Why is Now The Best Time for Foreign Investments?
The grass is always greener, on the other side, right? Well, no not always, and you still have to water the green stuff, especially in the desert. To foreign investors, though, the Las Vegas landscape is a veritable garden of real estate delight.
Las Vegas real estate has borne witness to nauseating roller coaster-worthy highs and lows in the marketplace. Sure, we Las Vegans are used to over-the-top concepts and actualities, those envelope-pushing elements make living here invigorating. But, when it comes to high stakes off the Strip, we like a bit less distance between the extremes.
The last few years have been thought provoking to say the least. Las Vegas real estate investors have prospered and suffered, depending on their position. This market is equally as risky as any spin of the roulette wheel.
Foreign Investment in Las Vegas Real Estate
Nevertheless, where there is a loser, there is also a winner. At the same time the U.S. was facing the economic downturn from 2007 to 2009, foreign economies were on the uptick. The U.S. dollar lost value relative to overseas currencies, paving the way for offshore investors to purchase landholdings at a discount.
Here is another fun fact about American real estate: the U.S. enables higher appreciation opportunities than any other country. Spain is next in line but trails the U.S. by 26% in increasing property valuations.
Enter the rise of the EB-5 program, a plan of action initiated by the U.S. Congress in 1990 to invite investors from other countries to purchase American capital to stimulate jobs. This post isn’t a political discussion, so don’t despair.
The EB-5 program includes the stipulation: overseas investment of $500,000 in a “targeted employment area” (a region with high unemployment) in the United States earns the investor legal conditional residency. In areas of the U.S. that do not qualify as targeted, foreign investment must equal $1 million in funds, and borrowed funds don’t count.
The EB-5 program helped launch the SLS Las Vegas; a nightclub-themed resort that replaced the Sahara at the north end of The Strip. Funding for this project included $115 million from Chinese backers.
Las Vegas Global Economic Alliance‘s president Tom Skancke visits China multiple times a year to promote the investment opportunities in Las Vegas real estate. These are mostly commercial ventures, but the benefits are attractive to manufacturing enterprises considering the U.S. as an option. Las Vegas is a Foreign Trade Zone, a designated region that cuts back on the red tape required to import or export goods manufactured within the zone. The 22,000 plus trade shows held in Las Vegas every year is a nice perk to manufacturers in the trade area. The 5 million delegates who arrive here for conventions represent potential customers.
Investment Opportunities in Las Vegas Real Estate
The Las Vegas Convention and Visitors Authority is so committed to attracting Chinese travelers; it has set up offices in Hong Kong and Shanghai. The proportion of visitors from a foreign country equals 19%, but the visitor’s authority has a goal of 30% in the next few years.
Not all of the money flowing in from overseas is Chinese; the “Land Down Under” is sending their Aussie dollars stateside. The Alon Hotel and Casino resort are underway thanks to a past president of the Wynn Las Vegas, who now sits as executive director of Crown Resorts Ltd out of Brisbane, Australia.
And not all of the money is shelled out for commercial ventures. Las Vegas presents a golden opportunity for education as well. Top-rated public and private schools in the area are a hook for families with school-aged children. International buyers favor neighborhoods with good schools and nearby conveniences, which Las Vegas offers in droves.
Rhodes Ranch attracts prospective homebuyers through their observation of the principals of Feng shui, although that was not by design. Homes with stairs facing the front door or the back door in direct line with the front door are Feng Shui faux pas.
Vacationing in Las Vegas also furnishes international travelers with motivation to purchase a second home in the area. Like domestic buyers, visitors from abroad flock to Las Vegas for the weather and entertainment options. Since the distance traveled to enjoy the Las Vegas perks, buying a vacation home makes sense.
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Ready to learn more about your options for foreign investment in Las Vegas real estate? Connect with me today to discuss the wealth of opportunity in our great city.