Buy and hold Las Vegas Housing

The Las Vegas Housing market has gained momentum over the past 5 years.Tthe property values have gone up with rental rates exploding in certain parts of the city.  The time to buy a home in Las Vegas for rental income is now.  The interest rates make it possible to leverage your cash for outstanding returns.  You can double the rate you are getting with cash in the bank.  In a city like Las Vegas finding quality rental property is not difficult but it will take a 3-5 year plan to enhance profits.  The most important thing is to get financing at the extremely low rates and consider the projected rental rates and housing costs over the next 5 years.  The key is to find property that will give you small returns of $100 to $200 in cash flow each month rather than to look for the home run property.  The home run property will come along but there are money making properties on the market every single day.  Investment in real estate makes money exponentially over time.  Each day you do not own property you are losing potential future income.  If you calculate modest appreciation of housing values and modest yearly rental rate increases it is easy to see how valuable real estate is over time.  Building your net worth is the name of the game in real estate.  Building net worth is the master plan for success in life and investing.  If you have the ability to buy real estate and you are not doing so today you are making a mistake. 

Las Vegas housing rental rates spiking in Summerlin

Rental rates are increasing rapidly in certain areas of Las Vegas.  An average size three bedroom two bath home in the Summerlin area of Las Vegas can rent for as much as $1300-$1400 a month.  Less than two years ago this same property would have brought a rent of about $1150-$1200.  This is a substantial increase and the actual cost of homes in the area has not risen quite as quickly so there are a few opportunities for someone who would like a decent return on their money from a rental unit.  This likely will not last long though because the Summerlin area is in high demand and with the new Downtown Summerlin open and doing extremely well, all areas around the 215 and Sahara exit are becoming even more popular than in the past.  If you are looking to buy a 3 bedroom 2 bath home in this area of Las Vegas you still can find homes near the $200,000 range.  I do not think the opportunity to buy reasonable priced real estate near Downtown Summerlin will last long.  I also think the prices are about to spike in this area over the next year right along with the rental rates.  It is a much better option to buy a home for $220,000 and take ownership considering rent will be $1300 a month or more.  

Home prices increasing in Las Vegas

The average sale price for the sale of home in Las Vegas is now $220,000.  If you bought your home in 2010, 2011 or even 2012 it is likely you have amassed a great deal of equity.   The market is beginning to stabilize in Las Vegas and the continued lower interest rates have helped the real estate recovery.  If you are planning to sell a house in Las Vegas or planning to sell and move to a different city, this is the ideal time.  Las Vegas is not one of the cheapest places to live in the country.  Compared to California or New York, real estate in Las Vegas appears to be very reasonable.  However, compared to most parts of the country Las Vegas home prices are quite high.  The reason I say it is the perfect time to move is because you will get top dollar for you home in Las Vegas now due to reasonable amounts of inventory and the extremely low interest rates.  The money you can make here can go a lot farther on house in Texas or Tennessee.  It is a completely different decision if you need to buy another house in Las Vegas.  The prices have rebounded fairly well and finding a home under $175,000 is no longer easy.  The good interest rates could help you with the purchase of the new home if you get a substantial gain from the home you are selling.  You could use this for the down payment and possibly get a larger house or different home for the same payment.  I would say that buying is still a much better than renting in Las Vegas and rents are sharply rising as well.  I will talk more about the increases in rents in another post. 

The holidays can be a good time to sell your Las Vegas Home

Contrary to popular belief people do not stop buying homes during the holidays.  Many people are only able to shop for homes because of their buys work schedule or if they are relocating to Las Vegas.  Many home owners in Las Vegas will decide to remove their home from the market in the fall or reduce the showings for their home.  This can always be to the advantage of other sellers in Las Vegas because their will be less inventory available for buyers and this could lead to shorter market time or even a higher price for those willing to put up with the hassle of showing their home during the holidays.  

The fall season is also a great time to sell you Las Vegas rental that has gone empty or that you have been considering selling.  There will be less competition and if your property is empty and easy to show it may be the first home agents put on their list.  It is hard to overestimate how important ease of access is to selling a home in Las Vegas.  Many people will be here for one or two days to view property and if they can not get in to see a home they will likely never come back.  If they have to buy that weekend they will find something else and they many have been the perfect buyer for your home.  Call me today to discuss your buying and selling options.  

Chris LaHaie

702-338-8526

Seller's Market in Las Vegas

Las Vegas real estate is still considered to be in a seller's market.  The prices have escalated greatly in the past 5 years and we have traditional sales once again become the most prominent type of sale. Short sales and foreclosures only make up a small percentage of the sales.  However, inventory levels are still consider to be at a number that is slightly below normal.  Buyers do have more to pick from while shopping but in general the market still favors the seller.

The holiday season can make showing your home a headache so many people will take their home off the market or limit showings.  This is completely understandable because having your home on the market can cause major havoc with schedules.  But the fact that many people will pull their homes off the market often will benefit those who are willing to whether the storm of the holiday listing.  Regardless of when you decide to list and sell your home, remember that the sooner you have it under contract the sooner you can stop showing it! 

Chris LaHaie, MBA

Realtor

Epic Realty

Las Vegas, NV  89146