Companies tempt you with the offer of purchasing apartments in resorts. The owner can stay there for a few weeks, and the rest of the time it is rented to tourists. If you believe the advertisements, it’s a safe way to do business, but in reality you can easily get hurt by an unfavorable, long-term contract.
Buy an investment apartment with a view of the Tatra Mountains, use it for 3 weeks a year, and earn 8%. per year – tempting companies offering the so-called aparthotels. This form of investing has become very popular in seaside and mountain resorts, but before spending several hundred thousand zlotys – because a 30-meter “apartment” can cost as much as an apartment in Warsaw – the investor must make sure that the offer does not contain unfavorable provisions.
Aparthotel, condohotel, what is it?
The term condohotel is a combination of the words condominium (a collection of residential units) and hotel, similarly, aparthotel combines the words apartment and hotel. These are forms of alternative investments in commercial real estate. A consumer may be offered the purchase of his own apartment, usually located in attractive tourist locations. The buyer of such a commercial property can use it for a specific time of the year, and for the rest of the time it is rented in the hotel system. Such premises are of a utilitarian nature and in most cases are not protected by the provisions of the so-called Development Act – explains the Office of Competition and Consumer Protection.
The Office of Competition and Consumer Protection conducted a preliminary examination of the offers available on the market for the sale of premises in the condo and aparthotel system. The marketing message addressed to consumers and the information it contains regarding, among others: investment, the method of its implementation and financing, and planned profits, constituted the basis for initiating 10 explanatory proceedings by the President of the Office. Their aim is to initially determine whether investors have been provided with all their consumer protection rights.
The Office of Competition and Consumer Protection is taking a closer look at aparthotels
Apartments in Świeradów (ABInvestHouse), Mercure Szczyrk Resort (Beskid Resort Properties), Solmarina Gdańsk (Dekpol Deweloper), Forest Park in Świeradów Zdrój (Forest Park D. Surynt R. Urbanik), Linea Mare Pobierowo (Morris & Lloyd Broker), Saltic Apartments in Łeba (Oak Property), Witkac Residence Zakopane (Platan Hotels & Resorts), Radisson Blu Resort in Międzywodzie (Sea Invest Gabryjelski Kocwa), Zdrojowa Invest in Dźwirzyno (Vacation Club 2), Brzegova in Mikołajki (Vanto Estate).
The aparthotel does not guarantee earnings
The Office of Competition and Consumer Protection analyzes information posted on websites and in sales materials, such as folders available at sales points. In addition, the subject of analysis are contracts concluded with entities offering condo and aparthotels (developers, facility operators) and further lease agreements for purchased premises. The Office verifies the stages of implementation of individual investments and entrepreneurs related to the projects – entities offering sales, contractors, developers, investors and operators.
The aim of the analyzes is to determine whether entrepreneurs offering investments in condo and aparthotels reliably inform buyers about all aspects and conditions of the transaction. Initial observations may raise doubts about excessive exposure of the advantages and benefits of the investment, without paying attention to possible risks. The method of presenting profit may be an element of a marketing strategy that does not take into account factors such as the seasonality of rental or maintenance costs, which may result in profitability being much lower than declared.
– Before deciding to invest in commercial premises, it is worth reading the terms and conditions of such an offer very carefully. Let’s pay attention to the method of financing, security and whether the expected profit is not based on an unrealistic scenario. Only a full, reliable and comprehensive analysis allows you to make an informed investment decision, which should take into account the risk of loss of funds entrusted to the entrepreneur or lower than expected rates of return on capital, which are acceptable to consumers. We appeal to consumers to be careful and prudent when choosing this type of long-term investment– says the president of the Office of Competition and Consumer Protection, Tomasz Chróstny.