Builders Predicting Another Major Las Vegas Boom!

Despite the decline in the Las Vegas homes market over the past two years, even major builders who have been the hardest hit are predicting that the bottom has been hit and another mini boom coming!

Fueling that boom will be the literally tens of thousands of jobs provided in the new mega resorts Fountainbleau, MGM City Center and Echelon as well as the millions of baby boomers set to retire over the next 15 years who are looking for a warm tax free climate. Many have given up on Florida where insurance is prohibitive and Texas where the humidity can be unbearable. Las Vegas' dry climate, $0 state income tax and reasonable cost of living is proving attractive to boomers on a fixed income.

Focus Group, one of the Valley's major land developers, has been intimately involved in acquisition and planning for the successful master planned communities at Inspirada, Mountain's Edge and Kyle Canyon. Focus was very aggressive in its Las Vegas land purchases and is now being forced to look at different avenues for restructuring that debt. Fortunately, Focus has a strong reputation and is in the process of negotiations that should prove fruitful.

Focus actually already had $150 million in sales in escrow for multifamily property, but the buyer was uable to obtain financing which killed the deal. "It all happened after the first of the year," Ritter said. "We would have been fine. We have talked to one of those companies, and it still wants to do the deal, but it can't find the money to build apartments. In 2009 and 2010 there is going to be a huge shortage of multifamily products and also homes, because if you look at the residential market, no one is starting new subdivisions this year. When it starts turning around, we have low interest rates and pent-up demand and much less product in the marketplace. It is going to get very strong here very quickly."

Personally, right now I am looking to buy as much rental property as I can while prices are still at a three year low, and I am advising all my clients to do the same.

EcoBrokers Take Home Buying to a New Level

For those that are energy conscious, a new breed of real estate agent has been born: the EcoBroker. EcoBrokers are educating the public on ways to make their existing Las Vegas homes more energy efficient, showcasing Las Vegas new homes builders who build eco friendly homes and giving advice on ways to make our lifestyles more eco efficient.

EcoBroker is a program designed to help people find real estate that embraces energy efficiency and sustainable design. EcoBroker trains real estate agents in green building and home technologies and practices so that they can help buyers find green homes and assist sellers to integrate and market green features in their homes to help them sell. The designation consists of a total of 18 hours of continuing education in energy-efficiency, green building programs, indoor air quality, sustainable development, and environmental issues..

The Tonnesen Team is proud to announce that Lisa SantaCaterina, one of only two EcoBrokers in the Las Vegas Valley, is joining their team. Originally from the San Diego area, Lisa has always been concerned about the environment and was thrilled to learn that she could proactively promote one of her life's passions through her real estate career. Lisa will be conducting a series of seminars on green real estate for team clients over the coming months. To register, please give us a call at 702-985-7654.

Refinancing Your Home Profitably

For homeowners who thought the federal tax refund checks were a nice surprise, you may be a candidate to save a lot more than a few hundred dollars. Fixed interest rates are still at very affordable levels, so it may pay to pull out your mortgage note and do a bit of comparing. Especially if you have an adjustable rate mortgage that is getting ready to go to a higher level. Refinancing may also allow you to avoid becoming a Las Vegas foreclosures statistic!

But before you jump on the refinance bandwagon, here are a few "dos" and "don'ts" that should help in your search for the best refinance option.

· - Refresh yourself with the exact terms of your current mortgage. Know your rate, mortgage balance, monthly principal and interest payment, possible pre-payment penalty and the remaining term. Las Vegas mortgage brokers will have trouble giving you the best advice if he or she doesn't know your current situation.

· - When you get a new mortgage, each monthly payment is divided between interest costs and principal reductions. At first, most of the payment goes to interest, but over time, more and more of the loan is devoted to principal. Refinancing starts the process from scratch, which again means most of the monthly payment goes toward interest. This is not necessarily a bad thing if refinancing means lower monthly payments. Additionally, mortgage interest is usually deductible.

· - Don't get sucked into a "low" rate with high fees. Avoid paying points. One point is equal to 1 percent of the loan amount in cash. If you borrow $200,000, then one point equals $2,000. Generally, if you pay points up front you can get a lower rate--but you have to look at the cost of a point versus the monthly savings from a lower rate. It is rarely advised to pay points to "buy down" the interest rate because of the time it takes to recoup the points. But all situations are different, so a good broker or loan officer will be able to run the numbers and calculate a payback period.

· - Consider a "zero closing cost" option if available in your area. Such loans, of course, have costs--they're just not paid at closing. Instead, you'll likely pay a somewhat higher rate. Lenders around the country offer refinance rates with no points or closing costs. This will enable you to refinance your Las Vegas home without any out-of-pocket expenses or loss of home equity.

· - Think about your objectives before shopping around for a mortgage. Do you want lower monthly payments? A larger loan to take equity out of your house? A shorter-term loan, such as a 15- or 20-year mortgage? If you plan to sell within a few years, what adjustable rate programs are available? Different loans will work best in different situations.

· - Don't take a loan with a pre-payment penalty. These programs can hurt if you pay off the mortgage completely or pay down a large part of the loan early. It's best to have the freedom to pay off the loan whenever you want.

If you want to check in to refinancing your Las Vegas mortgage, give us a call and we will be happy to provide you with information on some of the best local lenders in the city.