“To everything there is a season, and a time to every purpose…” so the Bible says. Somebody else said that timing is everything and that sentiment is certainly true when it comes to buying rental real estate in Austin. Here are 5 money saving tips for Austin real estate investors.
Smart Investors are Capitalizing on Austin Real Estate
With Austin’s burgeoning population, mortgage interest rates at 50 year lows and rents on the upswing, Austin’s rental market seems ripe pickings for investors to capitalize on this optimum buying opportunity.
Tired of the Ups and Downs of the Stock Market?
The gloomy stock market is causing many investors to diversify by getting into assets with real value such as rental estate. While rentals are by no means a passive investment, if you’re a hands on investor who is looking for more control, residential rental property ownership can provide tax benefits in addition to income opportunities and capital appreciation.
Key to Investing in Austin Real Estate: Buy Right
The key is buying right, according to the Investment advice from Homely Economics a thoughtless mistake or unforeseen error at this stage will haunt you for the length of your ownership period.
5 Money Saving Tips for Austin Real Estate Investors
Here are a few tips learned over years of investing that may help you.
Tip #1: Buy Value
Notice I didn’t say buy cheap. You’ll need to develop a thorough understanding of what constitutes a “value” price in the target neighborhoods. The “steals” get snapped up quickly so you’ll need to act promptly. Working with an Austin Realtor who knows what property is really worth it.
Tip #2: Know the Rental Market
A little research never hurt anyone either. Stay abreast of rents and make a realistic comparison of how the property you’re considering measures up. A little research should give you a good idea of what you can charge and estimate prudently.
Tip #3: Expect Expenses
It costs money to operate rental property, unless you plan to be a slum lord. Don’t underestimate repairs, utilities, vacancy and slippage the bank does not. Spend money to make your units more rentable as a vacant unit is money you’ll never recover. Never ignore health and safety issues.
Tip #4: Own Locally
Concentrate on areas that are familiar to you. Absentee landlords are begging for higher costs and management fees. They are often unaware of problems until the problems become huge headaches and are unresponsive to tenant problems that may lead to violations, fines and even citations from governmental agencies.
Tip #5: Find the Best Neighborhood
Find the best Austin neighborhood you can comfortably and confidently afford. It’s hard to keep good tenants in “bad areas” where high crime rates and vandalism tend to drive away the best quality tenants. Solid neighborhoods where people for the most part take pride in working for their living and appreciate the effort you make in maintaining the property usually work out well.
Austin Rents are Going Up But Home Prices Remain Constant
There are many indications that Austin is now a prime buying opportunity for real estate investors. Austin rents are on the upswing, home prices have remained fairly constant and interest rates are at 50 year lows.
Bonus Tip: Not Every Bargain Basement Price is a Value
Remember though, not every property is or can be profitable, and not every bargain basement price is a value. If you doubt your ability to recognize a sound buy, team up with an experienced Realtor with the experience to help you make a smart rental real estate investment.
Ready to Invest in Austin Real Estate?
Check our out Austin Home Buyers page to learn more about our team. Then, call us at (512) 827-8323 or email us at info@11OaksRealty.com to schedule a no obligation consultation. Let our combined 55+ years of experience help you make an informed Austin rental real estate investment.