Investing in Vegas Markets
Sometimes it is more productive to have a business not where you live but somewhere else with better conditions. Because of that prerogative, many business people and entrepreneurs are moving their corporations to states like Nevada, especially to Las Vegas. Learn more about the different Vegas markets and the best investment options.
Incorporating in Nevada
Nevada is number 7 as the best estate in the Tax Foundation’s 2020 State Business Tax Climate Index. Every year an average of 60,000 businesses are formed in Nevada. Nevada has a license fee for a new business that costs $200. The state has raised more than $100 million every year prompts that the number of companies is increasing.
When you incorporate in Vegas, your business is under Las Vegas laws and becomes part of Vegas markets. This can be a good thing considering that in Vegas, or Nevada in general, there are no state level taxes on corporate shares or income. Another good thing is that whether you choose a corporation or an LLC (Limited Liability Company), as soon as you incorporate in Nevada you create a legal entity that will be separated from you. This means that any possible problems your business may get into, will not affect you as an individual or any of your assets.
There are many other reasons for people to invest in creating their businesses in the state of Nevada. One of these reasons is the low-cost startup and licensing fees. Having opportunity zones, business people get attracted to these good conditions when they are starting. The state abates many taxes like the “sales and uses tax” which has only a 2% rate on equipment. Or, another example is the “modified business tax” that has abated close to 50% on wages over 50,000. Everything is organized by the Nevada Governor’s Office of Economic Development.
Investing In Different Sectors Of Vegas Markets
Vegas is much more than a luxurious appearance and neon lights. It is also a metropolis and Vegas markets offer infinite possibilities. The city has diversified its sector after learning some difficult lessons about being too dependent on tourism. There is a booming tech culture in the area. Nevadas’s university has opened another tech incubator and Google has invested $600 million in a new facility. Also, many blue-collar employees settle down around Las Vegas. That is because of the area’s top-notch educational facilities and affordable housing options. So housing, education, and technology are increasing Vegas markets, for example.
But don’t let that information mislead you, tourism and gaming are still the biggest part of Las Vegas’ lucrative businesses. It is one of the reasons why Nevada doesn’t have a state income tax. Because the state already has a very lucrative revenue from tourism, gaming, and sales taxes. However, you could consider that other taxes exist in Vegas markets. Those are the federal ones or the property ones.
Although you still have property taxes in Nevada to pay for schools, police, and roads, for example, the rate is one of the lowest in the U.S. The country’s average is 1.07%, and Nevada on the other hand has a 0.53% average. Also, as a property owner, you are protected against any absurd increase in property taxes. There is a property tax abatement law that limits the increase in these taxes per year up to 3%.
Vegas Markets: Moving to Sin City
If you are thinking about investing in any of the lucrative business areas available in Vegas, maybe you should consider living in the city. Here are some reasons why living in Vegas is an excellent idea:
It’s cheap: As said previously, the whole Nevada state doesn’t charge income tax and, in addition to that, the property taxes are really low. Nevada guarantees its revenue with the sales income that results from tourism and gaming in Vegas. Plus, social security account withdrawals and private pensions are also not taxed. Furthermore, you will pay 7% less for healthcare and 21% less for electricity than the rest of the country.
It’s thriving: The job market is very rich. It is obvious that the entertainment market is always increasing and hiring in Vegas.
As said in the article: “The Rise Of The Digital Nomad Lifestyle” the city is very friendly to digital nomads, with a lot of coworking establishments. Also, other Vegas markets are thriving, like tech and luxury homes.
It’s diverse: You can enjoy a night partying on the Strip or you can spend an afternoon visiting museums. You may want to watch a Cirque Du Soleil show or just hike in one of the many parks in Vegas. You can choose public transportation to avoid heavy traffic and walk around the city during the day. Or you can rent chauffeured transportation, like Vegas VIP Limo. They will provide comfort and take you to your chosen destination with luxury and the right energy (whether it’s coziness or more of a party vibe).
Luxury Real Estate
Since we are on the housing topic, more than living in Vegas, we also recommend that you invest in the real estate market. This is a very heated Vegas market to explore.
With all this market boom, Vegas is attracting more people than ever, as a result, property demand is increasing. According to S&P CoreLogic Case-Shiller Index, with a cumulative increase of 13 percent, Las Vegas property values registered the largest annual gains in 2018. In 2019 this market was number 1 in the country. Still, the Vegas housing market is very stable and predictable, it’s not only about this new wave.
Another thing to consider is the limited amount of buildable land. Space is scarce in Vegas and this has also helped increase home prices. However, the average price of real estate in Las Vegas remains at approximately $460,000, despite price increases. This pricing is very reasonable when compared to the typical home price in Los Angeles ($600,000) and New York City ($1,000,000). It is a good time to buy some properties and start investing in the renting/selling house market.
In the end, whichever market you decide to invest in, it is very likely to be in a good wave in Las Vegas. Enjoy the opportunity and come to Sin City.