Although the Las Vegas housing market has been through a challenging couple of years, there is no question that the time is now to purchase investment property in Sin City. Adjusted for inflation, housing prices are lower than they have been at any point in the last 23 years and are approximately 40% of the peak price. In other words, a house that would have cost $300,000 at the peak of the market can be purchased for $120,000 today. With discounts like that, how can one lose?

Naysayers will point out that the Las Vegas market is still oversaturated with inventory and that housing prices have not yet started to show any sign of true recovery, and they would be right. However, given that a home can be rented out for more than the cost of PITI (principal, interest, taxes and insurance), this is a non-factor. You can own a property today and collect a healthy cashflow stream which is well ahead of what a bank account or government bond would pay while waiting for the market to recover.

Furthermore, recovery is closer than many realize. Hotels are gradually increasing occupancy and rates. Although a number of the most extravagant high-end restaurants have had trouble, many are reopening. Some restaurants are actually increasing meal prices, as well. Since it looks like business and convention travel will return this year, the odds are that the Las Vegas economy will be looking up, as well. These factors will ultimately support the housing market.

Tags: Finding Investment Property in Las Vegas, Homes for Sale in Las Vegas NV, Investing in Las Vegas Real Estate, Investment Homes in Las Vegas NV, Investment Property in Las Vegas, Investment Property in Las Vegas NV, Las Vegas Investment Property

Posted on Tuesday, April 6th, 2010 at 1:44 pm and is filed under Investment Property. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.