Js

Len ---- why would it definitely make sense to put down 20% to break even (maybe) for Las Vegas homes where it appears vacancy percentages are going up and lower rents will probably follow? (Increased supply.)

Are foreclosures slowing down yet? How many of all the sales being reported in the local newspaper are being purchased by investors that are going to be putting the homes up for rent? (Once again, increased rental supply.)

I'm not one of the fools that buys real estate on the speculation that prices are going to go up. I sold my last investment property (of several) in '06 to one of these types of "investors" and I don't think I have to explain what happened to values afterwards.

Prices are much better now, but I'm looking for more then the "It's a great time to buy" because interest rates are low and there is plenty of inventory. If I can get a guaranteed and higher return on putting my 20% in an alternative investment, why would I want to speculate on the future values of Las Vegas real estate?

I was buying properties as far back as '99 for $120,000 that would rent out for $1,100 and from what I'm seeing, the same types of properties in Summerlin and Green Valley are well above $200,000, yet only rent for around $1,200.

It does not seem to make financial sense to me but hopefully somebody can specifically answer the question about rental rates and the supply of rentals available.

I certainly hope I don't have to explain that when there is increased supply, prices (or rents in this case) go down. - Thu May 15 2008, 12:18

I would be interested in Summerlin or Green Valley but I don't see how putting down 20% and the property still not cash flowing (or even breaking even) would be a good investment.

The numbers just don't seem to make sense. Higher asking prices but the rents are not high enough to justify the increase in cost. - Wed May 14 2008, 17:17

I'm getting mixed messages. On one hand I'm being told that investors are buying up properties under $300,000 (which tells me that they are going to be putting them up for rent).

This report --> http://cber.unlv.edu/housing.html ------ and this statement "A large inventory of empty nonowner-occupied units has increased rental activity. These owners find it better to rent and make a contribution to their mortgage payments than leave units vacant. Some households have moved into single-family units and out of apartments. As a result, apartment vacancies rose in 2007, ending the year with 7.7 percent vacancy rate."

Tells me something different then what is trying to be sold in the lvbusinesspress report with quotes from people that benefit from buying and selling apartment units.

Anyways....How much can I rent a home out for that is the median price range in Las Vegas? (Let's say a $250,000 home since nobody seems to have a set answer on what the median price is anymore.) - Wed May 14 2008, 10:06

I own but I'm looking to buy properties for rentals. It seems that there are a lot of properties for rent so I'm wondering if anybody has current information on the Las Vegas rental market.

Has rental inventory been increasing and making it a competitive environment for landlords to have to lower the asking rents? - Wed May 14 2008, 07:30

http://efinancedirectory.com/articles/Home_Price_Forecasts_W…

The next wave of ARM's that are going to reset are on homes priced at the highs (2006 when the "experts" said the market was just stabilizing, there is no bubble, etc...

--- http://www.remax.net/stories/mainst/20060825/7130.htm

http://www.nytimes.com/2006/09/24/realestate/24books.html?_r…

which means that the adjustment on payments is going to be even higher then the last wave of ARM's that reset. - Wed May 14 2008, 18:12

Four years ago it was buy now because we are running out of land/homes.... 3 years ago it was buy a high rise condo because everybody is moving to the strip..... 2 years ago it was just a slow down and there is no bubble and prices won't fall ---> http://www.reviewjournal.com/lvrj_home/2006/Jul-21-Fri-2006/…

Now it's buy now because interest rates are low and there is a lot of inventory!

I think you are better off waiting it out for at least a year. Foreclosures for Las Vegas are still coming in at record numbers, there are tons of short sales currently going on and so many homeowners are upside down. More and more are now just walking away...

You might also want to check all of the ARM's that are going to reset this year and next before making your decision. All of the ones used in 2006 (when there was no bubble and prices were not going to fall, it was just a stabilization, etc...) are coming up to reset which means more foreclosures are on the way.

These homeowners are the ones that are really upside down and the chances of them keeping homes that are worth $100K+ less then what they owe is slim to none.

http://money.aol.com/news/articles/real-estate/_a/foreclosur…

There are a ton of properties for rent -- just check some of the rental sites and see all of the properties up for rent. Vacancy percentages for the apartments have been going up for the past year which means rents are / will be going down. There is absolutely NO shortage of places to live...

As far as Interest rates being low, it's because the Fed has gotten involved to try to keep the real estate market from becoming a total collapse and completely sinking the economy.

The number of sales in April went up 20% from March but median prices still went down 3% in one month so that should tell you something --> http://www.lvrj.com/business/18721109.html

5 years from now the Las Vegas market should be OK, but there is still another year or two to go for prices to go down even further. - Wed May 14 2008, 06:04