In order to answer the question, “What is a condo?” it’s important to understand that there are two different types of condos. A condo hotel is typically a vacation home while a condominium is basically a unit within a larger complex that you can buy.

Though typically part of an complex, a condo may also be a townhouse or commercial warehouse. The term “condo” does not refer to the type of structure but rather the way the ownership arrangement is written. It means simply that occupants, whether residential or commercial, must purchase their units or vacate.

When you purchase a condominium unit, you only own your individual unit and not any of the ground on which it sets. Each homeowner within the complex shares in common areas including elevators, pools, clubhouses, and hallways. In addition, there is a condominium association and an obligatory fee in the form of monthly dues or a special assessment that is used to take care of more extensive maintenance problems.

A condo hotel, on the other hand, is usually part of high-rise properties on select vacation areas. They are located near a variety of vacation spots such as beaches, golf courses, amusement parks, and other spots that tend to draw in vacation crowds. They are often part of a timeshare package and tend to be offered by large luxury hotel chains such as Hilton, Ramada inn, Hyatt, Ritz-Carlton, and the like.

Now that you have answered the question, “What is a condo?” the next issue you may want to address is whether a condominium suits your lifestyle. Keep in mind that you will own only the unit in which you live, not the ground, which means the value may not increase as quickly as a single family home or townhouse.

Condos make great vacation homes, whether singly owned or as a condo hotel, but many people are unhappy with the restrictions placed upon them as a primary residence. You want to make sure you weigh all of those issues before you invest in a condominium, keeping in mind that those you see on television are not the reality of condominium living.

It is no longer a question of “What is a condo?” but one of “Is condo living right for me?” You want to weight the good and bad points before you decide if you want to buy a condominium as your primary residence. A condo hotel, on the other hand, is the perfect solution for vacation living, especially if you are traveling with a family and don’t want to face the frustration and expense of eating out three times a day.

Each has its own particular purpose, and while condominium living may be too restrictive to many people, especially those with children, a condo hotel has more advantages than disadvantages. There are, of course, those who want a vacation from everything when traveling including cooking. There are those who would prefer to take the money they would spend in a restaurant to do some extra activities with the family.