invest in las vegas real estate -...
TRANSCRIPT
Invest in Las Vegas Real Estate
Presentation Charts Compiled By The Las Vegas Board Of Realtors.
Updates Are Available Upon Request.
IT IS BACK!
Affordable Housing Built Las Vegas
For 20 Years (1983–2003)
Distressed Properties Are Driving Investments
0 1 2 3 4 5 6 7 8 9
2005 2008 2009
Millions Distressed
Proper6es Home Sales
Sources: New Home Sales – US Census Bureau 2008, Exis<ng Home Sales – NAR 2008 Distressed Property Projec<ons – RealtyTrac 2009
Slow Steady Growth Projected Affordability Driving Steady Growth
0 1 2 3 4 5 6 7 8
2010 2011 2012 2013 2014
Millions New Home
Sales ExisGng Home Sales
Sources: Based on 300,000 growth projec<ons per year
Existing Home Sales After Recession Affordability Fuels Growth - Mirroring The 80s & 90s
1975-‐1976 +23.75
1982-‐1983 +35.53%
1990-‐1991 +9.09%
2001-‐2002 +5.53%
0
1
2
3
4
5
6
7
8
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Millions
Source: Na<onal Associa<on of Realtors 2008
Pro-Business & A World-Class City
þ No State Tax – No Corporate Income Tax þ Low Employment Payroll Tax & Workers Comp þ Getaway Global Destination Brand For 30 Million People Each Year þ Great High Desert Weather – 300+ Days of Sunshine þ 1980s Pricing For Labor & Materials For New Homes
þ A World Class City – Las Vegas Economy Is Driven By The Confluence Of Tourism,
Gaming & Conventions, Which In Turn Feed The Retail & Dining Industries
þ Las Vegas Serves As World Headquarters For The World's Two Largest Fortune 500
Gaming Companies: Harrah’s Entertainment & MGM Mirage
þ Foreclosed Homeowners Will Be Renters For 5 Years – This Will Drive Rental Demand UP
þ New Homes Cannot Be Built For Existing Sales Price Points
þ Investors Are Buying Homes For Better Return On Investment þ Billions of Dollars Coming In Casino/Hotel Development In 5-10 Years
þ Projected Employment Requirements = Over 100,000 New Jobs Next 5 to 7 Years
þ Long Term Potential Is Good – Displaced Homeowners Will Buy Again In 2 To 5 Years – Housing Will Still be Affordable
Las Vegas Real Estate Snapshot 2010
Market Growth Snapshot 2010
þ Las Vegas Is A New Fresh Exciting City – 3000 to 5000 People Relocate To Las Vegas Every Month, Year After Year
þ Statisticians Say This Growth Will Continue Until 2028 When Las Vegas Will Run Out Of Land To Build Homes
þ Over The Next 5 Years, Home Prices Will Increase Steadily þ Demand Will Increase Steadily, Driven by Normal Growth
þ Job Growth Positively Impacts Home Buyers & Renters
þ Short Sales & Foreclosures Are Driving Las Vegas Market & Generating Inventory
þ Real Estate Sales Up 57.3% & Setting Records For Volume
þ 2010 Median Price $126,000 – Decline of 50.5%
þ Median Price Decline: Increases Investors Return On Investment
þ Bank-Owned Homes Will Trickle Out To Avoid Devaluing Their Assets þ Nevada Is Projected To Grow Approximately 49% By The Year 2028
þ Expanding By Another 1.3M, Next 25 Years’ Growth Is Well Ahead Of What The US Will Experience As A Whole, With A Growth Rate Nationally Of Only 22%
þ Las Vegas & Surrounding Areas Are Projected To Grow From A Base Population
Of 1.9M To 3.0M By The Year 2028.
þ Job Growth will Correlate with Population Growth. Las Vegas Has A Labor Pool For New Businesses Relocating To Las Vegas.
BUT...
Nevada Is In A
Recessionary Cycle.
Like The Rest Of USA –
Single Family Residential Listings As July 2010
þ High Speed Train Being Built To Run Between California & Las Vegas
þ Mass Transit System That Will Travel To LV Suburbs
þ 80 Acre Production Facility: Zoning Approved: Facility To Be Built By Oakley Glass Company. New “Red Camera” Movie Studio That Will Create Digital Videos
Future Job-Producing & Tourist-Attracting Ventures
þ City Center: New Technologically-Advanced Slots Are Computer Monitors That Connect To A Main Frame Computer & Can Talk To The Player.
þ Nevada Test Sight: Employing Thousands Now & In The Future
þ Global Hub Will Continue To Attract Tourist Around The World – Las Vegas Is A Meeting-Space City! – City Has a Newly-Built 5,000,000 Square-Foot World Market Center That Will Add 12,000,000 More Square Feet Before It’s Finished.
Generate Annual Net Return of 8% to 8.8% Equal To Approximately $11,100 Of Net Income
Add $7,500 For Fees Including AcquisiGon,
Closing Costs, CosmeGc Repairs, etc.
Invest $135,000 To $150,000 Per Single
Family Home
Investor Scenario:
SELL HOME IN 5 YEARS At 3.25% AppreciaGon Per Year & Receive $179,244, Which Includes Your Original $135,000 = 32.77% Profit
Leased Homes January Through June 2010
PRICE CLASS < 2 BEDS 3 BEDS > 4 BEDS TOTAL UNITS
$500 or Less 104 3 1 108
$501 -‐ $800 2056 220 18 2294
$801 -‐ $1,000 1050 1612 158 2820
$1,001 -‐ $1,300 589 3018 933 4540
$1,301 -‐ $1,500 187 623 663 1473
$1,501 -‐ $1,700 82 268 380 730
$1,701 -‐ $2,000 96 174 386 656
$2,001 -‐ $3,500 88 135 386 609
$3,501 -‐ $5,000 10 7 45 62
$5,001 -‐ $8,000 1 5 17 23
$8,001 -‐ $10,000 0 0 2 2
$10,001 or More 0 6 5 11
TOTALS 4263 6071 2994 13238
Median Price 800 1125 1450 1100
Average Price 933 1480 1795 1376
RESIDENTIAL RENTAL UNITS LEASED
* PURCHASE PRICE
$140,000 TO $150,00
5
2-Story Home Priced At $127,900 With 1715 Square Feet Plus 2 Car Garage Built in 2004
1
2-Story Home Priced At $149,000 With 1840 Square Feet Plus 2 Car Garage Built in 2002
2
2-Story Home Priced At $140,000 With 2005 Square Feet Plus 2 Car Garage Built in 2003
3
2-Story Home Priced At $154,900 With 2038 Square Feet Plus 2 Car Garage Built in 2003
4
2-Story Home Priced At $139,900 With 1896 Square Feet Plus 2 Car Garage Built in 2004
2-Story Home Priced At $144,900 With 1896 Square Feet Plus 2 Car Garage Built in 2004
6
2-Story Home Priced At $145,900 With 1757 Square Feet Plus 2 Car Garage Built in 2004
7
Single-Family Residential Listings As July 2010
The Next 3 Slides Show A $150,000 Home – In A Good Location Close To Schools & Shopping – That Rents For $1250 A Month
þ The Appreciation Rate Is Calculated At 3% For Years 2, 3, & 4 And 4% For Year 5
þ The Taxes Are 1% of Sales Price Per Year
þ The Insurance is Approximately $25 Per Month þ The Home Owners Association Dues Are Approximately
$50 Per Month
Facts About Investment Expenses
Protect Your Investment
Property Management Is The Keystone To Property Value! You’ll Need: þ Strong Relationships With Vendors Who Are Trusted Bonded Partners In
Landscaping, Electrical, Plumbing & Related Services þ Sophisticated Market Analysis Services to Establish Optimal Rental Pricing þ Thorough Tenant Screening & Coordinate Move In Process
þ Prompt Rental Collections & Owner Disbursement Thru ACH
þ An Accounting DepartmentThat Pays All Re-occurring Expenses & Provides Monthly Income & Expenses Statements & Year End Reporting Including 1099’s
þ Ability To Coordinate Property Reconditioning & Pool, Gardening Services
þ A Group That Also Provides Commercial Property Management Services (Preferable)
Let Me Assist You! I’m just a click away. Whatever your goals – as a qualified professional – I can help you achieve them.
Don’t miss out on the incredible opportunities that exist in this unprecedented market – they won’t last forever.