Is Miami a good location for 2nd home investment?

[ann400]

Hi all

I was offered to buy a home in Las-Vegas as an investment. I hope to earn mostly from its appreciation. The House costs 60,000$, and the rent is 370$ a month, guaranteed for the first year. I hope to sell the house for 100,000$ in Five years.
However, I am worried about the general situation of the American economy, which doesn’t seem to be picking up jobs fast enough, and I’m not so sure that the rent will stay the same for future years (assuming I can rent it…). Do you think Miami is a good location for a second home investment, and represents a good return in comparison to the riskiness of this deal? Are there any other cities in the US which represent a better deal, as far as you’ve heard?

Thank you in advance

Ann

 

[oregon woodsmoke]

In my opinion, it is a good time to buy in Las Vegas.

Have you been to see this property in person? I ask because $370 (US) per month rent would indicate that the house is a crumby little rat hole. Not to mention that $370 per month is a very odd amount for rent.

There is a great deal of nice property in the Las Vegas area, but it is a large city, and it does have it's bad areas. There are a few neighborhoods that would be difficult to manage a rental for anyone who didn't live right in the area to keep track of the property.

 

[gedward3]

Your better off looking at emerging or recovering markets like in Asia.

I wouldnt say the US is in recovery mode yet as their property repossesions are expected to be around 900'000 in the next year which will push prices down as the banks offloads the properties cheap at auctions to recover as much of their money as possible.

Ged