A Realistic Look at Austin Investment Opportunities in 2020

If you are considering investing in Austin real estate as we approach uncertain times in the COVID-19 era, you need to be realistic and ask yourself the hard, honest questions. An economic downturn can offer opportunities for real estate investors where competition is lessened, and the number of those seeking rentals can increase. Investing in Austin requires a keen eye for opportunity, and now is the time to prepare to buy a rental property. 

First, an Austin investor needs to understand the current real estate market. Local REALTORS® have access to resources that an investor can use to study current trends. Consulting with an agent that works daily in Austin’s home buying and selling industry is key to making an informed decision. Recently, residential sales in the Greater Austin area have increased by 2.2% year over year, while the median price hit a spike of 11.7% compared to March 2019. The numbers indicate that the first of the year’s activities were on track to continue pushing the market to new highs. As the May selling kicks off, the housing market could start to see subtle or not so subtle changes due to COVID-19’s effect on the economy. No one has absolute answers, but we can strongly speculate a significant shift ahead. 

Second, those seeking to buy rental properties in Austin need to evaluate their financial situation honestly. Here are a few key areas to analyze:

  • Savings – can you cover at least three months of personal expenses, including having funds set aside for emergencies?
  • Job situation – are you in a stable position, or does your industry anticipate layoffs?
  • Assets – do you have assets that will become a burden and/or are you considering selling one or multiple assets first?
  • Liquidity – do you have readily available funds for a down payment, repairs, maintenance, and future mortgage payments?

2020 health concerns are creating unprecedented times but can also present opportunities for those intending on investing in Austin rental properties. For the realistic buyer, now is the time to prepare for those opportunities. If you need guidance from a local, experienced REALTOR®, contact Dona Brown and Talk Property Management. We serve in Travis, Williamson, and surrounding counties in residential sales and property management. Call 512-721-1094 for a free consultation

Successful Real Estate Investing 101

If you’re considering investing in Austin real estate, it’s essential to make informed investment decisions throughout the process. In this blog, we’ll walk through five fundamental principles to consider when investing in Austin-area real estate.

  1. Focus on current returns, not future appreciation. A successful investment must make money from day one. Increases in home value are simply a bonus.
  1. Know the area and neighborhood. Do your research. Get details on the specific community you’re considering. What’s the long-term outlook? What developments (commercial and residential) are coming to the area? What’s the potential for population and job growth? These are all critical questions to answer.
  1. Learn the local and federal laws. Regulations–both local and national govern investments. Understand your responsibilities as a property owner. Missing deadlines, not understanding requirements, or violations of ordinances can be a costly mistake.
  1. Build relationships with local maintenance professionals. Repairs are inevitable with rentals. Take the time to research and build relationships with trustworthy repair and maintenance professionals. If you ever need a recommendation, reach out to me anytime–I’m always happy to provide the names and contact information of those professionals I trust.
  1. Earmark funds for capital investments. Small repairs are often easily managed; however, more extensive systems, such as HVAC, plumbing, or roof, require a dedicated budget. Be sure that you have the funds set aside for capital expenditures.

Successful real estate investing begins with doing your research and making informed, calculated decisions. If you have any questions about investing in Austin real estate, property management, or rental properties in Austin, reach out to me anytime. I’m always happy to help.