Should You Invest in the Austin Housing Market?
Whether you’re interested in buying, flipping, or renting a house, Austin, Texas has one of the best real estate markets in the nation. Forbes Magazine recently rated Austin as the number one best place in the country to invest in real estate. The strong job market, natural outdoor beauty, and laid-back lifestyle entice renters and homeowners to flock to central Texas.
Austin is and has been a thriving metropolis for a number of years now and has seen tremendous growth, prosperity, and opportunity. Regardless if it’s your very first home or you’re simply looking to expand your portfolio, ROCK Properties makes it easy to start investing in real estate. There is no better time to purchase an investment home than right now.
Austin-Round Rock Real Estate Residential Income Investment Homes
Search Austin Investment Properties
There are always a variety of residential income Investment properties for sale in Austin. We can help clients find a fixer-upper, duplex, 4-plex or a newer single family home that’s ready to lease. For those with some renovation experience who want some instant equity, we can help search the market for a potential flip, or help find a selection of charming older homes in great neighborhoods that are just waiting for you to bring them back to life. If you’re looking for an easier path without the hassle of renovating, there is a steady flow of reasonably priced newer properties in the market that are perfect for turning into profitable long-term rental homes.
Investing In Austin-Round Rock TX Real Estate
One of the most important things to look for when buying investment properties is that the home is in a city with strong and steady job growth, a growing population, and reasonable housing prices. Austin has a flourishing economy that shows no signs of slowing and is based on a diverse mix of industries, which is just one of the reasons why it’s been recognized as one of the best places to
invest. While all investments come with some level of risk, Austin real estate is regarded to be one of the safest options in the country.
Realtor/Investor – The Best of Both Worlds
There are major differences between Realtors and investors. However, some Realtors are investors too, like us! This gives us a distinct advantage when working with buyers and sellers. Not only do we understand both the Realtor and investor side of real estate, we are able to offer buyers and sellers more options to meet their needs.
Find a Real Estate Agent Who Understands Investment Properties (We Do!)
Real estate investment properties can help garner more income, increase credit performance and provide financial security. Before you select an investment property, you must understand the real estate market in the local area. The most efficient way to go about this process is through an experienced Realtor® who understands Investment Properties. Here are some helpful tips to ensure you ask the right questions to pin down the right Realtor®.
1) Does the Realtor® have Investment Experience (We Do!)
Just like any profession, before you hire someone, you should take a look at their resume and experience. A Realtor® who understands investment properties will have case studies and references from former clients who’ve worked with him or her in the past. Research the properties discussed in each case study to ensure the references and information offered are accurate.
2) Does the Realtor® Know the Local Area (We Do!)
Understanding the local area is a priceless attribute in real estate. A Realtor® who has experience in the city/town will have a better understanding of the investment property’s value. Whether it’s a commercial investment or you’re taking a stab at becoming a landlord for the first time, a Realtor® who knows the neighborhood should be able to help answer the following questions;
- How fast can my property be rented?
- How likely is it to stay occupied?
- What are the resell capabilities?
3) Does the Realtor® Understand ROI (We Do!)
Investment Realtors® are always on the lookout for the best deals for their clients. Finding a good deal is great, but understanding ROI is imperative. Before you select a Realtor®, make sure they understand your financial goals for the investment. These are important points to bring up to the Realtor® so he can help you find the right property to achieve your goal;
- Am I investing to resell within 5 years.
- The property will be used for cash flow income through leasing.
- Do I plan on fixing-up the property in order to resell it at a higher price.
4) Does the Realtor® invest in Properties (We Do!)
Once you speak to a few candidates, you will find that a lot of investment Realtors® also invest themselves. Find a Realtor® who has investment properties because they will have first-hand experience, which means less mistakes, less guessing and more trust. Don’t be afraid to ask your Realtor® questions about their own experience, the trials and tribulations and how they became successful.
If you’d like more information about Austin real estate investment homes, give us a call at 512-850-4510. We’re always happy to answer any questions you might have and we can help you find, buy, sell, and manage the best investment homes in the Austin market.
Popular Buyer Questions
No matter what your real estate needs, we can help. Call us at 512-850-4510 whenever you need assistance with buying, selling or investing in real estate. We look forward to serving you!
Does it cost money to use a Realtor?
In Texas, the homeseller typically pays the commission of the agent that is listing the home for sale as well as the commission of the agent that is representing the buyer. Commission payments to the real estate agents on both sides are typically paid out of the proceeds of the sale at closing and are typically 3% of the sale price for each agent.
What are the upfront costs of buying a home?
Buyers will typically incur some costs as part of the purchase. Those costs most commonly include:
EARNEST MONEY: Usually about 1% of the sales price.
OPTION MONEY: The option fee is typically $500-$1000 for an average priced home.
INSPECTION COSTS: For a standard inspection of an average priced single family home, a buyer can expect to pay $500 – $1,000.
LENDER COSTS & FEES: These fees are based on the Lender’s APR (Annual Percentage Rate), The APR, reflects the true and total cost of the loan. It factors in the interest rate plus any upfront costs and fees that are charged by the lender to obtain that rate or to close the loan, such as points, fees, or other costs associated with the loan.
DOWN PAYMENT: This is the portion of the loan that you pay at closing, while the rest of the loan is typically paid over time through a mortgage. Down payments are usually a percentages of the mortgage in the range of 5%, 10%, 20%, 30% down, etc).
What’s the difference between tax, appraised, and market value?
MARKET VALUE: The FMV (Fair Market Value) is simply the agreed upon price between a willing buyer and seller, both of whom are reasonably knowledgeable about the property in question.
APPRAISED VALUE: The valuation determined by a professional appraiser during the mortgage origination process.
ASSESSED TAX VALUE: This is the value assessment performed by the county tax assessor’s office for tax purposes.
Will I get a better deal working directly with the listing agent?
The listing agent works for the seller and they are obligated to work in the seller’s best interest. Therefore, there is a benefit for the buyer to have their own Agent and there is no cost to the buyer for the service.