June 24, 2009
Henderson Homes for Investors
I was recently sent a written interview by an international investor publication concerning investing in Henderson real estate. I have included both the questions and answers in this series of articles on Henderson Home investment opportunities.
Allison (Question):What makes the Henderson market attractive to investors? What, if anything, about the city may not be so attractive to investors?
Henderson Nevada is a very stable community. From a resident standpoint (population 260,000+) it offers some of the best public schools in the Clark County School District most teachers strive to work in the schools in and around Henderson.
The City (land area of approximately 80 square miles) has its own Fire and Police Departments that are adequately funded and seem more responsive to the residence needs than the Larger Las Vegas Metro Departments that covers much of the almost 8,000 square miles of the Clark County.
Henderson has excellent services and shopping and is considered as one of the best shopping areas in all of Las Vegas. Henderson also done an excellent job of traffic planning providing 3 Major arteries within the city limits to handle traffic flow as well as many excellent surface arteries to facilitate the flow of traffic. They have also have an extensive plan for future mass transit system in place to provide for the needs of the community and connection to Las Vegas.
Henderson has a great reputation as a real community which has helped in holding land values in general higher than in much of the Las Vegas valley. There are fewer repossessions currently in Henderson because the community was built before the real estate bubble fewer properties have been repossessed.
Because of its reputation as a desirable place to live with lower crime rates and better shopping and community services Henderson creates a more stable investment market yielding higher gross incomes on properties and higher market demand for its real estate products.
As to the negative side of Henderson. Most of the City was developed before the Boom cycle that ended in 2006. The availability of home built in the last 5 years is a much smaller percentage of the market than those built prior. This means that in comparison with Las Vegas in general it is much harder to find an investment property in pristine condition and most repossessions need additional work to bring them up to rentable standards. There is also an old core that was originally a Federal Arms plant in World War II. This area is dotted with 1940’s 750 sq. ft. cinder block homes. Much of this area is slated for Urban renewal but this will be stifled by the current real estate market conditions.
Tomarrows post: How has Henderson weathered the real estate downturn?
