In general, real estate markets tend to be volatile and no experienced broker can make accurate predictions on how the market value of a specific property will rise or fall at the end of a certain period. Since no one can make accurate predictions, trying to make a deal on the real estate market requires the strength to mitigate risks and volatilities.
While casino real estate agency has several risks that they have to mitigate, they have a lot to offer. Land-based casinos contribute to the economy of the area significantly and also boost the sector. Despite the losses and risks, casinos contribute to a region’s development.
New Zealand is home to several land-based casinos including New Zealand Queenstown casino. As a New Zealander, is it a good idea to invest in real estate near casino establishments? What are the casino effects on real estate? While investing can be considered a gamble, there are several things that you can look at when you are looking to invest in New Zealand casino.
Investing next to a casino in New Zealand
There are two simple ways to look at this scenario. First, investing in a property next to a casino real estate can lead to real estate casino rise since the property’s value can increase exponentially with time.
On the other hand, it might end up having a lower value in the market. This happens because casinos come with a wide variety of whistles and bells which can be a disaster, especially in residential areas. Only a handful would want to invest in a property next to noise and commotions.
We can hold a debate about these two points and everyone will go home feeling like a winner. When it comes to casinos, there are always mixed results. Real estate experts and analysts also hold different ideas. For instance, Davis Summer reports that themed properties next to casinos tend to be cheaper. He estimates that such properties drop their net values by 2 to 10 percent.
However, this is not entirely true because several other factors contribute to the property’s value. On the other hand, New Zealand casino real estate expert, Jade Smith says that casinos are a nuisance. However, they are attractive. With all these points and facts, it’s difficult to predict the effects of a casino on real estate markets.
Rent or Buy?
If you’ve been wondering whether to rent or buy properties adjacent to a luxury casino real estate, the best way to go about it is to buy the real estate property and rent it out to qualified tenants. You can do this if you already have a place to live or you can easily manage to pay the mortgage. This will help you start generating money quickly.
On the other side, there is a possibility that you may not make enough money to cover all your initial costs in the long run. This includes expenses that are associated with real estate such as property taxes and taxes linked to income. If you’ve been thinking of investing in real estate around casino and turning the property into Airbnb, you might have to add more money to furnish the room or house.
You also need to renovate the property regularly to keep up with the tastes and preferences of clients. Therefore, it’s unlikely that your rent will cover all these expenses. It might take about two years for you to start enjoying your profits.
Is the gamble worth it?
Before investing in a real estate property next to a casino, you have to weigh the risks and profits to determine if the hustle is worth it. Do not invest in casino real estate based on your emotions. As we said earlier, real estate is a volatile market. It is susceptible to a number of risks and it’s quite difficult to predict the prices in the future especially when you’ve invested near New Zealand casino Auckland.
Before purchasing casino real estate for sale, consult the experts and read forecasts and statistical data to help you make wise decisions.
Real estate and online casinos in NZ
Technological advancements have made it easier for players to enjoy their favorite casino games on the internet. The online casino industry is growing at a rapid rate. Research studies show that an average of five million people enjoy this form of entertainment.
As we progress into the future, more land-based casinos are shifting to the digital space to capture a larger market. Since almost everyone has a smartphone or laptop, it’s easier for people to access online gambling sites in NZ than visit land-based casinos.
In a few years, the number of land-based casinos will reduce drastically around the world. And this will affect the real estate market positively or negatively. We cannot emphasize enough on the importance of doing extensive research on casino real estate company before investing near a casino, especially in New Zealand.