Las Vegas Investment Property
Considerable profits can be had in commercial or residential property investing, provided extensive research into the pros and cons of each investment are carefully evaluated. As of early 2007, residential markets have been experiencing a cooling off period - or "adjustment" - meaning a comedown from the astronomical price escalations caused by speculators buying existing homes for investment purposes and "flipping" properties at record levels.
Certain markets, however, have seen some immunity from all of this, particularly in the Las Vegas luxury condominium market. There has been a surge of investment in high-end luxury condos, particularly those built on or near the strip.
Of considerable advantage to the commercial real estate investor is the strong covenants of a commercial lease, and the fact that commercial property revenues tend to be higher than residential. Location is often the key element in the success or failure of a commercial property investment, and in Las Vegas there is no better location than the famed Las Vegas Strip. However, exorbitant land costs, and the expenses involved in removing or renovating any existing older structures on the property make investments on the strip feasible for only the deepest of pockets.
Owners of apartment complexes in blue collar middle-class neighborhoods had hoped to cash in on the Las Vegas condo craze prompted by the sudden proliferation of luxury buildings springing up around the city by converting their apartments to condo units. Many of these conversions however, have not reaped the expected rewards. Tenants have moved out, unwilling or unable to meet the required down payment, or unable to obtain a mortgage due to credit associated problems.
In fact, very little attention has been given to these middle-class apartment conversions by investors/speculators. These investors are more likely to be attracted by such Las Vegas real estate investments as high-end condos and single family homes which can be purchased at pre-construction prices
What makes these types of investments so attractive is the fact that due to current market conditions many builders have been forced to offer attractive incentives in order to move their inventory. Among these incentives are special discounts for buying during pre-construction, and a resale clause in the contract that allows the investor to sell or "flip" the property to another buyer prior to completion of construction. Additionally, the astute real estate investor in Las Vegas will look for those builders - and there are many - who are willing to absorb closing costs, offer free up-grades, and even offer cash-back incentives to the buyer. These incentives can significantly increase the investors profit margins when reselling the property.
For the past several years. Las Vegas has been the fastest growing city in the country, with thousands of new residents arriving monthly. This is one of many reasons that investors have been attracted to Las Vegas in ever growing numbers. Strip shopping centers, medical centers, office buildings and vacant land are among many areas targeted by investors, but single-family homes and the high-rise luxury condominium market are primary favorites.
