Market Slowdown? Doubtful...

Just like calculators, cell phones, and digital cameras, the Las Vegas high rise condo market has leveled off - or so says John Riordan, vice president of sales for Turnberry Place and Turnberry Towers in today's Las Vegas Review Journal. But that doesn't mean the high rise condo frenzy is anything close to being over. After all, how many people do you know that don't own calculators, cell phones, or digital cameras?

The good thing about real estate is that unlike calculators, cell phones and digital cameras, your investment historically increases in value over time. Add a rental component in there and you're looking solid for years to come.

The fact of the matter is that there will always be great opportunities in the high rise market here in Las Vegas over the next few years as each project stakes its claim to being "the best". Of course, which one's are REALLY the best? That's where homework and common sense come into play. I've yet to see a website for a high rise project that doesn't proclaim itself as the answer to Vegas' luxury living problem. So you can toss out everything you read on them with the exception of floorplans, amenities, and contact information.

Use the floorplans to determine if the number of bedrooms and baths work for you, in addition to the total amount of square footage that you can get by on. If you're looking to purchase the unit as a condo hotel, make sure YOU would want to rent that unit if you were a potential renter looking for a short-term stay in Vegas. If you wouldn't, then pass on the project. It's that simple.

Determine if the amenities work for you as well. Just about every project has the pool, spa, fitness center, concierge, etc... but is the project location right for you? Would you rather park your own car or is a valet a requirement? Will the building amenities command a higher rent? What direction will your unit be facing? Etc.

You'll need to contact each project to address these issues, because unfortunately, no website can tell you what's right for you. Better yet, contact an agent who can get you that information for you on your terms, without the salesy promotional playbook answers you usually get from each project's sales department. This is especially important if you're interested in purchasing a high rise for condo-hotel purposes. Do the numbers! You'll be surprised at the number of projects in town that simply don't make sense.

Of course there are many in town that DO make sense. These are the ones you can invest in without fear of a market slowdown or level-off. Most industry experts agree that Las Vegas can absorb a significant amount of hotel and condo room growth demand. That's your cue to get involved, whether it be from a full time living condo perspective (where you can afford to be more whimsical in terms of what you purchase) or from a condo hotel angle (where you better be sure the numbers work or you'll have that dreaded "negative cash flow" for a long long time). Either way, I predict those getting involved now in the right projects face significant long term profits with their investment.