Las Vegas real estate investing investments
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Las Vegas real estate investingLet Max know what it is you are looking for here NOW!
The recent sky rocketing increases in property values that has put Las Vegas real estate investing in the World spotlight. This would be one very good reason to join the Las Vegas real estate investing trend. But property values will not always appreciate at 34% as they did in 2004, or even 17% as they did in 2005. In fact some reporters are saying that currently 2006 the value of Las Vegas real estate is declining, and investors are being hurt! This is simply not true and I will show you why.What makes for a good investment environment? People are the first key. If you have more people who need a place to live than inventory available then that inventory must expand out from the employment center further and further until the residence commute becomes an issue. This makes a great climate for investing. The community money supply is the second key to making money in investing in a community. If you buy house in a steel mill town you can get the best price soon after the mill is shut down. Conversely you will pay more for the same house if the mill is thriving, expanding and hiring new workers. So when we speak of money we are speaking of employment and therefore demand for housing. I often recall a family friend whom in 1966 purchased an old house in Park City, Utah for the then market price of $1,300. That's right, you can't hardly find a house to rent in Park City during ski season for $1,300 per day let alone own it. Most homes on this old rustic street now sell for over $850,000. The point is if an investor buys at any given point and then demand goes up because of employment, geographic location, and economic reasons then the investment is sound. If any of these go down, the investor didn't do there homework properly. Take a look at a simplified graph of housing trends in Las Vegas for the past 100 years.
Now that looks like a great investment! This graph is done in fun but holds some truth, especially in recent years. Let's look at the key indicators for Las Vegas real estate investing.
Population Growth According to UNLV's Center for Business and Economic Research, In 1997 the Greater Las Vegas area reached at total population of one million people. In 2006 the population is estimated to reach over 1,890,00 people. The Nevada State Demographer estimates the population in Southern Nevada to reach approximately 3.5 million people by 2035 which reflects a slowing in growth after the next 4 years. These figures do not take into account the part time residence, visitors and undocumented foreign residence. Economic Growth Last year Las Vegas had a 7% growth in personal income, a 4.5% growth in population, an almost 4% growth in tourism. Las Vegas gaming adds almost 9.2 Billion Dollars to our economy. Commercial and retail real estate vacancy rates remain very low (below 4%) in Las Vegas due to high demand for retail products according to CB Richard Ellis in their 4th quarter 2005 report on Las Vegas. Las Vegas saw over 5.5 million square feet of retail space being built in 2005 with another 9.3 million square feet to be completed in the next few years. Las Vegas is now attracting high-end national and international retailers. 3.2 million square feet of Office space was constructed in 2005 with a 10 year low vacancy rate of 9.6%. The office market is attracting new business from out of state and seeing growth in local businesses. 5.3 million square feet of Industrial space was added to the Las Vegas market in 2005 with a very low vacancy rate of 4.84% this trend is expected to continue as companies move to Las Vegas because of its favorable business climate and low tax structure. Employment Growth In October 2005 employment in Southern Nevada is 877,200 jobs which means 1 out of 2 people (man, woman, child, retiree) are employed here. The unemployment rate in Las Vegas is 4% (national unemployment 5%) and the job creation for the year grew 6% which translates into 71,500 new jobs in the last year. It is estimated the job growth in 2006 could top 50,000. "...Nevada has had the highest job growth rate in the nation for so long that it only becomes news when another state takes that lead away..."(Forbes Magazine). Keith Schwer of the Center for business and Economic Research at UNLV said that there was a 7% increase in personal income in 2005 in the Las Vegas area. Housing Supply and Demand Apartment vacancy rates are down to 4.6%. According to Sales and Marketing Management Magazine, Las Vegas is rated in the top 10 hottest investing cities in the United States (Feb.2006). "Though Booming, Las Vegas has room to grow, with 37% of land undeveloped in the metropolitan area." The 2006 projected total number of homes sold will decline modestly. Appreciation will also increase at a more moderate pace with estimated at 7%. The GLVAR says that 2007 home sales looks brighter with home sales set to rise on the back of local job gains and stable mortgage rates.
Location, Location, Location If you have ever taken a class or attended a seminar on real estate investing you have heard the famous words "location, location, location." If you buy a house in the middle of no where Nevada the chances of its value increasing are slim. But did you ever think that maybe a City has a location value as well? Las Vegas is known "THE ADULT PLAYGROUND" world wide. A 5 hour drive from Los Angeles, an airport that welcomed 41 million guests, a logistical hub for 11 western states, a state with NO Corporate Tax and NO personal State income tax, a designated U.S. Foreign Trade Zone, home to The country's most advanced internet hub and superior telecommunications infrastructure. Add to all that the best economic growth in the U.S. and you have location, location, location which are the first three things you should consider looking at Las Vegas real estate investing. Another consideration that many fail to see about Las Vegas location is its desirability for the retiring baby boomers, especially those living in Southern California (California is the fifth largest economy in the world). With housing costs of 2 to 3 times that of Las Vegas and no State income tax, many Southern Californians are opting out of the gridlock, high mortgage payments, high taxes. Many are selling their homes and taking the equity and buying a bigger nicer home here with cash still in their pockets and their still only a few hours drive to visit family and friends. If the bullet train is built as planned then the commute between Anaheim and Las Vegas will be about $75 and under 90 minutes. Las Vegas real estate investing holds much promise for the next 10 years. Call Max Now at 702-334-2200 or 877-Max-Sell
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