I think Las Vegas is toast for a couple of reasons.

1. Who is going to go on Vacation with unemployment hitting 25% in the next year?
2. Who is going to be buying condos when interests rates will go through the roof?

I would not buy under any circumstances. You should be thinking of moving.

I totally agree. I wouldnt be buying either especially a condo.

From the LV Business Press link above.

The largest loss in LV sports book history was going to be if TB won the recent World Series. Of course the Phillies saved the casino's millions and millions. I think TB was 150 to 1 at the beggining of the season and everyone who visited LV from Florida bought one of this Risk $100 to Win $15,000 TB lottery tickets.

yyb

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By the time you read this, the San Diego Chargers may be eliminated from the National Football League playoffs. That's the hope of MGM Mirage Director of Race and Sports Jay Rood.

When the Chargers were 4-8 and the season seemed over, Rood listed the preseason Super Bowl favorites at 500-to-1 odds to win the NFL Championship.

All that changed when San Diego won four games in a row and the Denver Broncos dropped their last three games of the year, including a 52-21 loss to the Chargers in the regular season's final game. San Diego made the playoffs and hosted Indianapolis in a wild card game Jan. 3.

A few MGM Mirage customers hold those 500-to-1 tickets for the Chargers.

Rood didn't post a line on the Chargers winning out while the Broncos simultaneously went into the tank. But he said the odds would have been anywhere from 150-to-1 or 200-to-1.

"That was pretty much a long shot," Rood said before the first round of playoff games. "We adjusted the Chargers line back down to 8-to-1."

One football wager MGM Mirage paid dearly for was the +250 line on the Detroit Lions finishing the season at 0-16.

"Unfortunately for the Lions, most people thought they wouldn't win a game," Rood said. "Unfortunately for us, that's the way they bet and we took a loss on that wager."

This cant be a serious thread.......can it ?

Mark to Mark in the LV Real Estate Market

Made an offer on 4 condos (package deal) for 20 cents on the dollar. And the owner/bank said they could NOT take the offer as they would have to mark to market the other 100 condos they own in the same complex and that would BK them. Told them my next offer would be 15 cent on the dollar.

They are waiting for a federal bail out.

There are over 10,000 housing units in foreclosure in Clark Co (Las Vegas) that are NOT listed in the MLS for sale. That is in addition to the 7,700 foreclosed units LISTED in the MLS.

Skiffy,

Q1. Who is going to go on Vacation with unemployment hitting 25% in the next year?
A. Me I am a retired millionair and am on vacation 24/7.

2. Who is going to be buying condos when interests rates will go through the roof?
A. I pay cash for most everything so the interest rates are that much of a concern to me unless you are worried about my 'lost interet income'?

Personally I prefer living on ground with a good supply of water under it.

buy on the strip

Four condos?? Save your money and buy a whole casino in two years. All the TFers could hangout there.

Quote:

Up grades to the units were with the top of the line appliances...

I've come to find this is largely meaningless nowawdays. I'm renting a condo just outside of DC on the potomac river that's only a few years old. Everything here was supposed to be top of the line. The kitchen has $30k in upgrades in this tiny 2 bedroom place.

In the two years I've been here, my "high-end" stainless fridge has broken, as has my washer and my hot water heater. My $300 kitchen faucet (Kohler garbage) has leaked the whole time. Even the crown molding throughout the whole building is crooked. I don't know how the developers got away with a lot of it.

Made another cash offer on a 2Br unit at $115,000.

Last sale price 10/17/05 was $547,700. (115/547=20%)

Pretty sure the bank (HSBC) will accept as they are hurting and shuting down their USA operations.

"buy on the strip"

It is on the strip behind the Flamingo Hotel.

Walk to all strip properties.

Yyb - tried to pm you but your mailbox is full. Any to delete to let a new one come in? TIA

Rate_Babe,

Ops! Didn't know there was a limit of 20 e-mails in a TF inbox.

Deleted a dozen so go ahead.

Yyb

Your initial post sparked my curiosity... I've really dug into that property the past few weeks. In the process I have discovered the following:

(1) One RE agent holds 147 units (out of ~650 total) that are either foreclosures or short sales.
(2) Another agent lists 43 units by location (building number/unit number).
(3) The units being held for hotel suite rental don't appear (for the most part) to be listed as sales.
(4) I get notification by MLS # of 4-5 new units coming on the market each week.
(5) The HOA fees are assessed by unit but appear to run $300-$400/mo.
(6) In regard to #5 - The problem is that with the prices down so much and the whole complex in a state of flux, who knows what it really is.
(7) Using Google Earth 3D view I was able to verify unit 332/bld 1 (a Monaco) commands a balcony view of the Bellagio *grinz*.
(8) Looking over the neighborhood to the east of the complex I suspect that the complex is gated/guarded for a reason.
(9) I can provide links if you so wish but I suspect that you have also done your homework.

Did you happen to notice that some units are still listed for like $350K (private sale) while the adjoining unit (in foreclosure) is listed for $70K? Talk about a haircut! It looks like a good deal assuming that Las Vegas neighborhoods off the strip don't go "Mad Max".

Here's another special little goat-**** that can occur in these see-thru condo situations: The homeowners association can't/doesn't pay for liability insurance and then there begins all manner of slips and falls for squatters and other "guests". You get the tab.

I'd friggin' hate to try to maintain an elevator by myself.

Mistah,

Nice work. The condo complex is in a development called the Hughes Center. The Hughes Center is a 68 acre site bounded by Flamingo Road on the south and Sands Road on the norht and runs from Koval on the west to Paradise on the East. I call it the Financial District of Las Vegas. WF has a major office there, and the sie includes 9 major office buildings and lots of 'expense account' restaurtants, Kinko/Fed Ex and of course Starbucks. All which I can walk to.

The large undeveloped area to the west is owned by Harrahs, as is most real estate in the area. I have seen any number of develpement plans including a sport arena for an NBA team, an amusment park like a water park and a resort/time share.

Hughes Center
http://www.3980hhp.com/home/about.asp

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HOA Fees
(5) The HOA fees are assessed by unit but appear to run $300-$400/mo.

There are 8 different floor plans in the complex. 4 one bedroom and 4 two bedroom. The sq ft goes from a low of 515 for a Athens to a high of 1258 sq ft for a Valencia. HOA fees/costs are allocated on a per sq ft basis to the best of my knowledge.

http://www.meridianprivateresidences.com....

HOA costs are coming down as labor, serices, etc are reduced. The pool girl got layed off and that was a shame as she was real eye candy. The home owner fees aren't falling as the units in forclosure aren't paying their dues but they aren't rising either due to cuts. One of the two pools was closed but hey with on 300 units occupied it's not a big deal to have only one pool open.

i can swing 70k!.. what do you think one could rent it out for?

..i can swing 70k!.. what do you think one could rent it out for? ..

Rents are a good question.

Before being converted to a Condo Complex rents were ~$1,400 a month.

Afer significant upgrading to units and complex rents when to $1,750.

I am now hearing of rents of $900 month.

But there is lots of rental competition in LV. But this is ideal for those who work on or near the strip (dealers, musicans, strippers, etc) as they can walk to work! Of course they don't.

Yyb, your condo will not fall into the following story, but I tell the story for your edification. People are telling you to get the minutes from last months' HOA meeting, if any. You should.

Near me, when I was active as a realtor, is a lower end complex where the HOA either deferred mtce badly or stole the money, whatever. Now, this was built (cheaply) in the 70's, and mtce will undoubtedly be less in LV with the dry climate. I understand your complex is much newer.

But recently, each of these condo owners was assessed $41K in special assessment. Never mind the RE crash, never mind the credit crunch, this was 2 years ago when things were going swimmingly. You wake up on a Wednesday and your home is worth 41/280 say 15% less. Kaboom.

Please do not underestimate the warnings being given you over the vagaries of a black hole HOA fund. It could devastate you.

If you want Vegas, I'd stay away from condos and try for a single family home.

If the dollar does devalue in the IT-LT, then I can see Vegas kicking some serious ass again... also wonder if Chinese will want these condos to diversify out of RMB paper?

Groups of Asian (Chinese) investors are touring Las Vegas (Clark Co, NV) with the intent of buying up real estate according the local newspaper and reports of realator I associate with.

My post from 2009-03-06 Updated below with results of this offer to buy.

Made another cash offer on a 2Br unit at $115,000.

Last sale price 10/17/05 was $547,700. (115/547=20%)

Pretty sure the bank (HSBC) will accept as they are hurting and shuting down their USA operations.


2009-03-06

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A 'squatter' moved into this unit and the deal fell thru. A property rental guy leased it for 2 months to a corp executive from Southwest Airlines. The listing agent had the property rental guy arrested for fraud because the unit was bank owned and the SWA guy moved out within 48 hours but I suspect he lost his deposite and first months rent. The property rental guy worked for the previous owner who defaulted and claimed he knew nothing of the default. Total lie but probably hard to prove.

By the time all the dust cleared (2 weeks) the average price for this type (2br/2bath) of unit had fallen below $100,000 so the perp probably saved me $30k or so by pulling his sham rental stunt.

On the subject of HOA fees.

The HOA is remaining solvent by:

1) Cutting Costs: only one pool open for summer, two of three access gates closed thus reducing security staff, club house closed, pool girl let go, club house closed, lawn maintance rebid to lower bidded, etc.

2) New Owners: units are starting to pass into strong hands and I estimate that nearly 300 units out of 660 are now paying HOA dues. When a unit sells, the seller aka bank pays 6 months in arrears HOA dues. Nice lump sum but most are two years in arrears. The rate of sales is picking up and is about 1 unit a week. But at this rate it will take a couple of years to clear the whole place unless the rate picks up to 1 a day.

Of course the the class of owners could be moving down the economic scale but I still see a lot of BMWs, Audis, etc. in the parking lot next my Saturn!