Are you looking for the right Las Vegas investment property?
Las Vegas, U.S. is a prime location for property investment. Las Vegas boasts a thriving economy with employment growth in technology, construction and the hospitality sector. Out of the city’s population of 2.2 million, 48% are renters. Add the number of tourists (42.3 million visitors in 2016) to the mix and there is no doubt that the city’s rental market is a huge area of opportunity. Las Vegas ranks #6 in job growth with rent rates steadily increasing and vacant days for properties on the market going down.With year round great weather and some very amazing properties available, this region is definitely a property buyer’s market. You can find nice, spacious homes all over the city at very affordable prices.
However, before you jump the gun and make a property investment in Las Vegas, here are some mistakes you should avoid making:
Know The Las Vegas Housing Laws:
Like everywhere else, there are local municipality laws that every buyer should know before making a purchase. You especially need to read the Fair Housing Laws of Las Vegas. Many people believe that once they buy a property in Vegas, they are free to make whatever renovations they want. By reading up the fair housing laws, you will know what your property taxes are, what type of renovations you can make and how much the property tax will go up if you do so. Know all about the housing codes and your rights as a property owner.
Research The Las Vegas Property Market:
Many people go to Las Vegas and are seduced by the razzmatazz of the place. Most of these people have the means and the funds to buy the first property they see or like. This could be a major mistake. Buying a home in Las Vegas should never be an emergency. You need to make sure you conduct a thorough market research. There are some parts of the city which are posh and others which are not livable. You need to know if the property market in the area that has taken your fancy, is actually viable. If you plan to rent, then you must know if there is a demand for rentals in that particular area. You also need to know if the property is close to basic amenities such as schools, public transportation, grocery stores, supermarkets etc. In addition, you should have some information about the crime rate of that area, safety for children, commute time to and from major destinations and so on.
Don’t Rely Too Much On Real Estate Agents:
Many people who want to buy a home just go to a real estate agent. While there is nothing wrong with this approach, the onus is on you to first know what you want. Remember, real estate agents work according to your needs. If you are unclear of what you want, they will not be able to identify all the right options for you. That is why you first need to know which areas are good, how much you can invest, what your long term goals are etc. Real estate agents can do the leg-work but don’t expect them to do the thinking for you as well.
Know Your Investment Budget:
Many people looking to buy a home in Las Vegas never consider the finances. Buying a home is not a cheap undertaking and for most people it is the biggest purchase of their lifetime. It is important for you to know what you can afford, what your credit standing is, how much you will have to borrow etc. There is no point in looking at expensive and amazing properties unless you have first established how much you can afford and what amount you can get approved for by the bank.
On top of knowing your budget it’s important you calculate the return on investment you can expect to receive from the property. Will there be enough room in the budget to hire a property manager? Or is this going to be a property you self-manage? It’s crucial you take the time to understand your numbers BEFORE investing in real estate.
Don’t Think Too Big:
Las Vegas is known for its pomp and beauty and one can easily get carried away with all the glitz and glamor. There are many terrific homes in Las Vegas but you have to be realistic and know what you can afford. Do not forget – you have to pay the mortgage, utilities, property taxes, car licensing, insurance for the home and the car and maintenance of the home. No doubt if you plan to invest in property in Las Vegas, you do have the funds to do so but often, people get carried away and stretch their finances, only to end up losing their homes. In today’s economy, you must have a backup plan in case you get laid off. Rest assured, your banks won’t understand if you can’t make your mortgage payments and and neither will your local municipality if they don’t’ get their property taxes.
Don’t Forget Las Vegas Property Inspections:
Always make sure you get the property inspected before you buy. Initial investment in this initiative could save you thousands of dollars in future repairs and other related issues.
We hope that helps you on your journey to finding the right Las Vegas investment property!