Buying is not so much the issue, but the taxes will kill you!! Also, at 200 TC, I would not recommend buying a million dollar home and pay 2.8% in yearly taxes. Why chain yourself to such a humongous mortgage where most of it is going towards taxes!!
No. In that market it is a luxury home and would be hard to sell. You are also buying at the top of the market. Luxury home values tend to come down a lot in a correction.
There's not much in the 78704 for a million that I would call "luxury", unless were talking a one bedroom or condo.
Avoid
Of course but never more than 20% down; unless you hate money.
0% down is less risky. You can walk out if prices drop.
Why not 5% down in that case? Is PMI really that expensive?
SoCo is overrated
No. In Taxes houses are cheap but property taxes are high. So it's a poor investment. Plus you would be buying at the top of the market. I would go for $400K house with 20% down. Keep the rest in a mutual fund, you will come out ahead in the long run.
I am not financial savvy and grew up in a family where emphasis was given on that fact that mortgages are bad. I would like to understand why buy with 20% down payment instead of no mortgage and then maybe put future savings to mutual funds. By this one will avoid interest to bank?
20% down will give you a better mortgage terms. Mutual funds will potentially give you better returns than your purchased asset + mortgage on it.
I Live in Austin, and soco is heavy tourist area even if your far from the main part. It’s probably not worth it in that area. There are better areas in Austin that are centrally located. Like Windsor, Travis Heights, Shoal Creek.
This^. SoCo sucks for a non-tourist and/or non hipster bartender
Uber has office in Austin?
Yes
I was thinking about buying a place in SoCo and/or Bouldin Creek with an 800K-1M budget, but after much research saw higher gains in North Austin due to the influence of new technology companies and the rapid expansion of the city/economy. SoCo is already largely gentrified and the taxes will eat you alive. Ending up buying in Windsor Park for 600k and used the extra money to buy an additional rental property in San Jose near downtown. TC: 260K
How are the school in Windsor? Looks pretty bad. Is the resale value good?
A lot of the public schools in Austin aren’t very good. All of my friends went to private school. Not to sound like a elite douche. Most of my friends aren’t engineers and don’t come from wealthy families. The fact is that austin was heavily gentrified in the last 10 years and the education system here took the biggest hit.
Houses dont cost that much in Austin. A great 5 bedroom could cost maybe 500k?
Even $400k. Not in South Congress though. Aiming for new construction too.
Are you serious? A 5 bedroom house for 500k? If that exists in central Austin it would be a rat infested shithole. Maybe in Cedar Park