out, and they want out now. But is this sustainable? My answer is YES, at least for the next year, and hopefully many years after that. At Luxury Homes of Las Vegas, we work with business owners, executives, dot-comer’s, athletes, and other business professionals here in Las Vegas as well as those coming from outside the market. With large companies moving towards increasingly remote workplace opportunities, and some large Silicon Valley companies announcing they will no longer hire at California wage rates, people are fleeing for a better standard of living and tax-friendly areas. Additionally, California is looking to charge a wealth tax, remove landlord rights, along with other potential decisions that may be perceived as making it an unhealthy place to run a business or invest; thus, many business owners are fleeing to a state that is more business friendly, with tax incentives, and bringing their businesses with them. Las Vegas is the place to be, with low cost of living and no state income tax. Don’t forget the Michelin Star restaurants, world-class entertainment, and a convenient international airport. Las Vegas is a great city in itself and with Zion and beaches a leap away it’s hard to find a better hub for both business and pleasure. What better state is there for your business? As a proud, third-generation Las Vegas resident, I say none. Perhaps a silver-lining to the crisis that has been this pandemic, could be the break our city needed to round out the community and make it more resilient to economic changes. To circle back: with home sales booming and prices rising do we see another real estate crisis coming? The 2008 home crises started with people buying as many homes as they could hoping to get rich quick. Their game plan was to buy and rent out homes for a good investment. Having worked for my brother’s residential property management company, Brady Realty Group, and studying and witnessing the effects of an oversaturation of investment properties and underqualified investors, there weren’t enough people to rent all of the homes being built. There were more homes available than renters to live in them. This lack of balance ended up causing rental prices to freefall as landlords needed to get homes rented or risk defaulting on their loans. This is much different from what I am seeing in today’s market. Today’s real estate landscape is heavily characterized by savvy businesspeople seeking refuge in a state that welcomes their business and desires safety for its people. Investors aren’t trying to get rich quick; they are looking for a place where owning a business is
appreciated and respected. Though some investors are buying investment properties, this is not flooding the market and so we are keeping a healthy rate of return. Homeowners are being more responsible and not overleveraging their homes to buy the second and third home. One other key detail is that investors buying now are more qualified than before. Though I have never taken a ride in the Back to the Future DeLorean, I believe the state of our real estate market is strong. It is a sellers’ market which means increasing prices and fast turnarounds. It’s not a bad time to call and get the value of your home.
Tyler Brady, Realtor, Luxury Homes of Las Vegas, Tel: 702-888-2352
Vegas Legal Magazine Fall 2020 | Pg. 61
