Las Vegas A Rental Property Investor’s Dream

Las Vegas A Rental Property Investor’s Dream

An even 50.0 percent of all existing homes sold in Southern Nevada during June 2011 were purchased with CASH, while only 21.6 percent of all existing homes sold in Southern Nevada were short sales, according to GLVAR.

Las Vegas is the number one best city to buy rental property according to CCN Money; 10 Best Cities to Buy a Rental Property July 12, 2011. Las Vegas has the highest foreclosure rate in the nation — and many of those former homeowners now rent, CCN Money; 10 Best Cities to Buy a Rental Property July 12, 2011. 

Nowhere are potential profits better than in Las Vegas, according to a new survey by Local Market Monitor, a North Carolina-based firm that specializes in forecasting real estate prices.

Las Vegas Average home price (2011): $130,100 Projected home price (2014): $120,000 Gross rent (2011): $922 Projected gross rent (2014): $966 Las Vegas has the highest foreclosure rate in the nation — and many of those former homeowners now rent.

“Much of the large workforce in the casino industry consists of renters; the home ownership rate is a low 55%,” said Winzer. While the rental market in Sin City remains robust, rents have been squeezed, falling about 10% since 2007. Part of the problem is unemployment, which reached 12.4% in May, one of the highest rates of any U.S. metro area. Winzer expects the rate to fall gradually and that should mean rents will start climbing again.

All told, he forecasts Las Vegas residential investment properties will yield returns that are 4.7% above the national average. Las Vegas has long been a Mecca for gamblers, but now it’s the go-to place for real estate investors who want to clean up on rental properties.

Nationwide, the opportunities for this kind of investing haven’t been this good in years. Not only are home prices way down but interest rates are near all-time lows and rents are climbing.

In May, 2011, according to the National Association of Realtors, 19% of home purchases were for investment, up from 17% in 2010. Nowhere are potential profits better than in Las Vegas, according to a new survey by Local Market Monitor, a North Carolina-based firm that specializes in forecasting real estate prices. Local Market Monitor put together the survey for HomeVestors, a franchise real estate investing company. The survey ranked 316 markets by estimated returns on investment in single-family home rental properties.

“Overall, the highest ratings are in markets where home prices have fallen substantially,” said Ingo Winzer, founder of Local Market Monitor. “Home prices in these markets are also below average, so empty homes are easily turned into competitive rental properties.”

The cities were ranked by estimated future returns compared with the projected national average return. According to Local Market Monitor’s data, for example, investors in Las Vegas who rent out the properties they buy now will have a 4.7% higher return than the 5.3% national average. The potential for profits has to be high for investors to enter into this risky market: Winzer expects home values to fall another 7% over the next three years. Here are the top 10 markets ranked highest in investment return.

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Market Biz News is Bullish on Housing?

BUY BUY BUY Rental Properties

We at Market Biz News advise everyone who can read to buy buy buy  housing.  If you haven’t heard, there’s this whole housing bust that is going on.  Local banks are tightening their belts and allegedly all of the fraudulent lending practices leading up to 2008 are history.  Back are the days when you need 20% down on a 30 year fixed mortgage and a full sweeping credit check.  Be that as it may, for those that do past the muster, this is the time to buy rental property.  While most NINJA loans shook out what little money the poor had on them, it did a world of good for those interested in real live sound investing, i.e. getting property for cheap after the fall out.

One man’s albatross is another man’s morning lark.

The housing bust has presented a rare and golden opportunity, for those that can afford it.  It essentially produced more homeless in America than ever before.  Most Americans however, instead of consolidating their resources and moving back home with parents, still operate under the false pretense that they are owed their own place.  You as an investor can take advantage of this stupidity and buy rental property like hotcakes.  As fast as you can sign your contracts, would be the speed at which you can rent out those properties.

The new marketing psychology of creating a want and need in the populous has not gone away.  For 30 years now the public has been bombarded with the message that they are owed a house and their own private space on credit.  You as an investor can call in that ticket and cash in.  Buy up those rental properties and hornswoggle every doe eyed middle class homeless person you can lay a finger to.

This is the time to buy buy buy.

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