Archive for July 1st, 2010

A Compelling Comparison

Thursday, July 1st, 2010

Is it a great time to buy a Las Vegas home? If you had purchased a $200,000 property here in 1986 when interest rates were 9.5%, your P & I payment would have been $1681.00. Today your payment on that same home would be $1043.00. That’s $638.00 LESS than in 1986 !! YES … it’s a great time to buy Las Vegas real estate. This comparison is based on today’s record breaking 30-year fixed rate of 4.75%, which is an absolutely stunning number. Speaking of stunning numbers, prices for many houses in Las Vegas have dropped back to ball-park 1990 levels, so the 1986 purchase comparison is more apt than you might imagine. The truth of the matter is, when you combine both pricing and interest rate factors, the cost of residential ownership in Southern Nevada is incredibly attractive to say the least. What is one of the best ways to tell this is true? Take a sample Las Vegas home that you would consider purchasing and then compare that hypothetical mortgage payment to the monthly cost to rent that same type of home in the same neighborhood. Be prepared to be surprised …

New Interest in Lake Las Vegas Real Estate

Thursday, July 1st, 2010

After two long and difficult years, the bankruptcy reorganization of the Lake Las Vegas development has actually been completed. A huge cloud of uncertainty has finally been lifted from the luxury golf resort and many are hopeful that better times lay ahead. It is encouraging news that the largest creditor in the proceedings (Credit Suisse) has agreed to swap past debt for a new equity stake in the community. One can only hope that this ownership connection to the future success of Lake Las Vegas will motivate not only Credit Suisse but other players as well to make their best effort in supporting the turn-around effort. It seems clear that everyone’s best efforts will be exactly what is needed if Lake Las Vegas is to have any chance of restoring it’s previous luster and prestige. I just cannot imagine what will be done with the former Ritz Carlton, or who would step-up in this economy to attempt to operate a facility that large and elaborate. More immediate (and potentially more realistic) will be the need to secure new funders and operators for the two golf courses that once made the community the luxury golf mecca it was originally designed to be. Another aspect of the development that took a tremendous beating over the past two years is Lake Las Vegas real estate. Prices have taken a harrowing plunge, even by the standards of the Las Vegas residential market overall. However, we have noticed an upsurge of interest in Lake Las Vegas homes just this week on our website, which clearly reflects the fact that the community still has a high profile in many minds and may be up for a new round of bargain hunting. The future is still very uncertain, but at least there is finally some good news to report about Lake Las Vegas, the first in a very long time.