Over the years, real estate investment has continuously skyrocketed. Some people choose to purchase a property to rent out on a long-term basis, while others go for short-term rentals for tourists and business travelers.
One area that has seen huge growth in real estate investment is Las Vegas. From apartments, single-family homes, and penthouses to commercial offices and retail spaces, the city has a wide range of properties for budding investors. Yet, the market is also continuously booming and becoming ever-competitive.
So, is Las Vegas real estate a good investment? Let’s explore!
Why Las Vegas is a Great Place to Invest in Real Estate
A lot of people are moving to Las Vegas – whether it’s because of the amazing weather, no income taxes, and a great cost of living. That’s why the city is continuously becoming a top real estate investment destination.
One thing that makes Vegas immensely popular is the amount of visitors it attracts all year round. Between the infamous Strip, the abundance of hotels, resorts, and casinos, world-class entertainment, incredible indoor attractions, and amazing outdoor spots, people will always be drawn to the city.
This means you're never short of visitors looking for a place to stay for a weekend trip, a long-term rental, or a home to relocate to. If you invest in Las Vegas real estate, you could be answering to that accommodation need.
Similarly, Las Vegas is known for its business conventions and trade shows that it hosts annually. These bring in business travelers and entrepreneurs from all walks of life who, again, will be looking for somewhere to stay. Having a real estate property in the area will be beneficial for them and earn returns for you.
As a year-round destination and with the city slowly rising back up, it's highly impossible that your real estate property will be left vacant. In fact, you can anticipate a steady stream of people looking to rent out – purchase, even – your Las Vegas real estate investment.
What to Look for in a Good Investment Property
Investing in real estate is a major life decision. To determine if such an investment is good for you, be sure to consider these important points.
1. Type of Property and its Characteristics
It's important to understand what type of real estate property you want to invest in – commercial, industrial, residential, or retail.
Residential involves homes, a basic human need, so this investment is known to be the safest with guaranteed returns. The other three tend to have high risks (such as economic downturn and vacancies), but they offer higher profit margins.
Similarly, consider the characteristics and conditions of the property you want to purchase. Does it have good infrastructures, such as drainage systems, pavements, and street lights? Does it have a sound layout, structure, and features that could impact your tenancy?
When considering a location, you have to check its present state. Is it in a safe neighborhood? Is it accessible by public transportation? Does it have important amenities – freeway, malls or shopping centers, hospitals, parks and play areas, a police station, schools, supermarkets – within close proximity?
You also need to consider how the area may change over time. For instance, having too much nearby commercial construction in a few years could affect the value of your investment.
Consult with the local government or agencies in charge of urban planning and zoning. They can give you an idea of what’s in store in the area, so you can better assess if this is a good investment.
3. Property Value
Knowing the estimated value of the property in advance helps you decide whether or not the investment is worth it. For instance, a property may seem affordable now, but it could cost a lot if you need to do heavy renovations or remodeling.
To identify the value, compare the prices of properties with similar characteristics in the area. Your real estate agent will be able to guide you through the market value of the property you’re eyeing.
Essentially, a good real estate investment gives you the best value for money, with the least costs and risks on your end.
4. Long-Term Opportunities and Returns
As an investor, you’ll want a positive return on your investment, so it’s best to consider the opportunities it could bring.
Will you be able to rent it out easily? How long would it take to implement future plans? How much profit can you make? Will you be able to expand, redesign, or upgrade the property? Are their development opportunities in your community or neighborhood?
This will help you gauge if the investment is worth the risk and potentially bring positive returns on your investment.
5. Payment Plans
When investing in real estate, you will encounter different kinds of payment plans.
Some might require you to a get a loan from the bank. If so, you’ll need to assess how long that could take you to pay and what risks are involved.
Other investments could allow you to pay for the property in installments instead of a one-time payment. This could give you the flexibility and time to generate the needed cash flow rather than paying bank interests.
Still, you might need to take out an adjustable rate mortgage on a house This often occurs if you’re going to flip the house or intend to live there for a short period before selling it. On the other hand, if you want to make a handsome return on a long-term investment, a fixed rate mortgage may be better.
Ultimately, a good real estate investment should offer a payment plan that works best for you. Be sure to consult with your agent or accountant before deciding.
An Important Note to Consider
The conditions of the property market fluctuate regularly and rapidly. For instance, Las Vegas is experiencing a red-hot housing market currently. Some fear of a market crash happening, while others are positive that it’s only moving upward. Either way, things can change from time to time.
As a potential investor, it’s essential to research your target area, be aware of the current climate of its real estate, and pay attention to possible trend changes.
Some things you need to consider include:
- Flipping activities.
- Home prices and sales.
- Mortgage rates.
- Pipeline of new construction.
- Property inventory.
Knowing all these will help you make smart decisions about your real estate investment.
Ultimately, Las Vegas is a viable real estate option – if you know what to look for and how to maximize the opportunities available.
With so many factors to consider when investing in real estate, it’s best to leave this to the pros. This is where The Brendan King Group comes in. Our team of seasoned real estate agents and Las Vegas experts will be with you every step of the way to help you get the most out of your investment.
Contact The Brendan King Group today to learn more.