Have you heard of the good returns of the Austin property market? It’s not too late to get in of the action!
Austin has been a real estate hotspot for over ten years, and last year saw even more growth. The area's stable employment and incredible economy attract some of the country's most prominent corporations, entrepreneurs, and start-up businesses. What’s more, Austin, Texas, is expected to grow further, which means more opportunities for real estate investors.
If you're a first-time property investor looking to invest in Austin real estate, Rollingwood Management Inc. has put together a list of essential tips to help you get started.
Why Should Investors Consider Austin?
Austin is expanding rapidly and shows no signs of slowing down. Because of its continued growth, Austin is a natural hot spot for real estate investors. It was Texas' second-fastest-growing major city, following only Fort Worth.
Austin, Texas, is attracting a lot of business, and it's becoming one of the best-performing metro areas in the country. The city's stable job market and thriving economy attract employees of some of the country's largest corporations and entrepreneurs, and start-up businesses.
Austin has evolved into a center for advanced manufacturing, clean technology, creative and digital technology, financial services and insurance, and space technology.
Another element that investors should take note of is that monthly rents are rapidly increasing in the city. Although there is a high demand for housing in Austin, construction has not slowed. This has also encouraged investors looking to build rental properties in Austin and capitalize on rising rents.
Tips for Investing in Austin Real Estate
1. Make Sure Your Financials are in Order
It may seem obvious, but you must have a solid financial foundation when you first start investing in real estate. Before looking for a home in Austin, you should take a close look at your finances. Checking your credit report to see if you can finance an investment property is one of the first steps.
You should pay off any debts you have and save money for a down payment. The more money you invest, the better it will be for your mortgage and the less interest you'll pay. By assessing your finances you’ll also be able to gauge what your budget is when buying a property.
2. Be Ready to Take Financial Risks
It's not always as easy as collecting a monthly rent check when renting out your investment property. If you're considering investing in Austin rental property, keep in mind that all property owners will have to deal with upkeep and repairs at some point.
Not to mention the possibility of going without a rent check while between tenants, which could result in a financial setback if you're not prepared. Remember to budget for unexpected home repairs, tenant turnovers, and emergencies for your real estate investment.
3. Consider Real Estate Investing as a Business
Your ultimate goal as a property investor, just like any other business, is to make a profit. To do so, you'll need to devote time to developing a solid business plan that clarifies your objectives and strategy while also answering key questions.
Here are some questions to ask yourself before getting started:
- Are you looking for rental income when you invest in Austin real estate?
- Do you want to tap into the long-term or short-term rental markets?
- Will you be selling the house on the market?
- What is your investment's goal?
- Are you investing in real estate for future growth, or do you need cash now?
4. Don't Rush into a Real Estate Purchase
Purchasing an investment property is a significant financial and time commitment. Although it may be tempting to make a purchase right away, you should take your time.
As a new real estate investor in Austin, TX, you'll want to have a firm grasp on market conditions, such as how many properties are rented for, how they hold their value for resale, and neighborhood characteristics.
5. Determine the Best Neighborhoods in Austin
While Hyde Park, Clarksville, East Austin, and other areas near the city center are among the most desirable, investors should also consider expanding their search to include surrounding areas. Some neighborhoods are only a short drive away and provide more affordable housing options.
7. Invest in an Experienced Real Estate Agent
If you're thinking about investing in Austin real estate but don't know where to start, the good news is that Rollingwood Management Inc. can help. It's crucial to speak with a real estate agent or property manager, even if you're starting to weigh the advantages and drawbacks of real estate investing.
Rollingwood Management Inc. has been offering quality property management services and advice since 1986. We are willing and ready to share our years of industry knowledge and expertise with potential investors in the Austin area.
If you're looking to buy an investment property, the Austin housing market is a great place to start because it's expected to keep growing and shows no signs of slowing down.
Austin investment properties are looking more and more like a solid choice for investors seeking to add to their portfolio as the city's population continues to grow and businesses are drawn to the city's favorable tax laws and drastically lower cost of living.
If you think it's the right move for you, teaming up with a seasoned Austin property management firm could streamline the process and allow you to spend less time working for your money and more time putting it to work for you.
Rollingwood Management Inc. is that company for you! We are the leading property service provider in the Austin region. Give us a call today to learn more about our services.