[gaash2]

I am looking to invest in some Las Vegas Real Estate. Investing on the strip seems more appealing to me. The yields don't look that great but the appreciation potential looks pretty good and I don't mind owning real estate on the strip. Population in vegas seems to be growing rapidly, but does anyone who moves to vegas etc. actually live on the strip/is anyone actually living in all the condos there?

[dynimagelv]

No

[von949]

Originally Posted by gaash2

I am looking to invest in some Las Vegas Real Estate. Investing on the strip seems more appealing to me. The yields don't look that great but the appreciation potential looks pretty good and I don't mind owning real estate on the strip. Population in vegas seems to be growing rapidly, but does anyone who moves to vegas etc. actually live on the strip/is anyone actually living in all the condos there?

99% sure that the growing local population won't have anything to do with a condo you buy on the LV strip. You will need to pay more attention to the tourists numbers, which is also growing, I think.

[gaash2]

Originally Posted by von949

99% sure that the growing local population won't have anything to do with a condo you buy on the LV strip. You will need to pay more attention to the tourists numbers, which is also growing, I think.

Yep, that is my main concern. I like the strip so the idea of owning something I could use for myself worst case isn't bad; however, it kind of defeats my investment thesis that growing population and low prices = higher prices (not trying to pretend I have any kind of special view here, just saying)

[BBMW]

MGM Mirage may be looking to sell a casino or two, to fix their battered balance sheet. You could make them an offer for the Mirage.

On the strip, that the only investment that makes sense. Retail level condos? Not so much.

[UTES]

The time to get a great deal on a Strip condo is two years in the rear view mirror. Investors watching the indicators already moved in with cash and have snatched up the bargains. I'm not saying there aren't any good investment Strip condos left, but they're harder to find at this point. Having said that, there's a good inventory of high-end properties available because their owners can afford to wait for a full recovery.

Bill

[gaash2]

Originally Posted by BBMW

MGM Mirage may be looking to sell a casino or two, to fix their battered balance sheet. You could make them an offer for the Mirage.

On the strip, that the only investment that makes sense. Retail level condos? Not so much.

They have much easier ways to fix their balance sheet which they are doing, refinancing 10+% coupon 1st lien debt at current market. No one is really concerned about MGM credit risk anymore.

[007 license to sell]

Actually there are people that want to live in highrise properties on or near the strip. As soon as Veer sales were announced that they were selling at lower prices I was deluged with buyers wanting to purchase to either live there full time or have as their vacation home. It's like owning a condo in Manhattan. It's not for everyone but let me tell you there are a lot of people that love Vegas and want to be in where everything happens and with in walking distance.

There are buyers that want a highrise not far from the strip. The highrise condo market has seen a correction it's been happening for the last 2.5 years. At one time there were over 30,000 highrise condo's for sale in Vegas now there is only a little over 300 resale's and a little over 1000 new remaining .

The prices have been going up and most of the buyers are paying cash. The strip is our ocean front property and there is nothing else like it in the US and people want to be a part of it. Highrise condo's are selling for half or a little over half of what they cost to build.

According to developers of highrise properties they say the don't see another highrise built like what you see now for 25 yrs maybe longer. The cost to build most of these high-rise's was $450.00 sq/ft some cost more than that too build. High-rise's aren't for everyone and living on or near the strip isn't for everyone. But living in the burbs isn't for everyone either. There are a lot more homes built than highrise condos'. Living on the strip and in a highrise has to be up to the individual not what other people say.

Here are some article on what is happening with some of the highrise towers.



Veer Towers has 100 condominium units to sell

<LI class=headline>Luxury high-rise sales sent skyward after $3 million remodel injects ‘personality’ <LI class=headline>One Queensridge Place sells five million-dollar condos<LI class=headline>http://www.vegasinc.com/news/2013/apr/02/hired-or-fired-how-trump-doing-after-5-years/
<LI class=headline>Tight supply limits sales of high-rise condos in Las Vegas

[ddrhazy]

You're looking at very high monthly association costs for the type of property you are considering. Vacation/executive rentals will require you to either live in Vegas or get a management company to handle the property for you. Calculate your monthly costs and your predicted yearly income with vacancy factored in to see if it makes sense.

[BBMW]

You're taking me a smudge to literally. I kind of doubt the OP has the scratch to buy a major strip casino/resort. My point was that if someone is looking to make money investing in strip RE, that's the way to do it, not buying overpriced condos.

Originally Posted by gaash2

They have much easier ways to fix their balance sheet which they are doing, refinancing 10+% coupon 1st lien debt at current market. No one is really concerned about MGM credit risk anymore.