NOW IS THE BEST TIME TO INVEST IN YOUR OWN CONDOTEL UNIT
There continues to be a growing interest in real estate investment.
Real estate, after all, has been proven to be among the most valuable and resilient assets to date owing to the fact that property prices and capital values appreciate in the long run. Many analysts even claimed that real estate is considered as a strong inflation hedge.
However, you will only fully enjoy the benefits of real estate investment when due diligence is done. You need to research extensively on your choices to ensure that you are investing in the right property and developer.
“It pays to be smart with our choices. Individuals looking to grow their investment portfolio must be willing to go through the tedious task of studying their options and understanding the benefits that come with it. You need to ensure that you will invest in something that can provide long term value,” explained Sta. Lucia Land president Exequiel Robles.
“We’ve already seen during the pandemic how crucial it is to include real estate in our portfolio, whether it’s for our own use or as a source of passive income. This is something that we, at Sta. Lucia Land, understand well and the reason why we continue to develop projects that would benefit our clients and provide them the opportunity to enjoy the fruits of their hard earned money,” Robles added.
Over the last decade, Sta. Lucia has been beefing up and expanding its portfolio to include offerings such as condotels. The concept of “condotels”—coined to mean a condominium with hotel units and facilities—is emerging to be an attractive and relatively hassle-free way of making your real estate assets earn for you.
Currently, Sta. Lucia Land has a number of condotel offerings nationwide, including SotoGrande Iloilo, a popular destination among travelers given its numerous cultural and culinary offerings.
“People now are realizing the benefits of investing in condotels, particularly the overseas Filipino workers (OFWs) who cannot readily oversee their property investments in the Philippines. The condotel concept is a hassle-free investment for them because even if you’re out of the country, somebody can manage it for you. Someone can market it for you. You don’t need to worry about unit maintenance and in fact, the amount that you can earn can also help pay for your dues, taxes and other expenses,” explained Sta. Lucia Hotel Management Group general manager Imee S. Yu.
“Purchasing a condotel unit—provided that it’s from a trusted, credible developer— would mean no headache, no marketing, no cleaning and no contracting with outside providers for maintenance,” Yu added.
According to Yu, the investor or unit owner will have to enter a 15-year leaseback agreement, in which he or she will will receive a rent income based on the size of the unit. A bigger unit means a bigger share on the net profit or dividends.
Of the total net profit that will be earned by the condotel, 70 percent will be divided among unit owners. Dividends are payable on a quarterly basis, net of the condotel’s monthly dues and realty taxes. Of course, how much you’ll earn will be subject to occupancy rates, inflation and foreign exchange movements. Unit owners will also be entitled to 30 room nights a year, provided that there are prior arrangements or reservations made.
Overseeing the condotel operations is the company’s hotel management group. This includes the leasing of the hotel rooms, maintenance, refurbishment and improvements, as well as managing operating expenses, association dues, real property taxes, common area charges, utilities, insurance and other expenses.
“Now is the best time to invest in a condotel unit, especially since we are starting to see a recovery in local tourism. I believe that our condotels are a really good option given that the Sta. Lucia Group has been in the industry for more than five decades now and have already built more than 250 projects across the country. You are assured that you can trust us with your investment,” Robles concluded.
For more information, visit Stalucialand.com.ph or call (02) 8681-7332