Wednesday, July 05, 2006

Las Vegas: It's definitely a buyer's market

Las Vegas: It's definitely a buyer's market

By Noelle Knox, USA TODAY
Real estate looks like one of the biggest gambles in Las Vegas. During the real estate boom, investors helped propel the market here — especially for condos — and pushed prices up 137% from 2000 levels.
About 60% of home buyers from January to March took out high-risk loans that give them the option of paying only the interest or even less each month, according to LoanPerformance. (Would their odds have been better at the blackjack table?) The number of condos listed for sale is up 67% from last year. And a dozen projects are under construction or have recently been completed.

"The condo market — there are your investors; that's the whole story of the market," says Dennis Smith of Home Builders Research, a data firm. At least five condo projects have been canceled in recent months. Sales of single-family homes were off 17% in May. And with a 7½-month supply, it's definitely a buyer's market. Meantime, sales of newly built homes, which make up 40% of all sales in Las Vegas, are roughly flat compared with last year, Smith says. Still, the gambling business remains strong. Last month, MGM Mirage poured the foundation on Project CityCenter, a $7.7 billion, 66-acre development with hotels, condos, retail and, of course, a casino.

The most expensive

MGM Mirage is selling this mansion on 4.7 acres on a golf course in North Las Vegas. If it fetches this price, it'll be the most expensive home ever sold there.
Price: $28 millionBedrooms: 4Bathrooms: 5 full baths, three half bathsSize: 12,041 square feetFeatures: Built-in entertainment center, wet bar, intercom system, formal living room, marble floors, jet bathtub, steam shower, walk-in closets, hot tub, swimming pool
Median-price home

This two-story house was built in 2003 on less than half an acre.
Price: $330,000Bedrooms: 3Bathrooms: 2½Size: 1,677 square feetFeatures: Two-car garage, formal dining room, foyer, walk-in closet, mirrored closet, pantry, laundry room

Euroweb International Announces Entering a Real Estate Development Project

LOS ANGELES--(BUSINESS WIRE)--July 5, 2006--Euroweb International Corp. ("Euroweb") (Nasdaq Capital:EWEB), announced Friday that through its wholly-owned subsidiary, Euroweb RE Corp. ("ERC"), it has agreed to provide funding to AO Bonanza Las Vegas, Inc. ("AOB") in an amount up to $10,000,000 within its sole discretion - as reported on the Form 8-K Current Report filed with the Securities and Exchange Commission on June 23, 2006.
Yossi Attia, director of the Company and CEO of ERC stated: "To date, ERC has provided partial funding into escrow. The loans are to be secured by property held by AOB located in Las Vegas and have been placed in escrow to be used for the development of the property in Las Vegas. We believe this is a great opportunity for ERC and the Company as upon payment, whether by prepayment or at maturity, AOB shall pay ERC the greater of (i) the principal including 12% interest per annum or (ii) 33% of all gross profits derived from the property that is being developed. In addition, ERC has the right to acquire the property for a purchase price of $15,000,000 through January 1, 2015. This option and its terms will allow ERC to choose the right time to exercise its option, if at all, in order to maximize its profits and optimize shareholders' value."
Moshe Schnapp, President of the Company, stated: "we believe the Company, with the funding of the project commenced by AOB, is entering a new era, which is exciting and appears to be promising."
About Euroweb International Corp.
Euroweb International owns and operates an IT outsourcing company in Hungary through its wholly owned subsidiary, Navigator Informatika Rt. and is currently seeking opportunities in the real estate industry through its wholly-owned subsidiary, Euroweb RE Corp., a Nevada corporation. Euroweb's common stock is traded on the Nasdaq Capital Market under the symbol "EWEB". For more information about the Company go to: www.euroweb-international.com.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking statements that involve risks and uncertainties. The statements in this Release are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause Euroweb International Corp's actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.