Vegas rated as No. 1 investment opportunity for homebuyers
New home sales have been going up as prices are remaining low across Las Vegas. Builders have obtained more permits in recent months, and in July there were 462 recorded new home sales, a 46 percent increase from last year. Real estate in Las Vegas posted a 2 percent decrease in the median home price last month to $194,270, according to Las Vegas Inc.
New reports are showing that Las Vegas homes may be one of the best investment opportunities for homebuyers. The world-class city is home to cutting edge technologies that attract people to the area. For instance, Las Vegas was just rated as one of the top 10 cities for 4G wireless internet access. Beyond the bright lights of downtown Las Vegas, the community is known for its artistic culture, festivals and celebrations.
According to CNN, Las Vegas was ranked as the No. 1 city to buy properties to rent out in the nation. In 2012, the median home price in Las Vegas is $122,000 and the projected annual rent in 2015 is $12,829. As home prices in Sin City are down 62 percent since the 2006 peak, reports show that investors will have a return on investment 5.6 percent higher than the national average of 5 percent. Buyers can get an immediate cash flow from renting out a home in Las Vegas, according to Equities.
Homes are being snagged up by investors who are turning them into rental properties, especially single-family homes that were estimated as the best investment opportunity out of 316 markets. Real estate expert, Charles E. Carrier said that investors can save the market in Las Vegas. By renewing distressed properties in certain areas, the neighborhoods will improve and prices will return back to normal.
“Equally important, recycling these distressed properties into quality retail homes (and clean rentals) aids those owners who are currently underwater on their mortgages,” Carrier wrote. “Experienced local investors who have a stake in the long-term economic viability of a community are completely aligned with the interests of homeowners.”
However, buying a home to rent out doesn’t come without any risks, as there is currently a huge supply of rental properties in Las Vegas. This trend is leading to more rental properties than homes for sale, which have been in abundance of supply. Some landlords could run into issues finding tenants, and letting a property sit vacant for an extended period of time can be costly.