Las Vegas Sun

February 27, 2017

Currently: 49° — Complete forecast

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darrensdad

Joined
March 22, 2010

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Recent Comments

Total Comments: 11 (view all)

There are fundamental investment reasons why the housing prices may not drop much lower. If one has $200k to invest, there aren't many attractive investment vehicles:
1) CD - 1-3%, no risk
2) Munis and bonds - 4%-8%, low-mid risk
3) stock market - very volatile, high risk
4) buy a business - decent return but requires regular management, mid-high risk in this economy
5) buy real estate for rental income - receive 7%-12% cash flow at current prices. Risk is relatively low, when compared to stock market.

If home prices drop further, that only makes the investment more compelling, and should bring in additional investors. Anyone who survived the stock market have seen 70% increase from the low in 3/09, and selling stock now to buy LV homes at 66% below peak is not the worst trade. Home prices in LV from here on should, for a large part, follow ROI.

(Suggest removal) 8/10/10 at 6:30 a.m.

Thank you for visiting Las Vegas!!

Contrary to many of the disrespectful comments, not everyone in this city is an uncouth ignoramus.

(Suggest removal) 6/1/10 at 11:44 a.m.

If I were a contrarian, based on the negative comments so far on this article (about 100%), the LV economy has probably hit bottom. Can't get worse than 100% bears, and that's probably the reason why the casino stocks have jumped 50% on avg just this year.

(Suggest removal) 5/28/10 at 8:23 a.m.

What this article doesn't address is the increase in gratuities passed to the service section workers, which constitute a major portion of the city's work force. My understanding is gratuities account for 70-90% of take home pay for service sector employees, and any uptick in sales in this sector will help the purchasing power of a large number of residents, and that translates to good news. I think we can all just agree new construction is dead for the time being and probably will be (and should be) for several years. That said, renovations and home furnishing businesses should continue to flourish as home sales stay high, and this will also give the valley economy a boost. It's easy and popular to be the naysayer (misery loves company), but it's also true it's usually the darkest before dawn.

(Suggest removal) 5/27/10 at 11:12 a.m.

One of the reasons why Vegas leads the foreclosures race is because the prices in many neighborhoods are back to mid-1990's levels, so unless you owned your home for more than 14 years, your home may be down in value. In contrast, Phoenix and FL are only back to 2002-2003 levels, so they have lower portion of homeowners underwater. It's not a tough decision to walk away from your mortgage if you believe it'll be ten years or more before you break even.

(Suggest removal) 5/13/10 at 8:55 a.m.

(view all 11)

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