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Apartment Conversion Ban Dies A proposal to stop apartments from being turned into condos died after the development community argued the city should not interfere with the free market. Out of 50,172 apartments in Las Vegas, 7,029 have been converted or approved for conversion to condos. McGrath Schwartz, David. "Apartment Conversion Ban Dies" Las Vegas Review Journal 3 November 2005: B1+.

An online source was referenced in the Las Vegas Review Journal regarding foreclosures. There were 8,556 homes in Clark County that went into foreclosure in 2004, compared with 17,304 in Arizona and 42,426 in Southern California. Smith, Hubble. "Investors Watch Foreclosure Rate" Las Vegas Review Journal 2 October 2005: E1+.

Condo Flippers Beware The most common mistake new flippers make is assuming that all transactions will result in long-term capital gains and be taxed at 15 percent or less. They're often not aware of the trade or business provisions subjecting them to additional taxation and they don't properly track all of the related expenses in acquiring, refurbishing and selling a property, according to an August 2005 article in the Las Vegas Review Journal. Smith, Hubble. "Officials: Condo 'Flippers' Beware" Las Vegas Review Journal 27 August 2005: D1+.

Apartment Rents Skyrocket Rental rates have increased 5% from $750 in the first quarter of 2004, the largest jump in nearly a decade. Per sq ft, costs have increased from $0.83 to $0.88. Now, that's not as much as say, the commercial prices around the Curve (Durango and 215), but's significant. I've had several renters tell me lately that there are just no openings at apartments in the areas they want, need, or could find. 6/3/2005

Las Vegas Apartment Market on Fire "Last year's numbers... were so spectacular that they will influence the Las Vegas rental market for the next couple of years" 5/7/2005

Apartment Market Sees Negative Inventory There were 913 apartment complexes sold last year, totaling 37,0005 units, a 112 percent gain over 2003. That represents nearly 20 percent of Southern Nevada's total inventory. High density apartment complexes with 100 units or more experienced the greatest gain of all product types, accounting for $2.1 billion worth of sales activity, Belnick says. High land values are prompting developers to tear down apartment complexes for more profitable projects. 1/31/2005

25 Trends in Real Estate Realtor Magazine December 2004

Condo Conversions: Who is Benefiting, and Why? Developers and apartment owners are pursuing an avenue that, while not new, has reshaped the residential landscape. Apartment conversions have paved their way into Las Vegas and satisfied a necessary housing niche. As the supply of apartments dwindles at an astonishing rate, so does the supply for rental properties. The following article is useful in understanding some of the fundamentals driving the condo conversion market in Las Vegas. 1/10/2005

Speculation in Housing Worries Experts: Increased Number of Non occupant Buyers Leaves Economists Uncertain About Values Normally, investors account for 4 percent to 6 percent of all sales. But last year, estimates are that investors accounted for twice as many sales as usual. "In some places, it's up to 20 percent," said David Seiders, chief economist at the National Association of Home Builders. Finished or not, neighborhood prices generally hold up under the weight if only a few investor sellers. But if too many houses are on the market at any one time, prices tend to become depressed. And if that happens, the bottom could fall out and a panic could ensue. 1/30/2005

Interest Only Loans: Boon or Bust? Interest-only loans may be good products for some homeowners, analysts agree, but, for others, they can become a financial black hole. Here's what makes them attractive. With these mortgages, borrowers start out paying only the interest on the loan for a fixed period. After the agreed-upon period elapses, the loan changes into a traditional mortgage with the borrower paying both principal and interest. The interest rate will be set at the then prevailing interest rate, which may be higher or lower than when the loan was issued. 1/30/2005 Las Vegas Review Journal

Investors Help Increase Apartment Sales to Record Level Las Vegas apartment sales soared 163 percent in dollar volume last year with record-breaking gains reaching all segments of the market, according to Michael Belnick of RE/MAX Central Commercial Real Estate. 1/29/2005

Apartments Becoming Hot New Property in Las Vegas As many developers and entrepreneurs consider apartment-to-condo conversions the newest way to make a buck in Las Vegas, the market has been saturated with people looking for properties to buy. And buy they have, taking many apartment properties off the market in record numbers. 12/17/2004

Insurance Liability Deemed Condo Conversion Hurdle Some 12,000 apartment units are mapped for condo conversions and roughly one-fourth of sales of larger, quality apartments were for conversions, said Christopher Bentley, principal of the Bentley Group in Las Vegas. "We're on a new frontier of condo conversions because the law hasn't caught up to it yet," Dillion said Friday at Mealey's Construction Defect and Mold Litigation Conference at Lake Las Vegas. 12/11/2004

Las Vegas Housing Outlook Called Bright Reports about the demise of the Las Vegas housing market have been "greatly exaggerated," as Mark Twain would say. With 6,000 new residents moving to Las Vegas each month for the last 10 years and a below-4 percent unemployment rate, the outlook for the housing market in 2005 remains bright, said Mike Castleman, executive vice president of Metrostudy in Ladera Ranch, Calif. "There is no bubble and this market is not crashing," Castleman said. "At the end of the day, Las Vegas is still a good market." 12/3/2004

Nevada Developers Race to Make Land Deals in Arizona Mardian's community will be about 26 miles south of the dam. Currently, it would take motorists more than an hour to make the trip from Las Vegas. "I think at this point it would be very easy to suggest that Kingman will be a bedroom community, but it's not going to be overnight. It's going to take some time," Smith said. "We're looking at the guy in Green Valley who wants to pay $30,000 to $40,000 less than they are now," said Mardian, who will begin developing his community shortly before the bypass is finished. 12/3/2004

Census Data Back Nevada's Business-Friendly Reputation Nevada's reputation as a business-friendly state got another boost Tuesday with the release of new Census Bureau data showing it had the highest growth rate for small "nonemployer" businesses in 2002. Nationwide, receipts from nonemployer businesses totaled $770 billion in 2002, a 5.5 percent increase from the previous year. 12/1/2004

Investors Snag Apartments Eagle Real Estate Group of California has a goal to reposition properties and produce above-market returns. Last year, there were a record 43 sales of major apartment buildings (100 or more units) and the number is up to 65 so far this year. The flurry of sales activity was spurred by reports that apartments being converted into condominiums will deplete the market of more than 10,000 units over the next two years. 11/13/2004

Record Increases in Clark County Property Taxes The taxable value on land increased between 20 percent and 50 percent during a year-long period ending June 30. Land values, which skyrocketed during a 10-month period beginning a year ago, are based on home sales. 11/9/2004

Mortgage Insurance Deduction Falls Short the capital gains rules to narrow the loophole that allowed some savvy investors to turn commercial property gains into tax-free home sale gains. 11/6/2004

Pre Loan Contract Helps Sort out Contingencies You've probably heard of a prenuptial agreement that defines how assets are owned if and when a marriage dissolves, but if you're not married to the person you're purchasing real estate with, the solution is called a pre-mortgage agreement. 11/6/2004

Investors Heating Up Apartment Market "The prices for those properties, from $43,000 to $60,000 a door, is a steal when compared with California's prices" 11/5/2004

3rd Quarter 2004 Apartment Sales Sizzle Southern Nevada's population boom coupled with rising home prices, out-of-state investment money and resort expansions have resulted in a sizzling apartment market. There has been $1.575 billion worth of apartment sales year-to-date through the 3rd quarter, a 139% increase over last year. 23,900 units have sold through the 3rd quarter 2004 compared to 12,427 units in 2003. Las Vegas Business Press 11/8/2004

Small-business hiring, pay surges Expert: Statistics show more people finding employment in Silver State "Approximately 98 percent of businesses in our state are small businesses" with fewer than 100 employees, according to the Nevada Commission on Economic Development survey. 11/6/2004

Insurance Protects Investments What is hazard insurance and why do I need it to get a mortgage? Do I need to purchase death/disability insurance when I get a mortgage? 11/6/2004

NLV Proposal Opposed- City Manager Wants all Properties Inspected  North Las Vegas officials plan to introduce a rental inspection program that would charge landlords $50 per unit and require inspections of every rental property in the city. The proposal is aimed at improving the safety and health of people living in rentals and stabilize property values. Under the plan, landlords would be given 14 days notice for inspections and up to 90 days to correct violations. 10/20/2004 Las Vegas Review Journal

Reverse 1031 Property Exchange Offers Flexibility by Robert Noggle of Southwest Exchange Corp The reverse exchange is just one of your options when choosing a tax-deferred exchange of investment properties. A reverse exchange requires an intermediary and an exchange agreement. Financing the purchase of the replacement property requires careful planning. 9/2004

Landing a Good Deal- Has the Land Investment Market Passed You By?  Maybe Not  Finding land for your business or home is becoming more and more difficult as time passes. This article explains what some developers are doing. In Business Las Vegas "Pacesetters" July 2004.

Investors Make Quick Gains Righting Poorly Managed Properties  What makes one property thrive and another falter? Many savvy real estate investors are capitalizing on under-managed properties and turning them around for a healthy profit. In Business Las Vegas "Pacesetters" July 2004.

Seller's Market- Commercial Real Estate Investment Strong but Expected to Slow Local commercial Real Estate investment brokers report they have more buyers than sellers. In Business Las Vegas "Pacesetters" July 2004.

Rising Interest Rates Not Troubling Commercial Real Estate Community They note that commercial lending remains competitive, and some say a rate correction can actually benefit commercial development in the long run. In Business Las Vegas "Pacesetters" July 2004.

Healthy Apartment Market Lures Investors from Region Southern Nevada's growing population growth has out-of-state investors eyeing the local apartment market. In Business Las Vegas "Pacesetters" July 2004.

Arranging a Rent Back Various scenarios can force sellers into a rent-back situation. This is when the homeowner sells the property but does not move right away and strikes a rental agreement with the new owner to stay in the property for a designated period of time. 5/14/2004

Building permits

August 2004 Economic Indicators

Hotel Occupancy News and articles about hotel occupancy in Las Vegas

Commercial Development by Richard Lee

McCarran Records its Busiest May Ever More than 3.57 million passengers pass through airport in month, data show.  Las Vegas Review Journal 6/26/04

Las Vegas Apartment Sales Soar The skyrocketing apartment sales can be attributed to roughly 8,000 units being converted to condominiums creating a negative inventory, plus an under appreciated real estate market, Belnick says. And despite rising rents, vacancy rates continue to drop. "We think there is going to be a 6 percent increase in apartment rents by the end of this year," says Spenser Ballif, an apartment specialist with CB Richard Ellis. "We are seeing interest rates are going up while new supply is actually going down. It will mean reduced concessions with all of these free rent and move in specials going away." 5/10/2004

LV Apartment Vacancy Down in 2003 Apartment vacancy in Las Vegas declined to 7.6 percent at the end of last year, compared with 9.2 percent in January 2003, according to a report from CB Richard Ellis. 2/28/2004

 

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