Trend Report - Las Vegas High Rise Condos
Trend Report - Las Vegas High Rise Condos
This town has long been a world-class destination, and with the recent economic downturn, Las Vegas high rise condos have become surprisingly popular. Investors have turned to the distressed market with the hope of taking advantage of the opportunities and their interest in these properties have already led to an increase in sales.
Investors and Vegas Condominiums
A recent article from USA Today ("Las Vegas condos are on sale", 09/09/2010) reports, "second-home bargains are rampant." Citing TopTenRealEstateDeals.com, USA Today attributes this rash of buying to the fact that Las Vegas high rise condo prices are down 70% from the highs of 2005 and 2006.
Vegas high rise condos (properties once reserved for the very wealthy) are now within reach. Many luxury properties in the city have been purchased with cash because of the difficulty of qualifying for a second home loan.
The MLS (Multiple Listing Service) reports that this year, just over 40% of luxury homes have been purchased with cash and a negligible amount of luxury homes have been purchased with FHA financing.
This limits the power of traditional homebuyers and puts investors in an advantageous position.
The Bottom of the Market
In an August 6, 2010 article, the Las Vegas Sun reported that home prices will continue to fall, but it is anyone's guess as to how much and how long the trend will continue.
Yet, because of increased competition between investors and homebuyers, combined with the actual cost of building a new home, it is unlikely that prices will continue to fall as drastically as they have in the past two years.
As Las Vegas reaches the bottom of the real estate market, housing developers have changed tack and are now building smaller, less luxurious homes. When the market stabilizes in one to two years, investors and other potential buyers will find a shortage of Las Vegas high rise condos, lofts, and other luxury properties.
This means that existing high rise properties will be priced at a premium.
Be Realistic about the Risks of Property Investment
Investors should consider several things before delving into the market. First, the availability of Las Vegas foreclosed condos will gradually diminish as more banks work with homeowners to arrange short sales. LV investors will need to decide quickly on whether or not to pursue short sales or foreclosures.
Short sales and foreclosures can be risky enterprises, so investors should also make sure that they are willing to put money into improving the property. In many ways, foreclosed condos are easier than dealing with foreclosed houses, because there are no hassles of dead lawns and cracked swimming pools.
Out of state and foreign investors should also be wary of real estate scams that misrepresent properties. The best way to avoid this is to work with a trustworthy and experienced agent.
And perhaps the most important, real estate investments should be considered part of a diverse portfolio and not be the focus.
Investors and Vegas Condominiums
A recent article from USA Today ("Las Vegas condos are on sale", 09/09/2010) reports, "second-home bargains are rampant." Citing TopTenRealEstateDeals.com, USA Today attributes this rash of buying to the fact that Las Vegas high rise condo prices are down 70% from the highs of 2005 and 2006.
Vegas high rise condos (properties once reserved for the very wealthy) are now within reach. Many luxury properties in the city have been purchased with cash because of the difficulty of qualifying for a second home loan.
The MLS (Multiple Listing Service) reports that this year, just over 40% of luxury homes have been purchased with cash and a negligible amount of luxury homes have been purchased with FHA financing.
This limits the power of traditional homebuyers and puts investors in an advantageous position.
The Bottom of the Market
In an August 6, 2010 article, the Las Vegas Sun reported that home prices will continue to fall, but it is anyone's guess as to how much and how long the trend will continue.
Yet, because of increased competition between investors and homebuyers, combined with the actual cost of building a new home, it is unlikely that prices will continue to fall as drastically as they have in the past two years.
As Las Vegas reaches the bottom of the real estate market, housing developers have changed tack and are now building smaller, less luxurious homes. When the market stabilizes in one to two years, investors and other potential buyers will find a shortage of Las Vegas high rise condos, lofts, and other luxury properties.
This means that existing high rise properties will be priced at a premium.
Be Realistic about the Risks of Property Investment
Investors should consider several things before delving into the market. First, the availability of Las Vegas foreclosed condos will gradually diminish as more banks work with homeowners to arrange short sales. LV investors will need to decide quickly on whether or not to pursue short sales or foreclosures.
Short sales and foreclosures can be risky enterprises, so investors should also make sure that they are willing to put money into improving the property. In many ways, foreclosed condos are easier than dealing with foreclosed houses, because there are no hassles of dead lawns and cracked swimming pools.
Out of state and foreign investors should also be wary of real estate scams that misrepresent properties. The best way to avoid this is to work with a trustworthy and experienced agent.
And perhaps the most important, real estate investments should be considered part of a diverse portfolio and not be the focus.
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