Las Vegas Investment Property
With Las Vegas property prices at bargain basement, purchasing investment property has never been a better idea. Even though home and condominium prices in Las Vegas plunged between 2008-2010, rental income from investment property in Las Vegas did not fall too much. Single family homes that were being rented out at $2,000 can now be rented at $1700. High Rise condo units in Sky Las Vegas which used to fetch $1850 a month are now going for $1500. So even though real estate prices collapsed from their 2006-2007 peaks, rental incomes have remained largely steady. In fact, investment property in Las Vegas yields a much better return on investment than it ever did during the “boom periods” – as back then $800,000 Luxury condos in Panorama Tower North and Trump Towers Las Vegas were being rented out at $2,100 a month. Those same units are being bought and sold today for around $220,000 and yielding rents of $1550. The rate of return on capital is MUCH higher now than before, because prices on single family homes and condominiums fell so low.
The reason rental prices have remained largely steady during the most recent economic crisis is because the people who stopped paying their mortgage, because the mortgage was much higher than the value of their home, still need a place to sleep at night. Many people in Las Vegas who have a steady jobs and have their finances in order defaulted on their mortgages because they owed more on their homes than they were worth. These people got evicted from their homes and had their credit destroyed. With no credit, it’s impossible for these folk to purchase a new house as no bank would lend to them. This means that everyone who defaulted on their mortgages and had their homes foreclosed are out there renting. This means that Las Vegas investment property can yield huge dividends. The demand for rental property is huge, as so few people can get loans to buy a home.
The beauty of investment property in Las Vegas is that managing real estate is incredibly easy here in the state of Nevada. If you own a home or a condominium, There are numerous reputable real-estate management companies that will do all the leg work for you in getting it rented out. Real estate management companies will find a tenant for you (do a full background check), collect rent, provide phone support to the renter, fix broken appliances and pipes (at your expense of course) and even evict non paying tenants. Real estate management companies in Las Vegas will pretty much do ALL The work for property owners from finding a tenant to collecting rent. Real estate management companies don’t work for free though. They typically demand 10% of the gross rental income in fees. Owners also have to cover Las Vegas property taxes, but the property tax rate in Las Vegas is very low – around 1.05% of the total value of the home or condo.
For those interested in Las Vegas investment properties or rental income properties, a good rule of thumb for calculating gross monthly income potential from any property is multiplying the price of the home by 1%. This means a $135,000 home can be rented out for about $1,350 a month. This is a ball-park estimate and the actual rental income will vary depending on location and countless other factors. High Rise Condos like those available in Sky Las Vegas and Panoroma Towers aren’t nearly as cost-efficient as rental properties, as owners have to cover the monthly condo HOA fees, which eats into profit. Condo Hotels in Las Vegas like Palms Place, Madarin Oriental and Signature MGM Grand on the other hand are another story. Learn more about Condo Hotels on the Condo Hotels page of LasVegasCondoHighRise.com