I came across this well written article in the New York Times about somebody who was renting during the housing bubble and how he made his decision to buy –> How a Renter Decided to be a Home Owner.
“The case for renting has been simple enough. House prices rose so high in the first half of this decade that you could often get more for your money by renting. You could also avoid having a large part of your net worth tied up in a speculative bubble.”
There are several calculations we can run to determine an individual’s needs to determine if renting is better then buying and they are very similar to the same calculations we use to determine if purchasing a Las Vegas home for investment really is an investment… or a liability.
The Sample the author in the above article uses is a really simple napkin test anbody can use. Our calculations are a little more detailed but pretty much run in the same line. Moody’s came up with a rental ratio map I found interesting that covers general metropolitan areas. Using the same concepts, I’m working on creating something similar with actual zip codes of Las Vegas to break it down further.
In a real estate market full of uncertainty, it’s best to explore these options and make a decision based on your individual needs using age old fundamental concepts that work in ANY real estate market.
ABSOLUTELY NOBODY can tell you with absolute certainty that Las Vegas real estate prices are going to go back up, continue going down or stay the same. If they could, the Las Vegas real estate market would not be where it is today. Speculation is just that.. speculation. Billion dollar businesses such as the Insurance industry run risk calculations to help them determine the risk of future events and apply the rates accordingly. You should be doing the same thing to help determine if it really is a good time to buy for you.
While there is still no guarantee (if anybody in real estate can predict the future with absolute certainty, use your imagination on what they could really be doing instead of running around yelling that you have to buy now because they read an opinion in the paper) that the value of the home you purchase may still decline, it certainly helps from making a major mistake that can cost you hundreds of thousands of dollars.
Our Real Estate business is based on a referral based model which means we primarily rely on clients that we’ve already helped in the past for repeat business and their referrals. We don’t always tell you what you want to hear.. but we do tell you what you Need To Hear.
You can contact us using the information below to find out if it truly is the right time to buy for you.
Paul Francis, CRS
Coldwell Banker Premier
Las Vegas Real Estate
702.592.3058
