Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 7 years ago, 01/08/2018
Austin Texas or Houston Texas?
I personally prefer Austin. I live in Dallas and we never say hey let's head down to Houston for the weekend, it is always the opposite, let's head to Austin.
Houston economy is tied to Oil so you will have ups and downs more there.
Either one though could be good for buy and hold so I would just investigate a little more. Is there a reason why you don't hop on the plane and visit Houston and then rent a car and drive to Austin just to check it out for yourself?
Liz Chen is this an investment property or a vacation home? Weather doesn't matter for an investment, numbers do.
A vacation home isn't an investment.
- Jordan Moorhead
- [email protected]
- 512-888-9122
I agree with Michael P. Austin has a much better balanced economy with a big government sector as well. Numbers are strong for both though. Probably better areas in each city than others so make sure you do some research or have an investor focused Realtor help you find the best investment areas.
- Dan Burstain
- [email protected]
- 512-588-3260
I am Houston biased. Love everything the city has to offer.
Originally posted by @Liz C.:
Hi everyone , I was going to buy one of the investment on Houston Texas , now one of my friend who loves to travel told me, she think Austin Texas is better than Houston, specially weather wise. But she is not on real estate. I did research Austin seems has lower property tax then Texas? I could be wrong.
Any advice which property is better?
Thank you!
Austin = a better place to live
Houston = a better place to invest.
Oddly, there is an inverse relationship between places to live and places to invest. San Diego (where I live) is the best place to live IMO. But a terrible place to invest.
Different strokes for different folks... Do you like humidity? Go to Houston. Do you want to be near the gulf? Go to Houston. Do you like driving long distances to look at real estate? Go to Houston. Otherwise, go to Austin. You can make money in real estate in any city. You can also invest in cities you don't live in. My opinion is live in a place you love!
My friends are talking about investing in Austin as well (we are from CA), they've been there and think it's a nicer place among TX, young and vibrant place with some companies like Apple or Amazon. But I guess the price has gone up a lot so the ROI is getting smaller now....
@Chingju Hu, yes the ROI with regards to monthly cash flow is getting smaller. However, it is becoming similar to the Bay Area with investors buying on pro-forma's with low cap rates while banking on appreciation. The metrics seem to have been working in investors favor for about 10 years. We will see how long that lasts.
I completely agree with @Cody L., austin is a much much better place to live but Houston has more options/ability for investing. San Antonio should also be on your list. It seems to me to be a blend of Austin and Houston and prices are currently lower than both cities.
Austin is what I know so I will invest in Austin. I know that Houston is world class though with world class museums, buildings etc. Austin is doing very well and has been historically. My bet is in Austin. To say that Austin is a better place to live than Houston is relative to what one's interests are and the scope of investments. Houston is doing well too but its tied to the oil economy. Many people have done very well in Houston though! I know Austin like the back of my hand so I can pick up trends etc. so that's where my money is at in Texas. Austin is also very government based so it becomes more insulated to the ebb and flows of the economy at large. My bet is in Austin
- Aaron Gordy
Critical Mass
Invest in Houston and go enjoy both Austin and Houston. Houston economy dwarfs Austin and it is much more resilient than almost any economy in the country. Houston shed >80,000 jobs in the Oil & Gas sector int he last 2 years and ended each year with net positive job growth. Houston ended 2016 with highest employment rate in the areas history.
Invest in Houston and just drive down 290 to visit and enjoy all that Austin has to offer for a long weekend or a nice vacation.
My vote is also for Houston, Texas. Too much diversity here and the economy is strong, but like one poster said you will need to drive a lot to look at properties. Everything is far away here.
I live in Austin and this morning they were talking about East Riverside Dr/Lakeshore Dr and how a big tech company bought a few apartment complexes there to put up employees that work for them and they are locating there with an 80 million dollar investment so obviously, that area will go up in value as restaurants, pubs and local business will pop up as well. So look around that area, Riverside Dr, Oltorf, Montopolis etc.you can still find a deal around there if you hurry. BUT TAXES ARE THE HIGHEST IN THE STATE AND WERE JUST VOTED IN A HIGHEST THE STATE LAW ALLOWS!! So although I don't know about Houston property taxes, it will be the same or less for sure. Probably less. Houston median avg is $180-200k and Austin is $389k San Antonio was about like Houston. Both San Antonio and Houston and even Dallas or anywhere in Texas you will find better investment properties because of the number available makes the prices more negotiable! A few investors are leaning towards Smithville, Bastrop, Cedar Creek, Del Valle, Leander Kyle, and Buda.These are towns that surround Austin or are within a 30 mile radius. Hope this helps some
I live in Austin and this morning they were talking about East Riverside Dr/Lakeshore Dr and how a big tech company bought a few apartment complexes there to put up employees that work for them and they are locating there with an 80 million dollar investment so obviously, that area will go up in value as restaurants, pubs and local business will pop up as well. So look around that area, Riverside Dr, Oltorf, Montopolis etc.you can still find a deal around there if you hurry. BUT TAXES ARE THE HIGHEST IN THE STATE AND WERE JUST VOTED IN A HIGHEST THE STATE LAW ALLOWS!! So although I don't know about Houston property taxes, it will be the same or less for sure. Probably less. Houston median avg is $180-200k and Austin is $389k San Antonio was about like Houston. Both San Antonio and Houston and even Dallas or anywhere in Texas you will find better investment properties because of the number available makes the prices more negotiable! A few investors are leaning towards Smithville, Bastrop, Cedar Creek, Del Valle, Leander Kyle, and Buda.These are towns that surround Austin or are within a 30 mile radius. Hope this helps some
Houston has more than just oil & gas. We have one of the top medical centers in the world, making leaps and bounds in biotech, and we have a huge port with shipping and industry. The Houston economy is outstandingly resilient.
@Brian Foster I currently live over in cypress and I'm trying to get started in real estate, would you be willing to help me
I think the answer for this really depends on your ultimate goal! I'm a California-based investor in Houston but am interested in Austin as well.
- Austin - Diversified economy with growing tech-sector (I'm also heavily involved in tech). Con is that some of this has been priced in already and therefore cap rates have been reduced.
- Houston - Also a huge metro with a very strong economy. Higher cap rates due to higher rent/price ratios but don't foresee as much appreciation potential as Austin here.