3 BUDGETWISE TIPS FOR WINTERIZING YOUR LAS VEGAS HOME
Las Vegas home owners don’t have to live in the kind of January landscape that features blizzards and snowdrifts to want to winterize their home before the onslaught of the chilliest temperatures. In even the mellowest of climates, winterization is a way to shrink energy bills. And even if the recent shocking downward spirals in world oil prices have sent your home heating costs to the bottom of your budget-tightening “to do” list, remember that if and when you eventually put your Las Vegas home on the market, low utility expenses can be a strong selling point. Regardless of how you set your internal thermostat, the Big Three of energy cost reduction always include the following: Raise the Air Temp; Lower the Water Temp Two tips that could seem counterproductive will cut energy costs for any Las Vegas home. You’d think you should just switch ceiling fans off until spring, but not so. For cooling, the blades are set to spin counterclockwise so that cool air won’t be wasted down near the floor. The tip is to reverse the fan’s rotation to clockwise. That will act to push warmer air down from the ceiling. Wait until the blades come to a stop, and then slide the small direction switch (it’s usually next to the pull cord). The second tip is one you can do any time of the year since hot water heaters are usually set to heat to 140 degrees. In truth, most of us don’t need it that hot. Try resetting the temperature to 120 degrees, and see if it’s sufficient. If so, in the course of a year you’ll save more than a few dollars! Block Air Creep For a few dollars, a tube of caulk can be a final defense against the creep of cold outside air. Use caulk to seal cracks in the walls and gaps around your windows and doors. In extremes, there are inexpensive extra measures, such as see-through plastic sheets to cover windows with a second seal (doing both would keep the most remote Siberian cabin as buttoned-up as a baby kangaroo). If a drafty door has to wait until spring for full renewal, an interim trick is to roll up a bath towel and place it against the threshold. This temporary fix keeps out the worst drafts and doesn’t cost a dime. Take Care of Your Air Conditioner If you have water-served central air, during the colder months when it’s out of service, good maintenance requires draining the water hoses. Split air conditioners don’t have that issue, but some of them need an exterior cover for preventing drafts (if you haven’t felt any on chilly evenings, it’s not necessary). If you haven’t already removed any window units, better go to the hardware store to buy exterior covers: a lot of chilly air can make its way in through uncovered vents. The Big Three tips alone comprise a Las Vegas home winterization program that costs less than a burger and fries—yet can result in measurable energy savings. If you have found any other simple energy savers, I hope you’ll share: drop me an email, or give me a call at the office!
FOUR REASONS LAS VEGAS REAL ESTATE INVESTMENTS BECKON
Good investors tend to be cautious souls. For those who prior to 2007 had never ventured into the realm of Las Vegas real estate investments, the ensuing downturn might have been enough to discourage any curiosity about that direction (even if their other investments had also suffered during the global financial crisis). However, at this juncture those same cautious investors might well assume that the value of real estate investments in Las Vegas have rebounded so substantially that it’s now too late to bother looking into them. But as National Public Radio has just pointed out, there’s an excellent argument to be made that conditions are now highly conducive for real estate—with real estate investments in Las Vegas being no exception. I could tick off three solid reasons that immediately leap to mind, but stand corrected: NPR points to four: 1. Employment. Employers are hiring anew, and “when companies are hiring, would-be homebuyers feel more confident about taking on mortgage debt.” Unemployment rates have (finally!) come down to 5.6%, and with employers having added 252,000 jobs in December, consumer confidence is up nearly 20% over a year ago. 2. Prices seem more rational. NPR points out that from January to October, prices rose 4.5% nationally; a “subdued” gain compared with the 11% burst of the year before. They project that the slower price appreciation may have set the stage for a “buying surge in 2015.” From a Las Vegas real estate investments standpoint, too, gains from last year’s run-up in equities markets combined with mortgage rates still holding below 4% would seem to create the key elements many investors would consider favorably. 3. Demand for rentals is high. There is a healthy demand for rental accommodation in the country due to a tight supply of quality accommodations. USA Today tells us that between 2009 and 2013, the national vacancy rate for apartments dropped from 8% to 4.1%. Over the same period, the effective rent increased by 12% to $1,083. As one potential consequence vis-à-vis Las Vegas real estate investments, new landlords might expect to be more selective about the tenants that they choose. That would mean fewer headaches for landlords with troublesome and slow paying tenants. It is might also portend that investment properties will stand vacant for briefer periods. 4. Millennials are sick of Mom’s basement. NPR points to a Census Bureau report that says only 36% of Americans under age 35 own a home, down from 42% just seven years ago. The recovering employment picture might not enable young people to save up for a down payment for a while yet, but renting quality digs should soon be more doable than was previously the case. That could set the table for a continuing robust rental environment, with Las Vegas real estate investments benefitting proportionately. NPR’s four reasons for optimism in 2015 are only the tip of the iceberg. If you have ever had the thought that it could be worthwhile to take a look at Las Vegas real estate investments, this is a great time of year to give me a call!
LAS VEGAS RENTAL VS PURCHASE CHOICE INVOLVES MULTIPLE FACTORS
When your primary residence is one of our Las Vegas rentals, from time to time you may find yourself pausing, pen hovering over checkbook, thinking, “What if this check were going to buy this place, instead…?” It’s a nearly unavoidable thought because common wisdom has it that buying a Las Vegas home usually makes more financial sense than renting it. That sounds sensible simply because at the end of the day (or, more accurately, at the end of a 15- or 30-year mortgage term), ownership means you no longer have to write those checks: you own that Las Vegas rental. It could be true—but there’s a lot more involved in the purchase-or-rental decision. If you make it a point from time to time to recalculate your situation, should it turn out that you aren’t any better off exiting the rental ranks, writing those checks to the landlord will become a less stressful activity. The first consideration is location, location, location—but not in the usual sense. The question is how permanently you are likely to stay where you are. What are the odds that your job or family issues will take you away? If it’s likely that you will be moving out of Las Vegas within five years or less, a rental could well be a better choice. Buying and selling expenses—plus the time and effort involved—are factors that often make it wiser to delay buying until you are situated more permanently. Then there is the real monthly outlay comparison between the two. Realistic calculations for owning take into account all of the monthly expenses involved. They include property taxes, homeowner or condo fees, insurance, gardening expenses, utility costs, and maintenance costs (they tend to be more than you first estimate). If your Las Vegas rental check is significantly smaller than the monthly home owning total, your financial ship might float higher if you put the difference into a savings account. You should consider whether your money might be put to better use elsewhere. That last item points to the overriding issue: whether your current savings can support a purchase without incurring too much financial strain. That monthly home ownership calculation did not include the initial cost—the down payment. This part may have become less of a hurdle recently: the Federal Housing Administration has reduced its requirements. In fact, it may be possible to buy a house with an FHA mortgage with as little as a 3.5% down payment…although a higher down payment means a lower mortgage payment and no private mortgage insurance. The last part of your calculation is one that can be a very positive financial benefit of ownership vs. rental: the mortgage interest tax deduction. Especially for those in higher income tax brackets with hefty mortgages, it can tilt the scales toward ownership.I’m here to offer help and advice on any Las Vegas rental and ownership questions—in fact, about any of your real estate questions. I hope you won’t hesitate to give me a call!
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