Real estate investment in austin
I am not from austin, but i am thinking about moving there in a few years. Thinking about buying a house now to rent out. Any suggestions on where to look? Property managers, etc
Is there a tax reason you would be buying now? Austin is a great city, but I would caution that real estate values are at an all time high. If you're not going to move for a few years, why not just wait for things to cool off before investing?
There is a little tax benefit but i was thinking if it cash flows pos, it may not matter if price cools a little? Also it is a bit of a gamble on amazon hq2. Do you think it will drop in price in the near term?
It's hard to say exactly when but my guess is we're going to go negative in the next 24 months. How much idk, material but not 2008. If you are a long term, i.e. 10+ year holder then it may not matter.
Northwest austin (close to cedar park) would probably give you a better value, and that area is growing.
Lived in austin for a long time, as with every city answer is "it depends on your individual preferences". Do you want easy access to downtown? Are you more price conscious? You could look northwest (cedar park, round rock) which you get more home, but you are in the suburbs and won't "feel like you live in austin". There's the east side like mueller park which has really exploded, central Travis heights, south Lamar, Clarksville, or if you have a much higher budget tarrytown (this is a very small sample) all which give you that "I'm really in austin" feel.
It really depends what your strategy is. Is it going to be a “buy-and-hold” or for rental ? A good real estate investment strategy is 2% rule; that is if you spend 100k monthly rent should be atleast 2k. In the given market conditions of Austin not event 1% return is feasible. Now let’s talk about “buy-and-hold” Texas makes most of the money by property taxes and Austin has the highest of all in State with average of about 2.6% of your property value. And these property values are rising! In either conditions you also have to consider a 2-3 mont rent as a buffer for maintenance and property management costs. That puts roughly not even in line to break even. For these said reasons I laugh and cringe a bit when I see expert posts like these advocating virtues of “investing a Austin real estate”. </rantout>
What makes you conclude that this is an expert post advocating virtues of .....? No one claims to be an expert. No one is advocating any value. It's someone with a specific scenario asking for advice. Following your 2% rule, you would get (2*9-3)/100 (assume 2 lost months, 1 month reserve for maintenance, 3% property tax) = 15%!! You're saying you expect 15 percent guaranteed yield or otherwise bad investment? That's how I know you're an idiot (i hate being so direct because it's rude, but this time it is appropriate).
2% rule sounds about right. Fucking Williamson county! I wouldn’t buy anything in Austin as an investment though, suburbs of Dallas maybe ?
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