Moving to Austin TX, need an advise from locals.

[Kate J.]

Hi, my w2 moves me to Austin TX. I've searched zillow for investment as well as primary house. The market looks VERY tight. I will be brining in around 1.6 mil to the city. I wonder what areas do you advise to invest in. Also I noticed around 30% property increase from 2014. This does not seem to happen in Chicago area where I am coming from. Anyone can explain why? Do you advise multifamily or single family? How about luxury condos in downtown? It feels my pocket is tiny comparing with the price tag. Any news on amazon headquarters? 

[Michael Bishop]

@Kate J. my personal opinion is that with that kind of initial capital, you should find your residence here in Austin in an area close to work and/or leisure activities that you enjoy, and deploy the rest elsewhere.

You can explore different markets, different niches, etc that can (and most likely will) provide much better returns  than Austin has to offer. I know that a lot of people will tell you there are still deals to be had here, but (1) it's NOT easy and (2) the majority of investors here are banking on appreciation, which of course will have you dead in the water at the first sign of any market downturn.

Happy to get together and discuss once you move here or if you'll be visiting to tour the area prior to moving, so don't hesitate to connect!