Moving to Austin TX, need an advise from locals.
Hi, my w2 moves me to Austin TX. I've searched zillow for investment as well as primary house. The market looks VERY tight. I will be brining in around 1.6 mil to the city. I wonder what areas do you advise to invest in. Also I noticed around 30% property increase from 2014. This does not seem to happen in Chicago area where I am coming from. Anyone can explain why? Do you advise multifamily or single family? How about luxury condos in downtown? It feels my pocket is tiny comparing with the price tag. Any news on amazon headquarters?
Hi @Kate J.! You are on point in the tremendous growth the Austin market has seen in the last 5+ years. Texas real estate in general is booming and the secret is out. Simply put, the 30% property increase in Austin can be attributed to supply and demand. There’s been a crazy influx of investors pouring into our market while the housing supply remained relatively the same. And when supply can’t keep up with demand, prices get driven up.
Austin still has a number of areas to be tapped into in terms of investment properties. The best margins are seen with new construction (for obvious reasons). Also, I would suggest buying and holding properties for appreciation if you can afford to take on that strategy. Don’t hesitate to reach out if you wish to chat about anything in further detail.
Happy to answer all your questions anytime. PM me or call my cell anytime.
Originally posted by @Jesse Kim:
Hi @Kate J.! You are on point in the tremendous growth the Austin market has seen in the last 5+ years. Texas real estate in general is booming and the secret is out. Simply put, the 30% property increase in Austin can be attributed to supply and demand. There’s been a crazy influx of investors pouring into our market while the housing supply remained relatively the same. And when supply can’t keep up with demand, prices get driven up.
Austin still has a number of areas to be tapped into in terms of investment properties. The best margins are seen with new construction (for obvious reasons). Also, I would suggest buying and holding properties for appreciation if you can afford to take on that strategy. Don’t hesitate to reach out if you wish to chat about anything in further detail.
Is there any particular reason for the demand? Why the population is growing? I will be arriving in September. What is the best time to buy? Does the market freezes for the winter as here in chicago?
@Kate J. The demand is coming from all the companies moving or expanding into Austin. Companies like Apple putting 5000 jobs here and Amazon and HomeAway and many others creating 35000+ new jobs per year. We don't see any slow down in this growth and almost every economist is projecting Austin, the 11th most populated city in the nation to double in size in the next 20 years. As for the best time to buy, every season has advantages. but in short If you want to see the most possibilities but be up against the most demand, April to July. Lower number of possibilities but lower competition, the other months.
Kate J. Welcome to Texas! You mentioned looking for investment and personal residence. I understand that work brings you to Austin, but what do you enjoy doing? I think proximity to job (assuming you have an office to go to) and convenience to the things you enjoy will dictate where you land. Let me know your thought, I’d be happy to help!
Originally posted by @Kate J.:
Hi, my w2 moves me to Austin TX. I've searched zillow for investment as well as primary house. The market looks VERY tight. I will be brining in around 1.6 mil to the city. I wonder what areas do you advise to invest in. Also I noticed around 30% property increase from 2014. This does not seem to happen in Chicago area where I am coming from. Anyone can explain why? Do you advise multifamily or single family? How about luxury condos in downtown? It feels my pocket is tiny comparing with the price tag. Any news on amazon headquarters?
As for amazon HQ2, Boston is currently leading with Atlanta, Austin and DC close behind.
@Kate J. my personal opinion is that with that kind of initial capital, you should find your residence here in Austin in an area close to work and/or leisure activities that you enjoy, and deploy the rest elsewhere.
You can explore different markets, different niches, etc that can (and most likely will) provide much better returns than Austin has to offer. I know that a lot of people will tell you there are still deals to be had here, but (1) it's NOT easy and (2) the majority of investors here are banking on appreciation, which of course will have you dead in the water at the first sign of any market downturn.
Happy to get together and discuss once you move here or if you'll be visiting to tour the area prior to moving, so don't hesitate to connect!
@Michael Bishop where are you investing?
@Jordan Moorhead, commercial MF in Dallas & SA. Keep it within the state but go to markets where there are solid deals to be had.
P.S. Lifelong Vikings fan here (been to Minnesota several times for game), you?
@Michael Bishop currently I own MF in Louisville and MSP. I'm looking for more in Louisville, Lexington and SA.
@Michael Bishop, I am also looking to jump into MF as I see that there is no cash flow in SFH. I am looking right now for deals in SA and surrounding areas.
Originally posted by @Jesse Kim:
Hi @Kate J.! You are on point in the tremendous growth the Austin market has seen in the last 5+ years. Texas real estate in general is booming and the secret is out. Simply put, the 30% property increase in Austin can be attributed to supply and demand. There’s been a crazy influx of investors pouring into our market while the housing supply remained relatively the same. And when supply can’t keep up with demand, prices get driven up.
Austin still has a number of areas to be tapped into in terms of investment properties. The best margins are seen with new construction (for obvious reasons). Also, I would suggest buying and holding properties for appreciation if you can afford to take on that strategy. Don’t hesitate to reach out if you wish to chat about anything in further detail.
hi @jesse Kim, what strategy are you following for buy and hold? Are you targeting SFH of specific sqft (big(>~2000) ,medium (~1500)or small(~1100) for appreciation?
Hey @Tanim J B., the buy and hold strategy is contingent upon investing in specific areas (78702, 78704, etc.) rather than the square footage of the property.