For a long time, experts have tried to accurately predict the growth of the real estate market, an act that has had mixed outcomes. One of the reasons is because there are so many factors that affect the prices on the property market and a new player in the game is casinos.
Although casinos come with their set of risks, they beyond doubt impact the property market. Land-based casinos certainly contribute a significant impact on the real estate industry, and at the moment, online casinos are starting to make a similar impact too. Ultimately, there are several ways regarding how casinos affect property both positively and negatively. Read on to find out more.
What Are the Effects Brick-and-Mortar Casinos Have on Property?
Lands close to casinos certainly receive the most impact as per property value, which could vary. For starters, purchasing a property close to a brick-and-mortar casino might turn out to be a very lucrative investment. This is because its value tends to increase over time as the area attracts more attention. However, there is the flip side of things, when the property might not appreciate in value, or even drop over time. This is because the flashy and loud nature of casinos means individuals would hardly want to live or purchase a property close by for residential purposes.
The contracting nature of the market predictability has bred conflict across real estate analysts with different viewing points. Ultimately, these two statements are true in their own rights.
Purchasing Property to Rent Out: Does It Make Sense to Do So Next to a Casino?
This might be the best option to mitigate risks after investing. The safest solution is to purchase a property close to a casino and rent it out. These properties are usually in high demand for tourists and new gamblers in town, making it a good way to make money as opposed to selling or renting out for long-term residential purposes. This is especially a good option if you already have a place to live and the means to pay off debts incurred on the property.
However, keep in mind that there are costs associated with investing in real estate property, like taxes on rentals and property taxes. You’d also have to improve the standard of the property to stay competitive among other lodges in the area. If you have enough finances to put all these in place, it is only a matter of time before you start earning returns on your investment.
What About the Effects of Online Casinos Companies on the Property Market?
The rapid growth of online gambling and strategic thinking of certain governments has paved the way for online casinos to make a similar impact on the real estate as brick-and-mortar casinos. A good example of such an organization is the Maltese property market, which has defied the odds and increased in value despite the fluctuating nature of the global real estate market.
Over the years, the Maltese government has strategically invested in information technology. This includes ICT and especially gaming, alongside other related industries. This yielded good results on their property market. A good number of gaming companies established and showed interest in the Maltese economy, an event that sparked a ripple effect on their real estate property market, increasing the value of lands and generating millions in revenue.
As the government keeps granting licenses and inviting investments, the need for upgrading accommodations around the area as well as staff residency means the demand for properties is high and constant. Investors have preferred Malta as their destination, and domestic investors keep upgrading their properties to meet the ever-increasing demand.
This strategy has seen huge success in Malta and impacted the property industry to a great extent. Certainly, online casino companies under the right regulations can affect the property market positively.
Conclusion: What’s the Best Strategy When Purchasing Property?
Purchasing properties next to a casino is something you should give a thorough thought. Depending on certain conditions, it could be profitable as well as cause serious losses. One of the pros of investing in property around casinos is the fact that there is a good chance it appreciates in value with time. This is because areas with casinos tend to rapidly attract other investments. Such property is also a good avenue to rent out to tourists and international players looking to pass the night. You can either hold down and build a chain of Airbnb or sell off the property if it appreciates in value.
On the other hand, purchasing property close to a casino means you might never be able to sell off to residents except if you’re willing to lose money. People would hardly purchase a property close to high noise and flashlights, as it certainly doesn’t make for good comfort. This, coupled with the fact that you may not be financially buoyant enough to pay property taxes and for renovations to keep up with development, could mean you’d lose on all ends.
If you hope to purchase and rent out a property, keep in mind that it may take time to start realizing profit, before which you would have to fund the property expenses.