There has never been a better time than now to start investing in luxury homes in Las Vegas. For many people, their dream home has been just that: a dream. But due to the recession, investors and homeowners are now in a position to make their real estate dreams come true.
Unlike the real estate boom that began in 2005, recent trends indicate that investors are taking a more thoughtful and studied approach to their investments.
Who is investing in real estate? This is a buyer’s market, but with some interesting caveats. First of all, financing is tight for anyone wanting to go back in time and remodel a house to the style of circa 2005. Instead, many of the properties are bought by first-time homeowners who are primarily interested in finding a single-family home in sale.
This leads to the second caveat: successful investors are buying these previously expensive homes with cash. According to an October 12, 2010 Property Wire report, foreign investors are especially eager to take advantage of the “bargain prices” in the US real estate market.
Finally, as the Baby Boomer generation begins to reach retirement age, many are looking for new homes and some are willing to pay cash for homes so they are not tied down by a mortgage. In fact, an article from September US news and world report listed Las Vegas as the No. 2 place for retirees to buy a home, with Phoenix in the No. 1 position.
Decide what real estate to invest in There are so many options in the luxury real estate market that it’s easy to get carried away by the obvious. New home prices have dropped dramatically, and for the average family, these homes are sometimes ideal.
On the other hand, luxury foreclosures or short sales may be a better option for experienced investors. Often less than 5 years old, these homes are already outfitted with top-of-the-line fixtures and flooring and are located in well-established neighborhoods like Summerlin or Green Valley. The stress of buying and renting property will be eased somewhat by not having to worry about making the improvements that renters expect in these neighborhoods.
In Core Logic’s US Mortgage and Housing Trends report released in September 2010, analysts said that distressed properties lead the real estate sales group. Additionally, the Las Vegas real estate market is leading this trend with 61% of all sales recorded as foreclosures or short sales.
With this in mind, it is imperative that investors be careful when planning their investment strategy, and at the same time avoid making hasty decisions when working with a luxury real estate agent or broker. The timing is a balancing act and will require a great deal of research. However, it will be worth the effort and the financial returns in the long run.