May 26, 2023 - 6:27 pm
You don’t have to be a professional gambler to recognize why Las Vegas is a winning choice for so many people.
Bugsy Siegel may have been the first to visualize the potential of this piece of Nevada desert, but investors, large corporations, sports teams and astute professionals are migrating to this neon mecca in greater numbers every year. In fact, most are drawn here for the same reasons I relocated from Oakland, California, years ago. Low property taxes and zero state income tax are just two of the reasons Nevada is such a popular choice. Add to this the glittering excitement of neon lights, world-class dining and entertainment, the breathtaking beauty of rugged mountains and endless wide-open spaces. Off the famed Strip, you’re within an hour’s drive to cool pine-covered peaks that afford great skiing in the winter or to the expansive recreational allure of Lake Mead.
Through the years, we have seen major changes and growth in Vegas. Indeed, the Silver State ranks in the top four states to have the longest, continuous economic growth. While the influx of new residents continues to come primarily from Southern California, the appeal of Nevada, and Las Vegas in particular, attracts folks from every state. The obvious appeal to retirees with affordable dining options, mild winters and the lack of an inheritance tax, continues to attract almost as many retired citizens as Florida but it’s also a top choice for growing families as well, thanks to attractive home prices and the ever-improving schools and recreational opportunities for kids.
All this is not just appealing to growing families, but wise investors seeking greater cash flow and property appreciation.
Property management companies such as ours can attest to the vibrant rental market with an abundance of competing applicants for properties that are in high demand. Between 2019 and 2022, rents soared anywhere from 25 percent to 40 percent. As rents have somewhat stabilized, it remains a healthy and profitable business venture for property owners.
Higher interest rates may have put a pause in the upward momentum in sales throughout the Las Vegas Valley, but that shouldn’t be holding you back from owning a home. In fact, this may be the perfect time to make that leap. After all, a “normal market” may indicate a better chance of homeownership for a lot of qualified buyers.
New homebuilders in Las Vegas are offering attractive incentives to encourage buyers and by now sellers are recognizing what market they are in and recognize the need to make their own concessions with different terms and a willingness to negotiate with buyers.
Our team has been helping homeowners who are not ready to sell and instead are opting to hold on to a property that continues to appreciate while making money through healthy rentals. It’s a sensible option for those who choose to wait out this market and sell when rates go back down.
Though the current rental market has plateaued, it remains strong. And if a homeowner can get rent higher than their mortgage payment and homeowners association fees combined, it’s a win. With this extra income, the homeowner (now landlord) enjoys the freedom to travel, purchase a larger home or relocate to a new city.
Regardless of what you might think about the current market, property owners really do hold the winning hand. So play your cards right and make the most of a solid investment in Las Vegas real estate. The Silver State can be a gold mine of great opportunities.
Paul Pineda, CRS, NARPM, is a broker/property manager for Sierra LV Property Management &Realty.