Austin Home Prices Keep Rising – Location, Location, Location!

According to an article in the Austin Business Journal the cost of home ownership in Austin is causing many would be homeowners to look elsewhere; specifically to the “burbs”.  The article quoted Redfin, a Seattle based real estate brokerage and technology firm who studies such trends.  The Redfin study stated that in 2011 typical sale was 13.2 miles from the city but in 2015 it was 14.8 miles.  The report also stated this increase of more than 12% was the second highest of the 31 cities in the study.  Also stated was the cost of living in the urban core was a whopping $318 per square foot while the cost in the burbs was only $128 a square foot.

What this means for us investors in Austin area real estate is that the rent home you purchased 5 years ago was probably closer in than those being purchased today.  And that same rental being more desirable because of its proximate location to the urban core is commanding a good rent.  It would follow that buying a rental now with rents increasing and interest rates still favorable is a good investment.

Rick Ebert / Austin, Texas / 30 March 16

Cedar Park to Get 50 New Jobs

Cedar Park is just north of Austin and is a growing little city, and grow it will.  According to a recent article in the Austin American Statesman, Comprehensive Healthcare Management has struck an incentive deal with the city that will bring 50 new jobs to Cedar Park starting in June.  The annual payroll for these jobs is $2.4 million which exact ally chump change.  As Austin continues to grow and become more expensive to live in and to grow businesses, both people and businesses will start to take a serious look to neighboring cities all the while taking advantage of Austin’s amenities such as the music district, parks, and special events.  By the way, Austin just financed up a well televised PJA match play event at the Austin Country Club and this just on the heels of South by Southwest.  Next in the lineup are the X games coming in June.

So to find good deals in the Austin Area for residential rentals try looking at the nearby cities – I did and the move has turned our nicely.

Rick Ebert / Austin, Texas / 28 March 16

Austin Area Population Hits the 2M Mark!

According to a recent article in the Austin American Statesman the Austin metro area has topped the 2 million mark and is the fastest growing area in the USA.   In fact our area has been the fastest growing spot with over 1 million in population for 5 straight years.  Reportedly this area is the most diversified area in the state.  Our employment base is balanced between governments (we are the state capitol of course) education, clean industries, and the service sector.  Oil does not impact our area very much like it does Houston, Midland, and the Gulf Coast refining areas.  According to one demographer the area’s growth is driven by the high quality of life here and by the healthy (robust) job market.

This is great news for us landlords who own residential rentals here.  The quality of life brings the jobs, the jobs bring the people (and did I mention their cars), and the people need housing; that’s us.  Area rents are strong and look to remain strong in the foreseeable future, and residential housing continues to appreciate.  To quote Ralph Kramden from the Honeymooners:  “How Sweet It Is!”

Rick Ebert/Austin, Texas/24 March 16

Millennials & Housing / How Sweet It Is!

A recent article in the Austin American Statesman about home buying habits of millennials puts an exclamation mark behind the statement that owning Austin area rent property is a good idea.  The article stated that a number of factors enter into the picture as to why millennials aren’t buying houses in similar form as their parents. These factors include the product.  It seems that builders are building most homes to meet the need of baby boomers, which in turn means that these homes are larger with more bells and whistles, and not a starter homes which are smaller and more austere.  So the baby boomer homes are more expensive which in turn requires a larger down payment.  One source stated that entry level homes are about 20% of the new home inventory compared to 30% in the past.  Millennials are delaying marrying which in turn means that there isn’t need to buy a home much less a large home.  Millennials instead are choosing or out of necessity, staying with their parents longer or are in roommate type households, which in turn means that there is even less to build entry level homes.  And lastly, millennials are leaving college loaded with debt which means that there is less desire on their part to add to the debt by having a mortgage.

 

So this means that for those of us that own Austin area residential rentals that the future looks both bright and profitable.  The demographic stated in the article won’t be changing much in the near future.  Our area continues to attract jobs and those that seek them, and millennials have to live in something, so why not one of our fantastic rentals?

 

Rick Ebert / Austin, Texas / 11 March 16

2015: Austin added 44,500 New Jobs!

As reported in the Austin American Statesman those 44,500 jobs represents a 4, 7% increase.   What a year 2015 was for Austin.  It has been reported in several trade magazines and professional publications that 2016 will also be a good year for job growth in Austin, albeit not so robust.  What city can ever keep up the pace that Austin set last year?  Statewide unemployment was 4.5% vs. 4.6% in December, and that includes all of the jobs lost in the oil industry.  In comparison the Austin unemployment rate is 3.2% up from December’s 3%.  But then seasonal jobs abound in December and 3.2% is the envy of the nation.  The nationwide unemployment rate was 4.9% which is good news.

So if the nationwide unemployment rate is a good figure why is the stock market so bumpy?  For me, my Austin area rentals keep chugging along with strong rents and strong appreciation.  It’s never too late to add to your Austin area residential rentals or to start receiving the benefits of owning a rent property in our area.

Contact us today to see how our expertise can benefit you.

Rick Ebert / Austin, Texas / 7 March 16

Top 3 FAQs for a First Time Landlord – Property Management Austin TX


First time landlords need to focus on a lot, especially if they aren’t using professional property management in Austin. There are three specific areas that are especially important for DIY Landlords. These are evictions, insurance and home warranties. Our most frequently asked questions come from these topics, so we’re talking about them today. Read more

Congratulations to Mike Gonzales

Congratulations to Mike Gonzales, REALTOR, TRLS, TRPM, on earning his Texas REALTOR Property Manager designation from the Texas Association of REALTORS. To earn the designation Mike had to complete 4 classes in leasing and 6 classes in property management. Additionally, to earn the designation one must have a minimum of 2 years property management experience and 200 unit hours of active management. Mike has far exceeded those requirements. At ALPS, Inc. education is stressed as it leads to a high degree of professionalism which in turn leads to satisfied clients and customers.

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