Closing Out 2015 & Peeking in on 2016

Marcus & Millichap, a commercial real estate investment firm and think tank stated in their 4th quarter report that the Austin residential rental market will continue to be strong going into next year. The report stated that rising home prices will create a strong demand for apartments (and I add therefore a strong demand for single family rentals). They predict apartment vacancies will hover around 4.3% (a 5% vacancy rate = full). The average rental rate for apartments is projected to be $1,158. Keep in mind that single family dwelling rental rates are higher. So as 2015 starts to close the door and we begin to peek into 2016, I see the glitter of gold and the ka-ching of cash registers as rents continue to pour in the coffers.

Rick Ebert / Austin, Texas / 13 Nov 15

Why Renters Can’t Make the Move

This was the headline of an article in November issue of REALTOR® Magazine and the article pretty much sums up what I have already shared.  Namely rents nationally and here locally are the highest they have ever been.  This of course is great news for us investors in residential real estate.  The article went on to state that normally when rents rise it puts a demand on home buying but that isn’t happening.  The rate for first time home buyers is at a 30 year low.  What is causing this is multifaceted.  First, raising rents means that renters find it harder to save for the down payment especially when rents are outpacing annual raises.  This means that a greater percentage of pay is going towards rent.  Second, home prices are rising meaning that a greater amount of down payment is required to buy the dream home.  Third, since fewer folks are buying homes builders aren’t building a ton of them on speculation which in turn keeps the prices of homes up and rising and ditto for rents.  Fourth, because of the lending fiasco of late, lenders have tightened up their qualifying criteria so it is more difficult and cumbersome to get a home loan.  Lastly, many folks have decided that renting is the way to go because not being tied down is their preferred lifestyle.

What this means for us investors of residential real estate is that rents and the value of your residential investment should continue to rise.  That’s like hitting two home runs in the ball game!

Rick Ebert / Austin, Texas / 10 Nov 15

How Much Does Property Management Cost in Austin, TX – Tips for Landlords

Today we’re talking about how much property management costs in Austin, TX. It’s important to know what you can expect when you interview different companies for property management in Austin. Read more