investment

Do you know the difference between owning income property and being a homeowner? In many cases, the only thing that separates the two is your mindset. That may sound odd, but often it’s simply shifting your outlook from an “I can’t do that” to a “Why not?” frame of mind.

Here in Las Vegas, a lot of people have discovered that owning income property is a possibility, and it’s actually a lot easier to start creating a real estate portfolio than they realized. Often, it begins with making plans to move from their existing home into a new one – and deciding to keep (rather than sell) their current home and rent it out.

Many people may read that last paragraph and reply with “I need the money out of my current home to buy the new one!” In some cases, that may be true. But the truth is, most people automatically make that assumption – without sitting down with a professional to crunch the numbers. Surprisingly to many people, it’s entirely possible that it may actually make more financial sense – for tax or investment reasons – to own income property than to sell that home.

For the most part, we find that many homeowners choose to convert their primary residences into investment properties for one of two reasons.

First, if the housing market is struggling and you’re concerned the home’s value has dropped, you can postpone selling the property, rent it out to pay for the monthly mortgage payments, and then sell it when the value has risen. This was a common occurrence during the financial crisis of 2008 – as many homeowners went this route to stay afloat while the economy got back on its feet.

The second reason is that many choose to take advantage of excellent financing now available at the current low interest rates to purchase their next home, leaving them with the option to turn the original home into a rental and increase their income. This can turn out to be a great opportunity, often with a better return on investment than the stock market. Additionally, if the home was originally purchased as a primary residence, it likely had a low interest rate – and when you transition your home to an investment property, you’ll be able to keep this perk.

Whichever route you choose to start the first of your (hopefully) many rental properties that will bring you additional income over time – be sure to make yourself aware of the responsibilities you bear as a landlord to ensure all the legal requirements are met. And of course, having the assistance of an expert in this area is invaluable – from knowing the state of the current local rental market to the financial obligations and details that must be attended to.

The best way to start off on the right foot in owning income property is to find the right Property Manager to help you be assured that you’re doing it all “right” from the start.

Recently, New Home Resource posted a 4-part series of articles that explain in detail “How a Property Manager Takes Care of Business.” In this series, you’ll find out pretty much everything you need to know about taking care of your rental home – as well as why it’s a good idea to work with an experienced Property Manager; including ways to protect your investment, locating and taking care of tenants, and much more.

So, before you just decide to list that home for sale and move to the next one, give some thought to the fact that this may be your chance to start building a real estate ‘empire’ of your own. One that can not only bring you and your family additional income, but help to improve your financial bottom line for the future, as well. And always remember that the professionals at New Home Resource Property Management are here to help you find your best options to make it happen.

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for property management, a newly built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to provide the service you’re looking for. Please contact a New Home Resource Realtor® today at 702-365-1000 or visit www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, and Kathy Paterniti are all here to help!

The recent experience of a Realtor during an Open House event in Gilbert, Arizona is a fresh reminder to those in our industry that personal safety should always be at the top of our checklists. Because a real estate agent works so closely with the public, it is sometimes easy to forget how critical it is to follow common safety precautions. Let’s face it, we’re in this business because we love working with and helping people find their ‘forever’ home. But it’s always going to be most important to be aware of warning signs and remain diligent – because that’s the best protection we can provide ourselves – and it’s a duty we owe to our clients, as well.

While the agent’s experience, which occurred during an Open House event in Gilbert, Arizona last month, was a serious matter, thankfully she was ultimately successful in rebuffing her attacker and escaping serious, life-threatening injury. Perhaps more importantly, the suspect was recently arrested and is in custody (big sigh of relief for Realtors and homebuyers everywhere), and may also be the suspect in other similar events.

Just as important as our own safety is that of our clients. It is a critical part of our duty to do our best to ensure their well-being in our dealings and travels, too. There are many stories that have been written outlining fellow Realtors’ personal experiences on this topic – which include tips and recommendations about best safety practices we should all be using. At the top of the list are letting your colleagues know where you are at all times, gathering identification, and knowing the neighborhood and the home you will be showing.

Other safety measures should be followed as well – and this might be a good time for us to review those tips to make sure we’re doing all we should be to protect ourselves, our families, our colleagues, and our clients. (Take a few moments to review these stories on the topic: Realtor.org and Zillow articles, and this video announcement by the National Association of Realtors regarding a new NAR Safety Course to be presented next month in Washington, D.C.)

The Las Vegas market is heating up (and we’re not just talking about the weather!). So let’s make this coming summer selling season one of the best – and the safest – on record!

New Home Resource helps current and future homeowners with their Las Vegas real estate needs. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!

It is taking a little bit longer for homeowners to break even on their investments. Overall, buyers can expect a relatively quick return according to a recent Las Vegas Review Journal article. “Home-sales website Zillow set the Las Vegas Valley’s ‘break-even horizon’ at 1.5 years in the fourth quarter, up from 1.2 years in the same period a year earlier, ” says Review Journal reporter Jennifer Robison.

According to Robison, Des Zillow found that it is much better to buy a house than rent by looking at a number of components, from maintenance costs to home-equity growth. Despite the quick return the majority of people are not buying due to financial reasons.

Although, the housing market is still picking up slightly, according to a recent Vegas Sun article. Median closing rates saw a 6% improvement. Builders were selling one home per week per subdivision in December, as claimed by Home Builders Research President Dennis Smith’s article: “That’s on par with early 2014 and ‘not at any type of record pace’ for the area, but it is a very positive turnaround from the lackluster activity during the last two quarters of 2014.”

New Home Resource helps current and future homeowners with their Las Vegas real estate needs. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!

We’d like to share this article that was posted in Las Vegas Review Journal. This is a more positive outlook on the current state of the Las Vegas housing market.

BY HUBBLE SMITH
LAS VEGAS REVIEW-JOURNAL
Posted: Jun. 8, 2011 | 10:08 a.m.

The number of homes sold in Las Vegas and their median price increased slightly in May from the previous month, though prices are down 11.3 percent from a year ago, the Greater Las Vegas Association of Realtors reported Wednesday.

Realtors sold 3,991 single-family homes, condominiums and townhomes in May, up from 3,902 in April and 3,653 in May 2010. Single-family home sales increased 7.9 percent, while sales of condos and townhomes increased by 14.4 percent, compared to May 2010.

The median price of a single-family home sold in May was $126,000, up 0.8 percent from $125,000 in April, but down 11.3 percent from a year ago.

“This was the first time so far this year that both of these key indicators increased in the same month for both single-family homes and for condos and townhomes,” Realtors association President Paul Bell said. “We’ll take anything positive these days.”

Bell said he sees a positive trend in the increasing number of home sales involving “traditional” buyers and sellers, as opposed to investors and lenders who have dominated Southern Nevada sales for many months. He noted that the number of traditional home sales increased in May as the percentage of sales involving bank-owned homes and short sales declined.

“It’s a gradual trend, but it certainly is an improvement over what we’ve been seeing,” he said.
Realtors’ statistics showed 51.4 percent of existing homes sold in Southern Nevada in May were bought with cash. That’s down from 51.9 percent in April, but remains near record levels.

Las Vegas-based Residential Resources reported 1,322 REO, or bank-owned, sales in May, or 43.1 percent of all closings; 985 regular sales, or 32 percent of the total; and 758 short sales, or 24.7 percent of the total.

Assuming that owners of homes listed for short sale have stopped making payments, that’s a financial stimulus of $5.54 million flowing into Southern Nevada’s economy and not going to financial institutions, said Frank Nason, president of Residential Resources.

He based his estimate on an average mortgage payment of $750 for principal and interest and 7,389 short-sale listings in Las Vegas.

“I started thinking about this in national terms estimating that there is probably quite a large stimulus occurring,” Nason said. “Is it purposeful stimulus or just a serendipitous result of the slow approval process? I don’t have any answers to the larger questions.”

The least expensive closing was $10,052 for a home at 1812 Princeton St.; the most expensive was $15 million for a home at 7030 Tomiyasu Lane, according to Residential Resources.

The number of homes for sale on the Multiple Listing Service increased slightly, to 22,767, in May, up 7.7 percent from a year ago. About half list pending or contingent offers.

Bell said real estate agents are seeing a tightening of inventory in master-planned neighborhoods such as Summerlin, Green Valley and Seven Hills, and near employment centers.

Rob Jenson of ReMax Central said the Las Vegas housing market shows stability in the lowest price range with less than six months’ supply. It gets softer in the mid-range and luxury markets. “Once the price hits $600,000, the supply more than doubles, then it just goes up from there,” Jenson said.

The monthly value of single-family home transactions tracked through the MLS increased 0.3 percent, to more than $491 million. For condos and townhomes, sales volume was more than $76 million, up 11.9 percent from April.

Realtors’ statistics are based on data collected through its MLS, which may not account for new homes sold by builders or for sale by owners.