On the heels of my last post on the tremendous amount of mis-information regarding high rise condo hotels comes today's article in the Las Vegas Sun about how high rise condo owners are now suing developers because their condo rental units aren't performing to the levels they expected.
It seems 40 unit owners at the MGM Signature high rises have sued MGM for fraud, saying they only bought their condos because false representations were made to them regarding rental income projections. Regardless of whose side you're on, take these two quotes in the article to heart:
From Joel Greene, a condo marketer in Miami: "Instead of riding out a long-term investment that will probably be OK, some buyers are looking for their attorneys to bail them out".
And from real estate broker Rory Agnello: "The problem has nothing to do with the housing market. It has to do with a bad marketing program. They sold units at the wrong prices to the wrong people."
I have a feeling we'll be seeing similar articles in the near future and it should drive home a very important point: you need to do your high rise condo homework before making a purchase and determine whether or not you can tolerate the risk of such an investment. Greed is a strong emotion. Don't let it factor into your purchasing decision.
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