It doesn't matter how rich you are these days - securing a mortagage for a Las Vegas high rise condo is getting harder and harder, even for those with no credit issues.
For example according to a report by Duestch bank, closings at Trump are now at a horrendous 21%, while Palms Place is reporting closing at a 57% clip. And why? Lenders are now asking for 50 percent down on their high rise condo deals, and that option's only available for those with excellent credit to begin with.
With interest rates on 30-year fixed on a condo-hotel going as high as 8% and above, it's becoming increasing clear that even those with the means must start looking at alternative investments for now as the credit markets continue to struggle.
Many would-be high rise condo owners are now walking away from 6-figure non-refundable deposits - and if that's their best option, something's not right. Are condo fractionals the answer? At least you can make a case for them being cash flowing investments in an uncertain Las Vegas high rise condo market.
But folks, if you're going to buy a high rise condo in Las Vegas, do it all cash, and make sure you can handle the uncertainty for the next 2 years.
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