We are all aware of the fact that the real estate market is ever-changing and even unstable. There is not a single person in the world who could predict this market’s future – as its value constantly rises and falls. And yes, claiming such a thing would be equal to gambling. This is why experienced brokers cannot claim, but they instead make an informed guess and significant risks when trying to strike a good deal.
People are also risking when playing at casinos, but that doesn’t make it any less entertaining. Many people who don’t think highly of casinos forget that land-based casinos can contribute to the local economy and tourism. This is mainly why they have the government’s backup – as they have a beneficial effect on the region’s economy.
So, what does real estate have to do with casinos? Well, it is simple. The popular and luxurious casinos could affect the real estate market of the region in question. But, is it a good idea to invest in real estate near a casino or somewhere there’ll be one soon enough? And just like casinos, that investment would be a bit risky, and there are a few things you need to keep in mind – take a look.
The Financial Side of It All
Buying property next to a casino can be a good call but can also turn into a disaster if you are trying to earn money by doing this. So, first of all, due to the new tourist attraction that the casino might turn out to be, you can get a property whose value tends to grow. However, as far as the market value is concerned, this kind of property is bound to have a low market value. The main reason behind this is the fact that new casinos will keep on emerging, and you will be left with a property in a noise-polluted zone.
And these two contrasting points are one of the reasons why no one could claim with certainty whether you can profit from such real estate or not. The impact casinos have on real estate can be both good and bad. And while some experienced brokers believe that the value of real estate next to casinos will go down, others believe that casinos can actually increase a property’s value. Such two examples are Summer Davis, who believes that the value will drop up to 10% and Jed Smith who thinks the opposite.
Purchasing or Renting the Property
In case you are in two minds about whether you should rent or buy a property next to such a venue, there are a couple of options you can go for. First of all, you can always opt for purchasing the property and renting it out. This way, you will have direct income from your investment. On the other hand, if you plan on living there, buying might not be such a great idea, especially if you have a mortgage to pay.
Keep in mind that this is a long-term project and that investing in any property won’t pay off that quickly. You need to consider all the possible outcomes when investing in real estate. If you are considering renting the place afterwards, you need to know that you will be obliged to pay the taxes on the income you get from the rent.
And if you are trying to start an Airbnb business, you will need to invest in furnishing the real estate, cleaning, renovating and more. Keeping up with other Airbnb hosts won’t be an easy task, especially if there are plenty of them in the area.
Should You Go for It?
So, if you are in a situation where you are considering buying a property next to a casino, the first thing you need to think about is the pros mentioned above and the cons. Yes, there are plenty of risks, but you never know if it will pay off. You will need to weigh the risks and gain and get to the final solution on your own – and sometimes relying on a hunch could help.
There is hardly any way you or anyone else can predict the future of the real estate market. Prices could go up or down in a matter of days, and all you can do is hope that you will make the best decision.