Investing in the booming real estate market in Las Vegas is a great option for leveraging your portfolio. With low investment property taxes, no personal income tax, and a location that attracts 40 million visitors each year from every corner of the world, real estate investors from all over the world look to Las Vegas for their next winning play. Clark County, the most populous county in Nevada, offers an average effective property tax of 0.7 percent. This is significantly lower than the national average.
Rapid Growth & Low Inventories
As a booming city, Las Vegas is one of the hottest real estate markets in United States. Willing investors are able to acquire homes at a relatively low amount compared to the national median home price. In this market you can make a good amount of equity in a long term investment and rental rates are continually on the rise. There are very low housing inventories with high demand as well as a transient resident demographic. It’s easy to see why real estate investing is so popular in Las Vegas.
With a primary industry built on tourism, gaming, and conventions in a state that offers business-friendly and individual-friendly tax and estate laws, economic booms are the norm, rather than the exception. Bolstering the rental market in Nevada are the low property taxes and massive population of renters. Dominated by hospitality and entertainment industry workers, both of which have high turnover rates industry-wide, are also low paying positions offset by tipping. The downside to this for the workers is when it makes securing a sizeable loan, like the one needed for home ownership, increasingly challenging. One of the largest contributors to the housing market burst of 2007 was “stated-income loans” that allowed home buyers to estimate their annual salary based one a few month’s of compensation in tips. When those tips vanished, so did much of their income, making a large portion of the population unable to keep up with their mortgages, ultimately causing them to lose their homes.
Today, it is estimated that the number of people that can’t afford to own a home in the Las Vegas area is ten points higher than it was during the Great Recession. This makes investing in Las Vegas rentals more appealing than ever. While property values vary based on both size and demand for the property, there are still many parcels of land available and waiting for the right investor to build them out. With condominiums at a premium near the Las Vegas Strip and mix business centers, there are still many opportunities for the savvy investor to find.
Best Places to Buy Las Vegas Investment Properties
Many areas in the Las Vegas valley are still considered good-buy locations that investors are able to purchase at low rates. Depending on what type of property you want to own may help making your choice more specific. While nothing can replace speaking to the real estate investment specialists at the Bell Team, here are some broad tips on where you can begin your search.
Short Term Rentals
North Las Vegas and unincorporated Clark County have a ban on short term rentals. Las Vegas will only allow property owners to rent out their primary residence, and if they do are subject to an annual licensing fee, monthly hotel tax, and must follow all local laws regarding operational requirements.
Henderson is more “short-term rental friendly” with their short-term vacation rental regulations allowing rentals in residential zones, certain commercial zones, and mixed-use zones with minimal requirements for separation. Within planned communities and HOAs may have their own rules prohibiting short-term rentals as well. This being said, Henderson is more investor-friendly for short-term rentals than their neighbors to the north and west.
Monthly & Long Term Rentals
Where you decide to purchase a long-term rental property in the Las Vegas valley depends greatly on the type of renter you are looking to attract. Families are attracted to the good schools in Summerlin, Green Valley, and Southern Highland areas. Hospitality workers without families may prefer to live closer to the Las Vegas Strip where they work. Retirees may prefer to live in or near 55+ communities for age appropriate amenities and healthcare options. Military may want to live in North Las Vegas near the Nellis Air Force Base.
Finding the Right Investment Property
Whether you want to be a landlord, or pass the work onto a property management company, finding the right investment property to fit your needs, investment size, and ongoing commitment is simpler when you have a real estate company that understands you. In Las Vegas the best company to trust with your real estate investment is the Bell Team. Their years of experience will be put the best use when they help you find the Las Vegas real estate investment you have been dreaming about.