WHICH RENOVATIONS ARE MUSTS FOR SELLING A HOME IN LAS VEGAS
When you are selling a home in Las Vegas, two underlying unknowns are always present. How long it will take? Is one. The second is what will the final selling price be? The answer to that second one at least partially depends on actions the person selling the home controls, since performing renovations and add-ons boosts a property’s salability. But which renovations add the most value? Even though considerable study has been given to the issue, for any given home it’s difficult to pin down which are most likely to have the greatest impact. Even so, some general observations are widely accepted: ITEM: Some kinds of renovations show a much higher return than others. Replacing a traditional entry door with a steel door, for instance, often generates about a 100% return on the investment. A sunroom addition, on the other hand, is likely to result in closer to a 50% return when the home is sold. The web site remodeling.com presents national averages tabulated each year. ITEM: The old focus on “location, location, location” applies to improvements, too. Selling a home in different areas of the country can influence how much you can rely on the previous item. For instance, some reports say that a backup generator is one of the worst investments a seller can make if they hope to recoup the add-on cost. Yet in areas where dangerous storms have a history of knocking down the power grid for days on end, a well-integrated generator can prove to be a highly marketable add-on. ITEM: Some repairs that are not undertaken constitute such red flags that, though minor, they can seriously retard a sale. A broken screen door is a good example of an easy-to-remedy detail that can have a disproportionate effect, drawing prospective buyers’ attention from an otherwise well-maintained property. ITEM: Some other kinds of repairs are essential for a different reason. A homeowner selling a Las Vegas home might be tempted to decide that replacing the garage roof, for example, simply isn’t worth the expense. Although it could be true that the garage roofing might not be important to buyers, it could prove vital if it prevents the bank from lending on the property. So, how can a seller know what to do? Luckily, the answer is simple. Your veteran Las Vegas Realtor® will be able to offer expert advice based on current market experience—to advise you on which repairs or improvements are a good or necessary expense (and which can be tabled for now). If you are thinking of selling your Las Vegas home this fall, do call me to discuss a home improvement strategy that will help maximize your return!
LAS VEGAS RENTAL PROPERTY OWNERSHIP TRACKING YOUR INVESTMENT
As a homeowner in Las Vegas, you are pleasantly reminded each April 15th that the interest portion of your mortgage payments is 100% tax deductible. When you own Las Vegas rental property, though, the tax implications are considerably different. You need to report rental payments you receive from your tenants as income—but you’ll also be able to write off some related expenses, as well. Each of the more than 22 million landlords in the United States are subject to the same rules and regulations. If you’ve recently become one of them (or will soon join their ranks), here is a quick look at the kinds of items you will want to track to take full advantage of the tax benefits: · Almost everything you do to improve, fix, or maintain your rental is a potential tax deduction, so you’ll want to save all receipts and documentation. It’s easiest to set up a file, folder, or box at the beginning of each year—and keep it handy. If you don’t, it’s all too easy to let some money-saving deductions slip past. · If you plan to manage your Las Vegas rental yourself, it’s helpful to use one of the popular computer financial programs to keep track of receipts. The reporting features in these software packages make tax preparation a lot easier—and lessen the likelihood of mistakes in your income reporting. If you’ve hired a property management firm, no need to worry about this detail: they will handle the tracking. · If your Las Vegas rental has a mortgage, the interest portion of the payments will generally be deductible. One exception: if you refinance for an amount greater than that which was previously owed, the excess is not considered a rental expense. · How you use your Las Vegas rental is a major factor determining its tax treatment, so it will be advantageous for you to acquaint yourself with the rules right off the bat. An early discussion with your tax consultant will clarify the choices. While a reliable property management company will do the lions’ share of the record keeping, at least until you have experienced a year or two of filing as a landlord, it’s wise to have an accountant prepare your returns. If you are thinking taking advantage of the benefits of becoming a landlord, I hope you’ll call me today to have a look at the current opportunities. Right now a number of outstanding Vegas rental properties are available!
INVESTING IN LAS VEGAS REAL ESTATE CRUCIAL CONSIDERATIONS
If you have been doing groundwork with an eye toward investing in Las Vegas real estate, chances are you’ve also been watching some new national movement in housing sales. Last month’s Real Trends Housing Market Report showed U.S. sales of 5,880,000 units (a 5.1% increase over June 2013 numbers): “a substantial improvement over the five prior months.” Prices also continued to rise across most of the nation, though at a slightly slower rate. It’s the consistency of the appreciation that has continued to attract investors. Those investors are drawn for differing reasons—since investing in real estate in Las Vegas can advance a variety of financial strategies. For investors who purchase residences in order to rehab and flip, any continuation of price appreciation and rising sales volume is encouraging news. For others who plan to hold long term to maximize rental income potential, still low mortgage rates continue to undergird a historically attractive environment. Whether investing in Las Vegas real estate becomes the high point of a portfolio or a footnote depends on such a wide variety of factors that entire books continue to be written about them. Here are a few—with a couple of the ways they can be viewed: Not only does location play a critical part in how the underlying property is valued, it also can be the deciding factor influencing rental income where rental income is the main goal. Some of the best performing rental property investments can be those located close to transportation and other amenities like restaurants, shopping and parks: key attractions to tenants (and buyer-investors) alike. On the other hand, a good deal in an iffy location can pay off—but only if it passes a critical analysis. A storied strategy for winning a higher ROI on a Las Vegas real estate investment is to target properties situated in less-developed areas—areas promising a better-than-average pace of development in subsequent months or years. Such properties hold the likelihood of outstanding appreciation for the long term investor with ample time and patience. Investments can be acquired only when sufficient capital is available–but successful investing is about more than just finding the least expensive property. Success means creating a budget in line with the expected return, leaving padding for unexpected expenses, and then scouring the available properties that can realistically fit that template. It’s a simple truth that hard-headed budgeting is a skill worth developing: often the best deals materialize from the best plans. Whether you’re looking to buy and flip or buy and hold, investing in Las Vegas real estate can be both profitable and exciting. The assistance of an experienced and well-connected agent will prove invaluable when it comes to uncovering potential Las Vegas real estate investment opportunities. If you’re looking for such an agent, I hope you will contact me today.
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