Investment property in Austin?

Riverbed Technology bestsunny
Jun 7 32 Comments

Keep hearing Austin is booming. Trying to understand how accurate is this from future standpoint?

Is it too late to buy investment property in Austin and expect appreciation?
What is potential for more growth in austin and why?
How much more growth over 5 yr duration can we expect?
Which area in particular will be best for consistent rental and bit of appreciation on investment property as well?
Any referrals on realtors to talk to that have expertise with on-market focus?

Individual home (built 2000 or later) with good schooling district (7+ rating) and Millenial/family friendly, B+ category area, preferably IT segment target for a rental investment property. Less risk to loose properties value by significant margin (-20%).

Investment willing to make in $250K-$500k.

Should I be looking elsewhere than austin?

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TOP 32 Comments
  • Uber / Product chocobears
    Depends on your geographic flexibility. Best economics for rental units is in:
    Oklahoma City
    Jacksonville
    Houston

    This is based on price-rent ratios and economic growth
    Jun 7 11
    • Lyft ihb47
      In the end I believe it’s you if anyone who looks like an asshole
      Jun 7
    • Google azhkys
      Lyft as a bystander my perception of how you come across is not great either based on the comments above.
      Jun 7
    • Lyft ihb47
      Mission accomplished
      Jun 7
    • Uber / Product chocobears
      Lyft, stop teasing us and unleash your secret knowledge of cap rates already!

      I don’t understand the free lunch comment.... no one said anything about freebies.
      Jun 7
    • Google / Eng QrJx75
      Again, Uber > Lyft.
      Jun 10
  • Athenahealth jRfJ36
    I don't think Austin makes sense for investment property out of state..

    For one thing the rental incomes are not very good. Better than the Bay Area maybe, but it's still a fairly expensive place to buy relative to the entire country. Secondly property taxes are very high. So you are paying income tax in CA and property tax in Texas? not sure if that makes sense.

    In recent past the parts of Austin that have seen rapid appreciation are the areas in central Austin near downtown. I really doubt that appreciation in North Austin over years has beaten the stock market in any notable way. Some on here speculate that the opening of various tech offices will change that, but I'm more skeptical. North Austin has a lot of space and is not particularly rich in amenities. I think you are probably still better off buying in areas that are currently expensive, but still doable for semi-regular people. There are various neighborhoods that you need about 500k to get in right now that I could see rising to $1 million in a few years. (Think Cherrywood, Hyde Park, Brentwood, Crestview, etc). Particularly as FANG starts to import a bunch of > $250k/yr jobs. Then neighborhoods like Zilker, Bouldin Creek, Clarksville, and Holly and probably going to move closer to absurd Bay Area prices.
    Jun 7 0
  • Microsoft shambu
    Austin was an investment opportunity five years ago I think
    Jun 7 0
  • Lyft ihb47
    Five years ago you guys would’ve really been on to something
    Jun 7 0
  • Capital One IukP56
    Cedar Park or Leander
    Jun 7 5
    • Oracle / Eng sofakinghi
      What about round rock and pflugerville?
      Jun 7
    • Riverbed Technology bestsunny
      OP
      Why please or what's happening here
      Jun 7
    • Oracle / Eng sofakinghi
      Just not far from downtown and close to the domain. Both of which are where most tech companies are locating.
      Jun 7
    • Oracle / Eng sofakinghi
      Roughly 35-45 minute drive tops to both
      Jun 7
    • Capital One IukP56
      Accessible to tech companies + good schools
      Jun 7
  • Oracle / Eng sofakinghi
    I’ve noticed that as a pretty normal thing there. Makes up for no state income taxes I guess.
    Jun 7 2
  • Apple ct.Thanos
    I would say atlanta or nc
    Jun 7 1
    • Riverbed Technology bestsunny
      OP
      What is happening in nc or Atlanta please?
      Jun 7
  • Oracle / Eng sofakinghi
    Interested too. Have been researching at getting into better markets than my local real estate.
    Jun 7 1
    • Riverbed Technology bestsunny
      OP
      Do u have any research done to share offline?
      Jun 7
  • Lyft done2
    Way to wait for it for Austin, it’s more expensive than the bay area when you normalize for wages. Learn About the appropriate metrics as the key
    Jul 12 0
  • AIG / Product
    Raging

    AIG Product

    PRE
    Deloitte Digital
    BIO
    Counseling CxOs for AI-first strategy !
    Ragingmore
    Austin, yes. Boomtown.

    Pittsburgh next.
    Jul 12 0
  • Capital One IukP56
    Round rock is good too as it has good schools for rental. Cedar Park is really good overall but property tax will kill you .
    Jun 7 0
  • Oracle / Eng sofakinghi
    I know my local market isn’t any good. So need to diversify. Will look into the above markets.
    Jun 7 0