Home Buying in Las Vegas>Question Details

Bruce, Home Buyer in Las Vegas, NV

Is it a better decision to rent a house or buy one in the current Las Vegas housing market?

Asked by Bruce, Las Vegas, NV Sat Jun 4, 2011

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Good answers here, but I do not subscribe to the buying is always better than renting philosophy. I lived in LV in 1997-1999, before the boom and LV historically has very little appreciated real estate growth (it was about 2% per annum when I lived there and that had been historically the norm for quite a few years). The reason this is important is that you need to consider your long term goals as well as your short term goals.

How long are you going to live in LV? Indefinitely? Forever? Staying in the same house? If the answer to these questions is yes, buying might be a good idea (despite the fact values are still projected to drop in LV). Rates plus price equal lower than rent...a good deal.

However, if you are on a five to ten year plan buying could be a very bad decision if you have to sell in the future. Just ask any home owner who is trying to short sale or has to bring money to close to sell their home. It costs money to buy (down payment, closing costs, ect), it cost money to hold (PITI, maintainence, etc) and it costs money to sell (I always figure a 10% cost of sale, though I do think that is a little high for the LV market...always consider a worse case scenario however). Put some thought into these three areas and determine if it makes sense for you to buy in a still declining market.

Sometimes yes, sometimes no...your goals really determine the answer.
0 votes Thank Flag Link Fri Jul 1, 2011
this is a great question, and very very tough to answer. it is so case by case...can you rent a million dollar mansion for $4,000? If so then renting in that case might be better for you...do you have 20% saved for Downpayment? if not then renting is probably better for you. I cover this topic in great detail in my blog. Here is one link to look it

http://blog.house-guy.com/2011/06/when-is-it-good-time-to-bu…

if you feel this has been helpful please mark it as best answer. Thank you!
0 votes Thank Flag Link Fri Jul 1, 2011
It's defintiely a better decision to buy over rent, if you're looking as someone who invests their money into themselves, over giving your money to pay for someone elses mortgage or alternatively providing them with an income.


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0 votes Thank Flag Link Fri Jul 1, 2011
If you can BUY a Las Vegas houses with PITI for $900 a month or rent a similar house for $900 a month, the tax deduction alone would make buying a better deal.

"I will contact an attorney because I think I may be getting screwed. I'll print out all of his emails and the invoice he sent and see what the attorney says."
It would be a great benefit to the lawyer if you have the specific section of the purchase agreement the agent claims was breached. I would write a letter to the agent asking him to justify his bill. Anyone can send an invoice for any reason, he has to have specifics.

DAVID COOPER Foreclosure Specialist in Las Vegas with 35 years Investing Experience. For a Free list of bargain homes, click website or Call +1-702-355-8807
0 votes Thank Flag Link Fri Jul 1, 2011
Bruce. If you have a crystal ball and think interest rates could be way up, like 7% a year from now, would you rather own a house today for the same payment as renting a house?

DAVID COOPER Foreclosure Specialist with 35 Years Experience. For your FREE
list of bargain homes see http://www.lasvegaswinner.org or Call +1-7024997037
0 votes Thank Flag Link Mon Jun 20, 2011
Hi Bruce,
That's easy, it's better to rent. Housing prices are still declining in Las Vegas. Wait another year to buy. Good Luck
0 votes Thank Flag Link Mon Jun 20, 2011
There are some people who just do not want to buy a house. There is nothing wrong with that. There are some people who just want to own their own place. There is nothing wrong with that. Sometimes you pay a bit of a premium to maintain the lifestyle you choose. Other people should not be pushing you into renting a place or buying it just because that is their preference. You should make your own choice based on the unique factors that define your life.

FEAR of Job loss. If you are not sure your job will be there in a month renting allows you to have a lot better sleep at night not worrying about being able to make a mortgage payment.

You are doubtful that current house prices will not drop in value. You do not want to risk buying a house today only to see it drop in value over the next few years.

. You do not have a down payment. If you do not have a down payment it does not matter what a house costs. You can't get one.

. You do not have closing costs. Maybe you could get seller concessions to cover your closing costs. But it is not guaranteed to happen.

. You do not have any extra savings once you have paid for your down payment, closing costs, and insurance. What would you do if you lost your furnace or the transmission in your car dies? How can you handle unexpected expenses that could easily happen shortly after you buy a house?

. Maintenance. Do you want the hassle of repairing everything that goes wrong with the house? Do you want to have to mow your own lawn? Do you want to risk having expensive repairs come up? Not everyone is comfortable or able to say yes. Not everyone should. Some people would rather spend their time and money on other things than fixing a house and maintaining the lawn.

Time constraints. Beyond just the time to maintain a house you have a time frame you plan to live in a place. If you stay less than 5 years amortization on a 30 year loan does not allow you to save any money. I expect it would cost money to live in most places for 5 years or less when all costs are factored in.

Selling costs. Realtor fees of about 6% or $6,000 per $100,000 of sales price eat a lot of your profit. Do not forget closing costs. Those cost a lot and are never returned.

. Freedom. Some people describe freedom as having the ability to do as they want when they want to. By renting you can just up and move with no hassle any time you desire. By owning a house you may have to wait several months, maybe even years to get away from your house. This situation can take you from owning your house into your house owning you. It refuses to allow you to move elsewhere as you choose.

Possibly changing lifestyle in the not to distant future. Being single today you do not want to buy a 3 bedroom house. It is more than you wish to deal with. Yet in another 1-4 years you plan on being married and awhile after that having some children. Renting gives you the opportunity to have easy to handle now and a lower price than buying what could make a lot of sense in the not to distant future.

. There are some people who just do not want to buy a house. There is nothing wrong with that. There are some people who just want to own their own place. There is nothing wrong with that. Sometimes you pay a bit of a premium to maintain the lifestyle you choose. Other people should not be pushing you into renting a place or buying it just because that is their preference. You should make your own choice based on the unique factors that define your life.

DAVID COOPER Foreclosure Specialist with 35 Years Experience Buyer Below Market. For your FREE
list of bargain homes see http://www.lasvegaswinner.org or Call +1-7024997037
0 votes Thank Flag Link Mon Jun 20, 2011
Hi Bruce,

You have asked one of the questions I hear all the time.. Some of my clients who have lost their homes due to short sale or foreclosure are so "done" with being a homeowner that all they ever want to do is rent and never own.. So they say for right now. Deep down I think that' everyone wants the "American Dream" of owning a home.

It just depends on what your goals and motives are. Some people prefer to rent in different parts of the valley before they buy so they can experience what the Valley has to offer. Some people say why pay rent when you can own?

Homeowning allows you to have a lot more freedom. You don't have anyone (except for possibly HOA) telling you what to do.

Was I helpful?.. I hope so!!!!

Penny O'Brien with Simply Vegas
0 votes Thank Flag Link Mon Jun 6, 2011
if your situation/job keeps you in town a purchase would be better due to the low interest and the low, low prices as well as the many choices.

Heidi, Realty One, 596-9843, hlatours@cox.net
0 votes Thank Flag Link Sun Jun 5, 2011
We know house prices are at a 10 year low in Las Vegas, and we know interest rates are at a 50 year low, so your decision should be based on where interest rates will be in a year, and how much lower house prices can slip. If you find a foreclosure or Bank owned REO and get it at 20% below market, you will be in really good shape no matter what happens a year from now

DAVID COOPER Foreclosure and Bank REO's Investor-Las Vegas.35 years experience For freee list
Call +1-7024997037 or check website
0 votes Thank Flag Link Sun Jun 5, 2011
Hello Bruce....
The Las Vegas Valley is on sale with extra-ordinary and unpresented low pricing.
The interest rates are at an all time low.

Yes you can own for less than it costs to rent at this time.
You may be pleasantly surprised!

Bruce, please feel free to contact me and I can show you a comparison on paper with no costs or obligation.

Thanks and have a great day!

Julia St. Marie, Prof. Corp. RRG, ABR, RSPS
A Trusted Buyer Agent for Las Vegas Real Estate
Certified REO Specialist
Realty ONE Group
702-355-H-O-M-E (4663) direct
LVRealEstateLady1@yahoo.com
http://www.LVRealEstateLady.com

No Costs-No Obligation.....
Be one of the first to know....."Instant Email Notification" of Foreclosed properties -- http://lvrealestatelady.com/Foreclosure_Notification.html
Look at MLS Inventory—Easy-- http://search.lvrealestatelady.las.mlxchange.com/
0 votes Thank Flag Link Sat Jun 4, 2011
Good day Bruce,
Please rent one of my vacant units. I will take more than the down payment needed to purchase a home and refund you very little at move out. I also receive the tax deductions, income, and any appreciation that may follow.
Meanwhile, you will be paying off my loan so can get another.
OR:
You purchase your dream home and get all of the bennies. I still have a vacant unit.

Locate your favorite Realtor to guide you through the process. They will compare the cost and liabilities to rent vs own. Meanwhile please keep paying your rent. My wife is planning our next cruse with the cash flow.

Please contact me immediately if you know a person that cannot make their mortgage payments. I will work with them to avoid foreclosure or bankruptcy at no charge or fees to them.

Steven Goldman, CRS
Broker Salesman
Certified Short Sale Professional (CSP)
REO-BPO Certified
GRI, ABR, SRES, CNHS, PM, CCI
Realty One Group
Las Vegas, NV 89135
Direct 702-242-1372
E-Mail: crssteven@teamgoldman.info
Web Site: http://www.teamgoldman.info
0 votes Thank Flag Link Sat Jun 4, 2011
Hi Bruce,

I think you should wait and purchase next year


Mia Dimitrov, Realtor®
Horizon Realty Group
7361 Prairie Falcon Rd #110
Las Vegas, NV 89128
Cell 702-862-9675
Fax 702-992-9928
http://www.allrealestatelv.com
0 votes Thank Flag Link Sat Jun 4, 2011
Hi Bruce,

Considering that loan rates are around 4%-5% you could buy a $100,000 house in Las Vegas for about $600 a month with taxes and insurance. I am sure you could not find a $100,000 house to rent for a better price. Investors are starting to invest in Las Vegas, because they are getting positive cash flows. The answer is to buy.

Sandy Van
Van Group Real Estate
Realty Executives of Nevada
Attorney, Broker- salesperson, Realtor
http://www.vangrouprealestate.com
702-334-2488
0 votes Thank Flag Link Sat Jun 4, 2011
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