Las Vegas foreclosures on the increase
Vegas is one of the largest cities with international investments in property. The city also was one of the hardest hit with foreclosures.
The foreclosures in the US are nothing new. The increasing number of them can signal good and bad to property investors. Vegas, one of the country's leading locations for property investors looking to cash in on the area's gaming attractions, saw some of the highest foreclosure numbers at the end of 2007.
At the beginning of 2007, industrial based cities such as Cleveland and Detroit were the worst hit by foreclosures especially as job markets there dried up. Now, popular tourism areas and popular second home sites in the sun belt are becoming the worst hit. Vegas had 7 out of the top 10 zip codes for worst foreclosures last year.
For some investors, foreclosures signal an opportunity to purchase property at a low cost. Yet, if there is no buying market, the purchases may not allow investors to flip those properties as well. Still, the tourism industry in Vegas is still one of the best in the country and the world. Some property investors purchase properties for holiday rentals or for buy to let benefits.
According to sources, up to 60 per cent of the homes in foreclosure in this region were attributed to non owner occupied properties, such as those serving as buy to let's and holiday retreats. This may be a signal to investors that the Vegas property market is falling fast.