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Should You Be Investing in Las Vegas Rental Properties Now?

August 7, 2015

 

Should You Be Investing in More Rental Properties Now?

 

Real estate website Zillow is reporting that June 2015 rental prices have risen 4.3% nationwide from one year ago.

 

Nevada Title Executive Summary is showing in its August 2015 report that Las Vegas single family home values have reached a median list price of $275,000, up from approximately $250,000 from one year ago.

 

If rental prices are increasing and the value of single family homes is increasing and interest rates are at historic lows:

 

Should you be buying more rental properties now?

 

Here are some reasons both Pro and Con:

 

PRO

 

Milleniums have been relatively uninvolved in housing purchases but may jump into the home ownership market with greater enthusiasm as long as the job employment picture remains rosy.

 

Interest rates remain at such low levels locking in much more favorable cash flow positions for rental homes.  Even if the Federal Reserve raises rates slightly it will only spur home buyers, who are sitting on the sidelines, to move to action and purchase.  These purchases will only add pressure to the upside.

 

Rising interest rates will lock in existing rentals and be a deterrent to other investors wishing to enter the rental market.

 

With more people renting there’s pressure to raise rental rates.

 

It’s the Economy, Stupid!!  If the economy remains favorable the housing market will continue to climb.  Housing does well when the buyers feel secure in making their purchase.

 

CON

 

Real estate market in a bubble and will deflate soon.

 

Home prices are too high now, will wait for a price decrease.

 

The general economy is very scary with conflicting signals.  We will wait for more favorable indicators.

 

If current indicators are taken as factual then the time to buy is now.  However, if there are underlying major negative factors yet to be accounted, then stall the purchases

 

This discussion is intended for serious investors to weigh factors and timing for Las Vegas rental investment homes according the most recent economic reports.

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