I've crossed that one off my list.
Several years ago (2005?) the Wizard mentioned he lived in Peccole Ranch. Is this still a nice place to live? I've been casually watching home values for the last few years and I'm ready to buy now. I will try to rent the home for the next 6 years, then live in it with my wife and retire.
In your casual watching what made you determine that bottom has been reached? I assume that is why you want to purchase the property as a rental property for six years then retire there.
Just in general, you hear many stories about people that bought a house or land in a plan for retirement, than something major happens and they regret the decision. You could end up fighting with unruly tenants for years who damage your house, just of ind in 5 years that the house price has dropped even lower. You could also find that life changes have made you no longer want to move to Vegas. Are you sure you don't want to bank your money until you retire and then buy the house you want when you are ready to move in?
didn't appreciate in value enough. We're back to that
again. You're better off renting.
There is no shortage of such trashed houses in Vegas. One I looked at didn't even discount the price for hundreds of thousands in damages.
I, of course, could be wrong, but I think we're near the bottom.
If you bought a house in 1910 and sold it in
1940, you generally got your money back plus
whatever inflation was. You made nothing on
your investment. Many think thats what we're
going back to, a house will not go up enough
fast enough to make it a good investment.
In the 30's and 40's people like Bob Hope and
Bing Crosby invested heavily in So/Cal real
estate because they saw what was coming. In
the 50's and 60's they made huge profits on
their property, when the housing boom swung
into high gear. I moved to Calif in '76 and the
craziness was just starting there, people were
buying a house and selling it 2 years later for
twice what they paid. We'll never see that again.
In my opinion you would lose more by renting, waiting for the bottom to be confirmed, than you will by buying now and possibly losing a little before things pick up again.
There are two different questions. One is would it be wise to move to Vegas and rent for three years waiting for the absolute bottom. I would agree that probably is not a good idea.
But the OP was talking about purchasing a house in Vegas, and living the in the Midwest for 6 years while renting the house as an absentee landlord. He would then move to Vegas to take over the rental as his retirement home. That only seems like a good decision if you think house prices will zoom out of control in the next few years.
That only seems like a good decision if you think house prices will zoom out of control in the next few years.
For that to happen, Vegas will have to boom again. And
for that to happen, most of the casinos that are in other states
will have to close. Not only are they not closing, more are
opening all the time. When has a boom ever happened
twice in the same place?