Financing troubles and declining home values are creating difficult times for buyers of luxury high-rise condos attached to a number of Las Vegas casino resorts.

Many buyers had to put a 20 percent down payment on the properties based on their values when first announced. The majority of the projects were announced when home values were high, and now that the bubble has burst, some condo units have lost more than 25 percent of their value.

Buyers who were financing their purchase are now caught in a bad position. Those who entered a contract to purchase a unit at its appraised value of $700,000 in 2006 are now finding the units to be worth closer to $500,000. They can only get financing based on the current appraised value, and it is making it difficult to close.

Trump International Hotel and Tower and Palms Place are both struggling to close on units. A recent report from Deutsche Bank shows about half of the units at Palms Place have closed, while only 21 percent of the condos at Trump have sold.

“I’ve never seen anything like it,” Donald Trump told the Las Vegas Review-Journal. “Historically, the banks will call me and beg for end loans. But they don’t do that any more because the banks are really out of business.”

Trump and Palms Place owner George Maloof both said they have had to take back a few units, but they noted that the majority of buyers are trying to finalize their purchases.

“People are having a hard time all over the country getting financing,” Trump said. “It’s very sad for the people. There is no bank that gives them money.”

By Casino Connection Staff