Foreign Investment in Las Vegas High Rise Condos

Vegas has a long history of working with foreign investors to finance large projects. For example, Dubai World owns a considerable interest of the massive CityCenter project according to a recent report in the New York Times at DealBook blog [04/29/2009]. Furthermore, because of the current economic crisis, more foreign investors are turning a keen eye toward the American real estate market as reported by Fox News LiveShots‘ writer Phil Keating [09/08/2010].

Because of recent difficulties in obtaining credit or qualifying for home loans, many Americans are not in a position to invest in the real estate market; however, foreign investors who have cash funds at a time when the dollar is weak, are in an excellent position.

Americans hoping to receive financing or planning investments are further constrained by continued joblessness and limited credit. This is why investing in Vegas foreclosed condos will be good for Nevada and foreign investors alike.

Ground Zero: Las Vegas

Since 2008, LV has been at the center of the foreclosure crisis. Many families seeking traditional homes have already taken advantage of the crisis and have purchased their own long-term real estate. However, foreclosures in LV are still five times greater than the national average according to Reuter’s analyst Jim Christie [09/07/10].

There are simply not enough local residents with the income and credit required to purchase Las Vegas foreclosed condos or houses.

And despite recent indications reported by the Las Vegas Sun [08/06/10] that the market is nearing the bottom, and that by 2012 prices will begin to rise, Las Vegans remain pessimistic and avoid spending of any kind.

Las Vegas high rise condos are a luxury that average buyers cannot afford. As a result, Nevada has upwards of 60,000 excess homes on the market with a limited local demand according to Applied Analysis economist Jeremy Aguero.

An Investor’s Market

With such a high foreclosure rate and strict credit, the rental market will reap the benefits. In addition, Vegas condominiums are on the market at historic lows. For example, a Las Vegas high rise condo for sale on Zillow.com once sold for over $400,000 but is now offered at $164,000.

If purchased with cash and rented by the owner, a condo could yield considerable long term profits.

This combination of economic phenomena has created a perfect storm in which only investors with sufficient capital will be able to benefit.

Know the Risks of Las Vegas Real Estate

Investors should approach these projects with care. The LV real estate market changes on an almost daily basis and it can be time consuming to navigate all of the inherent intricacies of a short sale or foreclosure. The details can be even more daunting when purchasing a foreclosed property.

To help mitigate their risks, international investors should avoid working alone and consult experienced real estate agents who understand Vegas and the complexities of foreign investments. You will be best served by someone who has been in the Las Vegas area for some time.

Foreign Investment in Las Vegas High Rise Condos