ILOILO CONDOMINIUM vs BELMONT HOTEL INVESTMENT
Real estate and property investment can be confusing. Perhaps you are wondering which of the two will be best suited for you — a Condominium Unit or a Belmont Hotel share.
Both share plenty of similarities but they do have distinct differences.
Here are 10 of them:
| CONDOMINIUM | BELMONT HOTEL | |
|---|---|---|
| 1. Property Management | Condominiums have personnel and staff that handle general building maintenance and operations. However, unit owners manage their own units separately, or pay property managers to manage their units. | Belmont Hotel is totally managed by experienced hotel operators which includes maintenance of units (suites). |
| 2. Finding Renters and Occupancy Rate | Condominium unit owners would have to find renters on their own. They may also hire agents or use rental property management companies such as Mangga Homes to find renters of their units. The occupancy rate of condominium units will heavily depend on unit owners’ capability to find renters. | Again, Belmont Hotel is fully managed and operated as a 4-star hotel which includes efforts in sales and marketing. The hotel pperator will do its best to get as many bookings as possible for maximum profitability. Expected occupancy rate is found to be at 80% to 90%. |
| 3. Modifications to the design and function | Condominium unit owners have the absolute freedom to redesign or customize the interiors of the property. | Belmont Hotel unit owners should adhere to the design standards of the operation. Understandably as a hotel, it should be uniform with other units/suites. |
| 4. Use of Unit | Condominium unit owner may use their units at any time, of course, as long as they haven’t contractually rented the units out during that time. | Belmont share owners may only use their units for 30 days every year for free. |
| 5. Rental Prices and Income | Condominium unit owners can price their units according to their own liking. The amount of income will heavily depend on how often owners can find renters with the rates they impose. | Operators of Belmont Hotel, determine the booking rates. They already studied the market and know how to price each stay. Amount of income will really depend on the occupancy rate. |
| CONDOMINIUM | BELMONT HOTEL | |
|---|---|---|
| 6. Monthly Association Fees | Condominium unit owners pay monthly fees for maintenance and staff. The amount depends on the size of your unit — the bigger your unit, the higher your monthly fees. | Belmont unit owners do not pay a single monthly fee. Maintenance and staff are already accounted for. |
| 7. End-use as a personal residence | Condominium units are perfect residential entities. It is mainly designed as a home with luxurious amenities. | Belmont will be constructed to function as a luxury hotel. The amenities and design are that of a 4-star hotel. |
| 8. Ownership of the unit | Condominium unit owners have total ownership unless they contractually rent them out to other parties. | At the outset, Belmont investors already agreed to have the unit leased by hotel operators for at least 15 years. During this time, with very few limitations, operators would use the units as hotel suites. |
| 9. Appreciation of Value | Condominium units appreciate in value every year and the rate is mainly commanded by the overall development of Iloilo Business Park. | Belmont Hotel Iloilo’s rate of appreciation is pretty much the same as far as real estate property goes. However when it is appraised during its operation as a hotel, the profitability of the business is often considered. If the hotel business is doing well, it will have a better appreciation. |
| 10. Exit Strategy | Pretty much the same but with a distinct difference.
As a condo unit owner, you price your own unit based on your best judgement of its value and you may offer it to anyone. | With Belmont, you give the Belmont operators the right of first refusal. In short, you offer to sell them the property first. You can only present to other parties when operators have formally refused your offer. |
Ernest’s Recommendation:
If you are looking for a property investment which you actually want to use for a considerable duration of time, and if you want more control in terms of use and design, I recommend you invest in a CONDOMINIUM UNIT.
Now, if you are purely looking for a worry-free investment and just want profitability and ROI’s without the hassle of managing your property and finding tenants, your best bet is a BELMONT HOTEL ILOILO INVESTMENT.
