[quote author="tenmagnet" date=1228445815][quote author="usctrojanman29" date=1228445105][quote author="tenmagnet" date=1228444754][quote author="usctrojanman29" date=1228443394][quote author="tenmagnet" date=1228382083][quote author="WestparkRenter" date=1228377309][quote author="IrvineRealtor" date=1228377057][quote author="WestparkRenter" date=1228375661]I've heard LV home prices are really down. Could someone who is familiar with LV tell me where to look? I mean what cities nearbly. I'm looking for a nice 3 BR/2B SFR with at least decent granite counter tops -
I think trojanman was looking for an investment partner there. PM him.</blockquote>
I don't want to partner with anybody.</blockquote>
I was thinking the same thing.
A little different criteria though.
Maybe one of those condos affiliated with the Palms Hotel.
Where you get to use and have access to all the amenities of the hotel like the pool etc.
I play and stay at the Hotel at MB, don?t know if they offer something like that?</blockquote>
You want to buy a condotel? Palms Place is a condotel. If you are interested in a true condo, take a look at the Panarama (sp?), Sky, or Turnberry condos.</blockquote>
Regarding the condotel suggestions you posted, what?s the pricing and market look like?
Are they affordable or over priced in your opinion?
Since I don?t know the market, I?m relying on your expertise here.</blockquote>
Pricing needs to come down since the fundamentals of condotels are based upon the hotel room rates which have come down a lot recently and will continue to due so with the opening of other Vegas projects (Encore and City Center). To give you an idea, the Trump project has about 1,200 units and only about 200 of those units have closed since the construction was completed back in April. Transactions for condotels has slowed down to a crawl due to difficulty in obtaining financing. Even if you were to find condotel somewhat attractive you will have a huge issue finding a lender to finance the purchase as the property is looked as an investment property (you can't convince the lender that it will be your secondary residence/vacation home). So you would be looking at having to put down 40-50% down and having an interest rate of 7-8%+ compared to a rate slightly over 5% if you bought a home or regular condo.</blockquote>
Now we?re getting somewhere, you did not disappoint.
So what you?re basically saying is that prices will continue to soften and come down from current levels.
Is that right?
Wasn?t aware of the funding issue.
How do we get it financed as a second home/vacation property?
I agree with you, financing under commercial, higher rate with more money down will not work.</blockquote>
Glad I can help, having lived in Vegas for a few years plus having done business there for 6+ years has helped me to understand some of the ins and outs of the market.
To answer your first question, yes the pricing on condotels will continue to soften as the current prices don't reflect the decreased room rates seen in the past 2-3 months. Again, a lot of investors/flippers picked up these condotels towards the peak of the real estate market. Think about it, why would a hotel/developer offer a condotel to the general public? The answer is because they can basically have the public finance the construction of the hotel rooms via the sales and then make money on the back-end by the revenue splits (usually 50-50), HOA fees, and other maintenance charges.
To get a property financed as a second home, the property needs to be an SFR or a traditional condo where there is not an option to put the unit into a rental pool. There are a handful of highrise condo projects that aren't condotels at or near the strip. As long as you don't a property in Las Vegas and you qualify for the loan, you should have no problem convincing the lender the property will be your secondary residence.