If you’re a real estate investor, it may be interesting to consider whether it’s a good idea to buy a property that’s close to a casino. Most studies about the effect of casinos on real estate have had mixed results. There are so many moving pieces when it comes to casinos – they consist of far more than just gaming floors, and whole industries can flourish around them.
Is it a good investment to buy next to a casino?
Some studies have found that the value of properties next to casinos is lower. But there are multiple factors that can affect the value of properties, such as the state of the economy in general.
The rise of online gaming is altering the casino landscape. Online casinos obviously have no impact on surrounding real estate. With an internet casino, where gamblers can conveniently play online games, they have less incentive to visit a land-based casino. The collapse of a land-based casino could have a negative effect on property prices in the area.
Buy to rent
Buying a property near a casino may not be a good option if you want to live in it. It’s better to buy a property and rent it out to a business or casino employees who want to live close to their work. There are some businesses that benefit from being near a casino, such as a restaurant or a hotel.
Rising interest rates in 2022 put pressure on the housing market. When looking at housing market predictions in 2023, economists seem uncertain. They are keeping a close eye on the economy, and there are some indications that a housing market correction could be on the cards. Experts always suggest buying a home within your budget and your means rather than trying to predict what’s going to happen in the future.
Should you go for it?
If you buy to rent, you must take the capital you need to buy into account and consider the rate of return you will get. You need to know whether your decision will make financial sense or not. Real estate startups are revolutionizing the industry and could give you a different perspective on your potential purchase and offer useful advice. It is very difficult to predict what property prices will do over the next couple of years, but comprehensive forecasts and statistical data can help you to make a more informed decision.
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