Investors are back in Las Vegas
As stated by The Montecito Companies, a Las Vegas based real estate investment and development firm, they will start purchasing around 100 bank owned properties in the city some of which they will rent but others they intend to purchase before prices start rising. They also explained that the key to turning a profit is getting a steep discount by buying properties in bulk for cash and spending $3,000 to $10,000 in refurbishment, for a swift resale. The real estate buyers are now risking their business if the real estate prices fall again. As reported by the experts, the rising unemployment could be one of the key factors to hit the real estate market and an excess of foreclosed properties suddenly jumped on the market could see values plunge. One of the areas hit by the price drop is Las Vegas. The price of the properties are very low, abundant and has steadily decreased by 58%.
According to the data, investors are slowly returning to the market as they see that real estate prices have steadily dropped far below the trend and sees this as a very good investment opportunity. Also, the prices of residential properties across the nation rose for a third straight month in July, encouraging investors to purchase properties. The S&P/Case-Shiller index of house prices in 20 metropolitan areas rose nearly 4% in the period. Investors who have the money are taking risks while the prices are still low, before it slowly creeps back to their normal prices. As the effect of this, property investors are now slowly returning to US real estate market although there the project are smaller compared to the big projects they got years ago.