To Austin that is. As recently reported in the Austin American Statesman, ARM, a British semiconductor firm has pitched to the Travis County Commissioners Court a proposal for a $12M facility in southwest Austin that will create 150 new jobs over the next 5 years. Of course ARM is looking for tax advantages to do the deal. The average salary for these new positions is a nice $88K a year. ARM already employs 350 here and want to expand their operations because Austin is becoming a hub for intellectual property.
As reported in today’s Austin American Statesman, Amazon is coming to Austin and will lease a building in the Domain, an upscale retail office center at Loop 1 and Burnet Road. They will be bringing 200 new jobs with them (and 400 additional cars I imagine). No information was given on an average salary range for the new jobs but considering the upscale location I bet they pay pretty darn well.
All these folks have to live somewhere and those of us who are residential real estate investors are in a great position to help them out. It’s a great time to own Austin area rent houses.
As reported in REALTOR® Magazine, at today’s rate of saving, it takes an average 12.5 years to save for the typical down payment of 20% on a home purchase. This information fits nicely with a study done by the National Association of REALTORS® stating that first time home buyers are at the lowest level in decades. I think that anyone would find it a daunting task to try to save $50K for a down payment. I suppose this means good news for us real estate investors who can offer quality properties for rent to persons who are qualified to make mortgage payments but unable to scoop together the cash for the down payment.
My advice to renters would be to buy what you can afford now with cash in hand for the down payment, let appreciation work for you, then buy a larger home in a few years. It works all the time.