Gaming in Las Vegas

The Las Vegas Gaming industry is reaching new heights and the six major companies in the field are getting an extra share due to their marketing efforts.

Wynn Las Vegas opened on April 28th. This $2.7 billion project is considered as one of the major factors responsible for the record growth seen by the gaming industry. The well-attended 2005 World Market Center event also increased the number of visitors and a considerable amount of revenue also came from adding new hotel rooms.

The local casinos marched forward because of growth in all the sectors like population, employment, income and stable home pricing. Increased personal income and real estate value increased the number of customers in the casinos.

The sustainability of this performance depends how well the industry copes with the increase in gas prices and also by not letting the number of flights to Las Vegas to decreae. This will ensure the continued influx of tourist who are the biggest spenders in the casinos.

But increasing room rates and $150 per ticket for every entertainment production is likely to have a negative effect on the tourists.

The industry has to find balance of making Las Vegas attractive to tourists and at the same time keeping their costs low for maximum profitability.

Who Is Really Buying Las Vegas Condos

Today in Las Vegas real estate market nearly 65%of the projects are the condo-hotel construction while the rest are residential towers.

The consumers who make these projects successful are not from the local market. Buyers from southern California buy nearly half of the local condos, followed by people of Florida and New York. About 15% of the buyers are from European countries.

Most of these people are in the age group of 30 to 50years with an annual income of $100,000. About 90% of them have invested in real estate in other markets and have asset worth of at least $500,000.

Major global corporation like the clothing companies, software designers and makers of electronic gadgets comprise the next 15% of the condo buyers, as their executive frequently visit Las Vegas for various conventions. Corporate buyers prefer condo-hotel project as it is easy to lease out through rental pool while first time buyers and vacation-home prefer residential towers as they intend to stay there rather than let it out for rent.

If Tax Deduction.On Second Homes Go...

The Las Vegas valley’s second-home market will be the worst hit if there is a deduction of federal tax on mortgages. There could be a major effect on the Las Vegas real estate if there is any reduction in the deduction of interest on investment properties, vacation homes and home equity loans.

More than 175 towers having nearly 50,000 luxury condominiums are targeted for the investors and the second-home buyers. Cities leading developments also depend on vacation-home buyers. The local and national economy will also be affected if the deduction is taken away. The rising interest rate will also prevent people from investing in real estate.

About 21.2% of the new homes sold in Las Vegas are bought as vacation-home or investments. The $5 billion project, City Center on the Strip and the $3.5 billion Las Ramblas on the Harmon Avenue depend heavily on the vacation-home buyers. Most of the condo –hotel projects are aimed at the investors.

Any move by the federal government to take away the tax benefits for the second homes can have a devastating effect on the real estate market in Las Vegas.