Wait now to invest in Austin or Raleigh

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Wait now to invest in Austin or Raleigh

Jay Wang
Member since 2021 · 2 posts · 7 votes

Hi,

I am a single engineer in my early 30s. I was able to save 200K but the maximum home I can purchase in bay area, California is 1.4 million. I cannot afford any single family home in mountain view, and I don't like to live more than a half hour drive away from my house. I am happy renting an apartment for $3000 now, with around 10 minutes bike ride to work.

My question is: would you recommend me to:

1. buy a single family home in South San Jose, drive an hour to work every day. I will hate my life but the home appreciation is fast.

2. Invest in multiple houses in Raleigh, Austin?

I have a colleague who bought 3 new homes in Austin near the Tesla factor in Mar 2020. And her investment properties already appreciated 100K each house. I am thinking of buying homes as well, but not sure if the market is too high now.

Any advice will be appreciated! 

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Pat LulewiczBusiness Member
Realtor · Raleigh NC and Greensboro, NC · Member since 2019 · 396 posts · 393 votes
4y

@Jay Wang I can only speak for the Raleigh market, but we've had a 15% appreciation Y-o-Y and I work with homeowners in the $600K-$1M price point who haven't slowed down their offering. There isn't a lot of land within the city limits and so appreciation is extremely prevalent. We are getting an Apple HQ over the next few years so you'll see continued job and wage growth.

I also work with a handful of out-state-investors in both the Raleigh/Durham and Greensboro markets on purchasing rental properties with great success to take advantage of the aforementioned appreciation, great ROI on rental rates, and continued rent growth with the limited housing inventory and incredible demand.

You can't go wrong buying in this market especially with the amount of capital you have and what I can only assume to be a strong DTI based on your original post.

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  • Jake Wosick
    Raleigh, NC · Member since 2021 · 52 posts · 12 votes
    4y

    Hey Jay,

    I would invest in Raleigh. The market is excellent. If you have any questions, let me know. I love to discuss more

    1Reply
  • Gerald Pitts
    Lender · Asheville NC · Member since 2016 · 470 posts · 317 votes
    4y

    A lot of jobs are remote now after testing it out during covid. I would still invest where I will get the highest and best use of my money. To me, STRs in vacation rental markets make more sense. Not sure if you meant to post in STR, but there you go.

    Life's too short to hate. I would find another way. Join a local / virtual mastermind and / or local REIA.

    2Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    4y

    @Jay Wang I like Austin of course but Austin is growing tremendously and the population should double by 2040. In the last year we've had Tesla's next factory, Tesla HQ, Oracle HQ and Samsung's next factory ($17B facility compared to $1.1B for Tesla) all move to Austin. Not a week goes by that some other business doesn't announce moving here.

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    2Reply
  • Pat LulewiczBusiness Member
    Realtor · Raleigh NC and Greensboro, NC · Member since 2019 · 396 posts · 393 votes
    4y

    @Jay Wang I can only speak for the Raleigh market, but we've had a 15% appreciation Y-o-Y and I work with homeowners in the $600K-$1M price point who haven't slowed down their offering. There isn't a lot of land within the city limits and so appreciation is extremely prevalent. We are getting an Apple HQ over the next few years so you'll see continued job and wage growth.

    I also work with a handful of out-state-investors in both the Raleigh/Durham and Greensboro markets on purchasing rental properties with great success to take advantage of the aforementioned appreciation, great ROI on rental rates, and continued rent growth with the limited housing inventory and incredible demand.

    You can't go wrong buying in this market especially with the amount of capital you have and what I can only assume to be a strong DTI based on your original post.

    4Reply
  • Chris London
    Property Manager · Raleigh/Durham NC · Member since 2015 · 210 posts · 293 votes
    4y

    @Jay Wang if you look at most of my previous posts about Raleigh/Durham they are data-driven answers, however, in this case, I think a common phrase I hear around town best answers your question about Raleigh vs Austin.

    "Raleigh/Durham will be Austin in 5-10 years"

    For that reason, I'd invest in Raleigh/Durham right now. 

    Also, if you want to split hairs between Raleigh & Durham, it's the uniqueness of Durham and its proximity to RTP that will make it the next Austin. 

    2Reply
  • Garratt Brannock
    New to Real Estate · Raleigh, NC · Member since 2020 · 24 posts · 6 votes
    4y

    @Jay Wang 

    What kind of returns are you looking for and what type of properties are you looking for, multi family or single family?

    0Reply
  • Christian HansenPro Member
    Rental Property Investor · Cary, NC · Member since 2014 · 120 posts · 89 votes
    4y

    @Jay Wang Hi, I would echo what others are saying, that a Raleigh investment has more room to grow. However, your question seems to be only focused on appreciation which has been great in many areas but is not guaranteed for the long run. There are many factors outside of your control that could affect it. I think you need to consider  what @Garratt Brannock asked - types of props and what returns are you interested in, which refers more to the rent income vs. just appreciation. 

    1Reply
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