[mrdenial]

My wife and I have been thinking of buying a multi-gen/next gen home in the LV area for potential retirement in 20 years. Wife has arthritis and the Oregon weather is killing her, so I'm just trying to plan for the future. We don't know much about the different areas in Vegas, but really enjoyed the new developments in Summerlin near Red Rock.

Here are some of my goals:
400-440k purchase price
2800-3300 sq foot
Close to hiking/biking
Lower crime area
Next gen suite with private entrance
Purchase now and rent for ~$2,000/month

We love the idea of the Lennar NextGen plans, but most of them are above our price range. Delano in Summerlin is $660k. They have a plan in Henderson/Tuscany and one southwest off of Patrick & Buffalo. Both are within our price range, but I'm not sure about those areas.

Skye Canyon looks interesting on paper, but I haven't seen it in person. There is a 3200 sq ft plan in there that would work, roughly $415,000 with a few upgrades - nothing over the top upgrade wise.

Even though we both like the LV area, life plans change and we may never move there. Vegas seems to have a decent supply of rentals (6% vacancy) and I'm not sure we'll be able to get $2,000/month for a 3200 sq foot plan I've been looking on zillow at ~3,000 sq foot rentals and they range anywhere from $1600-$2400/month. Getting $1600/month would hurt the cash flow. $2000/month would be great and anything over that would be gravy!

If this was strictly a rental situation, then I would probably look at something that would cash flow better, but we really want the next gen suite and an area focussed on fitness.

Any thoughts on Skye Canyon? How about the rental market in general?

[ddrhazy]

There's no rush to buy at that price point. The appreciation in Vegas is happening 300k and lower. Perhaps in 12 months things can change, but like I said, no rush right now.

[ecd3easy]

I live near Skye Canyon. It does offer the things you are looking for. The prices are what they are because the area is not developed...yet. I can see the prices going either way but I think you may struggle to find a long-term renter at that price point due to the distance from Employment Centers and cheaper options being available. As mentioned above I am not sure why you would be in rush to but something because the Interest Rates are only moving higher and the housing market has slowed and normalized (at least here in Vegas).

[lvmensch]

I don't think your plan is very realistic.

Sky Canyon is a new master plan in the far NW. It may eventually be something nice but I doubt it will get to the level competitive with nice Summerlin or upscale Henderson. At the moment it is a simply a large acreage of flat desert scrub with arroyos. altitude is around 2800 to 3100 feet...about the same as western Summerlin or the Anthem area in Henderson. It will be 10 or 15 years to build out.

It has all sorts of disadvantages of you are not going to live there soon. First off it will cost you around 80 to 100K for the new build markup. This will vastly limit the rental return. Basically the place will depreciate for the first five years or at best hold value while the LV area appreciates the equivalent of a $100,000.

Secondly you will be trying to rent in a difficult location above the going rentals on such homes. The classical renter out that way will be working toward the city center or at Nellis. Both very long commutes.

You would likely do much better picking up a place in the NW or Summerlin or Henderson with a Casita or Guest Quarters. There are areas in all there are outdoor centric and have available sporting facilities. The areas around Lone Mountain, the Hills or similar in Summerlin or Some of the Seven HIlls, GVR or Anthem areas in Henderson. Or you may well be able to find a very nice and rentable spread in the SW or older Green Valley that makes a much better deal.

If you are a decade or two from occupancy a 10 or 15 year old place will give you a much better deal now and will not differ greatly from a 10 or 20 year old place that you buy new when you do move in.

I just can see no justification for buying new if not motivated by the joys of doing your own thing on a new place. It is a fiscal disaster and in your case has no payback.

[mrdenial]

I really appreciate the responses so far. Where I live, a new home is priced similar to a used home but generally lacks things like: backyard landscaping, window treatments, fencing, etc. After you add those items in, you are looking at 15-25k difference. However, some of those items I end up doing myself at half the cost then the new home seems to be relatively trouble free for the first 8-10 years, so I save on maintenance. It sounds like vegas puts a much higher premium on new housing? I've never considered Henderson - I'll take a look at used and see what we can find.

My wife fell in love with the Lennar NextGen plans. The NextGen suites are like 1 bedroom apartments and would be great for many reasons.

Here are a couple Lennar options in our price range:
The Ashmore plan in the southwest off of Patrick & Buffalo - approx 3109 sq ft, 4 bedrooms w/loft, 3.5 baths 3 bay garage Ready in Feb, standard flooring - $431,790 (total price)

Alzato at Tuscany, east Henderson off of Lake Mead - approx 3061 sq ft, 4 bedrooms, 3.5 baths, 3 bay garage – move in ready w/upgraded flooring - $427,950 (total price)

Thanks again and I appreciate everyone speaking their mind.

Originally Posted by lvmensch

I don't think your plan is very realistic.

Sky Canyon is a new master plan in the far NW. It may eventually be something nice but I doubt it will get to the level competitive with nice Summerlin or upscale Henderson. At the moment it is a simply a large acreage of flat desert scrub with arroyos. altitude is around 2800 to 3100 feet...about the same as western Summerlin or the Anthem area in Henderson. It will be 10 or 15 years to build out.

It has all sorts of disadvantages of you are not going to live there soon. First off it will cost you around 80 to 100K for the new build markup. This will vastly limit the rental return. Basically the place will depreciate for the first five years or at best hold value while the LV area appreciates the equivalent of a $100,000.

Secondly you will be trying to rent in a difficult location above the going rentals on such homes. The classical renter out that way will be working toward the city center or at Nellis. Both very long commutes.

You would likely do much better picking up a place in the NW or Summerlin or Henderson with a Casita or Guest Quarters. There are areas in all there are outdoor centric and have available sporting facilities. The areas around Lone Mountain, the Hills or similar in Summerlin or Some of the Seven HIlls, GVR or Anthem areas in Henderson. Or you may well be able to find a very nice and rentable spread in the SW or older Green Valley that makes a much better deal.

If you are a decade or two from occupancy a 10 or 15 year old place will give you a much better deal now and will not differ greatly from a 10 or 20 year old place that you buy new when you do move in.

I just can see no justification for buying new if not motivated by the joys of doing your own thing on a new place. It is a fiscal disaster and in your case has no payback.

[mrdenial]

My only motivation to do something now is the risk of rising interest rates and I'd rather not let the money sit idle.

I'm not convinced this is the great plan yet. There are other places in the US where we could purchase a rental for half the cost and have a better return, then purchase in LV when we are ready to retire. I'm not sure which area would have better appreciation, if any - I would hope for 1%-2%/year.

Originally Posted by ecd3easy

I live near Skye Canyon. It does offer the things you are looking for. The prices are what they are because the area is not developed...yet. I can see the prices going either way but I think you may struggle to find a long-term renter at that price point due to the distance from Employment Centers and cheaper options being available. As mentioned above I am not sure why you would be in rush to but something because the Interest Rates are only moving higher and the housing market has slowed and normalized (at least here in Vegas).