Headline in the Austin American Statesman in the March 27, 2014 paper. The population grew 10% from 2010 and added over 47,000 new residents from July, 2012 to July 2013. If only these folks would leave their cars from wherever they came from that would be OK with me! Austin ranks #1 in population growth and that is great, and not so great as it also ranks #4 in having the worst traffic! All in all, it is a great time to invest in Austin area real estate because all of these transplants need a place to live.
Idean, a Finnish company that helps companies make interface designs for their products is setting up shop in downtown Austin. Initiall they will hire 20 people. The reason for Austin is the talent pool and culture. Signpost is saying hello to Austin by hiring 75 people for their software development. They also have a location in NYC but of course Austin is “the place” to expand operations because of the favorable weather and tax climate. Both the snow and taxes are piled up “very high”. And Atlassian, an Australian software maker will be hiring 300 workers for it’s operations. And folks, the firms keep coming, the new hirings keep coming, and Austin continues to thrive. And that is why it is a great time to own Austin area real estate!
A recent article in the Washington Post pointed out that not everyone should buy a house and that renting is viable option for a lot of folks. I should point out that an estimated 53% of all Austin households are renters. The main reason stated in the article is the plain fact that as a renter you can move about the country with comparable ease. Quite a few of our clients are what I call “Accidental Landlords”, folks who had to move, usually for job transfers, who now find that they can’t sell, so they became an accidental landlord. That is another good story as doing so can create wealth. Another reason cited in the article for renting vs. buying is of course the capitol needed to purchase a home may not be readily available. doing so can create wealth. And then come the repairs, and as any landlord will attest to, every single building will need them. And to offset repairs, that requires even more cash. At a minimum landlords should save 5% of the gross rent as a repair hedge, and 10% is even better. And so it goes,
Which is the best way for you to go, rent or buy? It really depends on our financial strength and your goals. If you have questions or would like to further discuss this topic, please fee free to reach out to us at Austin Landmark Property services. We are Austin property management experts.
According to today’s Austin American Statesman, Austin saw it’s unemployment rate rise to 4.9% up from 4.7% from last month. However January 2013 had an unemployment rate of 5.9%. I’d say that the rest of nation would be envious of any of those rates!
British Airways now has a flight from Austin to London on the Dreamliner. It is the very first flight from Austin to Europe and it is non-stop to boot. This should be great for all of those folks from the old country who like F-! racing. And our airport is growing too – heck it was too small when they completed it.
As reported in this month’s issue of Newsmax, Texas is the number one business friendly state in the USA. Maybe that is why so many people are leaving other states and moving here, and moving specifically to the Austin area. Our five county area receives about 125 people “a day” and has done so for the last two years. The lease friendly state cited in the article was California followed by New York (anybody surprized?). An example cited in the article was that it takes 2 years longer and $200,000 more to open a Hardee’s restaurant in California than it does in Texas…incredible! So Hardee’s plans to open 300 of their restaurants in Texas…surprize! And that is why it is great to own Austin area real estate…people are coming here in droves and they need a place to live.