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Vegas Rental Market Is In Trouble... Saturation Point?
invite response
2012 Feb 5, 2:24am 65,498 views 80 comments
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MisdemeanorRebel
2012 Mar 20, 5:08am
Get rich quick! Halelujah Jeeeezzzzuus.
I's prayed to Jesus and gave $500 to his Minister. Jeesus is giving me my hundred-fold Increase thanks to this fixer upper I just found! Now, Lord, please send me a gay couple as renters so they'll fix the place up for free, In Jesus' name, Amen!
everything
2012 Mar 20, 9:02am
So much for rents going up, go ahead and raise them, I'll just get a room mate, or efficiency to defer costs. I'm seeing more rentals going up around me as well, they might have to start re-converting the condo's back into rentals again because they are piling up fast. Now imagine you bought a condo, and now your condoplex is turning into a rentalplex, real nice. Property management business is going to be booming for years.
This reminds me of when everyone was buying Las Vegas homes for 150k back in 2003. People were buying 5 to 10 homes at a time. It was crazy!
After buying, the homes were rented out while waiting for prices to go up. Are all these investors thinking they will hit it big when the price of LV homes go up in a few years and they sell at a profit? Not all the investors are in it for the long term. They are looking for quick profit.
What happens when there are so many rentals, the rent price drops to half the cost of the mortgage?
elliemae
2012 Mar 21, 2:19pm
What happens when there are so many rentals, the rent price drops to half the cost of the mortgage?
It'll never happen. NOW is the time to buy! Hurry, hurry!
Vegas has changed so much over the past ten years. It's a shithole with a few nice areas thrown in.
http://www.lasvegassun.com/news/2012/mar/21/police-identify-intruder-shot-summerlin/
Well, so much for the nicer areas...
but the FACTS
Hey, could we talk about the fact that Vegas is quickly running out of water? You know, since we're talking about facts and all.
Must be fun trying to sell homes in a desert hellhole.
It would seem that high energy costs would also place a cap on any major growth in these markets. Sure, your mortgage payment might be low but you might spend the same amount on fueling your car and cooling your home. When incomes are based on service sector work these little changes do matter.
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I bought a 3br/2ba/pool home in the Summerlin area of Las Vegas in Feb of 2011 for $134k, as an investment/rental. The first tenant skipped out after 2 months, stiffing me for $800. Next tenant only wanted a six month lease, but did pay their rent on time. They vacated on Dec. 31, and since then the home has been on the market---over one month at this point---without even ONE rental applicant. I just received the following from my property manager:
"We know you are concerned about how long it is taking to rent your property. We are very concerned as well because we do not want our customers unhappy and just like you we do not make any money on a vacant property...the single family home market has drastically slowed down because of the influx of all the new properties put on by the investors. I have been tracking this for some time now. Listed below are the records showing this trend.
Currently there are 6,614 properties on the market for rent.
-30 days ago in January alone there were 2,799 added and in January only 414 rented.
-60 days ago in December 1,389 properties were added and 969 were rented.
-90 days ago in November 1,019 were added and 479 properties were rented.
-120 days ago in October 591 were added and 2,219 were rented.
-160 days ago in September 396 were added and there were 3,158 properties that rented.
In short, what this means is that we are having much more properties being added (due to investors) every month and fewer properties are being rented
(due to the holiday months)." (end quote)
With the glut of rental properties on the market competing for tenants, we are now seeing rent wars with prices aggressively being dropped. I've had to reduce my asking price by almost $200 with the hope of getting a tenant and am still waiting for one as I go out of pocket to cover my mortgage and other costs for the second month in a row. In less than one year, my property has been on the market three times.
Right now its looking like Vegas is a BUST.
#housing