Why Moving to Las Vegas in 2023 is a Smart Choice for Luxury Home Investors

Las Vegas Bounces Back from COVID-19 Pandemic with Strong Weekend Tourism and Thriving Real Estate Market

Why Moving to Las Vegas in 2023 is a Smart Choice for Luxury Home Investors

March 23, 2023

Las Vegas, like many other cities, was hit hard by the COVID-19 pandemic. According to recent statistics, Nevada's casino revenues plummeted by $6 billion due to COVID-19. In the 2011-2020 period, the total statewide revenue was the lowest in 2020. The highest revenue was from Twenty-One, with a total of $643 million in 2020. The stats for July-December 2020 had a statewide total win decrease of 24.02%. Gaming win was down in June 2020 by 45.5% compared to 2019. Las Vegas Sands revenue for the last quarter in 2020 was $1.146 billion. Only 7% of Las Vegas visitors are there to gamble. Casinos on the Las Vegas Strip won around $354.7 million in September 2020. In 2020, payroll costs had decreased by $215 million since 2019. In 2018, the average gambling budget per trip was $527.05.

Despite these challenges, Las Vegas is rebounding, with strong weekends and rebounding attendance for conventions including the citywide trade shows of CES, World of Concrete, and the SHOT show. In fact, Las Vegas hosted an estimated 3,275,000 visitors in January 2023, well ahead of the lingering pandemic-suppressed volumes of January 2022 and just -4% shy of January 2019.

Real estate in Las Vegas is also thriving, making it a prime location for luxury home investors. Here are some reasons why moving to Las Vegas in 2023 is a smart choice for those interested in buying a luxury home:

Short-Term Rental Investments

• Las Vegas is a top tourist destination, making short-term rental investments a lucrative opportunity for luxury home investors. With the rebounding tourism industry and thriving conventions, investors can expect high occupancy rates and rental income.
  
• The city also has lenient laws on short-term rentals, making it easier for investors to rent out their properties.
  

Changing Your Life with a Luxury Home Investment

• Buying a luxury home in Las Vegas can change an investor's life in many ways. For one, it's a valuable asset that can appreciate in value over time, making it a smart long-term investment. Additionally, luxury homes often come with desirable amenities and features, such as pools, home theaters, and spacious outdoor areas, that can enhance an investor's quality of life.
  
• Investing in a luxury home can also provide tax benefits, such as deductions for mortgage interest and property taxes.In addition to the other benefits of investing in a luxury home in Las Vegas, there are also potential tax benefits for owners in 2023. Some of the most significant tax advantages include:
  
• Mortgage interest deductions: Homeowners can deduct the interest they pay on their mortgage each year, up to a certain limit. This deduction can be particularly valuable for luxury homes with high mortgage payments.
  
• Property tax deductions: Property taxes paid on a luxury home are also tax-deductible, which can help lower the owner's overall tax liability.
  
• Capital gains tax exemptions: If the homeowner sells the luxury home for a profit after owning it for at least two years, they may be able to exclude up to $250,000 of the gain from capital gains taxes. For married couples filing jointly, the exclusion is $500,000.
  
• Depreciation deductions: Owners of rental properties can take advantage of depreciation deductions on their tax returns, which can help offset rental income and reduce the amount of taxes owed.
  
• The city of Las Vegas has lenient laws on short-term rentals, making it easier for investors to rent out their properties. In 2023, the short-term rental laws in Las Vegas allow investors to rent out their properties for up to 30 days at a time. This law is a welcome change for investors, as previously short-term rentals were heavily regulated, limiting their ability to generate income from their properties.
• Investing in a luxury home in Las Vegas can be a profitable venture. In 2023, the city's real estate market is expected to continue its upward trajectory, with home prices predicted to increase by 3-5%. This appreciation in value can lead to significant profits for investors who choose to sell their properties in the future.
• Short-term rental investments can generate substantial income for investors. The average nightly rate for short-term rentals in Las Vegas is $150-$250, with occupancy rates ranging from 60-70%. These figures make Las Vegas an attractive market for investors looking to invest in short-term rentals.

Las Vegas is a city with plenty of opportunities for investors. Whether you're looking to invest in luxury homes or short-term rentals, the city's lenient laws and robust real estate market make it a prime location for investment. So if you're considering investing in real estate, Las Vegas should definitely be on your radar.

In addition to the lifestyle benefits, investing in a luxury home in Las Vegas can also be a profitable financial move. According to recent real estate market data, home prices in Las Vegas have been steadily rising, with a projected increase of 9.9% in 2023. This means that investors who purchase a luxury home in Las Vegas can potentially see a significant return on their investment in just a few years.

Furthermore, investing in a luxury home in Las Vegas can also provide lucrative short-term rental opportunities. With its booming tourism industry, Las Vegas is a popular destination for vacation rentals, and luxury homes can command high rental rates. In fact, some investors have reported earning up to $1,000 per night for their luxury home rentals during peak seasons.

Not only can these short-term rental profits help offset the cost of owning a luxury home in Las Vegas, but they can also provide a steady stream of passive income. This makes investing in a luxury home in Las Vegas not only a smart financial move but also a potentially life-changing one.

Now if you're considering buying a luxury home in Las Vegas for short term rental, it's important to work with a knowledgeable real estate agent who can help you navigate the market and find the right property for your needs. Here are some questions to ask when making an offer and closing on a home:

• How does the offer work? Do we communicate with the seller or seller's agent?
  
• What contingencies do you recommend including in the offer?
  
• How much earnest money should we put in the offer?
  
• When do we need to provide earnest money?
  
• When should we expect to hear back from the seller?
  
• If we receive a counter-offer, when do we need to reply?
  
• How can we sign the paperwork?
  

Las Vegas has certainly faced challenges due to the COVID-19 pandemic, especially in its gaming and hospitality industries. However, the city is already showing signs of recovery, with strong weekends and rebounding attendance for conventions. In January 2023, Las Vegas hosted an estimated 3,275,000 visitors, just -4% shy of January 2019.

If you are looking to relocate to Las Vegas in 2023, it can be a great idea due to its diverse attractions, beautiful homes, and strong short-term rental market. Buying a luxury home in Las Vegas can be a life-changing investment, providing you with both a comfortable living space and a significant source of rental income. With the help of an experienced real estate agent, you can make the most of this opportunity and ensure a smooth and successful transaction.

In conclusion, investing in short-term rentals can provide significant financial benefits, including higher rental rates, more flexibility, and tax advantages. With the city's strong tourism industry, there is a steady demand for short-term rentals in Las Vegas, making it an excellent way to generate passive income and grow your wealth over time. Overall, Las Vegas remains a vibrant and attractive destination for both visitors and investors alike, and by carefully considering your options and working with experienced professionals, you can take advantage of the many opportunities that this exciting city has to offer.