Austin Rental Properties
Austin is one of the fastest growing cities in the nation. New people moving need places to live; homes are in short supply and demand is increasing. So where are people going? A Zillow study showed that Austin ranked #7 out of the fastest-rising rents in a survey that compared 869 of the largest US cities. Additionally, Austin saw a 7% increase in rental rates from 2014 to 2015.
What does that mean for you as a homeowner? Investing in rental property could be beneficial for you in this market. The rental and housing markets are interdependent and right now, rents are on the rise. With higher rents, it takes longer for people to save enough money for a down payment to purchase their own home. Additionally, income growth is not increasing as quickly as price increases…again pointing to a strong rental market for the foreseeable future.
Adding a rental property to your portfolio of investments is a good way to diversify. As with any stock, you have to choose your property wisely. You need to do your research.
- What kind of property you want – single family, condo, vacation rental, etc.
- What is your budget – how much can you afford to spend, how much work does the property need, can you manage a second mortgage if the property doesn’t rent right away
- What area would you like your investment property – do you want it to be near so you can act as property manager, do you want something small, new or downtown, do you want a fixer-upper
- What are the rental prices in your desired area
- What is your investment strategy – what type of return are you looking for, how long are you willing to own the property
Once you have your strategy in place, make the financial arrangements. Find a lender and get pre-qualified. Know exactly what you can afford when you are looking so that when you find the right place, you can make an offer.
While you can begin searching properties online, it is always best to work with a buyer’s agent that knows the market. This should be your subject matter expert, the person you can share your goals and they will help meet your objectives. If you are looking in the Austin area, Steiner Ranch, Four Points, River Place, Lakeway or Lake Travis area, we can help. We have dedicated buyer’s agents to assist with the entire real estate transaction. Give us a call today and let the Gene Arant Team work for you.