Investment Properties in Las Vegas
Las Vegas is quickly becoming one of the hottest places in the United States for real estate investment. Many would argue that there has never been a better time to invest in real estate here.
Las Vegas real estate has made many people wealthy. At the same time, others have been left holding the bag on properties that never turn a profit. Here are some questions we often hear and some things to keep in mind when deciding whether an investment property in Las Vegas is a good purchase.
Is the Las Vegas Area a Good Place to Purchase Investment Properties?
Yes. Las Vegas investments offer a high rental income and good long-term equity. As with all places, you need to do your due diligence and get to know the profitable areas and those you should stay away from. As experts on the Las Vegas real estate market, The Smith King Team can help you find the right investment properties that fit your criteria.
Property tax is something to consider when you’re buying an investment property anywhere, and Las Vegas is no exception. For example, Clark County has a property tax rate of 0.70%. This makes it a little bit higher than the state average, which is around 0.69%. However, Las Vegas, which is in Clark County, is drastically lower than the national average of 1.08% for property taxes.
Many people are concerned about how the coronavirus pandemic has affected the value of investment properties. However, the Las Vegas housing market is on fire. Home sales are a lot higher now than they were last year. Prices are pushing new records.
Remote work has encouraged people who were forced to work in expensive cities to see Las Vegas as an option. Las Vegas has favorable tax laws. That is part of the reason why the Nevada census predicts that there will be a 1.51% increase in population and a 1.46% increase in median income by 2025.
All of this means that the demand for housing and real estate in Las Vegas will continue to outpace the supply. Currently, the housing supply in Southern Nevada is at 0.5 months. This is a favorable market for real estate investment.
Traditionally, when the market favors the seller, there are less than six months of supply available. If there are more than six months of supply available, then it is a buyer’s market. Currently, there is a less than one month supply. This makes it a perfect time for investors.
It’s true that the pandemic has disrupted the hospitality industry, which is the heart of Las Vegas. However, the Southern Nevada real estate housing market shows no signs of slowing down. Las Vegas is one of the housing markets that shows some of the most positive signs of recovery post-pandemic.
How Can You Tell If an Investment Property Is a Good Deal?
There is no 100% sure-fire way to know whether a property is going to be profitable. However, there are some signs that are strong indicators that a property in Las Vegas is an excellent investment. The Smith King Team is proficient in locating opportunities with a positive “Rate of Income.”
There Are Already Tenants
You may think that purchasing a home where there are tenants would be a bad thing. However, if the tenants are good people who pay their rent on time and take care of the house, you have hit the jackpot. You can get an immediate cash flow without needing to put forth any effort.
There Are Things to Do around the Property
People want to live in a neighborhood where they can go outside and walk around. They want to have access to excellent restaurants, beautiful scenery, grocery stores, etc. Walkability is a significant factor when renting a house in Las Vegas. Pay close attention to the neighborhood and see what’s going on around you. Ask yourself, if I was going to rent this place, would I enjoy it?
Are there malls, restaurants, grocery stores, hotels, and other amenities being built around the property you’re considering investing in? If so, you may have found a good thing. As the area starts to offer more amenities, you’re going to be able to find high-quality tenants who can afford to pay what you’re asking. Pay close attention to what’s being built in the area.
Do you see Whole Foods, high-end coffee shops, and specialty boutique stores? If so, you may want to invest. Big-name companies spend millions of dollars researching neighborhoods before putting their brands there. They have researched it for you.
Are there things about the property that set it apart from other properties in the area? Maybe it has a massive yard with a fence, a nice fire pit out back, or a deck with a beautiful view. Details like these can make the property you are offering seem exclusive, especially if it’s in an area that’s already in high demand.
What Are the Best Kinds of Investment Properties to Buy in Las Vegas?
Single-family homes continue to be one of the hottest markets in Las Vegas. April 2021 saw substantial growth in the median sales price of preowned single-family homes. In March 2021, a preowned single-family home sold on average for $363,000. In April of the same year, the price hit $374,000. This represents a 3.3% increase from the previous month and a 21% increase from the last year.
There is genuine interest in single-family homes in Las Vegas. In April 2021, more than 81% of the closings happened in under 30 days. Compare this to only 65% of the homes having the same positive outcome in 2020.
Downtown Las Vegas, where the hotels and casinos are, represents the most lucrative market. However, it’s not all about casinos. There are universities and major online retailers that make investing in Las Vegas real estate so attractive.
Need to know more about investing in Las Vegas real estate?
Las Vegas is and will continue to be a vibrant, beautiful city that attracts people worldwide. It’s a major resort city that is known for its nightlife, entertainment, and fine dining. It’s often called the entertainment capital of the world.
The city has a nice mixture of owners and renters. This is part of the reason why it’s in the top 10 nationally for real estate appreciation. In 10 years, real estate in Las Vegas has appreciated by 133.14%. Still, the real estate market is healthy and accessible for new entrepreneurial investors looking to grow their real estate portfolio.
Contact the Smith King Team for help finding the best investment properties Las Vegas has to offer.