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  #11  
Old 10-12-2007, 09:30 AM
spex x spex x is offline
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Default Re: Buying a first home: Las Vegas

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I think you should hold off buying for a few more years. I have a feeling vegas RE hasnt gone down nearly as far as it will.

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FYP

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The prevailing sentiment on this board is that housing, particularly in Vegas, will continue to fall. I dont' know if thats true or not. But I disagree that waiting to buy is best because I believe that you dont' have to look at your primary residence as an investment. That is your house. Buy what you want. If you can afford it and you feel like it'll improve your quality of life, by all means, by it. I wouldn't wait to buy on some vague notion that the market MIGHT fall farther in 2 years. IMO, that is a completely RIDICULOUS way to think. Clearly you want to buy a house. So buy one.

If you have 20% to put down and a 740 credit score (which is excellent), then you'll get a loan. The only difference is that you MIGHT have to pay a bit higher of an interest rate for a NO DOC loan. NO DOC loans are loans where the bank doesn't ask for income verification. But even now banks are dying to write high quality paper, which you are, so don't fret. You shouldn't have a hard time finding financing.
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  #12  
Old 10-12-2007, 10:59 AM
stephenNUTS stephenNUTS is offline
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Default Re: Buying a first home: Las Vegas

I am a retired WS trader,and have main/vacation homes in New York.I also have an extensive R/E biulding portfolio.As shIIty as the market is...it is NEVER to late to buy your PRIMARY home,as the above poster stated,as you will always need a place to live/sleep.Trying to pick a bottom is a mistake,that has haunted many an investor,in any market!

I am buying another home LasVegas and will be there on Nov.24th -Dec? for the Venetian NPL Series to consumate a deal.

Your price range of 300-400K is perfect,as there are a TON of scared,must sellers in that range in prime areas

There are some ABOLUTE STEALS in L/V right now ,and doing some due diligence,will IMO be worth your while

PM if you want some contact info in the Real Estate market

~stephen feraca

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  #13  
Old 10-12-2007, 11:25 AM
eastbay eastbay is offline
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Default Re: Buying a first home: Las Vegas

Now is precarious time, but you might want to look at new homebuilders who have inventory that has fallen through because of the financing turmoil. You may be able to find incentive packages topping $250k or more than 1/3 of the price they were selling less than a year ago, and $/sq ft that are otherwise untouchable, going back five or six years in valuation. I just don't see how deals like that can be a bad entry point for the long term as a primary residence. I think the notion that you have to wait another year is nonsense, given some of the valuations that are out there. Not ubiquitous, but out there.

eastbay
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  #14  
Old 10-12-2007, 11:56 AM
SteveOMS SteveOMS is offline
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Default Re: Buying a first home: Las Vegas

I'll echo alot of the sentimate above. Aggressivly negitoate any deal you make in LV. Bargains are to be had today if you search and try and cut prices see if you find a seller just ready to go right now and you can get next years price declines today. I wouldn't do this as an investment, but if your sure your ready to settle and live in one place in LV you'll be fine. I'd just caution when looking at new homebuilders with lots of inventory, I wouldn't buy in 'failed communities' with lots of vacancy's unsold homes and the like for quality of life issues and future values will hurt more in communites that never got off the ground and never should have been built. If looking at new home homebuilders I'd stick to communites that have high sales % overall and high occupancy rates and they are just looking to clear out the last inventory there.

Steve
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  #15  
Old 10-12-2007, 03:09 PM
Taylor Caby Taylor Caby is offline
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Default Re: Buying a first home: Las Vegas

good2cu,

i would be very, very careful about this. let me preface this by saying i am not an expert, but i've done some reading on the subject, taken a few RE courses in college, etc.

the prices look great now, compared to how they were at the peak of the biggest real estate bubble in our countries history just a year ago.

the way i see it, things aren't THAT bad right now. yeah, prices are certainly cheaper than they were, but i'd wait till we started to see the decline in prices in Vegas flatten a little bit before jumping back in. Prices are significantly lower than they were 6 or even 3 months ago, and I don't think anyone really knows when that is going to stop. i read about quite a few people saying "my house lost X value, but it will bounce back so I'm just going to ride it out for another 6-12 months." Assuming this doesn't happen, there's going to be another surge of motivated sellers, selling at much cheaper prices than you can find today, in another year+.

I am going to look to buy in Las Vegas in 18-24 months if the market continues to soften and I can get a summer home for 40-50% cheaper than they were in 2006.

tc
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  #16  
Old 10-12-2007, 03:33 PM
SlowHabit SlowHabit is offline
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Default Re: Buying a first home: Las Vegas

Waiting to buy a home cheaply is great but there are a few things we must consider.

Good2cu is currently a professional poker player who claimed he has won a lot (we'll take his word for it). Considering that he's also an online player, it's also important for him to operate in an environment where he feels fresh. Here are the advantages of him buying right now.

1. Tax deductible off his mortgage interest to lower some of his income.
2. His home office, which can be 1/5th or 1/6th of the mortgage payment if he choose to operate in a large room.
3. The rent for WSOP.
4. No state income taxes.

The above advantages are monetary and are obvious. Here are the intangibles of owning a Vegas home.

1. Raise his street cred and feel good about himself.
2. Can you imagine the opportunities for boning girls at this house? It's freaking Vegas.
3. Friends visiting him all the time. Ok, maybe not this one.

Lastly, the market outlook. We do not know how much the Vegas RE will go down. The majority consensus is that it will go down with a range of 2 years. I'm going to go ahead and stick my neck out and say no one know whether this range is correct. 2 years is just a number that "seems" right and since everyone is saying it, it must be correct.

But look at the upside, we are saving a lot of taxes. Our quality of life will probably increase. We get to bang more girls. Mostly importantly, OP gets to learn to make a big financial decision at an early age. And this is assuming that the Vegas RE is in deep shiet and will continue to plummet. Now imagine if the Vegas RE manage to depreciate at a lower rate. Compare this amount to the amount that Good2cu saves from taxes, it might be a good investment. That is, assuming Good2cu makes over 150k [an educated random number]. My reasoning is obviously flawed if he makes less than 150k.
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  #17  
Old 10-12-2007, 03:34 PM
fees fees is offline
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Default Re: Buying a first home: Las Vegas

Last weeks business week has an article on the real estate market and it touches on vegas, I would look into it.. fwiw vegas has 48k homes with no resident that have literally just been built.. LOL donks
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  #18  
Old 10-12-2007, 03:37 PM
soko soko is offline
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Default Re: Buying a first home: Las Vegas

Even if prices don't drop much further, now is a good time to wait and see. Right now you can rent a place much cheaper without any of the risk involved. All the fundamentals are there that even if housing doesn't fall, it sure isn't going to go up any time soon.

If you took out a $250,000 mortgage fixed for 30 years at 7% interest you would be paying $1,600 per month.

For the first year you will be paying about $1,400 in interest from that loan building a measly $200 in equity per month. It won't be 10 years before you're still flushing $1,200 per month down the drain in interest alone.

Not to mention if your house depreciates at all you not only lose your interest payments your equity would be evaporating faster than you're putting it in.

Right now you can rent a 3 bedroom, 2 bath house for around $1,300 a month, You could find a 2 bedroom apartment for less than $1,000. If you rented for 1-2 years you could easily put the $300-$700 month you save in a good interest earning place for a few years when the market is in less turmoil.

Sure it's a good time to buy now. The chances are very high it will be a BETTER time to buy in the coming months so it's an EVEN BETTER time to rent now.
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  #19  
Old 10-12-2007, 03:39 PM
PanchoVilla PanchoVilla is offline
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Default Re: Buying a first home: Las Vegas

I much prefer owning to renting as I think the extra freedom is worth some premium. That said there are only a few places that if I moved to right now I would not buy a home. Vegas and Phoenix are at the top of that list. They had massive runups based on speculative california buyers. I would seriously consider leasing a place for a year or two, or maybe even some type of lease-option. Do I know that the market will lose money over the next 2 years? No, but it seems far, far more likely there, than in many other places. There are many, many investor owned properties there.

The one exception I might make is if I came across a property that priced in a 8-10% decrease per year over the next two years. If you can get that sort of discount, then you might be worth considering. That is just my .02.
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  #20  
Old 10-12-2007, 03:47 PM
Taylor Caby Taylor Caby is offline
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Default Re: Buying a first home: Las Vegas

Slow,
these are good points. he doesn't need to own a house out in vegas though, he can rent, so the state income tax should work either way. also, from what i have been told, claiming the home office thing is one of the surest ways to get audited. for getting a tax rebate on 1/6th of his mortgage payment, as a professional poker player who probably has some things he wouldn't want the IRS seeing, that might not be the wisest decision.

i guess what i'm thinking about reading all of these replies is that there really is no "right" answer here. i don't think anyone can argue that renting is not the safer course of action here. if i'm an internet poker player (which i am), i'm certainly looking to minimize any other risks in my life over the next two years, at least until we all know more about how the environment in which we work in will change.

tc
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