Las Vegas Investor Market
In 2002, a four bedroom house in Las Vegas could be found for $150,000 and rented for $1,100 per month. That was just enough rent to cover the mortgage, property tax and a month of vacancy each year. In 2005, that same house would sell for $250,000. From a cashflow perspective, the rental market has not kept pace with the home prices. You would still be able to get $1,100-1,200 per month in rent, but that won't completely cover the mortgage unless you put down a large down-payment.
So, is real estate in Las Vegas still a good investment market? If you can handle some risk and some negative cashflow (or bigger downpayments), it still has promise. Las Vegas is one of those rare metro areas in the United States where there is a good demand for real estate and a finite supply. There are currently 1.5 million residents, and a net increase of 7,500 more each month. Las Vegas is located in the bullseye of the national sun-belt migration pattern. Retirees are heading to the sun and the fun, and enough jobs are in Las Vegas that the working class finds opportunity in the desert too.
The beauty of Las Vegas land for sale is the land ownership. The city is surrounded by government land, military bases and mountains. The government will continue to release land until approximately 2012, at which point all the land will be consumed. The result is that Las Vegas real estate is surging. Big time. In June of 2004 the Bureau Of Land Management auctioned a 1,900 acre tract of land for development. The expected sales price was in the $280 million range; it was bought for $555 million by a collection of very optimistic home builders. You can bet that they have a plan to get that money back out in the form of increasing home prices in the coming years.
So long as terrorists ignore sin city and the southwestern migration patterns hold up, homes for sale in Las Vegas should continue to outpace the national average. The days of Las Vegas being king of cashflow AND appreciation may be over, but if you are looking for a pure appreciation oppurtunity, Las Vegas may be your best play. Join the Cashflow Property Network to make the most of this information and other opportunities around the nation!