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.