsl.net
www.plcsales.coms.ph

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