I think the question I get most often is, “Jeff, what if Las Vegas Real Estate has not hit bottom? If I buy now, and it continues to decline in value, what do I do then?”
Great question, so let’s start by taking a look at a graph I got off of Zillow.com awhile back. If you look at this, it certainly does not indicate that we have hit bottom.
So let’s look at how we can be sure that won’t work against us. I grew up in California, where I have seen the Real Estate markets swing radically every few years. I remember I had a friend many years ago, who got divorced, and refinanced his home to give his former wife her her share of the divorce settlement. Shortly afterwards, the local market began to decline steeply and within a couple of years my friend was alarmed to discover that he owed more on his house than it was worth. He asked me if I thought he should ‘walk away’ from it like many others were doing. I first asked him if he could still afford it (of course this was long before exotic mortgages, and he had a 30 year fixed rate loan), and he stated that he could. I then asked him what he was going to do if he sold it, and he said he would rent a place for himself. The obvious solution was to continue paying the mortgage and live there, so he did. Several years later, he was getting remarried and moved into his new wife’s home. When he went to sell that house, it sold for much more than he owed on it.
So what if you bought real estate, and someone else was paying the mortgage for you? Would it really bother you if it declined in value? For the first time since 1991, there are a lot of single family homes in Las Vegas that can rent for more than the mortgage payment (as well as the RE taxes, property insurance, maintenance and property management fees). When the property is producing positive cash flow, you can afford to wait for it to go back up in value! Think about it, your tenants will cover the expenses on the house, while it continues to decline in value, until it finally goes up!
So WHAT ARE YOU WAITING FOR?
Las Vegas real estate is ON SALE.
Get yours now!
To contact me so I can help you make great decisions on Las Vegas Real Estate, visit www.MyFastEasySale.com, click the “Wholesale Buyers” link, and fill out the form so I can start helping you today!