Anyone Own Property in Las Vegas?

[VladtheImpaler]

Before I do my own research, just wondering if anyone has first hand experience. Interested in property tax situation, taxation issues if it's a revenue property, and just the general market climate. Thanks in advance.

[Eric Vail]

I am selling an investment opportunity that is looking at taking advantage of the Las Vegas market, among others. There are condos that this fund has purchased that were $220,000 two years ago, and now can be bought for $60,000. We'll rent them out for 5-7 years and then sell when they have recovered. Their replacement cost, if you were going to rebuild them is $150,000. The investment is RRSP eligible and can take advantage of the tax free savings account. Let me know if you're interested and I can send you more information.

[HotHotHeat]

Buying property in Vegas as a long term investment is not a good idea. See: Unsustainable living.

[VladtheImpaler]

Originally Posted by HotHotHeat

Buying property in Vegas as a long term investment is not a good idea. See: Unsustainable living.

Links? Details? I know Arizona has no water, hence not looking there.

[Mike Oxlong]

Originally Posted by Eric Vail

I am selling an investment opportunity that is looking at taking advantage of the Las Vegas market, among others. There are condos that this fund has purchased that were $220,000 two years ago, and now can be bought for $60,000. We'll rent them out for 5-7 years and then sell when they have recovered. Their replacement cost, if you were going to rebuild them is $150,000. The investment is RRSP eligible and can take advantage of the tax free savings account. Let me know if you're interested and I can send you more information.

I have been thinking about buying down in Vegas as well. There are some amazing deals down there.

Can you send me some info on that project?

[HotHotHeat]

http://www.reviewjournal.com/lvrj_ho.../21244689.html

Here's a synopsis of a PBS film I watched last fall. Paints a fairly grim picture.

http://wwn-online.com/articles/52862/

I know, taking the wack job environmental position is never popular, but in this case if you're going to drop 100k + on an investment property you better be rest assured it's going to have access to the basic needs for living in the coming years. I also read something about Lake Mead (man made lake created by the Hoover Dam) drying up in the next 15 years or so.



http://www.efluxmedia.com/news_High_..._Up_13975.html

[habernac]

my parents live there in the winter, PM me and I'll see what I can come up with for you.

[DFO]

My gf's sister just bought a place in Vegas as a rental/investment property. Sounds like they have a management co. and renters lined up already. From the little bit I've heard it was a painless excercise but I don't know all the details yet. I can pm along the details after I hear the whole story.

[Winsor_Pilates]

I've been looking at this too, good thread.

[smith12]

I was just down there (literally just got back) and it sure seems different down there right now. I'd do your research before buying because they have been hit hard.

- There are condos that have been half completed and the construction has completely stopped.
- We would drive by construction sites (yesterday on a Monday) and there's no one working.
- That massive 9B dollar development had to be rescued by the prince in Dubai.
- People down there sound so depressed about the state of things.

On the other hand, it's quite possible that this is the bottom and things can only get better.
- The new stimulus package is giving a 15K tax break to anyone buying in the next year.
- Mortgage rates are at all time lows right now.
- It's just a matter of time before the banks start lending again down there.

I personally would just be very cautious.

[VladtheImpaler]

Originally Posted by DFO

My gf's sister just bought a place in Vegas as a rental/investment property. Sounds like they have a management co. and renters lined up already. From the little bit I've heard it was a painless excercise but I don't know all the details yet. I can pm along the details after I hear the whole story.

Thanks and please post particulars for all to see if available.

[Eric Vail]

Originally Posted by smith12

I was just down there (literally just got back) and it sure seems different down there right now. I'd do your research before buying because they have been hit hard.

- There are condos that have been half completed and the construction has completely stopped.
- We would drive by construction sites (yesterday on a Monday) and there's no one working.
- That massive 9B dollar development had to be rescued by the prince in Dubai.
- People down there sound so depressed about the state of things.

On the other hand, it's quite possible that this is the bottom and things can only get better.
- The new stimulus package is giving a 15K tax break to anyone buying in the next year.
- Mortgage rates are at all time lows right now.
- It's just a matter of time before the banks start lending again down there.

I personally would just be very cautious.

The reason construction has stopped is because you can buy condos for $60,000 that have a replacement value of $150,000. No oneis currently paying prices for properties that comes close to the cost of building them. If you feel that they will never build again in Vegas, don't invest there or elsewhere in the US for that matter. However, if you feel that they are in a bad spot in the economy that is likely to improve over time, then it is a great time to invest. The fact that builders have stopped building actually makes the liquidation of these properties in a few years all the better.

[Eric Vail]

Originally Posted by HotHotHeat

http://www.reviewjournal.com/lvrj_ho.../21244689.html

Here's a synopsis of a PBS film I watched last fall. Paints a fairly grim picture.

http://wwn-online.com/articles/52862/

I know, taking the wack job environmental position is never popular, but in this case if you're going to drop 100k + on an investment property you better be rest assured it's going to have access to the basic needs for living in the coming years. I also read something about Lake Mead (man made lake created by the Hoover Dam) drying up in the next 15 years or so.

http://www.efluxmedia.com/news_High_..._Up_13975.html

The good part about investing in a fund is that you can get the advantage of diversification. You don't have all your eggs in one basket. The fund I am selling is looking to invest in Vegas first because they look to be near the bottom - at least with regards to the kinds of properties we are picking up. They also are looking to add properties in Phoenix, Denver, Dallas, Sacramento, and Austin. They also are not only looking at only residential real estate. There should be some great deals to be had in the commercial and serviced lot market as well.

[Potty]

Questions I would have before buying a condo in Vegas:

1. Is the building complete? I would be hesitant to buy into any building that isn't completed, as many projects might not make it to completion.

2. What percent of the building has been sold? Buildings will need strata fees from owners to cover maintenance and upkeep.

3. Are you able to cashflow without rental income if necessary? The US will not be recovering from the recent economic conditions in a year or two. There could be a prolonged time of 5+ years of pain in the US.

4. Are you planning to hold on to the property for 10+ years that it could take for property values to return to levels of the past 5 years? Anyone planning on making a quick buck in a year or two of owning a unit is dreaming IMO.

If you're comfortable with all these things, there could be some good deals to be had in Vegas.

I'm not very familiar with the water conditions in Vegas as mentioned above, but these issues are usually fixable, but aren't given enough thought until it's almost too late, so it's obviously an additional risk for the area.

[Winsor_Pilates]

Originally Posted by Potty

2. What percent of the building has been sold? Buildings will need strata fees from owners to cover maintenance and upkeep.

All good points you made, but I just want to comment on this one.
When the final strata plan is filed with the city, the developer becomes the owner of all unsold units and is responsible for the strata fees. So if the building is 50% sold or 90% sold, it shouldn't change your strata fees. Howerver, it doesusually need to be 50% sold to form strata.

[HotHotHeat]

Originally Posted by Eric Vail

The good part about investing in a fund is that you can get the advantage of diversification. You don't have all your eggs in one basket. The fund I am selling is looking to invest in Vegas first because they look to be near the bottom - at least with regards to the kinds of properties we are picking up. They also are looking to add properties in Phoenix, Denver, Dallas, Sacramento, and Austin. They also are not only looking at only residential real estate. There should be some great deals to be had in the commercial and serviced lot market as well.

There are definintely opportunities in the market, I'm strictly speaking to the long term viability of a city like Las Vegas, which is incredibily nearsighted in it's vision of the future. The geographical constraints of Nevada should have meant a cap on development years (if not decades) ago. It's simply a dangerous mix when the fastest growing city in America is also the most likely to have water problems in the somewhat near future.

[FurnaceFace]

Buy a house on "Iggy's Ave"

http://www.zillow.com/homedetails/62...68656693_zpid/

[HotHotHeat]

^^^^Do houses in vegas have basements?

[Eric Vail]

I agree that these are good questions. Here are the answers with regards to the fund I am selling:

Originally Posted by Potty

Questions I would have before buying a condo in Vegas:

1. Is the building complete? I would be hesitant to buy into any building that isn't completed, as many projects might not make it to completion.

the fund invests in existing properties

2. What percent of the building has been sold? Buildings will need strata fees from owners to cover maintenance and upkeep.

again, the fund is looking at existing properties, not ones being built

3. Are you able to cashflow without rental income if necessary? The US will not be recovering from the recent economic conditions in a year or two. There could be a prolonged time of 5+ years of pain in the US.

the projected timeframe for this fund is 5-7 years
even if it went 10 years, the investment would still do well
for the first two years, a reserve is built in to help with the cashflow

4. Are you planning to hold on to the property for 10+ years that it could take for property values to return to levels of the past 5 years? Anyone planning on making a quick buck in a year or two of owning a unit is dreaming IMO.

I agree, this is a medium to long term investment. You cannot expect to have a bounceback in one or two years.

If you're comfortable with all these things, there could be some good deals to be had in Vegas.

I'm not very familiar with the water conditions in Vegas as mentioned above, but these issues are usually fixable, but aren't given enough thought until it's almost too late, so it's obviously an additional risk for the area.

I agree that there will be a solution to the water problem. I can't imagine the problem becoming catatropic in 5-7 years.

[habernac]

Originally Posted by HotHotHeat

^^^^Do houses in vegas have basements?

my parent's does not