High rollers who visit Las Vegas have it pretty good at the casinos. They get huge suites and tons of comps, and casino hosts cater to their every need. For that reason, it would be crazy for most high rollers to consider buying real estate in Las Vegas.
That said, the carnage in the Las Vegas real estate market is now starting to hit expensive homes as well.
In Las Vegas, which has the highest foreclosure rate among large U.S. cities, the wave of defaults that began with subprime borrowers and the unemployed has spread to upscale homeowners who see no point in staying, even if they can afford to. “You feel like a sucker if you’re paying a $5 million mortgage on a house that’s worth $2 million,” says broker Zar Zanganeh.
In the first quarter, 30 homes in Clark County, which encompasses the Las Vegas Strip and surrounding residential areas, with mortgages exceeding $1 million were repossessed by banks or bought by third parties in foreclosure sales. That’s up from 20 homes a year earlier, according to ForeclosureRadar, a company that tracks defaults. Short sales, in which the bank agrees to accept less than the loan balance, and bank-owned properties accounted for about three-quarters of all home sales in the period, according to the Greater Las Vegas Association of Realtors.
For some high rollers, having huge home in Vegas can have additional perks. You can stay in the city for a long time and get away from the casinos when you need a break. You can also have a spot for some serious parties with all the sugar babies you meet in the casinos! So if you have the resources, it might be time to take advantage of the incredible deals in Las Vegas and pick up a party house.
