Coming from Australia, I see $3.5m home selling for 500k in Vegas

[Account Closed]

Hi everyone. 

I'm new to this forum, to America and to real estate. Please go easy on me. 

This is what $1.3m buys in Sydney https://www.domain.com.au/447-liverpool-road-strathfield-nsw-2135-2013169427

20% down = $260k, mortgage = $1m, repayments at 5% = $4166/m, rents for $2500/m
"net" $-1.6k/m or -$19k/y

This is what $500k buys in Las Vegas http://www.realtor.com/realestateandhomes-detail/2364-Hot-River-St_Las-Vegas_NV_89134_M24116-00983

20% down = $100k, mortgage = $400k, repayments at 5% = $1666/m, rents for $2400/m
"net" $740/m or +$8.8k/y

The house is 10x nicer, 4x bigger, decades newer and 1/2 the price. People invest in Sydney for capital gains and here in Las Vegas you can invest for both. I thought cashflow positive properties were a thing from 1999 and I'm amazed by what I found here. 

Is this common? What am I missing? On top of all this I can get a fixed 30 year mortgage while in Sydney it's only fixed for 5 years. 

[Jay Hinrichs]

what your missing is that is NOT a 3.5 million dollar home.. its a 500k home even at the peak of 07 probably not a lot more...  it could go 3 million in Palo Alto  or Los Gatos Saratoga  Woodside, Hillsbourough  SF  parts of Marin county.... Lido Island  on the ocean in LA  Malibu etc etc.

not vegas not by a long stretch.. my daughter and son in Law just bought a 2 mil home in Vegas and its a mansion  LOL.. be 15 million in the bay area.