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The location is good, it's right near all kinds of stuff. Nothing wrong with it at all. In fact I know a company president who only stays at Platinum now, he loves it.
I think the HOA dues are too steep for what it is though.
the location is good?? are you serious? You might want to take a trip here to see EXACTLY where it is... there is a reason why the condos are 100k.. You'd be better off next to the Stratosphere!
I also live in Downtown L.A. John, I wonder how far you are from me, haha.
But as for the LV real estate market, it's definitely near the bottom. I'm not saying overall that it might not go down another couple of percent this year, but the condo prices are absolutely ridiculously low. Maybe I just don't know enough poor people or something, but when I first looked at the prices on the Strip for these premium, brand-new luxury buildings, I just thought, "Ok this must be wrong, is this some really old building? Wait no 2007 hmm ok. Maybe there's something wrong with this building. Wait no here are other buildings with cheap prices. Hmm maybe these units are just the short sales. Wait no it seems like almost every unit is this cheap!" I was in complete disbelief. I just assumed even the smallest condos in most markets are around $300,000, because even the ones in Portland, Oregon go for about that and the weather sucks up there. In Downtown L.A. you can't find anything good for that cheap, you're still looking at almost $400,000 for most units and up. So to find all kinds of great condos in Vegas for in the $100s was really surprising, even some nice units in Platinum for under $100K. Unbelievable. They cannot drop more than that because there's nowhere left to drop.
Actually if you look at the following factors, there actually is room to drop:
-Vegas housing prices in the early-mid 90's(although I agree its close)
-The ridiculous amount of housing stock. Combine current inventory with shadow inventory and you have years of inventory.
-Unemployment rate.
It was alluded to earlier in this thread and I do believe its true. If you want to turn Vegas housing around...if you truly want it to bottom...Vegas needs to be a retirement mecca again. There are plenty of approaching retirement age people who WOULD buy in the current Vegas market if they could get a home under $100K with a mortgage.
But the nature of the RE game needs to change first. The inventory needs to be made available and banks need to accept mortgage bids over cash bids. And until that happens, I think the Vegas RE market continues to tumble.
The location is good, it's right near all kinds of stuff. Nothing wrong with it at all. In fact I know a company president who only stays at Platinum now, he loves it.
I think the HOA dues are too steep for what it is though.
Jonathan LB,
You are a perfect example of a person not knowledgeable about Vegas properties making decisions, or in your case opinions, with absolutely no idea of the real situation on the ground. Sure, your boss stays there but that does not make him or you knowledgeable about the project or the area in general. I am not putting you down rather warning others to be very careful with their hard earned monies.
Those of us who know Vegas would not purchase Platinum at anywhere near the existing prices. Outsiders do not know the areas and as one person noted folks stay at the Stratosphere yet those of us who know Vegas would never even walk the streets in that part of town. Yet it is on the strip and only a few blocks from some great properties.
Vegas and L.A. are like being on two different planets. What appears like an amazing deal from someone who lives in L.A. is really just another nightmare waiting to happen in L.V.. As you noted, in L.A. 300 thousand barely buys a starter home yet in Vegas, if you are knowledgeable, you can get a great place for 100 thousand and not have those ridiculous HOA fees. Ask the folks at MGM Signature how great that investment was at any price and look at how good that location is.
Remember the HOA's still require income even if many of the unit owners are not paying HOA dues while they are awaiting foreclosure. Many Condos saw unbelievable HOA fee raises and assessments as their neighbors just decided to not pay their dues. Guess who carries the burden when half the units are not paying HOA dues yet the costs must be paid by the HOA?? Yes, that would be those who actually pay their monthly fees.
That should sort of remind you who pays for all the entitlement programs when the government runs out of money. Oh wait, we who pay taxes are the government financiers so that would be us.
Again, remember, back due HOA fees are not collected by the association when a property goes into foreclosure rather the lien just goes away once title transfers to the lender. The lender has zero obligation to pay those HOA dues even though a lien was placed on the property. Even in a short sale situation many times the HOA will have to negotiate down the lien amounts for past due HOA fees in order to get the lender to even settle out the loan and not foreclose. Many times the HOA settles in a short sale situation for pennies on the dollar rather than lose everything to a foreclosure.
When purchasing an HOA property one really needs to become familiar with not only the financial health of that HOA but the financial health of its residents. It does not take long, as we have seen, for HOA reserves to be eaten through as the market takes a dive and homeowners stop paying dues. Even folks who bough only 2 years ago or less may again be under water in purchasing at places like the Platinum or Signature and we may once again see another round of foreclosures driving up HOA fees and assessments as the value of the property continues to decline.
On the other hand Vegas needs a ton more folks who think like you do to purchase the properties we would not touch with a ten foot pole. OOOps,
forget what I just wrote above and come purchase that smoking deal at the Platinum for the monies you noted.
Outsiders do not know the areas and as one person noted folks stay at the Stratosphere yet those of us who know Vegas would never even walk the streets in that part of town. Yet it is on the strip and only a few blocks from some great properties.
Either you are exaggerating or the world is a very fearful place for you.
Hundreds of tourists walk up and down that stretch of the strip every day and night. You should warn them that they are risking their lives!
Yeah I'm with jbov, you are insane. I've walked up and down the Strip so many times and it has never once scared me. I've never seen anyone who looked like a threat, just drunken tourists. Whereas I wouldn't want to walk through my own area, Downtown L.A., at night. I've already been assaulted once and there's a pretty major difference -- I'd be carrying concealed in Vegas, since you can get a permit in Clark County. You can't in Los Angeles County. I'm tempted to carry anyway, but still, it hasn't gotten to that point yet. One more incident and I would, though.
Your definition of a bad area is funny to me. My definition is where the Best Western is just under the tracks there, now that was freakin' sketchy walking from that place (business trip, we had to save costs) to the better parts of the Strip. That was the only time that I felt uncomfortable, off the beaten path, and I couldn't believe how bad that place was. Over by the Stratosphere? No way, that has never bothered me at all, and that's right where Allure is, another great building I'd consider.
Also sometimes I'm not sure where people get these ideas, I mean if I'm going to be heading out at night why am I going to walk anyway? I'm going to drive or get a taxi to where I'm going, who cares even if it was sketchy I don't see how that affects anything in a high-rise condo building. You're driving into a gated, secured parking garage. The only place I walk in Downtown L.A. at night is to L.A. Live, which has its own security and is always safe, or to Subway a block away, so you just simply avoid walking in places that are dangerous. I don't ever get the inclination to go on a midnight stroll for no particular reason no matter where I live, personally.
Also if you want to let fear and paranoia force you to pay far more money than something is worth, go for it. I wouldn't. I'm not paying $300,000 for a condo in a "great" location that is literally 5 blocks away from one that is half the price in what you would call a "bad" location. I've never heard something so ridiculous in all my life. You guys act like we're talking about two hugely different areas, which we are not. If I lived at Allure or something, I'm not going to walk around there, I'm living up on the 20th floor or whatever, and I'm driving to where I'm going on the Strip anyway, where I will feel comfortable walking around if I want. It's simply not worth twice as much money to be a few blocks away, at least not in my books. I guess maybe if I was a girl, but I'm a big guy with two black belts and two semi-automatic weapons I'll take my chances. lol
PS to the previous post: MY president? I am a president of two companies, I don't have a boss. I am the boss.
As for what you wrote airics, yeah nobody is going to have any problems with that. Some of you guys just really don't have a concept of money I don't think. We're talking about units in Platinum selling at $77,000! What do you think they're going to be free? I mean, $77K is already ridiculously cheap by anyone's standards. My car was more than half that price, and some people have cars more than that, so there's really nowhere left to go but up for units like that. Areas especially on the Strip won't get worse, they'll get better. You don't need to look any further than the last boom to see that obvious fact.
My condo building here in Los Angeles, when it was built in 2006, was in the middle of what was considered a sketchy neighborhood. Bums slept outside on the street on this block. It was the first ground-up condo building in Downtown L.A. in 20 years. All kinds of people said we were idiots for buying a condo in Downtown, who wants to live there? Now it's the most desirable new area to live. Not only is my condo not down anywhere near the market average (more like 35% from the absolute peak, only about 15% from the original price though, still significant but going up now), but what was just a planned entertainment district near Staples Center has blossomed into L.A. Live, the biggest and best entertainment district of its kind on the West Coast. We just hosted the Grammy Awards, as usual, and then the All Star Game the next weekend. Regal's Flagship theater went in just more than a year ago and holds major movie premieres, has 14 4K projectors, and is the best theater in the United States. Now they are going to be building an NFL stadium near the convention center that sits right by Staples and this condo will be sitting not only two blocks from the best entertainment district in this coast, but also right next to two pro NBA teams, an NFL team, and an NHL team. There isn't a hotter area than this, even in this down market, so the areas you call "bad areas" when they are sitting right next to good areas or next to lots of jobs or tourism, yes, they quickly become good areas.
There is no doubt that the Strip will continue to expand and larger, more impressive projects will go up. Even if that takes until the late part of this decade, which it probably will, it will still happen. Those units in Platinum started at $400,000 and if you know anything about the area, you should know that. They are selling for 20 to 25 cents on the dollar, so no, they ain't going down more. If you think they are, you have no concept of money or real estate.
suprising since i'm an agent...just remember one thing... you were warned! i'd pay 200k for Panorama before i'd pay 77k for Platinum anyday of the week..
Again, remember, back due HOA fees are not collected by the association when a property goes into foreclosure rather the lien just goes away once title transfers to the lender. The lender has zero obligation to pay those HOA dues even though a lien was placed on the property. Even in a short sale situation many times the HOA will have to negotiate down the lien amounts for past due HOA fees in order to get the lender to even settle out the loan and not foreclose. Many times the HOA settles in a short sale situation for pennies on the dollar rather than lose everything to a foreclosure.
Even though this was ancillary to your post, I wanted to clarify that it is completely incorrect. 9 months worth of HOA dues + unlimited amount of collection fees (that point is up for dispute) are considered super priority just like property taxes and are not cancelled out during foreclosure.
So until you're AT LEAST 9 months behind in HOA dues, the HOA doesn't stand to lose anything except cash flow. Realistically the HOAs are dinging banks and foreclosure investors for far more with exorbitant late fees.
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I'll take my chances. lol
