If you’re a real estate investor, you may be researching different markets at the moment. Austin, Texas is home to one of the hottest markets in the country. You’ll want to invest in this market now rather than never.
If you need more inspiration, we have ten major reasons why you need to jump on the opportunity. To begin, you’ll want to work with an Austin realtor that will help you find your first property and beyond. Let Teifke Real Estate help you plant your stake in Austin and the surrounding area.
Let’s begin with the list of reasons right now.
Demand for real estate is high
Austin is one of the fastest growing cities in the country. When this happens, the demand for residential real estate will increase. People who are new to the city are looking for a place to live.
Whether it’s an apartment, condo, or single-family home, there’s always something in demand. This demand is showing no signs of going down any time soon. So the quicker you jump on the opportunity to invest in Austin real estate, the better.
It’s diverse in culture
Diversity is great for a community. You’ll come across people from different walks of life, nationalities, and cultures. If you’re someone that loves immersing yourself in all of it, that may be another reason why Austin may be the place for you to invest in.
Especially when it comes to real estate. You might have tenants that come from all over the country and maybe the world. That’s one good sign that Austin is a hidden gem for real estate investors (and many of them are making the mistake of not seeing that).
The tech industry is growing here
If there is one industry asserting its dominance in Austin, it’s the tech industry. Tesla and Apple have established new facilities here. Other major companies may soon follow suit.
The Austin area may rival that of Silicon Valley. Real estate in the Bay Area of California is absurdly high in price. And it’s driving people out more than drawing them in.
With the cost of living much cheaper in Austin, it’s attracting the tech industry (and perhaps many others). And with this next reason on our list, it makes things financially easier for both you and your prospective tenants.
No income taxes
Texas is one of a handful of states that has no income tax. Meaning you’ll keep more money in your pocket every year. This is also a reason why many people are fleeing states like New York or California (since their taxes are too high).
If there is one thing a person can be concerned about, it’s their finances. They can make an easy living in Austin or anywhere in Texas and the non-existence of state income tax is one of them. If everything is bigger in Texas, your wallet may be one of them.
More rental properties are popping up
One of the sought after properties for real estate investors are apartment buildings. Single family homes are another. These rental properties are popping up all over the place.
It’s giving you an opportunity to consider snatching them up. If you have the money to get started, see what you can find within your price range. With so many rental properties becoming available almost every day, you’re bound to find something that will fit your needs and preferences.
Don’t forget, you still need to do your due diligence. You’ll need to make sure whether the property you intend to acquire will meet your ROI goals.
Rents are rising rapidly
With rental properties popping up, this is also happening at a time when rental rates are rising. Which means you’ll be able to set your rental rates that are considered reasonable for the Austin area. In the previous two years, rent in the city increased up to nearly 20 percent.
The average rent in 2020 was $1260. However, that increased to around $1510 as of 2022. If you are looking for vacant apartments or rental properties, get them now. Set the rental rate that is reasonable for the type of property (i.e – 1 bedroom apartments) and you may have it filled soon by someone who can afford it.
Home prices are rising as well
Home prices in Austin are close to $300000 at the moment. However, they may be showing signs of increasing in the future. This can be a good time for you to acquire single-family properties now.
When the time comes to sell the property, you can sell it at a price that is much higher than when you buy it. If you’re in it for the long game, this may be a good strategy to use.
Economic growth is solid
Earlier, we mentioned that the tech industry is growing. If you zoom out a bit, you’ll see that the economic growth in the local area is solid. You may be hearing stories of dread about the national economy.
Contrary to what you hear, Austin and the state of Texas is doing great. More jobs are being created and plenty of industries are seeing Austin or even anywhere in Texas as the perfect opportunity to grow their business.
Vibrant downtown area
This is a plus for younger people. Whether they are students at UT or young professionals making their mark on the world, they visit the downtown area to have fun. Whether they are with friends or going solo, there’s always something to do here in Austin.
You might find real estate opportunities in the downtown area or nearby. Someone may be looking for a place where they can be a short walk away from their favorite spot. Take advantage of this and you’ll be certain to get a nice ROI out of the deal.
All four seasons
Before you say anything, Texas doesn’t get too cold. Yes, it snows in the northern part of the state and can get chilly. But it’s not ridiculously cold compared to the northern half of the country.
The state of Texas will have mild winters elsewhere. In the summer, it can get sweltering hot. If you go farther south, you may experience the closest you can get to tropical climate. When it comes to all four seasons, there’s a good chance you’ll experience it all in Texas.