Did it seem like the boom lasted forever? Was it all quickly forgotten in the midst of the great real estate fall in 2008? It has been a sluggish recovery beset with false hopes and some great buying opportunities.
Buying Las Vegas condominiums is not the same in 2016 as it was in 2008, 2012 or 1991. Changes from the rest of the city, region, nation, buyers, sellers, and banking all impact the pricing and housing inventory. In general, condo prices lag behind single housing units offset possibly by HOAs and the dues they require.
Not only are you buying a home, but when you check out Las Vegas condominiums, you are also tying yourself into a private government. If you thrive in politics, and can moderate weaker people and stronger personalities it may not be such a gamble for you.
Many unsuspecting first-time buyers go for a condominium because they are not yet comfortable taking care of and maintaining the exterior of a building along with the interior. It is a win-win situation as long as you ensure that the condominium is in the hands of good management. As it turns out, a majority of the other owners know very little about building maintenance either, and that is a problem because they will likely take board roles.
In some cases, an HOA will fire the management group and attempt to self-manage a property. It saves money in the short term but, oversights such as when sewer lines or siding need to be replaced may be overlooked by these eager, well-meaning new homeowners. That can be costly because sewer lines feed into homes, can impact structure, and cost a lot more to repair when they are broken.
In general, the HOA dues will be sent to a third-party, where none of the board has access to the money that is sent in by residents. That is good for ensuring integrity. There is usually a management company to handle building maintenance, such as taking care of roofing repairs, or changing landscaping every ten years. It may depend upon what is included in the condominium bylaws.
Always know the rules before you agree to buy a property. While it is a private government, there is no public record of the homeowner’s association issues. The bylaws will explain who is responsible for what manner of maintenance and replacement. It usually addresses whether there is a rental waiting list, what percentage of units are allowed to be rented out, and whether you can leave plants out on your patio, have a satellite dish, or even hang up Christmas lights.
When there is slight, or a rule is broken, the HOA may provide a warning or a fine. Be aware of that. Also, it is important to ensure that you could afford to cover the costs of your mortgage, the monthly HOA dues, and even the utility bills.
Keep up to date on Nevada state law about foreclosure as well. For instance, you may face trouble securing bank funding for condos in Nevada because of a 2014 ruling that gives HOAs first dibs on foreclosing on properties before the bank for unpaid dues.