Las Vegas High Rise Condo HOA Dues - Incongruent with the Price Drops?

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Real Estate Agent with Elite Realty-Luxury Homes & Condos On & Off the Strip License.#B.S. 4430

Now that prices on many of the luxury high rise condos on and near the Las Vegas strip are declining, we are noticing many buyers who have been standing on the sidelines willing and ready to jump in and make a purchase.  BUT, I have noticed an interesting dichotomy that has been created. The HOA dues are not in-line with the demographics of the 2008 purchaser.

Yes - we have some Turnberry Place luxury high rise foreclosures that offer a great price per square ft., and in which a 2000+ s. ft. luxury condominium can be purchased in the $ 550k+ range, but with dues of over $ 1200 per month, the buyers are backing off.  Today I had a call from a real estate agent in Washington state who was surfing the web and found an 1856 sq. ft. SHORT SALE unit at Regency Towers that peaked his interest and was listed at $300k, but when I told him:

#1 it was a short sale and not priced realistically (Oh how I wish these short sales were not mingled n with regular listings and repos - I feel they are misleading to the consumer - but that is another blog in itself!)

#2 the HOA dues are over $800 per month, he backed right off.

This is just one case in point. With HOA dues at SKY and Panorama Towers and Allure running about 55 cents per square ft. and those at Turnberry Place and Turnberry Towers, even higher, there is a disparity between the buyer profile of a previously priced $900k plus condo and one that is now priced at $600k in the amount of dues that the potential purchaser is willing to lay out each month for amenities.

Now that being FRUGAL is hip and trendy, buyers are quite conscious on what they will get for their money as far as HOA dues go.  Some towers such as SKY and Turnberry have multiple sets of dues.  SKY has a master HOA and them the SKY HOA - the first covering some cross over commercial space. Turnberry Towers, has double dues as well with a master association for the garage areas, gate, and then individual associations for each tower.

Turnberry Place and Turnberry Towers include basic cable with their HOA dues, others such as SKY, Allure, Panorama do not.

The luxury high rise arena is a market segment in which it really pays to hire an expert who can help educate the clients in the ins and outs of rental restrictions, HOA dues coverage and the best bargains and buys in the various towers. 

CONTACT THE STARK TEAM for all your LAS VEGAS HIGH RISE CONDOS NEEDS.

702 376-5220

www.LasVegasHighRiseBargains.com

www.LasVegasCondoExperts.com

www.LasVegasLuxuryHomes.com

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Renée Burrows
Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate - Las Vegas, NV
Las Vegas Real Estate Broker - www.urLVhome.com

Very informative June!  That's why you are the high rise expert!

Oct 20, 2008 05:08 PM #1
Rainmaker
35,625
Greg Dallaire
Dallaire Realty - Green Bay, WI
Green Bay Homes

June-  You raise some very interesting points.  The HOA cost seem to be extremely out of whack.  Hopefully your Las Vegas Real Expert Status can make a difference.  Keep up the great work!

Oct 20, 2008 05:37 PM #2
Anonymous
Anonymous

Great blog June.  Ugh, and then some towers have storage, some don't, some have tandem parking spots, some don't.  Ok, we've given away enough of our expertise for the day!  LOL.

For those who want to buy a condo the wrong way, go right ahead. 

Oct 20, 2008 06:19 PM #3
Anonymous
v

Hi, June:

why are they charge so much for the HOA dues from these high rise condos??? i don't think you get your money worth for paying so much....As an overseas investor, what is the average rate of return for these condos after management fees and HOA dues?

By the way, I learn a lot from your great posts.

Thanks

Oct 21, 2008 05:37 PM #4
Rainmaker
325,147
Esko Kiuru
Bethesda, MD

June,

The HOA dues is an easily over-looked part of buying into a high-rise condo. You bring up a valuable point here about them being so high now while values are dropping. Some of these numbers are rather up there.

Oct 21, 2008 09:41 PM #5
Rainmaker
314,199
June Stark
Elite Realty-Luxury Homes & Condos On & Off the Strip - Las Vegas, NV
Las Vegas Condos & Luxury Homes Expert

Hello "V" - The HOA dues in the residential condos cover insurance on the structure, security, grounds maintenance, management, and depending on the building, water, sewer, trash, and sometimes cable. If you hire a property manager to collect rents, the charge is usually 8-10% of the monthly rent.  As for ROI, I can supply data on the differnt buildings and let you draw your own conclusions.

 

In the hotel-condos, the on-site managment usually charges 50% or thereabouts for managing the untis and procurring nightly rentals.  The HOA dues run even higher than in the residentail towes because of front desk personnel, etc. 

 

Thanks for your kind words on my blog.  Much appreciated.

And to my Vegas co-workers - Comments are much appreciated...Have a great rest of the week!

Oct 22, 2008 01:05 PM #6
Anonymous
Tim

Sorry but, DUH. With today's discrimination laws the only way to weed out speculators from your neighborhood or condo complex is economically. You have to raise the fees to such an extent that it is not feasble to speculate, rent and make money. I will bet that many of the existing owners are grandfathered into their fees and it is only the newbies that are getting hammered.

Dec 27, 2008 03:18 AM #7
Anonymous
Juanaday
That's what the greedy investors get.
Mar 30, 2012 12:25 AM #8
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June Stark

Las Vegas Condos & Luxury Homes Expert
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