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Old 04-05-2013, 01:07 AM
 
Location: Sunrise
10,869 posts, read 13,638,218 times
Reputation: 8987

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Quote:
Originally Posted by Coco6163 View Post
I am glad you have recovered. I would guess, however, that rents being what they are here in LV, that most folks who bought in 2007-2008 are not so lucky. Perhaps the equity has sufficiently recovered, but for those who add the cost of a mortgage plus maintenance and insurance to homeownership during those same six years are probably far behind the renters when assessing who lost more of their net worth as a result of paying for housing.
Works no matter what the rent vs. own scenario is. Comparable rent on our house is around $2,500 per month. (Yes, we can rent cheaper, but I'm trying to compare apples to apples -- large two story house with a view and a garden east of Hollywood.)

$2,500 times 72 months is $180,000. Our house hasn't lost nearly that much equity.

Compare that to a 1,600 sqft house that hypothetically sold in 2007 for $180K and also lost half, and rents for $1,000 per month. These hypothetical owners are still $18K in the hole. But house prices inching up, and another year of rent, and they'll also break even.

The homeowners who cashed out equity in 2005-2007 and used it to finance a pampered princess lifestyle, then refinance with an interest-only mortgage lost their shirts. As did the homeowners who leveraged their homestead to buy six houses. But they weren't being financially smart in the first place. I hope the plasma TVs and his-and-her Hummers was worth it.

 
Old 04-06-2013, 09:59 AM
 
12,973 posts, read 12,137,944 times
Reputation: 5398
[orphaned]

OP is looking for a large home in Henderson. That is very unlikely to be a speculative buy.

The present market could very well drive pricing up further as it has done for the last 12 months.

And there does not appear to be anything in the immediate future that will change the direction.

Pricing is still below replacement though getting close and is still well under the long term trend line.

I have actually started discouraging investors unless they are willing to gamble on appreciation. The Las Vegas rental has gone from a 10% return to a 2% or 3% return.

Last edited by observer53; 04-11-2013 at 01:40 PM..
 
Old 04-06-2013, 12:14 PM
 
244 posts, read 285,939 times
Reputation: 204
Not an overabundance of prescience was required to reach that conclusion but you left out the part about rapidly escalating values being the predecessor to rapidly rising property tax revenues. Only 2 things guaranteed in life, death and taxes.
 
Old 04-06-2013, 12:26 PM
 
12,973 posts, read 12,137,944 times
Reputation: 5398
Quote:
Originally Posted by VegasVicsezhowdy View Post
Not an overabundance of prescience was required to reach that conclusion but you left out the part about rapidly escalating values being the predecessor to rapidly rising property tax revenues. Only 2 things guaranteed in life, death and taxes.
Owner occupied taxes in NV rise at a maximum rate of 3%. That is well less than the rate of appreciation.
 
Old 04-06-2013, 01:32 PM
 
244 posts, read 285,939 times
Reputation: 204
Ever hear of municipal obligations?

Pursuant to NRS 354.59811, local government entity property tax revenues are allowed to be increased by a maximum of considerably more than 3% per year. Right?
 
Old 04-06-2013, 03:14 PM
 
12,973 posts, read 12,137,944 times
Reputation: 5398
There are exceptions....

Ballot questions if so stated in the ballot question.

To satisfy general obligation bonds,

If any legislative act after 2005 imposes a requirement

If property is subdivided, but part of the property remains as it was in the prior year, the tax for the “remainder” parcel is calculated as “for all other property.”

MY Favorite

If a parcel of property decreases by 15 percent or more from its taxable value in the prior year and then increases by 15 percent or more in the next year, the amount of tax which would have been collected without the cap will be levied on the property. One-third of this additional amount will appear on the tax bill in addition to the capped tax amount due for that year and to the amounts due in each of the following two years. If the amount due is less than $100 the amount will appear on the bill due for that year. This is known as the “recapture” provision.

*******************

Not actually aware of anyone having used the general obligation provision But it might have happened.

All in all it seems to work to the simplified explanation.
 
Old 04-10-2013, 05:28 PM
 
Location: Las Vegas, NV
202 posts, read 291,923 times
Reputation: 189
Default Newly Proposed Nevada State Laws


Newly Proposed Nevada State Laws - YouTube

Quote:
Published on Apr 10, 2013

Recently the Nevada State Legislature introduced 3 new bills that could potentially affect Las Vegas Real Estate.

1) AB300 Which Essential Amends AB284
2) SB321 Which Is A "Homeowners Bill Of Rights"
3) SB389 Which Allows Homeowners Request A Copy Of Their Note
 
Old 04-11-2013, 10:38 AM
 
47 posts, read 212,681 times
Reputation: 47
thanks lvnyc for the video link and thanks all for responding. We've decided to wait and see what happens in the next few months.

Thanks,
Ali
 
Old 04-11-2013, 11:42 AM
 
9,952 posts, read 8,441,593 times
Reputation: 5826
I see what you're missing, and it's pretty huge. That is the opportunity cost of losing the use of the money used to buy the house. This would either be the some combination of lost earnings on down payment (or if paying cash, the whole price) and the mortgage interest (if borrowing to buy the house.)

Quote:
Originally Posted by ScoopLV View Post
Works no matter what the rent vs. own scenario is. Comparable rent on our house is around $2,500 per month. (Yes, we can rent cheaper, but I'm trying to compare apples to apples -- large two story house with a view and a garden east of Hollywood.)

$2,500 times 72 months is $180,000. Our house hasn't lost nearly that much equity.

Compare that to a 1,600 sqft house that hypothetically sold in 2007 for $180K and also lost half, and rents for $1,000 per month. These hypothetical owners are still $18K in the hole. But house prices inching up, and another year of rent, and they'll also break even.

The homeowners who cashed out equity in 2005-2007 and used it to finance a pampered princess lifestyle, then refinance with an interest-only mortgage lost their shirts. As did the homeowners who leveraged their homestead to buy six houses. But they weren't being financially smart in the first place. I hope the plasma TVs and his-and-her Hummers was worth it.
 
Old 04-11-2013, 01:20 PM
 
Location: Sunrise
10,869 posts, read 13,638,218 times
Reputation: 8987
Quote:
Originally Posted by BBMW View Post
I see what you're missing, and it's pretty huge. That is the opportunity cost of losing the use of the money used to buy the house. This would either be the some combination of lost earnings on down payment (or if paying cash, the whole price) and the mortgage interest (if borrowing to buy the house.)
That would be assuming that buying houses represented 100% of my investment strategy.

For instance, the risk of investing in stocks, mutual funds and similar financial instruments is, "The chance that the company might pull an Enron, and the investor is left with nothing."

Buying real property is a hedge against such scenarios.
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