It’s a common debate: should I rent or should I buy? The answer is not always as simple as it ought to be. Timing counts for a great
deal, as do one’s finances. Whether or not a prospective is prone to professional re-location for one reason or another should also be taken into account. And, of course, the home and location must be right to make the debate in any way worth one’s time. Fortunately for those serious about becoming homeowners, now is a brilliant time to consider investing in Las Vegas real estate, particularly in one of many luxury communities.
There are a handful big decisions each of us will make during the course of our respective lives. Who should I marry? What should I do for a living? Hamburgers or hot dogs? But the question of whether or not to become a homeowner is made much simpler when the ownership potential comes with the benefit of investing in Las Vegas real estate. Why is that?
For one, the market is strong, growing, and replete with homes of luxurious, first-rate design. Style and quality comprise the Las Vegas real estate market’s sturdy real estate foundation, which is to say that your investment is not only sound financially, but also ensures you will living well and to supremely high standard.
Here are a few other reasons why becoming a Las Vegas homeowner makes sense:
#1. Pride in Ownership
Renting is not in and of itself wholly devoid of merit, and based upon where one finds oneself in life at a particular moment, it might be a perfectly acceptable means of ensuring a roof sits atop their head. After all, there is scarce little real responsibility that accompanies a rental situation. Lawn care, paint (interior and exterior), and general maintenance matters all fall under the landlord’s purview. Furthermore, there is a feeling of liberation that characterizes more or less every rental agreement in the free world. Once you are prepared to depart, simply do so. There’s no worry about selling a house or finding a tenant of your own. The world is your oyster, so to speak.
But what every homeowner can attest to is a certain pride in ownership that eludes even the most committed of renters. Once a title transfer is underway, a very palpable sense of responsibility and personal investment takes root. The result is a compulsion to make one’s new house into a home all their own. Stylish modifications, accent walls, garden work, art pieces, and so on. These all combine to render the purchased property an extension of the owner’s personality in a way that is difficult, perhaps impossible, to match in a rented unit. And when purchasing a luxury home in one of Las Vegas’ most celebrated of residential communities, you are working with a particularly attractive canvas.
#2. Investment Value
At bare minimum, we all need shelter. Paying rent is certainly enough to achieve that end for the lessee, and it often makes sense to do exactly that. But home ownership adds an additional figure to that equation: investment. With every mortgage payment made or dollar otherwise invested, home becomes more than mere shelter, it is a burgeoning asset. While rental dollars simply keep the renter from being kicked to the curb, mortgage installments purchasing equity in the property and ensuring for themselves a bit of leverage either for future home purchases or for other financial needs.
Las Vegas real estate in particular has enjoyed a fairly steady upward climb in recent years, with home prices recovering substantially from their Great Recession drop. Then there is the question of which real estate you are considering. Purchasing a beautiful property in a high end development is sure to insulate the buyer from any major drops in value or the like, to say nothing for ensuring one has an enviable home in which to live while that asset climbs. The benefits of real estate investment speak for themselves, and doubly so for real estate of a premium sort.
Ever worked hard to make an apartment feel like home, only to then restore everything (paint, fixtures, et cetera) to its precise pre-move-in state? It’s a bit demoralizing. Twelve months of rent payments, nothing to show for them, and now reversing every home improvement measure in order to avoid post-occupancy fines.
This brings us to an important element of home ownership: customization. The home is your domain with which to do as you see fit. Now, when purchasing a gorgeous piece of premium Las Vegas real estate, there is not overly much that needs doing. But establishing one’s own personality footprint within and beyond the walls goes without saying. Which actually ties in very closely with the next item on our renting vs. buying list: landlords.
#4. Landlord Liberation
Now, in being a member of civilization, there is always someone or some governing body to whom we are all answerable —a boss, a spouse, a homeowners’ association, an ex-spouse, etc. But with most of those, you likely a bit of leverage or power of some sort with which to avoid a wholly unbalanced state of affairs. It’s difficult to say as much for the renter/landlord dynamic. The renter is firmly at the mercy of the renting authority, with no real footing when pushing devolves into shoving.
But owners are liberated from this sort of power imbalance, as the very concept of ownership itself tends to elevate its wielder to the role of stakeholder. As acknowledged, there are nevertheless expectations of a homeowner which, if not met, might place them on a collision with a haughty HOA or a concerned neighbor if not met, but the pride in ownership earlier discussed tends to reduce the likelihood of such an outcome.
#5. Rental Potential
The home as asset concept extends beyond the simple dollars-&-cents calculation. Yes, of course, an appreciating asset in the form of one’s own home amounts to a sound investment by any reasonable measure. But what of having the mortgage paid for another?
We have already explored the reality that, for many people among us, renting is a perfectly reasonable alternative to home ownership. How about playing the role of landlord yourself, and having one of these transient souls contribute to the paying down of your mortgage balance? It’s a very common practice within the real estate space, and is all the more attractive for a prospective renter when the home up for lease is a posh and brilliantly designed luxury model of the sort found in Las Vegas’ more premier of residential communities.
#6. Community Spirit
Speaking of community, there is an undeniable divide between the bonds that exist between neighboring homeowners and those which exist between a collection of renters. This is not to argue that friendships and ties do not materialize in apartment complexes or elsewhere across the rental landscape. It is instead to acknowledge that people regard common areas (parks, clubhouses, pools) quite differently when these areas are enclosed within a network of owner-occupied homes, as opposed to renter-inhabited units or the like.
A spirit of shared ownership is wont to flourish in the former circumstance, a spirit that a sense of impermanence often prevents from taking root in the latter case. People are more inclined to invest time, energy, and money in maintaining a shared quality of life that is inherently implied in home ownership.
The benefits of home equity are simply impossible to overstate. They are also completely absent the rental equation. Pay your rent on time for five straight years and in the end you have…five years of on time rent payments to your credit. But make an equivalent number of mortgage payments and you have…a good deal of home equity.
Obviously there are other factors to consider, such as enormous drops in home value, but the Las Vegas real estate has proven itself fairly strong in recent years. And besides, home values typically rebound. Those payments eventually count towards something worthwhile on the balance sheet. Purchasing a luxury home in an equally luxurious development is one safeguard against marketplace volatility, as such homes tend often to maintain much of their value during economic downturns.
#8. Tax Considerations
Okay, we’ve covered a number of home ownership benefits, both intrinsic and financial, and these collectively make an excellence case for transitioning from renter to owner by investing in Las Vegas real estate. But a final point worth making is one of taxation, and of home ownership in relation to it. Few among us welcome the dawn of tax season each year, but owning a home has the potential of offsetting potential downside.
Based upon your particular circumstances, mortgage interest, capital gains, and property taxes might all or individually work in your favor when it comes time to tally your Uncle Sam dues. Governmental forces have worked hard to incentivize home ownership, which cannot be said of renting.
Finding Your Las Vegas Dream Home
Whether you’re ready to ditch the rental agreement or simply want to explore your options, feel free to connect with me today to learn more. I’m always just a phone call away and look forward to helping you find your dream home.