This is a file sharing firm located in Los Altos, CA. just up the street from my home town of San Jose. Like many California firms they are finding it cheaper to expand 1,800 miles +/- away vs. expanding in the Bay Area. The good news is that this is a clean business and will have 200 more jobs added to our local job market. Just leave the cars in the Bay Area – thank you!
The Austin American Statesman tried to answer this question in Saturday’s paper, and frankly failed to come across with a concrete answer either pro or con. Final answer, it is an individual situation with no single right answer. The article was full of facts but that didn’t bring any decision making answers. The facts are: 1) from 2003 to 2013 home prices increased 43% that’s good if you own a home or like many of us own residential rentals 2) rents increased 50% from 2004 to 2014 and that is great if you are like me and own residential rentals 3) from 2004 to 2014 income increased 9% (ouch!) 4) this is no four!
As stated in a previous post, Duetsche Bank has a report that Austini renters spend 5% less for housing than homeowners. That’s nice, then Trulia reports that buying is cheaper than renting in the nations 100 largest cities. The difference, Duetsche uses 5% down and Trulia uses 20% down.
So pick whichever answer you like! It has been own personal experience that buying a home is a great investment for both a domicle and for an investment. And with rents so high, and continue to risie in the forseable future, coupled with appreciation, well what are you waiting for – buy something!
Please contact our Austin property management experts at ALPS if you’d like to learn more!
Unbelivable growth in our area as stated in the Austin American Statesman this week. The Census Bureau reports that in the last 3.5 years that Buda has grown 39%, Manor 26 %, Leander 20.6%, and Cedar Park 18.4% and those were the “small cities” ! At that rate they won’t be small for long. Meanwhile Austin grew 9.2%, Round Rock 9.8% and Pflugerville 11.8%.
Last week I read that the Austin area auto dealers were having a banner year with car sales going out of sight. That fits because so many folks are moving here. They often will leave their old clunker behind (usually in California – thank you) and then buy a care here. Of course you can’t drive to your new job here in an old car can you?!
So all these folks need a place to live and that means us investors in residential real estate have a tremendous opportunity to help them out by providing rent housing. Let the good times roll!
If you have any questions about real estate investing or Austin property management. Please feel free to reach out to us at Austin Landmark Property Services. We’d be happy to chat!
This recent headline graber from the Austin American Statesman caught my attention and was a good read. Daily the flight carries about 200 passengers, that is cool, but it also carries 25,000 + pounds of freight oversears. Seems as if Europe likes Mexican peppers! Of course they ship other things too, like computers and oil field equipment. On on the way back we get Norweigen Salmon and fruits. Not a bad trade in my opinion!
This fact is an indicator of the areas booming economy. New car sales were up 9.7% according to an article in the Austin American Statesman last week. The paper stated that the reason for the tremendous increase is due in large part because of the booming economy (very low unemployment rate) and tremendous population growth. All the more reason why it makes good sense to own Austin area residential real estate. This is becoming a no brainer!
Deutsche Bank did a recent study to get the answer to this question and the answer is “it depends”. They also looked at major cities to determine if it is better to rent or buy and Austin came up in the area where it is emerging that renting is better than buying. As it turns out in Austin a renter will spend 5% less than a homeowner living in the same kind of housing. The three main reasons for renting vs. buying were: 1) Renters pay a smaller share for property taxes, insurance, and maintenance than a homeowner 2) Renters can use the savings noted above for investments (I must add that real estate “is” and investment) 3) Renters have a greater flexibility to move in event of job opportunities (of course I must add that is why there is property management in Austin!). So as stated at the top: the answer depends!
According to a recent article in the Austin American Statesman the rents for Austin apartments increased 50% from 2004 to 2013. For those of us who are residential landlords holding signle family dwellings this also good news because what happens with apartments also happens to a large degree with rent houses. The article went on to state that supply is not and will not keep up with demand citing the environmental rules, slow building approval process, and the many homeonwer associations that fear their neighborhoods are being overrun by apartments. The occupancy rate is reported at 97% which means that rental housing is very tight. With this kind of raw data it makes sense to own and hold a rent house or two in the Austin area. To learn how to do this and to see a “real example” of a successful area investor go to our webpage www.alpsmgmt.com and read “Real Wealth from Real Estate”. You will be glad you did!
The Austin Board of Realtors ABOR Foundation-a 501(c)(3) organization is conducting its annual Mercedes Raffle in order to raise money for the foundation. Let me know if you are interested in buying a ticket for $100. Get three tickets for the price of two, or get 15 tickets for the price of 10! If you would like to know more about the foundation please contact me.
The winner will receive a Mercedes GLK 350 (suv) and a trip to Germany to test drive it before being shipped to the US.
Thanks- Mike Ebert firstname.lastname@example.org
As recently reported in the Austin American Statesman, Austin has had a job growth rate over the last 5 years averaging almost 11%. To say the least our growth rate is the envy of the nation! Since all these new citizens need a place to live we who own residential rentals are in a good spot indeed!