Monday, March 07, 2005

Real estate investors cast watchful eye on Las Vegas' high stakes housing game: "Doncov, a 57-year-old engineer who was a victim of the technology flame- out, was one of thousands of investors who hoped to turn a quick profit by buying and selling Las Vegas property within a few months. Early last year he bought two new houses from Pulte Homes for $515,000 each.
By the end of the summer, he said, the houses were worth well over $600, 000, based on Pulte's prices for the same models. Then Pulte cut the price by about $180,000.
Doncov sold the two properties in December and January for $480,000 and $490,000; after closing costs and sales fees, he estimates he lost $100,000. He is working with a lawyer to try to recoup the losses from Pulte, on the grounds Pulte misled investors by systematically raising new home prices, then abruptly lowering them. Many people in Las Vegas shrug at tales like Doncov's, saying any plan to get rich quick is fraught with risk. "

oh no! don't let this be you!

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