Buying property in NV
Discussion
I'm thinking of buying some property in Vegas, but being from the UK have no clue how the US property buying system works, so if anyone could help steer me through the associated costs I would be most appreciative.
So for example if the property was advertised for sale at $100K, what kind of lawyers, surveyors and any other fees/taxes should I expect?
On an ongoing basis I understand there will be property taxes (seem to be under $2000 per annum), but is there anything else except maintenance and standard property insurance I should know about (additional taxes etc)?
Any other "surprises" compared to buying UK property?
Any info/advice gratefully received....the prices out here seem almost too good to refuse if taking a long-term view of the property.
So for example if the property was advertised for sale at $100K, what kind of lawyers, surveyors and any other fees/taxes should I expect?
On an ongoing basis I understand there will be property taxes (seem to be under $2000 per annum), but is there anything else except maintenance and standard property insurance I should know about (additional taxes etc)?
Any other "surprises" compared to buying UK property?
Any info/advice gratefully received....the prices out here seem almost too good to refuse if taking a long-term view of the property.
Buying a property in the USA is very straightforward when you use a realtor. They find you the place you want. You put an offer in with a cheque of a few K to say you are serious. The offer is a legally binding pro forma and is written to specifically to avoid having to use lawyers. The best thing to do is make the offer contingent on an 'inspection'. I will assume the offer is accepted, so this inspection can be done by anybody but it is typically a licensed builder or inspector and any reason they give you is your chance to renegociate or walk away. At thst point you should also get your cheque back. But if all is well you turn up at 'closing' on a mutually agreed date, the remaining money exchanges hands. You get the 'title' and the house is yours.
Typically there will be title costs and you may need to register with the local county. The realtor can give you a guide as to what these costs will be.
The realtor is paid by the seller - don't worry about that, but make sure they are showing you all the available listings and get you the house you want in the area you want.
I would strongly recommend a great deal of research and make sure you understand what you are getting into. Superficially you might be offered a wonderful house in what looks like a nice housing estate, but if half the houses are deserted and the remaining residents are on the poverty line you have bought a liability that you can't sell and will only depreciate.
One area of concern could be if you buy a condominium. The owners' association could 'assess' you for upgrades to the site or property that may be unnecessary or too expensive in your opinion and you are still bound to pay them. (e.g. we need to repave the road in the estate, please give us a cheque for $8K for your share of this by the end of next month). But on the other hand many condominium associations are well run and the fees may be a few hundred or so a month.
Don't forget, a lot of people retired to Las Vegas from all over the USA, they could just as easily retire to Florida or Tennessee. There isn't a shortage of property in the USA, planning permission is easy to get so don't necessarily count on everybody in the Las Vegas area sticking around and trying to make things work. And of course if they retired there and their kids live in another state the house will be sold for whatever the market will stand, not much if the place is on a downturn.
So this is a highly pessimistic viewpoint, the idea is to make sure you know all of the cons as well as the superfically obvious pros.
Personally I would look at somewhere in the Orlando area if you want US property, it's easy to get to, there is plenty to do there and you can rent the place out to families easily.
Typically there will be title costs and you may need to register with the local county. The realtor can give you a guide as to what these costs will be.
The realtor is paid by the seller - don't worry about that, but make sure they are showing you all the available listings and get you the house you want in the area you want.
I would strongly recommend a great deal of research and make sure you understand what you are getting into. Superficially you might be offered a wonderful house in what looks like a nice housing estate, but if half the houses are deserted and the remaining residents are on the poverty line you have bought a liability that you can't sell and will only depreciate.
One area of concern could be if you buy a condominium. The owners' association could 'assess' you for upgrades to the site or property that may be unnecessary or too expensive in your opinion and you are still bound to pay them. (e.g. we need to repave the road in the estate, please give us a cheque for $8K for your share of this by the end of next month). But on the other hand many condominium associations are well run and the fees may be a few hundred or so a month.
Don't forget, a lot of people retired to Las Vegas from all over the USA, they could just as easily retire to Florida or Tennessee. There isn't a shortage of property in the USA, planning permission is easy to get so don't necessarily count on everybody in the Las Vegas area sticking around and trying to make things work. And of course if they retired there and their kids live in another state the house will be sold for whatever the market will stand, not much if the place is on a downturn.
So this is a highly pessimistic viewpoint, the idea is to make sure you know all of the cons as well as the superfically obvious pros.
Personally I would look at somewhere in the Orlando area if you want US property, it's easy to get to, there is plenty to do there and you can rent the place out to families easily.
Edited by GavinPearson on Thursday 6th October 11:47
Thanks for that - I'm aware of the risks of the market, but know Vegas very well so reckon I can buy with limited risk, whereas Orlando I don't know.
The property I'm looking at is easily within the good commuting/rental belt and currently a very nice upper middle class area, so is "as good as it gets", and not looking at it as an investment,so if I could get say 80% of my cash back in 10 years time I'd be happy enough with that (and with the current price slump out here I would struggle to believe that in 10 years time I couldn't achieve somewhere around that value,unless this place does a "Detroit").
The property I'm looking at is easily within the good commuting/rental belt and currently a very nice upper middle class area, so is "as good as it gets", and not looking at it as an investment,so if I could get say 80% of my cash back in 10 years time I'd be happy enough with that (and with the current price slump out here I would struggle to believe that in 10 years time I couldn't achieve somewhere around that value,unless this place does a "Detroit").
I very naively bought in an "off plan" development in Vegas back in '06. Unfortunately for me it's still very much off plan. Literally setting fire to the money involved would have been 100% more productive.
You live and learn and fortunately I'm young enough for it not to matter (many older folk sank their entire life savings into the same scheme, poor sods), but be warned sin city has plenty of very convincing rogues.
You live and learn and fortunately I'm young enough for it not to matter (many older folk sank their entire life savings into the same scheme, poor sods), but be warned sin city has plenty of very convincing rogues.
GreigM said:
Thanks for that - I'm aware of the risks of the market, but know Vegas very well so reckon I can buy with limited risk, whereas Orlando I don't know.
The property I'm looking at is easily within the good commuting/rental belt and currently a very nice upper middle class area, so is "as good as it gets", and not looking at it as an investment,so if I could get say 80% of my cash back in 10 years time I'd be happy enough with that (and with the current price slump out here I would struggle to believe that in 10 years time I couldn't achieve somewhere around that value,unless this place does a "Detroit").
Ironically I live in Metro Detroit in a very nice upper middle class area and we know we can still be vulnerable to more issues. That said, we still think we are lucky to not live in Las Vegas.The property I'm looking at is easily within the good commuting/rental belt and currently a very nice upper middle class area, so is "as good as it gets", and not looking at it as an investment,so if I could get say 80% of my cash back in 10 years time I'd be happy enough with that (and with the current price slump out here I would struggle to believe that in 10 years time I couldn't achieve somewhere around that value,unless this place does a "Detroit").
One thing i keep noticing about Brits in the States,............you don't stray far from the path. Orlando or Vegas? Florida is easy, if you can't at least smell the ocean air, or are at Disney World, you are in the SOUTH. The South has some wonderful places, but Florida is no place to live if it's away from the coast. Georgia or Virginia would be a much better place to retire.
Vegas could work as an investment, but are you SURE you want to live there? At some point, the party will get boring. Foreclosed houses are for sale all over. If you like the West, how about Northern AZ, (Flagstaff area)then Vegas is a short drive, and you can live better.
I know it's not easy to get off the path on vacation, but instead of a vacation to say LA, go to Texas. Move around a bit.
JMHO
Vegas could work as an investment, but are you SURE you want to live there? At some point, the party will get boring. Foreclosed houses are for sale all over. If you like the West, how about Northern AZ, (Flagstaff area)then Vegas is a short drive, and you can live better.
I know it's not easy to get off the path on vacation, but instead of a vacation to say LA, go to Texas. Move around a bit.
JMHO
OLDS said:
Georgia or Virginia would be a much better place to retire.
Vegas could work as an investment, but are you SURE you want to live there?
I'm looking for a vacation house, not a retirement location. I've lived in Virginia for a while and certainly wouldn't ever want to buy property there.Vegas could work as an investment, but are you SURE you want to live there?
I know people think its easy/cool to bash Vegas, but there is a lot more to it than the strip - the surrounding scenery is beautiful - Lake Meade, Valley of Fire, Death Valley, Mohave etc. Its also extremely well served by airlines, is a half days drive from LA or San Diego. The humidity is low (a big issue with Florida, Georgia or almost anywhere else), the weather is always good (fair enough very hot in mid summer, but for 9 to 10 months of the year it is great). Facilities are great, Motorsport is big with LVMS and then you add the benefits of the casino side (shows, entertainment, restaurants, shopping etc) and you have a package which is very hard to beat for a vacation property.
When you add that to the current price slump for good properties in the area, then I don't see a similar/better offering elsewhere.
GreigM said:
So for example if the property was advertised for sale at $100K, what kind of lawyers, surveyors and any other fees/taxes should I expect?
On an ongoing basis I understand there will be property taxes (seem to be under $2000 per annum), but is there anything else except maintenance and standard property insurance I should know about (additional taxes etc)?
Closing costs - home inspection, title search and exchange, escrow fee and deed fees on a $100k sale will come to around $600. Your lawyers fees? Who knows, could be as little as $200 or more than a grand, if it's a simple transaction (clear title, no liens or covenants) it'll be quick and cheap. If it's a 'distressed sale' - pre-foreclosure, chances are that the seller didn't pay his taxes in addition to defaulting the loan - and that's a lot messier. Much simpler to buy bank-owned, as long as the place hasn't been gutted. On an ongoing basis I understand there will be property taxes (seem to be under $2000 per annum), but is there anything else except maintenance and standard property insurance I should know about (additional taxes etc)?
As stated, buyers realtor usually splits the commission with the sellers realtor, if the former introduces the buyer to the deal. Seller pays the realty fees (around $4k on a value like this).
Do not proceed without a thorough inspection and comparative valuation, which will be changing almost weekly in a cratering market like Las Vegas.
GavinPearson said:
Ironically I live in Metro Detroit in a very nice upper middle class area and we know we can still be vulnerable to more issues. That said, we still think we are lucky to not live in Las Vegas.
About a year or so I recall a verly long article in one of the Sundays which looked at a series of planning proposals to deal with the lifeless sections of Detroit an its suburbs. I found some of the concepts put forward fascinating and felt that Detroit could become a really fascinating city if they moved with any of the ideas. Has much progressed or has the slow recovery resuscitated some of those dead parts?
DonkeyApple said:
GavinPearson said:
Ironically I live in Metro Detroit in a very nice upper middle class area and we know we can still be vulnerable to more issues. That said, we still think we are lucky to not live in Las Vegas.
About a year or so I recall a verly long article in one of the Sundays which looked at a series of planning proposals to deal with the lifeless sections of Detroit an its suburbs. I found some of the concepts put forward fascinating and felt that Detroit could become a really fascinating city if they moved with any of the ideas. Has much progressed or has the slow recovery resuscitated some of those dead parts?
Gassing Station | USA & Canada | Top of Page | What's New | My Stuff