Bastrop/cedar creek market in far SE Austin

[Prash Manohar]

So I'm seeing homes go over 320K and new constructions for 1500 sq ft listed at 325-330K, for 2k sq ft ~375-380K near cedar creek, bastrop...is the market picking up there? any new trends or developments happening there?

[Vik J.]

Bastrop, Elgin, etc. are picking up primarily due to the Tesla factory. In addition to the obvious that is - the overall hot market and lack of inventory in CP, RR, etc.

[Prash Manohar]

Tesla factory is in DV right? these places are still 30-40 min away from Tesla factory....

[Vik J.]

30-40 mins drive is really nothing in Texas! Infact, 2 of my friends recently brought new constructions in Bastrop as the neighbourhoods are bit more developed (or, I'm told, more gentrified) than DV. The sales agent at the property had mentioned to my mates that most investors  (at least a few months ago, when they were still selling to investors) were buying keeping in mind potential Tesla clientele. 

[Mike Reynolds]

I agree with @Vik J. but what puzzles me is that I had heard that these jobs will largely be 50k/year jobs. Who can afford a 350k house at 50k a year? And still eat that is. 

[Mike Reynolds]

Originally posted by @Mike Reynolds:

I agree with @Vik J. but what puzzles me is that I had heard that these jobs will largely be 50k/year jobs. Who can afford a 350k house at 50k a year? And still eat that is. 

 Plus gas.....

[Prash Manohar]

@Mike Reynolds...its probably not just these employees who will buy here...market is pricing in infiltration from NA...NA homes are just unbuyable for many so they have to go somewhere, plus this part of Austin might be a great spot for rental property investment owners who can afford 350K and happily place a 50K Tesla tenant :)

and btw you need to consider household income for home buying....so a household income of 75-100K can easily afford 350K homes as well

[Mike Reynolds]

Originally posted by @Prash Manohar:

@Mike Reynolds...its probably not just these employees who will buy here...market is pricing in infiltration from NA...NA homes are just unbuyable for many so they have to go somewhere, plus this part of Austin might be a great spot for rental property investment owners who can afford 350K and happily place a 50K Tesla tenant :)

and btw you need to consider household income for home buying....so a household income of 75-100K can easily afford 350K homes as well

 I get it, I really do. I wanted to buy some land there last year for a MHP. I should have bought then because now it is out of reach. Looking in the Bastrop area too. 

[Prash Manohar]

@Mike Reynolds btw I completely forgot, Musk gives stock options to all Tesla employees even production associates....so its not just 50K -:)..folks made a killing on Tesla stock last year and Long timers made more..

[Mike Reynolds]

Originally posted by @Prash Manohar:

@Mike Reynolds btw I completely forgot, Musk gives stock options to all Tesla employees even production associates....so its not just 50K -:)..folks made a killing on Tesla stock last year and Long timers made more..

 I know but it's hard to use stock options for a monthly payment or down payment. In essence, they will be using disposable income for these bills. 

[Prash Manohar]

Not for monthly payment but down payment to afford buying 

[Michael Bennett]

For every 12 $50k workers there is probably also an $80k manager. Also dual income ($100k) probably puts you close to qualifying for $350k new construction if your mortgage broker runs the application with taxes before reassessment. 

[Michael Encoy]

@Vik J. Not familiar with the area, but interested in buying LTR for the tech influx who will need housing. Is Georgetown one of these ‘hot’ areas?

[Prash Manohar]

@Michael Encoy whole of Austin is hot now loll....just depends on your PP and how much cash flow u want...if u want more cash flow with little downpayment, you have to go outside of Austin suburbs...georgetown is also crazy expensive now..people are talking for Jarrell, temple, Killeen now up north.....south even Kyle/buda are out of reach 

[Ryan Kelly]

Never purchase a property assuming an employee of a specific company will be your tenant unless your only marketing is in their HR department. More than likely, your rent price will attract a certain price-point tenant who wants to live in that area and not commute too far.

[Matt Stricklen]

Originally posted by @Prash Manohar:

So I'm seeing homes go over 320K and new constructions for 1500 sq ft listed at 325-330K, for 2k sq ft ~375-380K near cedar creek, bastrop...is the market picking up there? any new trends or developments happening there?

Lennar has built a development called Sun Chase that is probably halfway between Cedar Creek and east Austin. Gray Point was just announced as the second builder. It feels far away. But it won't for long. 

[Matt Stricklen]

https://youtu.be/hnFqaRq0XkIHere's an interesting piece on Bastrop's future planning.

[Prash Manohar]

@Matt Stricklen interesting video.. Lennar/Sun chase is in Del Valle (very close to Cedar creek)..that community was all sold out last month. Gray point also in DV has multiple floor plans..smallest being 1550 sq ft starting in mid 350s fully done !!!! not sure if they are sold out or not