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If you are a real estate investor, you might be looking at places that will give you excellent value. Austin, Texas is one of the fastest-growing cities in the United States. In fact, the Lone Star State of Texas itself is seeing a real estate boom like nothing else.
We will go over the ten reasons why this is happening. If you are interested in purchasing property in Austin, TX, and the surrounding area, head to the Teifke Real Estate site now. Let’s begin our list of ten reasons now:
Austin’s growing technology sector
Austin is attracting a lot of businesses including those from the technological industry. It may be a region that will rival Silicon Valley. With a major, high-paying industry that may have companies popping up en masse, this can mean that you’ll have tenants with a good amount of cash.
To that end, you can purchase single-family homes and apartment buildings. You can also command an excellent rental rate (assuming you’re in a place where real estate is high in value). Technology is dominating the world even today.
And the people who may be developing the next big thing might be settling here in Austin.
People are leaving other states that are expensive
There are states such as California and New York where they are losing people. The issue here is that it’s much more expensive to live there. Thus, they are looking for a place where the cost of living is manageable.
Texas seems to be quite cheaper and the taxes are lower. This is also a win-win for you since property taxes are low as well. While a necessary expense, they are still low and manageable for those who own multiple properties.
The rents will be reasonable compared to what your prospective tenants may have been paying. Or they may be paying the same amount of rent but get more space. No more having to live in something that would be like a box.
Home prices are rising
With property gaining in overall value, home prices are rising. You better get in while the gettin’s good. Because you’ll hold onto the property for a long time and be able to put in a good amount of money over time for property management, renovations, and other things.
You’ll be able to sell the property (if you so choose) albeit at a higher price point. This means a higher ROI compared to when you initially bought it. Not bad, right?
What’s the average home value? If you are considering investing in Austin, you’ll be happy to know that the home values are right around $300,000. This may also increase over the years.
The rental market is also rising
Home prices are not the only thing rising. But also the rental market is also doing the same thing. In fact, almost 40 percent of Texas residents are renters. They will be renting apartments or even single-family homes.
The market is one of the key factors in why the rental market is heating up. Austin is one of the cities in Texas with high median rents (with the Dallas-Fort Worth and Houston areas not far behind). One more excellent opportunity to consider getting in on investing in rental properties rather than never at all.
Diversity
Texas is home to more than 29 million people. That’s close to one-tenth of the population here in the United States. Not to mention, it’s home to people that come from many cultures and walks of life.
It’s always a good idea to open up your property to someone who will be a worthy tenant no matter who they are. As long as they are willing to treat their new home with respect and be able to pay you on time, you’ll be happy.
Austin is vibrant
Austin has a nightlife that is lively and vibrant. If you don’t believe us, check out what’s going on Rainey or Sixth Streets towards the end of the weekend. You’d be hard-pressed to find a place that is dull and boring.
In fact, dull and boring are two words that may not exist. Especially when you’re in downtown Austin at any point during the week. Want to have fun in a Texas city?
Austin is definitely one of those places. Or you can take a trip to San Antonio or Dallas for a weekend and you’ll see a similar vibe.
You can experience all four seasons
Texas can get sweltering hot in the summertime. However, it’s a great place that goes through all four seasons. Yes, there are snowy cold winters in Texas (namely in the northern part).
You can also experience a tropical climate if you go farther south (especially in the Gulf region). Texas might have it all in terms of climate.
No state income tax
As mentioned before, taxes are low in Texas. In fact, what we failed to mention is that Texas has no income tax at all. This can be a huge plus for those who may be escaping from states that are higher in taxes across the board.
Demand is high
Demand is increasing. Especially for living spaces in Austin and all of Texas. Even though there are reports of building costs going up, people are still looking for a place to live in the Lone Star State.
While the construction of new homes might be slowing down, the demand is high for the moment. With the available supply, it’s still possible to snag the property and turn it into a rental for a tenant.
Economic growth
The economy in Austin and Texas is growing. Despite what you’re hearing about what’s going on nationwide, Texas is doing better than people expect. Needless to say, this is a huge plus for not only yourself, but also people who are looking to live and live well.
A place where the economy is growing is always a hotbed for opportunity. Get in while you can before it gets too competitive.
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