| I have quite a bit of experience working with the luxury high rise condos in Las Vegas and figured I would provide some insight into how to get started if you are looking at making an investment and purchasing a condo at one of these properties. When selecting a property, the first item you will need to consider is what type of financing will you use to make your purchase. The second factor is deciding if you are purchasing the property as an investment or for personal enjoyment. The thrid factor is determining a price range. The final factor is determining a purchasing strategy, weather it be buying a developer closeout, purchasing an REO, or pursuing a short sale.
Defining the Market for Luxury High Rise Condos on the Strip
I will start by first defining the market for luxury high rise condos on the strip as a it is a very nich market. This market includes condos that are over 5 stories tall and located within 1/2 mile of Las Vegas Blvd. These buildings include Allure Las Vegas - Mandarin Oriental (City Center) - Juhl - Metropolis - MGM Signature - Newport Lofts - Palms Place - Panorama Towers - Sky Las Vegas - Soho Lofts - Trump Towers - Turnberry Place - Turnberry Towers, Vdara (City Center), and Veer (City Center).
Factor #1: What Type of Financing Will I Use to Purchase My Luxury High Rise Condo?
Financing is an important factor because only a handful of the outlined properties have financing in place or meet the guidelines that are offered by any banks. The condo-tels, which include Palms, Vdara, and MGM Siganture are all Condo-Tels and financing is not readily available for these projects. A quick check of the MLS shows recent sales at Sky, Turnberry Towers, Turnberry Place, and Newport Lofts that where financed transactions. Outside of the MLS, it is known that Panorama North has financing in place as well with 20% down. So, if you are planning on financing your condo purchase, make sure to speak with your bank or get pre-qualified with a bank that offers the financing before you begin your search. The majority of purchases currently taking place are cash sales and any seller will want to see your approval before they will consider your offer. If you are paying cash, you will need "Proof of Funds", which is a statement showing liquid funds totalling more than the purchase price being offered to the seller.
Factor #2: Is Your Purchase for an Investment or Personal Enjoyment?
If your purchase is for an investment, you will take into account different factors than if you are buying for personal enjoyment. If you are buying as an investment, you may be concerned with the HOA dues which effect your cashflow when renting the property. Properties like Turnberry Place and Panorama Tower I and II, have higher HOA dues (Approx $.65/sqft) in relation to other buildings because they include extra amentities like a membership to the Stirling Club at Turnberry and Limo Service at Panorama within the dues. Also, at a residence like Turnberry Place, the units are larger in square footage, a factor in determining the monthly HOA fees. As a note, Panorama Tower North is at $.42/sqft, which is on the low end and Allure is in the middle at $.54/sqft.
If you are buying for personal use, you may be more concerned with on site amentities and proximity to off site activities like shopping, dining, and entertainment. Properties like Veer, Vdara, and Mandarin Oriental are centrally located at City Center and have a lot to offer at a price. HOA dues at these properties range from $1.00/sqft (Veer) to $1.40/sqft (Mandarin Oriental). You may also be looking for Tennis courts, and if that is a must, you might be driven to the Turnberry Towers (2 Hard Courts) or Turnberry Place (4 Clay Courts and Tennis Pro On site). Other factors also come into play like onsite pet parks for pet owners which is a feature that Soho and Newport Lofts lack. If you are going to live in your residence, take a close look at the amentities because each building has its own offerings it will bring to you. This will pay off in the long run.
Factor #3: What is Your Price Range for Your New Condo?
If price is a factor, you can narrow down your selection in the beggining. I would suggest looking at properties within your range so you can focus on what is attainable. Factor in the purchase price and carrying costs including the taxes and insurance to find a property that will fit your budget. A good agent should be able to assist you with this before your begin your search. Remember, the monthly costs are just as important as the purchase price in deciding what your comfortable with spending.
Factor #4: What is Your Purchase Stategy?
Developing an effective purchase stategy is very important in purchasing your luxury condo and getting the most for your money. The truth is good deals can be found using the 3 most common strategies which are purchase a bank owned property, purchase a builder closeout, or purchase a short sale. The quickest and easiest transaction to close is to purchase a developer closeout. These units can be purchased and closed in 10 days or less, the units are in new condition, and they come with a warranty. Allure Las Vegas has been heaviliy promoting its inventory liquidation with very attractive pricing and incentives for buyers to buy now. City Center reduced their pricing by 30% on the Veer, Vdara, and Mandarin Oriental Residences. The bank REO market is another attractive option with a good amount of inventory available and typically quick 30 day closings. The most active REO buildings include Turnberry, Allure, Sky, Metropolis, Panorama I&II, and MGM Signature. The newer the buildings, the less REO activity that you will find. The final choice, but not necessarily a bad choice is to pursue a short sale. Short Sales are most effective when targeting properties that have lots of upgrades or breathtaking views that do not translate to an asset managers desk very well. If you have time on your side and do not mind waiting, short sales can be an option. I typically suggest pursuing a short sale if my buyer can not find what they are looking for as an REO or Developer Sale, so it is used as a last option. Submitting an offer on a short sale is often a tactic that can be done in tandem with shopping the REOs.
Summary
In summary, shopping for a luxury high rise condo takes a little strategy and if you are ready, it may be time to put your game face on develop your game plan. Get your financing in place, determine your use, size up the features you desire, and pick a stategy that will work for you.
About the Author My name is Jason Trindade and I am the King of Condos in Las Vegas. I run the web site www.kingofcondoslv.com, which features over 30 buildings in Las Vegas including information, pictures, and access to listings. I am a Realtor and Property Manager and I specialize in the luxury high rise condo market around the Las Vegas Strip. If you ever need any assistance or have any questions, I can be reached by cell at 702-371-8941 or by email jason@kingofcondoslv.com. |
