European moving to Austin, TX looking for home (130K-170K) in Austin area

[Chris Frydenlund]

Hey BP-members! I'm a young man from Copenhagen, Denmark in Europe. My American wife and I are planning to move to Austin with our newborn. She's from Houston, TX, but I have convinced her to move to Austin, TX. We are looking for a home (130K-170K) in a popular neighborhood, hoping the home will increase in value over the next few years, and then sell it. It'll be my first REI. I've been advised to buy a home and live in it as the smartest start on REI, which I have big interest in. My question is where in Austin area you would advice me to look for a home? We would like to have at least a 2 bed or maybe a 3 bed home, and it needs to be a newer home to make sure there won't be any trouble with the home's condition. I've looked at Round Rock, Cedar Park, Pflugerville. All areas north of Austin. As far as I understand these areas are growing communities and affordable. Am I looking in the right area or should I look somewhere else? People talk about the east side, but they also say there's bigger risk there? I hope there are some BP-members, who are willing to help me Regards, Chris (Sorry, if my English isn't too good)

[Peter Lambert]

With current market trends, $130K should secure you a spot under a bridge in Austin. $170K you can probably get a nicer bridge spot with a view and fewer carbon emissions...

Hi Chris, in all seriousness, Austin real estate is pretty silly right now. Some good advice from Jon and Mike about renting first to get a feel for the city, and maybe figure out some areas & neighborhoods that appeal to you and your wife.

Here in Denmark everything is small and living more than 15 miles from the city limit decreases the interest in buying a home. Everyone wants to live close to the city here. I'll be interesting to get to know the Texan style of thinking. I already like it.

Everyone has different preferences. For people from Dallas / Fort Worth area, Houston, or Southern California, where they are already accustomed to traffic and spending 30-45 mins to get somewhere, living 15 miles away isn't as big of a deal. On the other hand, some Austin folks don't travel outside of a 5 mile radius, or even own a car.

For Central and "heart of the city" living, you're looking at 78702 (Central East), 78703 (Central West), & 78704 (Central South of the river), but prices reflect the demand and you're looking at anywhere from $250/sq. foot to $500/sq. foot.. Another post mentioned Hutto or Pfluegerville; while those are indeed cheaper, they really aren't Austin. You're looking at an hour drive 5-6 days of the week to most Austin "landmarks". So there has to be something in between, right?

In the ranges you mention, personally I'd look just a little further East (78723) and a little further South (78745) or down to Oak Hill. You could probably find a 1,000sq-1,300sq ft house, two bedroom, maybe three bedroom.

Finding a solid fixer-upper in one of those areas would the way to go in my opinion... But just know you'll be competing with other young couples moving here, rehabbers & flippers, and other investors looking to do the same. Lot of $$ chasing few properties :)

Good luck.

Peter