If you find yourself in a situation that makes you weigh the option of whether to rent or buy a home in Las Vegas, you should always know that the two options have their distinct pros and cons. However, your ultimate answer will depend on factors such as your long term plans, finances and the state of the real estate market in the area. When you are moving to Las Vegas with the intentions of staying, you need to follow a sustainable plan, and this will include deciding on whether to buy or rent a house during your stay. This always comes first as the other things follow.
Some of the factors to consider before making your decision include;
1. The cost of living in Las Vegas
As you plan to start your life in Las Vegas, it will be vital if you know the expenses you are expecting from the two options. This means that you will need to know how much buying a home will cost you and how much renting will cost. According to the report from Zillow, the average price of a home can go with in Las Vegas is $275,500. Rentals, however, can rate lower than this and tend to be relatively affordable compared to homes. For renting, one can get a house for as low as $1,499. This is just on average, but since apartments are different, it means that you can even get a lower price than the above. Studio apartments go for $877 on average while a one-bedroom will go for $780 in a month. For a two and three-bedroom house, you can rent for $971 and $1,302 respectively.
This applies to both renting and buying. Paying for your utility bills such as heating, cooling, electricity, garbage and water fee is a necessity. In Las Vegas, you can pay an average of $148.39 per month. However, most residents would like to live in a house with internet and will end up adding internet utility. This means that they will have to add $69.02 to their regular payments every month. However, renters live in a small house compared to a home bought, and therefore you find that they will spend less on paying the utilities. Also, to make the renters not think about this a lot, the sellers bundle this amount with the rent fee.
3. The average income in Las Vegas
Knowing what you should be earning in a year and what your house rent will cost you is vital information. If you stay and work in Las Vegas, the expected income you will be earning in a year is $25,555. However, the good news is that the job market is expected to increase in the future. This, therefore, means that income will increase and people can pay their rent comfortably.
Benefits of buying a house over renting
Up until now, you might still think that renting is your suitable with monthly bills lowering and the utility fees becoming less of a concern anymore. However, don’t make up your mind just yet. Do some research on what you will benefit from buying a home and what you get out of renting. Some of the advantages of purchasing a home over renting include;
• Housing inventory
Real estate inventory is one advantage of buying a home and not rent. The number of homes listed for sale has increased and is still growing over the decades in Las Vegas. This makes many properties available in the market for the buyers and different types to choose from. This also means that you will face less competition. Some predictions say that this will continue to grow in Las Vegas through the year. Presently, home sellers are responding to this by lowering property prices. This, therefore, works to your advantage as someone who wants to buy a home. Instead of having to pay the rent for a couple of years, you will be renting; you should grab this opportunity and buy yourself and your family home.
• Population growth
In 2018, the population in Las Vegas was 631,676 which was a 10% increase from the 2010 census. This means that population growth has been steady for a couple of years. Such a trend increase the demand for housing for both rental and purchase properties. Also, this will mean that home prices will be maintained over time.
• Mortgage and tax rates
The current state of mortgage and tax rates in other places like Silver state keeps going up than the national average. In Nevada, the is 4.218% for a mortgage that is fixed for 30 years and 3.621% for a 15 year fixed mortgage. The residents of Las Vegas who own investment properties will have to pay their mortgage if they don’t use cash to pay for their property and other expenses like insurance and maintenance. However, for those who bought their homes, the state eliminates them from income tax. A homeowner pays a tax of $2,400 for a home that was purchased with $250,000.
Other pros of buying a home and not rent in Las Vegas
• You get tax benefits
• You can set your house rules
• You feel a sense of stability as the time goes by
The bottom line is that when you plan to settle in Las Vegas, an opportunity will be knocking on your door. You might indeed have disturbing thoughts on what to decide, whether to buy a home or rent but do not forget that buying a home is like investing in future. The more you stay in the house, renovate it, design in a that suits your taste, the more your home adds value. One day you might want to sell this property, and it will go at a high price. With the above few tips you can make a decision on whether to buy or rent a house in Las Vegas. Don’t hesitate to move to this great city.