Is Las Vegas Real Estate the Answer?
Real estate investors looking to recover from the housing bubble of 2008 are ponying up to the tables in Las Vegas. Not the poker tables, well, maybe some of those too, but the title company’s tables. Residential prices are stabilizing, and increasing even in some areas of the valley, signaling a good time to get the chips ready.
If you are an investor, the best way to maximize returns is to diversify. Depending on your existing portfolio, you could buy a condo on The Strip and or a single-family home near a golf course. Las Vegas real estate is bouncing back all over the valley. New downtown developments are attracting entrepreneurs; Lake Las Vegas has been restored to its former glory, and the tourist industry is back in business.
Las Vegas Real Estate Calls Investors
For potential buyers considering Las Vegas real estate as an income-producing property, consider the new laws regarding short-term leases before buying with the intent to rent short-term. The Homeaway/AirBnB business has been attractive to Las Vegas’ homeowners, but the city is trying to limit the “party house” occurrences.
Homeowners who lease out their residential properties for less than 31 days need to secure a business license from the city of Las Vegas. The $500 short-term rental license is good for a year. Residents of Henderson and Clark County cannot participate in short-term rentals. And no weddings or parties that are considered “banquet services” in residential homes, plus a 12-person maximum occupant rule.
And Homeowner’s Associations have their specific rules on rentals that you should be aware of before buying in a neighborhood.
Of course, there are exceptions, the luxury high-rise hotel, casino and condo complex Palms Place will rent out your condo for you when you’re not using it. The Residences at MGM Grand also encourage rentals, so these might be good options for prospectors in the vacation segment of Las Vegas real estate.
Seasons are not exactly weather related in Las Vegas. There is convention season, not usually mentioned in squares on a wall calendar. Over 22,000 expo shows traveled through Las Vegas in 2014, and with them, 5,169,054 convention delegates. Most of those visitors stayed in hotels, but the need for alternative housing is on the rise.
The average hotel room costs $117; guests stay an average of 3.2 nights per trip, and Las Vegas’ midweek occupancy is 83.9%; weekend occupancy is 93.3%. Tourism is active in the city at all times of the year, and private residences offer more spacious accommodations than most hotel rooms. So, if the HOA allows short-term stays, take advantage of the 41,126,512 visitors to Las Vegas (in 2014).
Las Vegas Real Estate Foreclosures
REO properties are an option for investors who want to buy below market price, but with the possibility of renovations. Unfortunately, foreclosures are still a reality in the valley. The flip side of that fact is there are deals to be found on luxury properties. We can help you find those hidden jewels.
Additional benefits for landlords in Las Vegas:
- Positive cash flow from residential rentals and rents are increasing.
- Property tax is about .86%
- Landlord insurance averages between $500-$600 per year
- Low maintenance building materials mean less money for repairs on rentals
Property shoppers who are in the market for a place to call home after they retire should consider Las Vegas. The valley is one of the top destinations for retirees in the country. The same reasons presented to landlords are factors in the high number of retired citizens in the area. Plus, the weather. The stable demand for luxury rental property in Las Vegas translates to mortgage payments on your future retirement spot.
I have worked with buyers who purchase luxury property with the intention of renting it long-term. The owner builds equity through tenants, hires a property manager to deal with the technical aspects, and then enjoys the rewards when moving into the work-less phase of their life.
Another scenario is buying luxury property, renting it for long-term, and then using the lease-generated equity to buy another property in Las Vegas. The advantage of holding title in Las Vegas before becoming a full-time resident is that you can assess the environment prior to making a commitment. If your priorities change during the time the property is leased out, you have options.
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We know that buyers have unique backstories and real estate goals. Our top priority is to understand your path, where you came from, and where you are going in regards to real estate. Let’s start the conversation today.