Austin Investing

[Travis Washington]

Greetings,

Looking to venture into the Austin market.  Wanted to gauge BP to see who's had experience (and success) in this area.  I have been looking for quite some time and have found it quite difficult to find good deal.  Wanted to ask for some good strategies used by investors in the market and some valuable resources to get leads.

Thanks!

[Linda Osborn]

The large influx of people, along with the low amount of housing inventory is what is primarily responsible for the steady increase in prices. I believe rents are roughly 12-18 months behind the housing price increases, but they will catch up eventually as the market flattens. In addition, if you buy in the right places and hold for 5-10 years, the increase in value will more than make up for the lack of cash flow now.

Agree with @Brian Mathews, but another option is to wait until the fall/winter months to invest. Even though the market may still be "hot", it definitely slows down, and the number of buyers decreases since few people want to move during the school year, reducing the competition. Even though available inventory may also be reduced, those who are selling are apt to be more motivated and there will be less competition, thus more opportunity for better deals. 

So keep saving up for that down payment and wait a bit!