The worst housing crisis in more than half-a-century has devastated Las Vegas home prices, severely impacted our economy, and thrown many people out of work and out of their homes.
But, as in any downturn, even during the Great Depression of the 1930s, opportunities for the astute investor could always be found. Of course, in good times or bad, cash is always king, and an investor with a ready source of capital and a sound line of credit is in a position, particularly at this point in time, to acquire real estate properties at record low prices.
Additionally, investors with the very best credit now have the opportunity to finance purchases at nearly rock-bottom interest rates.
When looking at Las Vegas single-family properties as an investment in today’s world, one has to carefully evaluate many factors of importance that may not have been as important only a few years ago. For example, location now takes on a new meaning when evaluating a property to rent or sell.
When the economy was flourishing, many families decided to purchase homes in the suburbs. Gas was reasonably priced, and the family breadwinner felt that it was well worth a longer commute to work or business in order to raise the kids in a cleaner, safer environment.
That same suburban house doesn’t look all so inviting in today’s world to many breadwinners who are working, and have the means to purchase a home.
With gas prices hovering in the three dollar a gallon range, and the fear of a further rise per gallon, as well as the costs of driving to and from work and the wear and tear on the family car, the careful home buyer will certainly consider location a most important factor in his/her purchasing decisions.
Why not look for a home closer to work, or convenient to public transportation? It’s easy to see why an investor would consider the home with a shorter commute to be a wiser investment than the suburban home.
Close-in quality neighborhoods are the locations where home values are most likely to regenerate quicker once the economy begins to recover, and properties in these areas will certainly rent faster or sell profitably.
Changing concepts in real estate investing means that the knowledgeable investor will be looking at how much income a property will generate over the long term.
Flipping houses for a quick profit during the boom years was a strategy that worked at that time, but with the huge glut of inventory now on the market, and with more distressed properties still to appear this year putting further downward pressure on market values, the days of fast turnovers and quick profits are pretty much over for the time being.
With home prices continuing to fall, a long term investor is now able to purchase a property at an attractive price, a price that would leave enough leeway so that rents would be sufficient to cover all of the property’s carrying costs, plus a margin for profit.
The savvy investor will always retain the flexibility to recognize the change in concepts in an ever-changing marketplace.
If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702-376-7379.