patrick.net

Killerjane, you're talkin' some good sense!

Thanks to all who've taken a moment to respond. Your insight is very helpful.

You are seriously considering paying $263/sqft for a Las Vegas ---condo--- ? Are you nuts?

It's 30% vacant for a REASON. :) Seriously though... how much do they have in reserves? I would be really careful buying anything in Vegas. I highly doubt their market is at bottom there yet but I could be totally wrong :)

Monkeyswing says

033: Spoke with an agent in the building. Apparently Mutual of Omaha is offering 30 year fixed loans between 4-5% with 20% down.

Good point Clambo, but this view is not abundantly available. Actually, once and if they finish the next 15- 20 stories down an almost identical view WILL be available.

BayArea: You must be in your condo for the long haul given how much cash you could now be holding had you rented. How are you feeling about your purchase?

When I run the numbers for this place, I'm looking at a huge, sickly number per month. 500 purchase price with 20% down at 5% is about 2,150/mo. Add 930 HOA's and from what I can gather from the agent 4,000 year property tax, I'm looking at 3,400/mo. Haha. That's insane.

ApocalypseFuck, you need a radio show or something.

Yep, and now you're at $1,224,000 over 30 yrs not $500,000, and not including the down payment -- so really $1,334,000 or about $702/sq ft.

IMO w/ the view you just see a bunch of gray buildings. Not my style :)

30% occupancy tells me that demand hasn't met supply meaning price needs to shift a lot ;)

GUAB, I guess I should qualify that the view is stunning for Vegas. I would much prefer an ocean view. Just snapped this one. It's an ocean of light!

And yeah, thinking about 30 yrs of interest makes me wanna puke.

I have no idea what they have in reserves...

Monkey,
High-rise taxes on the strip are 1.02-1.05 percent, so is that agent telling you the condo is already at $380,000?
More interesting would be his explanation of how 4-5 percent, 30-year fixed works outside of a developer financing new units.

That view is fabulous, you know the strip better than anyone here, and you really want to live over there. You'd be happy there. Why not rent? If your payment is less than $3,400/month, you're already ahead.

Monkeyswing says

Is it smart to buy a luxury condo in Vegas?

Overall, the answer is YES!!!

http://www.housingbubblebust.com/OFHEO/Major/SouthWest.html

As long as your buying/paying... 1997 prices plus inflation (35%) your pretty much safe. Some downside, but not much...

Lucky for you LV, received enough media coverage that it is impossible for Real Estate Agents to deny impact of housing bubble or cook up stupid reasons why prices should be higher or there are multiple offers on every home, so there is no reason for putting offers over asking.

I would compare the condo you're thinking of purchasing to similarly priced houses in the Vegas area first. No one really knows if those condos are good investments - most likely not - the only banks that lend for condos are the same banks that foreclosed on the buildings.

Monkeyswing says

I work at the Mirage, so yeah it's convenient to live close to work, although life in Summerlin would be way nicer. Would love to be close to Whole Foods and Red Rocks. Plus if you just walk a block east from Turnberry you'll be accosted by transvestite prostitutes. They're pretty harmless, though. Hehe

Straight shot down Desert Inn from Summerlin, 20-25 minutes. I do it often; while the freeway is stop & go.

APOCALYPSEFUCK is Tony Manero says

In 5 or ten years, the casinos will be squatted by neonazi cannibal tribes that will feast on the victims of the total collapse of the US economy who could not escape to less desperate locales. Rich people from the Valley and LA will be flown out in attack helicopters to hunt people from the sky. The Robb Report will recommend neighborhoods where the prey offer an interesting fight but not so much as to be a threat to someone with superior ordnance fighting from a gun ship.

AF, I fall in love with you a little more each day. If I ever meet you I'm bringing pepper spray, tho.

Monkey, you have a lovely view of the Vagrantworld resort. Don't worry about the transvestites - the gangs behind that lovely hotel will get you first.

thomas.wong1986 says

Monkeyswing says

Is it smart to buy a luxury condo in Vegas?

Overall, the answer is YES!!!

http://www.housingbubblebust.com/OFHEO/Major/SouthWest.html

As long as your buying/paying... 1997 prices plus inflation (35%) your pretty much safe. Some downside, but not much...

Lucky for you LV, received enough media coverage that it is impossible for Real Estate Agents to deny impact of housing bubble or cook up stupid reasons why prices should be higher or there are multiple offers on every home, so there is no reason for putting offers over asking.

If there are multiple offers on every property, why is his building 70% vacant if pretty standard financing is available?

Again, there is a good reason the building is only 30% occupied. And that's because prices are far too high. Supply and demand.

If you have no idea what the reserves are and you are seriously considering buying -- you are either very uninformed and shouldn't be buying anyway, or you aren't seriously considering. I assume you're just kind of shooting the idea around though and haven't spent a lot of time on it yet. Reserves and assessment history are one of the first things you check out before anything else.

Is there a risk the builing can be turned into apartments instead of condos?

GUAB, I posted here for exactly this type of critical input. Thanks. When Turnberry Towers EAST hit the market it was 2008 It was mostly pre-sold. From what I understand that building is mired in litigation and really difficult to buy/get financing. I imagine most of the owners are just miserable or washing their hands of it. Turnberry WEST, on the other hand, was born 2nd and for this reason (given its timing in the collapse) hardly sold. Since then, condo prices have sort of stabilized, at least in comparison to losing half their value, the owner declared bankruptcy, and an opportunistic investment group stepped in with plans to finish the building slowly as investors/clients showed interest. So, with regards to assessment, I assume you're talking about the integrity of the building? I'm guessing it's perfect, but I would need to put an offer on it and get an assessor in here to make sure, right? With regards to reserves, are you referring to how much extra cash the HOA's hold? That I don't know and will find out. Yeah, I'm just tossing around the idea, but I'm serious at the same time and want to make an informed decision. I'm also only interested if the owner (private owner not part of the investment group) needs to short sell and I get a super sweet deal on it. I checked history of short sales of comparable units on Zillow and there's only one. 4 stories down. Same floor plan. It sold for 425 a year ago. The owner then furnished it and put it on the market for 680 where it now sits, and that gave me a good belly laugh.

Killerjane, I don't know is there?

Spoke to the manager. Assessment = HOA's. Now I know! And their reserves are very good.

Monkeyswing says

BayArea: You must be in your condo for the long haul given how much cash you could now be holding had you rented. How are you feeling about your purchase?

Are you rubbing it in :-)

To tell you the truth, I needed a place to live back in 2007, found a desirable property in a desirable location close to work and decided to pull the trigger. If I had a crystal ball, obviously I would have rented and bought several years later. The combination of having that much money into a property and no equity to show for is certainly an unsettling feeling.

Many folks out there are either rich or poor due to timing unfortunately.

BayArea, if it makes you feel any better I also bought a property in 2007. Up in Fort Bragg, CA. Paid 349 and now it's worth about 220. But like you, I needed a place for my mom to live and decided to pull the trigger. Stings, but hey, my mom's got a place so it served its purpose. What I wouldn't give for a crystal ball now!

Monkeyswing, good to know I am not alone (obviously given the magnitude of this problem right?)

What also stings is that I am still paying about $750 more per month owning than I would renting today. I can't refi because I already did that once under the HARP plan and I can't short sale since my finances are fine, so that leaves srategic default. Given that I want to be a landlord, that's not exactly possible. Quite the death clench on my balls, lol

Hope that this thread gives you a pretty good idea if you should buy or rent that Vegas condo :-)

no

Oh, that sucks! At least you were able to take advantage of HARP once.

My place up in Mendo has two cabins on it so at least I'm getting some rental income from the property. Mom doesn't contribute. I'm about 800 upside down per month. Sigh.

I'm thinking I should rent for 2012 and see what goes down... This condo poses a lot of risk.

Monkeyswing says

What I wouldn't give for a crystal ball now!

50 comments (although some of them are yours) aren't crystal ball enough?

There are so many cheap houses in Vegas why dont you buy a cheap house with a lot of land so your far enough from your neighbors use the rest of the money to deck the thing out like the Taj Mahal.

much better than renting a crappy apartment, IMO.

OK, I didn't see the view.
The unmentioned reason to have an awesome view is to get chicks.
Having an impressive view is for...impressing impresionable girls. There must be some of them running around in Vegas.
Abalone! Ft Bragg!

Monkey can rent what he desires; it's way cheaper in the long run.