by Helen Michel
on Monday, June 22nd, 2020 at 2:45pm.
Welcome to our post COVID-19 Las Vegas reopening blog !
Lots of questions from our current clients and investors about Las Vegas High Rise Condo Market, so I writing this post hoping that it will give some clarity as well as help in the decision making as far as Las Vegas High Rise Condos are concerned. The biggest question is why invest in Las Vegas High Rise Condos and why now ? Well.. as Las Vegas is reopening and there is life once again on Las Vegas Strip High Rise condo market is seeing the movement especially in the lower price point being under $600K . Reason being is that lots of buyers feel that this is a safer investment across the board as well as lower overall carrying costs and I am talking here about regular Las Vegas High Rise Condos on or Strip area close to it. That said I believe that inaction or very little activity shows great opportunity in bigger size High Rise Condos as well as Las Vegas Penthouses where the great deals can be found now if you are that kind of investor or just looking for higher rents, to relocate or have a second home in Las Vegas. Please keep in mind we are still talking about regular High Rise Condos with long term rentals and overall bigger size offered . Also financing is available for all those properties.
Now let us take a moment and talk about Las Vegas High Rise Condo-Hotels. That presents a different story and challenge since they heavily depend on the tourist industry and overall hotel occupancy which was down to none since COVID-19 shut down but that is where also a great opportunity lies for cash investors since those High Rise Condos can be purchased at an amazing discount as the current recorded sales indicated . So what is the advantage ? Well it's all about the cap rate and that is based on the purchase price so the lower you buy the better the return even if the size is smaller and your HOA fees are higher, I do not believe that this trend will last once hotel occupancy rises but here is your chance to step in
So to sum it up Las Vegas High Rise Condos still make a solid investment and given the fact that there are no new High Rise Condo projects are planned in any foreseeable future its is a simple supply and demand situation that can't be compared to 2009-2010 market that I am intimately familiar with since most of High Rise Condos under current ownership have little to no loans on them so the short sale and foreclosure situations will not repeat themselves not to say that motivated sellers are not out there