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Replies (18)
- Hamp Yonce, "Zilluminati"
- Contributions:3463
Be careful. Just because gambling is legal doesn't mean it is smart. The Real Estate Roulette Wheel is still turning fairly fast in Vegas. You should have time left to bet, when the wheel slows down.
- CoryMiller66
- Contributions:6
This is why I am asking these questions because I am really new to this. I currently rent and based on a 15yr fixed for an 80,000 mortgage, my rent is the same as a house. That really is frustrating when I think about it....I think now is as good a time to invest in Las Vegas real estate. Some of these same condos that I've looked at being foreclosed on were selling for 4 times what they're worth now...I'm not impatient, Ive just got to make a strategic move here...
- Suzie Marquardt, "NevadaShortSales"
- Contributions:91
There are some great deals in the current market. I am always available to help you and pass on my knowledge of the current market. There are pssitive and negative aspects to investing in this market. One thing I would consider is that it can be difficult to manage a rental property from another state. Give me a call and we can talk.
Thank You
Suzie Marquardt
Thank You
Suzie Marquardt
- Tug of War
- Contributions:1947
Watch the Market you are most interested in..all levels
State/County/City/Neighborhood..Lawsuits/Foreclosure/REO/Title problems
If investing watch the "Price".. Rates down?..holding somewhat steady?
If the "Price" is declining and the inventory is holding steady/still available then if you wish to get all Theoretical ..you are making Money every day by not rushing and overpaying
In the meantime become even more knowledgeable about your specific Market choices, narrow down who really knows what
So YOU do see, get in on the "Big One" everybody talks about..
The "if I woulda known" one.. if/when it does stick it's head up
IMO
State/County/City/Neighborhood..Lawsuits/Foreclosure/REO/Title problems
If investing watch the "Price".. Rates down?..holding somewhat steady?
If the "Price" is declining and the inventory is holding steady/still available then if you wish to get all Theoretical ..you are making Money every day by not rushing and overpaying
In the meantime become even more knowledgeable about your specific Market choices, narrow down who really knows what
So YOU do see, get in on the "Big One" everybody talks about..
The "if I woulda known" one.. if/when it does stick it's head up
IMO
- Hamp Yonce, "Zilluminati"
- Contributions:3463
If the identical condo to the one you rent, that you could buy, loses 15, or 20%, more of it's value, then it is not a good investment, even if someone else (your future tenant) is paying for it. If I were Leaving LasVegas in a year, I would leave that whole cesspool as far behind me as I could. I would be more likely to be looking at RE in the place I was moving to. Particularly, if it is not one of the most devastated RE markets in the country.
Hopefully, more local LV Agents will chime in. You'll get a bunch of sales pitch and little logic, but you seem smart enough to wade thru the BS without sinking in it.
The main problem I see with your approach, and it is not a personal judgement towards you or your thinking, but a nationwide media driven phenomenon, is that RE is shelter first, and may be considered an "investment" second.
Historically, until 2007, RE has held its value, and by that measure was thought of as a reasonable "investment" of capital, since you could live in it, and it didn't lose value. It has never been a great investment.
The last 10 years were an anomaly, which will not likeley be repeated, on both the upside and the downside. The fall of prices may present opportunities, but if economic conditions allow RE prices to climb, the prices of actual investments will climb too, and likely faster. Just my humble opinion. Do what makes you feel fulfilled. You'll learn something regardless of what happens.
Hopefully, more local LV Agents will chime in. You'll get a bunch of sales pitch and little logic, but you seem smart enough to wade thru the BS without sinking in it.
The main problem I see with your approach, and it is not a personal judgement towards you or your thinking, but a nationwide media driven phenomenon, is that RE is shelter first, and may be considered an "investment" second.
Historically, until 2007, RE has held its value, and by that measure was thought of as a reasonable "investment" of capital, since you could live in it, and it didn't lose value. It has never been a great investment.
The last 10 years were an anomaly, which will not likeley be repeated, on both the upside and the downside. The fall of prices may present opportunities, but if economic conditions allow RE prices to climb, the prices of actual investments will climb too, and likely faster. Just my humble opinion. Do what makes you feel fulfilled. You'll learn something regardless of what happens.
- Ivana Alexander, "Ivana Alexander"
- Contributions:56
Hi,
I am a Realtor in Las Vegas working with a number of investors from all over USA. If you send me an e-mail with information on what you would like to buy which area and the price, I will be able to send you available listings of foreclosed homes and you can choose which ones to see.
Happy Holidays!
Ivana
ivana.alexander@gmail.com
I am a Realtor in Las Vegas working with a number of investors from all over USA. If you send me an e-mail with information on what you would like to buy which area and the price, I will be able to send you available listings of foreclosed homes and you can choose which ones to see.
Happy Holidays!
Ivana
ivana.alexander@gmail.com
- Sydney10
- Contributions:31
Making money in real estate is WAY harder than the informercials make it sound.
The mortgage is just the start. Factor in closing costs, down payment, property taxes, insurance, HOA fees, and utilities. Expect to average $200-$300 per month in normal maintenance over time, for everything from furnace filters to bathtub caulk to refrigerator repair, all the way to some years with big ticket items like new carpet or A/C.
If you rent, assume at least one of every 12 months will be vacant and add costs for cleaning, repairs and tenant acquisition. You may have extra accounting, tax, legal and liability insurance expense.
Will you pay a management company? If you move, who will maintain the property (they usually don't)? Who will inspect, fix up and show it between renters? Who will the tenant call for repairs, and who will supervise the work?
Appreciation is likely to be 0-2% at best for years (nationwide historical average is 2-3%). So assume equity will come all or mostly from paying down the mortgage. Offset projected expenses with that to see if the math works as an investment.
The mortgage is just the start. Factor in closing costs, down payment, property taxes, insurance, HOA fees, and utilities. Expect to average $200-$300 per month in normal maintenance over time, for everything from furnace filters to bathtub caulk to refrigerator repair, all the way to some years with big ticket items like new carpet or A/C.
If you rent, assume at least one of every 12 months will be vacant and add costs for cleaning, repairs and tenant acquisition. You may have extra accounting, tax, legal and liability insurance expense.
Will you pay a management company? If you move, who will maintain the property (they usually don't)? Who will inspect, fix up and show it between renters? Who will the tenant call for repairs, and who will supervise the work?
Appreciation is likely to be 0-2% at best for years (nationwide historical average is 2-3%). So assume equity will come all or mostly from paying down the mortgage. Offset projected expenses with that to see if the math works as an investment.
- Katherine Cannon, "highheeledhomeowner"
- Contributions:107
I feel like half the home buyers out there right now just want to buy "if they can find a steal of a deal."
Fair market value of a home is whatever price a buyer and seller agree on.
If you buy "a $80,000 condo" for $70,000, it is actually worth $70,000. Buyers buying in your building in the future will look at recent solds, and they won't bypass your purchase price.
You should take cash flow into consideration when buying an investment, but don't expect to buy an investment property for a fraction of what it's worth.
Good luck!
Fair market value of a home is whatever price a buyer and seller agree on.
If you buy "a $80,000 condo" for $70,000, it is actually worth $70,000. Buyers buying in your building in the future will look at recent solds, and they won't bypass your purchase price.
You should take cash flow into consideration when buying an investment, but don't expect to buy an investment property for a fraction of what it's worth.
Good luck!
- CoryMiller66
- Contributions:6
I would actually be living in it while I am still living in Las Vegas. I am honestly just tired of throwing money away in rent every month. I know there are other cost than simply just a mortgage. In Vegas, there seems like there are more HOAs here than actual people. They really are a nuisance and don't seem to really offer anything to the people that pay them.
I am just wondering what to look for when buying? I want a condo, I don't want a house because honestly while they may be a little bit more expensive...a house is just too big for me as it would be just me living there.
I didn't get this idea from an infomercial either. IMHO about those infomercials, if they really made that much money in real estate, then 1) they wouldn't bother to take the time to make an infomercial and 2) why would they share their secrets with the rest of the world?
I am just wondering what to look for when buying? I want a condo, I don't want a house because honestly while they may be a little bit more expensive...a house is just too big for me as it would be just me living there.
I didn't get this idea from an infomercial either. IMHO about those infomercials, if they really made that much money in real estate, then 1) they wouldn't bother to take the time to make an infomercial and 2) why would they share their secrets with the rest of the world?
- Hamp Yonce, "Zilluminati"
- Contributions:3463
Corey Miller
If you have the time, research three, or four, of the nicest condo complexes you can find that are sort of like yours in LV, for past appreciation performance versus single family home appreciation performance. You can do this on Zillow, in 45 minutes. If they performed less well in the past, they will in the future.
You also say a SFR will be too big and .... if you're really buying it to rent out later that should be the driving force. Not what you need to live in for a year.
You're talking like you need way more thought put into this.
You need to buy, if you insist, a highly rentable SFR, not an "apartment". If LV economy and housing market rebounds, so will apartment complex construction. You don't want to compete with them. You want to compete with "friendly landlords", like you'll be.
I've been doing this for 30 years and I don't know a soul who got rich investing in Condos. I know dozens who got well buying, and holding, SFR rental homes. They're two vastly different animals. I hate to be in your business, but you asked.
You desperately need to talk to an Adviser of some sort, and I wouldn't trust a Vegas Realtor to advise me on anything except who comps the best buffet lunch. Find an Accountant or Investment guy to beat this idea of yours around with.
If you have the time, research three, or four, of the nicest condo complexes you can find that are sort of like yours in LV, for past appreciation performance versus single family home appreciation performance. You can do this on Zillow, in 45 minutes. If they performed less well in the past, they will in the future.
You also say a SFR will be too big and .... if you're really buying it to rent out later that should be the driving force. Not what you need to live in for a year.
You're talking like you need way more thought put into this.
You need to buy, if you insist, a highly rentable SFR, not an "apartment". If LV economy and housing market rebounds, so will apartment complex construction. You don't want to compete with them. You want to compete with "friendly landlords", like you'll be.
I've been doing this for 30 years and I don't know a soul who got rich investing in Condos. I know dozens who got well buying, and holding, SFR rental homes. They're two vastly different animals. I hate to be in your business, but you asked.
You desperately need to talk to an Adviser of some sort, and I wouldn't trust a Vegas Realtor to advise me on anything except who comps the best buffet lunch. Find an Accountant or Investment guy to beat this idea of yours around with.
- Deborah Garvin, "loanmonarch"
- Contributions:438
Cory, I certainly hope you will consider Hamp's advice. Buying in Las Vegas is dicey enough right now. Buying a condo doubles the dice. Buying and moving in a year triples the dice. Why not try the crap's tables on the strip.
You commented that you are tired of "throwing money away with rent". I bet there are thousands of people in Las Vegas who wish they had thrown money away instead of buying a home in LV a few short years ago. The boom years were an anomaly in LV...and will probably not return for many, many years...if ever.
Lest you think I am daft, please know that I lived in LV from 97 to 2000. Historically, real estate appreciation prior to the boom hovered at 2%. What that means is, in effect, a home owner was really just paying rent...no appreciation in real estate value. Typically, there is an approximate 10% cost of sale in real estate (agent commissions, repairs, taxes, transaction costs); that translates to the fact that you would have to hold the property five-ten years to possibly break even. What is the up-side?
The issue in LV is that the area is way, way over built for the population. There is no way for the inventory to be absorbed so the market will rebound anytime soon. Think twice, three times and four times...and get the advice of an investment counselor. I agree with Hamp 1000%: Do not rely on the advice of a real estate agent for this decision...it is like asking the fox if the chickens in the hen house are safe!!!
Lest anyone thinks I am all negative on LV, I am absolutely not. The housing costs are fantastic...and, if you were planning on retiring in the area and never considered the purchase a "investment", I think buying now, or later, in LV makes tremendous sense. Buying a condo in LV as an investment is just plain fool hardy....IMHO (for the individual purchaser...it might make sense for an investor team). Best to you!!
You commented that you are tired of "throwing money away with rent". I bet there are thousands of people in Las Vegas who wish they had thrown money away instead of buying a home in LV a few short years ago. The boom years were an anomaly in LV...and will probably not return for many, many years...if ever.
Lest you think I am daft, please know that I lived in LV from 97 to 2000. Historically, real estate appreciation prior to the boom hovered at 2%. What that means is, in effect, a home owner was really just paying rent...no appreciation in real estate value. Typically, there is an approximate 10% cost of sale in real estate (agent commissions, repairs, taxes, transaction costs); that translates to the fact that you would have to hold the property five-ten years to possibly break even. What is the up-side?
The issue in LV is that the area is way, way over built for the population. There is no way for the inventory to be absorbed so the market will rebound anytime soon. Think twice, three times and four times...and get the advice of an investment counselor. I agree with Hamp 1000%: Do not rely on the advice of a real estate agent for this decision...it is like asking the fox if the chickens in the hen house are safe!!!
Lest anyone thinks I am all negative on LV, I am absolutely not. The housing costs are fantastic...and, if you were planning on retiring in the area and never considered the purchase a "investment", I think buying now, or later, in LV makes tremendous sense. Buying a condo in LV as an investment is just plain fool hardy....IMHO (for the individual purchaser...it might make sense for an investor team). Best to you!!
- CoryMiller66
- Contributions:6
Oh trust me, I am not expecting these housing prices to return to the pre-2007 levels. My roommate(when I first moved here 2 years ago) bought her house for 300,000 and it's more of a townhouse than anything. Nice, and in a nice neighborhood but 300k!! I couldn't believe it. And don't worry guys, if I had to buy right this second, I wouldn't be in a good position financially to do so. I signed up here to ask these types of questions and get this sort of advice from people who've been doing this stuff like you all have been for years. Right now, it's really difficult for me to do any research and with it being Christmas(I work for FedEx) we are constantly busy. It will settle after the new year and I will have more time on my hands to read more and research pricing...FWIW, I have my degree in finance and there seems to be a lot of technical analysis in the real estate market much like there is when it comes to stock valuation. I thought that was interesting
- Hamp Yonce, "Zilluminati"
- Contributions:3463
The technical analysis is fairly simple. Projected cash flow versus a good solid projection of potential expenses. The predicting whether or not LV ever recovers from the crash is the hard part. You don't know what rental rates will do. What if half the condos on the market for sale, all the sudden, become for rent. Every kind of Investors are about to buy Vegas wholesale. I'd rather be sitting on a somewhat more liquid, and potent, SFR if I was going to try to be the rookie in that game.
They don't teach much RE in finance. I have a degree in finance, also. 1993 Winthrop U! Go Eagles!
Look at it this way. Historically, Condo stock grows at about 60% the rate of SFR stock, in good times. In bad times Condos may back up, while SFR's gain. There's no crystal ball for RE but you can examine the fact that condos under-appreciated SFR's, historically. I can't see that changing in the new world we find ourselves in. I can't see them being easier to rent out, either.
Anyway, some body allegedly smarter than me will come along and tell you the opposite, any second now.
They don't teach much RE in finance. I have a degree in finance, also. 1993 Winthrop U! Go Eagles!
Look at it this way. Historically, Condo stock grows at about 60% the rate of SFR stock, in good times. In bad times Condos may back up, while SFR's gain. There's no crystal ball for RE but you can examine the fact that condos under-appreciated SFR's, historically. I can't see that changing in the new world we find ourselves in. I can't see them being easier to rent out, either.
Anyway, some body allegedly smarter than me will come along and tell you the opposite, any second now.
- Deborah Garvin, "loanmonarch"
- Contributions:438
Hey, Cory, you weren't the FedEx driver throwing the flat screen over the fence on all the sites, were you???? Santa really frowns on that!!! LOL!!
You are SOOOO on the right track to question and evaluate BEFORE you start planning. Many, many people make a home purchase an emotional decision. It is emotional; however, the purchase and finance of the purchase needs to remain pragmatic. Get romantic after the details are worked out!!! LOL!
You are SOOOO on the right track to question and evaluate BEFORE you start planning. Many, many people make a home purchase an emotional decision. It is emotional; however, the purchase and finance of the purchase needs to remain pragmatic. Get romantic after the details are worked out!!! LOL!
- Dan, "the_country_hick"
- Contributions:4694
I would not suggest buying a rental house, a gravel pit, a fast food joint, or any other business venture if you are not going to be living in the area to keep track of what is happening with that investment. When the boss is away the employees can wreak havoc on your bottom line. If you rent long distance you will need to hire someone to manage your rental. Big cost, potential big headaches, and who knows how good a job they will do for you.
I keep seeing that low interest rates make it a good time to buy a house. Looking at the numbers does not necessarily show that is a real good reason to buy now.
We all know that incomes do not change quickly. The boss is not going to give you a big raise just because interest rates or gas, or food, or anything else goes higher.
My $1,000 a month payment can buy a
$200,000 mortgage at 4.25% paying $983.88 monthly or
$110,000 mortgage at 10% paying $965.33 monthly or
$_47,000 mortgage at 25% paying $979.75 (possible think early 80's)
We can see how interest rate changes drive house prices upward or downward as house prices have an inverse (opposite) relationship to interest rates.
Here is what really happens.
At 4.25% a 30 year $100,000 mortgage costs $491.94 a month
At 6.25% a 30 year $100,000 mortgage costs $615.72 a month
At 7.75% a 30 year $100,000 mortgage costs $716.41 a month
Incomes do not change, prices must drop to meet the ability to make a payment that is dictated by an (almost) unchanging income..
With a degree in finance you must understand how house prices now are much higher than they should be because of 4% interest rates. You should also see the high likelihood of inflation from all the money being created from nothing devaluing the existing money supply.
Do not even think about house prices in 2006. Look at house prices in 1997. Then add around 35% for wage growth (inflation really) since that time and that is all a house should cost today.
A house keeps eating money as it is owned. Taxes, insurance, roofs, lawn mowing (maybe not in the desert) and more all eat money. Over time real estate simply mirrored inflation giving no real gains (except for the bubble years).
Look at this link (and the links inside) to see what the housing bubble looked like and how bubbles form and die.
Do you know what the housing bubble really looks like? ... - Zillow Real Estate Advice
This shows how bad loans were written, how they will die and why the time when most think it will end could be optimistic.
Healdsburg Housing Bubble: Reset Chart from Credit Suisse has a Major Error
Keep asking questions and ignore the "buy now" messages you will see.
I keep seeing that low interest rates make it a good time to buy a house. Looking at the numbers does not necessarily show that is a real good reason to buy now.
We all know that incomes do not change quickly. The boss is not going to give you a big raise just because interest rates or gas, or food, or anything else goes higher.
My $1,000 a month payment can buy a
$200,000 mortgage at 4.25% paying $983.88 monthly or
$110,000 mortgage at 10% paying $965.33 monthly or
$_47,000 mortgage at 25% paying $979.75 (possible think early 80's)
We can see how interest rate changes drive house prices upward or downward as house prices have an inverse (opposite) relationship to interest rates.
Here is what really happens.
At 4.25% a 30 year $100,000 mortgage costs $491.94 a month
At 6.25% a 30 year $100,000 mortgage costs $615.72 a month
At 7.75% a 30 year $100,000 mortgage costs $716.41 a month
Incomes do not change, prices must drop to meet the ability to make a payment that is dictated by an (almost) unchanging income..
With a degree in finance you must understand how house prices now are much higher than they should be because of 4% interest rates. You should also see the high likelihood of inflation from all the money being created from nothing devaluing the existing money supply.
Do not even think about house prices in 2006. Look at house prices in 1997. Then add around 35% for wage growth (inflation really) since that time and that is all a house should cost today.
A house keeps eating money as it is owned. Taxes, insurance, roofs, lawn mowing (maybe not in the desert) and more all eat money. Over time real estate simply mirrored inflation giving no real gains (except for the bubble years).
Look at this link (and the links inside) to see what the housing bubble looked like and how bubbles form and die.
Do you know what the housing bubble really looks like? ... - Zillow Real Estate Advice
This shows how bad loans were written, how they will die and why the time when most think it will end could be optimistic.
Healdsburg Housing Bubble: Reset Chart from Credit Suisse has a Major Error
Keep asking questions and ignore the "buy now" messages you will see.
- Hamp Yonce, "Zilluminati"
- Contributions:3463
Dan TCH,
that econ theory you espouse often, why didn't it happen in the 70's?
that econ theory you espouse often, why didn't it happen in the 70's?
- Dan, "the_country_hick"
- Contributions:4694
Hamp, look at these threads to see your answer.
History of 30 year fixed rate mortgages. Why low interest rates cause house price drops..
WHy the 1970's saw higher house prices and why that will not repeat once interest rates rise now.
Correlation of Mortgage Rates With Real Housing Prices
That explains it.
History of 30 year fixed rate mortgages. Why low interest rates cause house price drops..
WHy the 1970's saw higher house prices and why that will not repeat once interest rates rise now.
Correlation of Mortgage Rates With Real Housing Prices
That explains it.
- Tug of War
- Contributions:1947
LOL
First time homebuyer....(investing)
Cory
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