Investing in real estate is a tricky business. Make the right choices and you get a pretty good return on your investment, but make a wrong move and it can mean your financial funeral.
If you are planning on investing in a condo-hotel, make sure you know all the details before making a decision. Do not get carried away by promises made by condo-hotel developers giving away guaranteed annual ROIs. While there may be investment properties that are able to hold up to their promises, there are also plenty that bloat figures in their efforts to sell the property and then get away with giving you much less than you expected simply because you didn’t read the fine print.
Always check the track record of the real estate developer before sinking your money into a condo-hotel. Yes, it is a great idea to buy at pre-selling prices, but if the building doesn’t even get finished you’ll end up with an empty bank account and an empty shell instead of a nice unit.
Image via Charles Jagoda