Las Vegas Homes, Condos, Land and Commercial Real Estate Blog

Why does investing in Las Vegas real estate make sense? Because it is a relatively low risk investment which can make a healthy return on the investment, period.

The following is Case-Shiller® Housing Price Index: January 1987 to May 2009 and shows the median price for homes in Las Vegas, a ten city composite of other major cities in US, and the flat line is the median price of homes if things would have progressed normally. The composite city graph has stayed above the normal median price while Las Vegas home prices have overcorrected and is about $20,000 or about 18% undervalued.

For those who wonder what happened after April-2009 which is shown in the graph, the graph would show a near flat line with a little spike at the end as Las Vegas median prices have gone up.

Now, Las Vegas homes that are purchased correctly can return 7% plus cash on cash return on the investors money, plus future appreciation.

However, the biggest number is that;

while only 11% of Las Vegas residents could afford to buy a home at the median price in 2006, 70% of Las Vegans could afford a home at the median price now.

Las Vegas is the most affordable city in United States again and a retirement heaven since retirees who relocate here don’t have to look for a job in Las Vegas.

Now let’s go over the investors other choices.

1: Stock market. The darn thing is starting to jump up and down like a beheaded hen. If you like to gamble, stocks are for you.

2: Gold prices at record highs. Again, these act Sinusoidally and the valley is coming after the peaks.

3: CD’s at 1.5% interest doesn’t cover inflation.

Now you see why investing in Las Vegas homes and condos is a sound and low risk investment that will return far more than buying a “Safe CD”.

Case closed.

Let me know who you are by becoming my friend on my Las Vegas real estate  page on Facebook or Masoud’s MySpace page.