[ScoopLV]

Originally Posted by BBMW

Oh, and if your paying cash (part or all), you have to figure the lost interest/cap gains from other investments that you could be making, into the rent vs buy calc.

That assumes that the investor doesn't have any other money to diversify their portfolio. And if the house is going to be the primary investment, it most certainly is better to buy than rent.

"I have only $1,200 per month to invest. Shall I put it in a mortgage? Or shall I rent an apartment for $800/mo and then invest the other $400 in tech stocks?"

Makes absolutely no sense when put that way. Which is why I cannot fathom for the life of me the investment strategy of the "never buy property in LV under any circumstances" crowd.

[Reno Joe]

Originally Posted by lvoc

I have had a few Canadian clients. Mostly very much on the frugal side. Looking for $50K or $80K condos. Generally as seasonal second homes at least eventually. Reasonable people who do not over pay but do have cash.

They are not significant in the over all market.

$80K condo? Where in this market? It is either the size of a closet, run down or in a really bad area.

[Reno Joe]

Originally Posted by ScoopLV

That assumes that the investor doesn't have any other money to diversify their portfolio. And if the house is going to be the primary investment, it most certainly is better to buy than rent.

"I have only $1,200 per month to invest. Shall I put it in a mortgage? Or shall I rent an apartment for $800/mo and then invest the other $400 in tech stocks?"

Makes absolutely no sense when put that way. Which is why I cannot fathom for the life of me the investment strategy of the "never buy property in LV under any circumstances" crowd.

I would not say "in any circumstance" but I am not going to buy in a roller coaster market that has wild swings like down 30% one year and up 30% next year and that has lots of properties being rented by people who were foreclosed on and owned by absentee landlords. It makes getting a fair price and a mortgage nearly impossible even with 20% down. Agents told me that several condo developments would have a hard time getting ANY mortgage because they have a high percentage of investor owned units that are rentals and the Federal government won't back mortgages in developments that have a high percentage of renters. Plus I am not all sure we will stay here anyway. With the economy on the rebound, might go back to Sparks.

[lvoc]

Originally Posted by Reno Joe

$80K condo? Where in this market? It is either the size of a closet, run down or in a really bad area.

Prior to 2012 there were lots of 50 and 80K condos. They now cost $120K. There were in fact reasonable 3 BR 2BA condos available in that time frame under 80-K.

Financing on a condo is a problem. The best solution is to buy a HUD or Homepath condo. That solves the financing problem.

[von949]

Originally Posted by Reno Joe

$80K condo? Where in this market? It is either the size of a closet, run down or in a really bad area.

Or back in 2010. Brand new condos were selling for less than that back then. Not so much now.


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[ScoopLV]

Originally Posted by Reno Joe

I would not say "in any circumstance" but I am not going to buy in a roller coaster market that has wild swings like down 30% one year and up 30% next year and that has lots of properties being rented by people who were foreclosed on and owned by absentee landlords. It makes getting a fair price and a mortgage nearly impossible even with 20% down. Agents told me that several condo developments would have a hard time getting ANY mortgage because they have a high percentage of investor owned units that are rentals and the Federal government won't back mortgages in developments that have a high percentage of renters. Plus I am not all sure we will stay here anyway. With the economy on the rebound, might go back to Sparks.

Yes, the market goes up. It goes down. Over the long term, it goes up. That's the important part. If you think long term prices are going to fall, that basically means you have no faith in this country's future. If you had purchased property at any time between 2008 and 2012 (when the market was done crashing, and was just bouncing along the bottom), you would be in excellent financial shape right now. And you wouldn't be wasting your money on rent. That was a nice, long, four-year window you missed out on.