Austin Housing Market - Buy or Hold?
I’m moving from Bay to Austin end of this month. 1. I’m on H1B with I-140 approved, but whole process from PERM will be reapplied post amendment. Haven’t had any issues with visa transfers, extensions in the past for my skill set / profile however anything is possible in future! 2. I have enough savings to buy a $400K home all cash. Not that I would but just to set some context on my financial health. 3. This will be for primary residence. I’m hearing mixed opinions from colleagues and fends about upcoming recession and possible crash of housing market. Question: Considering my visa status and current housing market, should I Go for purchase or Hold until market crashes? 12 yrs/320K (possible 10% reduction after move)
You can't time the market. If it's for primary residence, just buy it but leverage the low interest rate and take a loan instead
Buy. Austin housing market is going crazy
Thanks. Have you invested already or looking for investment opportunities in Austin housing market?
I live in Austin but still rent until I can afford a down payment on a house. Austin is growing like crazy. Apple is building a new campus for 5k+ employees, Google is leasing (and renovating) an entire skyscraper in downtown, Oracle just finished their new campus, and Amazon is expanding here too.
Buy, all cash if you can (interests sucks). Also I bought my house while on H1B and now on GC so go for it!
Congrats! Mine won’t be possible for another 10-15 years!
A fixed 4% interest rate is some of the best debt you can take on. It makes more sense to put 20% down and put the other 80% in low-cost index funds. The S&P 500 has consistently yielded an annual 30-year return of greater than 9% (source: https://awealthofcommonsense.com/2016/05/deconstructing-30-year-stock-market-returns/). That’s a 5% arbitrage opportunity that you leave on the table by paying cash. Factor in the mortgage interest tax deduction and the ROI is even greater. Additionally, your assets are more diversified and much more liquid, both of which help to mitigate risk.
This is a great point too. We usually forget Uncle Sam when estimating market returns
The comments are misleading - Is it a Go OR Hold in Austin market? Mortgaging vs paying most in cash is a different topic isn’t?
True. I think is a GO
Buy near Domain and the new apple campus. Unless there is a total tech wipe out i don't see Austin market going down anytime soon. Worst case you might see 5 or 10% drop when recession hits, but ur quality of life would be far far better living in a home.
Winter is definitely coming... but will it be this season or 8 seasons later, is the question.
Regardless, the undead will be defeated in a single fight. So chill and buy