For wise investors, making investments during a buyers’ market is an effective long-term strategy. This is why real estate developer CitiGlobal Realty and Development Inc. is advising Filipino investors, including overseas Filipino workers (OFWs), to consider low-risk investments like condominium units, which have prices dropping by up to 15% for the first time in 10 years amid the pandemic (according to a report by Colliers International).
The company is particularly pushing for condominium hotels or condotels—condominiums that are also operating as hotels. CitiGlobal is developing condotels in strategies and high-value locations nationwide to provide possible passive income-generating opportunities for discerning property investors.
In a condotel, a unit owner earns by receiving a share of the total profit generated by the hotel operator managing it. This makes sure that there is income, especially in areas where demand for hotels is high all year round.
Here are the best reasons to consider investing in a condotel during this pandemic:
1. Acquisition prices are dropping.
As mentioned, condo prices are dropping significantly, paving the way for a buyers’ market. Such properties may become expensive again when the economy rebounds from the pandemic.
2. The hotel industry has a record of easily recovering after a crisis.
“The hotel industry’s vulnerabilities are multi-faceted,” said CitiGlobal Realty and Development Inc. Managing Director Gary To. “Still, its ability to deal with impacts associated with these vulnerabilities in the past, for instance, the SARS outbreak in 2003, stands in good stead to overcome Covid-19.”
3. You can earn even if you are away.
Condotels provide investors with shares of the overall income generated by the hotel operators, not just from their unit/s. Thus, a condotel unit owner can rely on a steady passive income even if he/she is away (perfect for OFWs).
4. Your property will be taken care of by professionals.
You will not need to actively maintain your unit—no need to even hire caretakers to do occasional maintenance activities. The condotel’s operator will take care of all aspects to book potential tenants and keep them accompanied during their stay.
5. Enjoy hotel privileges while staying for free.
Not only can you gain passive income; you can also get to enjoy staying in your unit and enjoy all the luxurious leisure perks of staying in a hotel—for free.