Beautiful Las Vegas Homes

THE LAS VEGAS STRIP

Moving Northward -   What lies ahead for the famous “Las Vegas Strip”?   Looks like action to the North.  The Sahara closed one year ago May 16^th.  It was one of last large resorts on the North portion of the Strip before the Downtown area begins.

SBE Entertainment of Los Angeles and a private equity group are funding $300,000,000 for the rebirth of the old and torn Sahara built in 1952 at a cost of $5 Million.

The new resort will be the SLS Las Vegas.  It will be a boutique hotel designed by Philippe Starch who has the magic design touch of transforming coal into diamonds.

2012 SLS LAS VEGAS BOUTIQUE HOTEL AND CASINO

SLS Las Vegas will open in 2014 with 1,600 rooms.  The rooms will be priced between $100 and $200.  The overall resort will have a much smaller footprint than the other megaresorts giving the resort a warm boutique ambience. SLS is a hotel brand with one of the most luxurious hotels in Beverly Hills.  Rob Oseland is going to bring a Beverly Hills experience at Las Vegas prices.  Slide show of  SLS Las Vegas.

Between SLS Las Vegas and Caesars Entertainment building the Linq retail and entertainment district, there is close to $1 Billion of construction of new projects currently being developed.

On Wednesday the Governor stated that “Today’s news will make an immediate and positive impact in Las Vegas, infusing hundreds of millions of dollars into our economy and creating thousands of jobs.”

“Las Vegas is the epicenter of the national brands”.  According to Rob Oseland, president and chief operating officer of SLS Las Vegas.  This project could be the start of the development of the North end of the Strip.  Other signs of movement include the Holy Cow Brewery and Casino and the nearby Riviera is planning on $20,000,000 in renovations.  Who knows, the North end of the Strip could explode in the next two years. The North end of the Strip has empty buildings and stalled construction sites of new projects that could take off too.

50,000 cars pass the Sahara and Strip intersection every day.  The northwest corner is anchored by the World’s Largest Gift Shop.  With the awakening of this intersection, Carl Icahn might think again about the restarting the Fontainebleau site or selling it to someone who will restart it.  Las Vegas has had numbers on the plus side for the last six quarters.

Las Vegas may be in the middle of a robust recovery by 2014!

Why should we be optimistic about the housing market?

The global economy affects everyone.  Though we didn’t create the global economic crisis, we do have to deal with it in our everyday lives.  Wherever you are in the world, your economy will obviously affect your spending choices.

In the U.S. we do have indicators of a turnaround. Here are a few indicators that don’t get much publicity in the overall Market and the Las Vegas market: 

• The worst is over for the mortgage resets.

• People are buying homes in the U.S.  At the top of the heap are the Gen-Y and immigrant buyers.  The two groups continue to increase their real estate purchases.

• The family formation numbers were dropping until recently.  Now they are back  up to 1.25 million families being formed every year.

• If you go back to the recession in 1973, you will find that homes sales increased after the recession.  Homes sales are now increasing.

Here are more good indicators from the Investor Front.  Individual Investors who do not buy in bulk are playing a major role in the recovery of the housing market:

• Investors buy homes, spend money to make the home “market ready,” and then they rent them.

• On average, investors are spending over  $220,000,000 buying over 2000 homes per month in Las Vegas.  In June 2011 the amount hit a high of $250,000,000.  Over 49% of the purchases are all cash which creates a solid Las Vegas real estate market.  Cash sales are foreclosure proof.

• Investors use their 401(k)s and IRAs to buy homes that they rent for a positive cash flow, which goes back into their 401k or IRA.

• They ride the prices back up, and in the future, all the profit goes back into their retirement funds.  This process makes the future brighter for the future retirees as their accounts start to show profits again.