Todd gives an update to investors in Las Vegas real estate.
Hello. Welcome to Todd Miller TV. Today’s update is an article that I saw about apartment buildings and this sort of plays into residential because it is essentially the same market, meaning it’s an investor who buys residential property for tenants to live in and the specific number they gave were of 100-unit apartment complexes.
So anything that was 100 or more units and what they said was that there have been – this is the largest year in seven years for multi-family sales. As a matter of fact, as of today, which is the end of August, essentially the end of August for 2013, they’ve already had more sales of 100-unit buildings than last year and if we go back to 2009 in that year here in Las Vegas, there were only two apartment buildings over 100 units that were sold and there’s two reasons for this.
One is because there’s a very strong rental pool here because a lot of people can’t either afford to buy or they’re not in a position to buy because they have bad credit from a foreclosure short sale or whatever and they’re relatively cheap. We’re sort of at the bottom of that market hit maybe last year or something.
So they’re very cheap relative. Rents haven’t dropped that much. There are a lot of people and I thought that was very interesting because we’re also probably at the high point for the highest number of investor-occupied properties. We still have so many investors who have bought over the last few years. So I think that they correlate and that’s good information you would want to know because it’s good to understand what’s going on in the residential market, if you see this also happening in that market as well.
Now it doesn’t change the total inventory because apartment complexes, an apartment complex, whether it’s owned by one person or a different person but it’s interesting to see that money is slowing because once the money starts slowing, that means there’s more money. People take that money and maybe they put it in the residential market or whatever.
But I thought I would share that with you. That basically kind of gives you an idea what’s going on here with large apartment complexes. So I guess you could say that’s a blooming market in Las Vegas. Anyway, that is my update for today and hope to see you on another video. Thanks.