Maui Real Estate Q&A - What's a condo-tel?
A Condo-tel is short for Condo Hotel, where a condo complex is run like a hotel or resort, with a front desk that greets guests and takes walk in bookings. Not all condo buildings will have a front desk for customer service. Here in Hawaii, condo-tels are quite common in the resort areas where we get a lot of off-island owners. Absentee owners means a lower percentage of owner occupants.
What does this mean to buyers and sellers?
Buyers need to be aware that their lender will probably require a greater amount of down payment if the complex is determined to be a condo-tel. Maybe even as much as 40%. Buyers should work with a Hawaii lender who understands the nuances of condos and resorts here in the islands. Be prepared to bring as much cash as possible to the table.
Sellers need to understand that this tougher qualification for a loan means that fewer buyers will be in a position to complete the purchase of their desired Maui condo. That means longer DOM and maybe even only cash buyers will step up to buy.
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Other Q&A posts:
- What's a tsunami?
- What's a Residential Condo?
- What's an Ohana?
- What's Makai and Mauka?
- DOM - huh?
- What's a TMK?