A Compelling Comparison

Is it a great time to buy a Las Vegas home? If you had purchased a $200,000 property here in 1986 when interest rates were 9.5%, your P & I payment would have been $1681.00. Today your payment on that same home would be $1043.00. That’s $638.00 LESS than in 1986 !! YES … it’s a great time to buy Las Vegas real estate. This comparison is based on today’s record breaking 30-year fixed rate of 4.75%, which is an absolutely stunning number. Speaking of stunning numbers, prices for many houses in Las Vegas have dropped back to ball-park 1990 levels, so the 1986 purchase comparison is more apt than you might imagine. The truth of the matter is, when you combine both pricing and interest rate factors, the cost of residential ownership in Southern Nevada is incredibly attractive to say the least. What is one of the best ways to tell this is true? Take a sample Las Vegas home that you would consider purchasing and then compare that hypothetical mortgage payment to the monthly cost to rent that same type of home in the same neighborhood. Be prepared to be surprised …

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