Buyer Beware
[LAS VEGAS, NV]
by: Chenier Ferguson
The skyline of Las Vegas is quickly changing. It's going vertical! High-rise condominium living is all the rage in this resort town. More than 30 million tourists fly from around the world to take a gamble on this entertainment mecca each year. Now, real estate developers are hoping to cash in on the allure of the Vegas skyline and flood the market with innovative living ideas. The problem is that the luxury condo market is inundated with inventory right now so while it is a buyer's market, it's really buyer beware.
Coldwell Banker Premier Realtor Damon Cochran says there's a lot of bank-owned and foreclosure inventory right now, so there is a lot of real estate to choose from with competitive pricing. He suggests having a real estate agent do your research for you and make sure that you're getting the best deal. "Just don't go settle on one thing," says Cochran, "Broaden your horizons. If you want something for x amount of dollars, then look a little higher. Don't limit yourself because there are deals to be made at all levels and you may end up getting more for what you wanted."
When the condo craze started in Las Vegas in 2003, a lot of investors came in during pre-construction pricing and bought up units hoping to make a quick buck on a flip. However, since the condominium towers have been built, the real estate market has changed leaving a lot of investors with units they can't unload. Some luxury high-rises report a large number of units with lockboxes on the door with the units priced the lowest selling first.
There are also a number of big name projects where people put money down on units and the projects ended up never getting built. Before you put money down, it's important to know what you're getting into. Cochran warns, "you need to look for the projects that are actually going to be built. There are a lot of projects that fall out. Developers buy land, but they end up not building on it." One good example of a project gone bad includes the Las Ramblas High-rise development planned near the Strip. The project was backed by Hollywood actor George Clooney, but developers couldn't make it work. The same goes for the tower at Las Vegas Boulevard and Sahara financially backed by Ivana Trump.
Cochran says if you put money down on a big condo project and the unit never gets built, you can get your money back. Again, to ensure that you don't have any problem getting your deposit back, he says it's best to get a realtor involved. "Realtors have their own attorneys who can go after developers who try and leave town with your money."
There are currently more than 52,000 vertical units already in development for the Las Vegas real estate market at a value of $35.6 billion dollars according to the real estate guide Sales Traq. Eighty planned projects have been named for the local market; however, not all projects will be completed or sold out.
Living on the Las Vegas strip offers a wide assortment of choices. Many of the mega casino resorts have built their own condominium towers located on property. This allows residents to not only enjoy high-rise living with incredible Strip and mountain views, but also all of the amenities offered to casino guests.
One of those properties includes the Residences at MGM Grand. Towers one and two are completely sold out. Prices for tower three start in the $500,000s to $2 million. The largest and most anticipated development is MGM-Mirage's seven billion dollar City Center located between the Bellagio and Monte Carlo Casinos. The project, which is still being built, was already named as one of the top 100 real estate developments by Travel and Leisure Magazine. The 61-story resort and casino will open in 2009 and feature more than 3,400 rooms and 564 suites. Four separate towers will serve as either residential living quarters or hotel accomodations including: the Vdara Condo Hotel, Veer Tower, The Harmon and Mandarin Oriental. There will also be plenty of fine dining restaurants and high end retail stores located on the property.
"High-rise condos offer a different type of real estate than we're used to in Las Vegas," states Cochran. "In Chicago, condos offer a view of the lake. In Las Vegas, you have a view of the Strip, so the Strip is like our lake view." The reason developers are going vertical in Las Vegas is because they're running out of land. "It's going to change the landscape of Las Vegas because before, if it got old, it got torn down. Now with residential towers being built, it's not so easy to tear them down."
There are three things you should keep in mind when making an offer on a luxury condo on the strip. First, real estate experts say don't be afraid to make a low offer. There is a lot of inventory out there and developers are looking to unload some of their units even at cost. Another reason developers are accepting lower than normal offers is the fact that construction costs are so high, they need to just break even on the deal. Finally, there is a lot of competition. Suburban high-rise condominium complexes offer tenants some of the same great amenities but at a lower cost just minutes from the strip.
If luxury condo living along the Las Vegas Strip is for you, then take the plunge now. Market analysts predict the housing market will take an up swing in Southern Nevada in 2008. Take advantage of buyer's market pricing and have patience. Your property is sure to see a nice appreciation through the year 2008.
Las Vegas Condos
by: Chenier Ferguson
The skyline of Las Vegas is quickly changing. It's going vertical! High-rise condominium living is all the rage in this resort town. More than 30 million tourists fly from around the world to take a gamble on this entertainment mecca each year. Now, real estate developers are hoping to cash in on the allure of the Vegas skyline and flood the market with innovative living ideas. The problem is that the luxury condo market is inundated with inventory right now so while it is a buyer's market, it's really buyer beware.
Coldwell Banker Premier Realtor Damon Cochran says there's a lot of bank-owned and foreclosure inventory right now, so there is a lot of real estate to choose from with competitive pricing. He suggests having a real estate agent do your research for you and make sure that you're getting the best deal. "Just don't go settle on one thing," says Cochran, "Broaden your horizons. If you want something for x amount of dollars, then look a little higher. Don't limit yourself because there are deals to be made at all levels and you may end up getting more for what you wanted."
When the condo craze started in Las Vegas in 2003, a lot of investors came in during pre-construction pricing and bought up units hoping to make a quick buck on a flip. However, since the condominium towers have been built, the real estate market has changed leaving a lot of investors with units they can't unload. Some luxury high-rises report a large number of units with lockboxes on the door with the units priced the lowest selling first.
There are also a number of big name projects where people put money down on units and the projects ended up never getting built. Before you put money down, it's important to know what you're getting into. Cochran warns, "you need to look for the projects that are actually going to be built. There are a lot of projects that fall out. Developers buy land, but they end up not building on it." One good example of a project gone bad includes the Las Ramblas High-rise development planned near the Strip. The project was backed by Hollywood actor George Clooney, but developers couldn't make it work. The same goes for the tower at Las Vegas Boulevard and Sahara financially backed by Ivana Trump.
Cochran says if you put money down on a big condo project and the unit never gets built, you can get your money back. Again, to ensure that you don't have any problem getting your deposit back, he says it's best to get a realtor involved. "Realtors have their own attorneys who can go after developers who try and leave town with your money."
There are currently more than 52,000 vertical units already in development for the Las Vegas real estate market at a value of $35.6 billion dollars according to the real estate guide Sales Traq. Eighty planned projects have been named for the local market; however, not all projects will be completed or sold out.
Living on the Las Vegas strip offers a wide assortment of choices. Many of the mega casino resorts have built their own condominium towers located on property. This allows residents to not only enjoy high-rise living with incredible Strip and mountain views, but also all of the amenities offered to casino guests.
One of those properties includes the Residences at MGM Grand. Towers one and two are completely sold out. Prices for tower three start in the $500,000s to $2 million. The largest and most anticipated development is MGM-Mirage's seven billion dollar City Center located between the Bellagio and Monte Carlo Casinos. The project, which is still being built, was already named as one of the top 100 real estate developments by Travel and Leisure Magazine. The 61-story resort and casino will open in 2009 and feature more than 3,400 rooms and 564 suites. Four separate towers will serve as either residential living quarters or hotel accomodations including: the Vdara Condo Hotel, Veer Tower, The Harmon and Mandarin Oriental. There will also be plenty of fine dining restaurants and high end retail stores located on the property.
"High-rise condos offer a different type of real estate than we're used to in Las Vegas," states Cochran. "In Chicago, condos offer a view of the lake. In Las Vegas, you have a view of the Strip, so the Strip is like our lake view." The reason developers are going vertical in Las Vegas is because they're running out of land. "It's going to change the landscape of Las Vegas because before, if it got old, it got torn down. Now with residential towers being built, it's not so easy to tear them down."
There are three things you should keep in mind when making an offer on a luxury condo on the strip. First, real estate experts say don't be afraid to make a low offer. There is a lot of inventory out there and developers are looking to unload some of their units even at cost. Another reason developers are accepting lower than normal offers is the fact that construction costs are so high, they need to just break even on the deal. Finally, there is a lot of competition. Suburban high-rise condominium complexes offer tenants some of the same great amenities but at a lower cost just minutes from the strip.
If luxury condo living along the Las Vegas Strip is for you, then take the plunge now. Market analysts predict the housing market will take an up swing in Southern Nevada in 2008. Take advantage of buyer's market pricing and have patience. Your property is sure to see a nice appreciation through the year 2008.
Las Vegas Condos
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