Just don't speculate when buying (ie buying based on projected appreciation)...instead, the numbers must work from the get go.
I remember clearly those investors who in 2006 thought the good times would never end and they paid a heavy financial price. Optimism is good...blind optimism is very bad.
Just look at what happened recently to oil prices and the resulting layoffs. Think those layoffs impacted communities across Texas? Who predicted those layoffs? The people who study the oil markets on a daily basis? No! My point it this Kristina. Past performance does not equal future performance...fundamentals still matter and you should move forward with eyes wide open and not depend on a frenzy mentality.
Yeah, I understand. I currently rent in Clarksville and am obviously spoiled with the location. I know I should not rent...and even more so when I am an agent. If I buy on the east side I will most likely spend more than I should but this initial investment will also be my home and I am willing to sacrifice a little for the quality of life I am trying to preserve. I just do not plan on investing in Austin anymore after I buy a homestead. I'm thinking of seeking other ways of finding these east side properties...and get off the MLS.
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
11y
Great thread Jon. What appears to have happened with Austin is it has created a cultural momentum. The folks who leave LA for Austin...well let's face it are the cooler ones - the creative ones, the educated ones, the cultured ones vs the other Texas cities. This cultural momentum can buck trends. I will not be surprised that for many years ahead in Austin, that when the rest are sideways, Austin still advances. If you think prices are high now...wait until you look back 10 years...you just might be kicking yourself for not "over paying" back in 2015. It is rare to have the cultural mo in your backyard and if it is not one industry centered it is pretty hard to stop.
Real Estate Investor · San Antonio, TX · Member since 2014 · 785 posts · 190 votes
11y
I like my steady cash flow on owner finance in SA, I don't care about appreciation much. Since I switched over to owner finance from rentals a few years ago, my cash flow has increased and stress decreased. And it's easy to make it work in SA because I can still get an ok house for 55-60k even with the higher prices right now.