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Austin market - Interesting news & factoids that make it a good investment

By
Services for Real Estate Pros with Sunbelt Network

Following is a list of facts that make Austin a great place to invest:

  • Population expected to grow 50% over the next 15 years.
  • Austin added 26,500 jobs in the past year.
  • Third fastest growing city in the nation; over 1,500 new residents each month
  • Top employers:  Dell Computer, Motorolas, IBM, Samsung Electronics, Convergys, Freescale Semiconductor, Austin Info. Systems, University of Texas, State of Texas.
  • 4th in the Nation for Hottest Job Growth (Business 2.0, 2006)
  • Home Sales Up 16% from last year (Austin Business Journal, Sept. 2006)
  • 4th in the Best Overall Standard of Living (Expansion Management, 2006)
  • 3rd Best Metro for Businesses and Careers (Business 2.0)
  • Building Boon to Continue for Decades (Brookings Institute, 2005)

All this taken together means that Austin has all the makings for long term, strong appreciation growth.  Even with the high property taxes, 20% down will get you cash flow neutral in a brand new home.  Also, the property taxes are suppose to be coming down over the next few years.  We are forecasting 7-10% + appreciation in the neighborhoods / developments that we are offering properties.

When we look at markets to determine whether we will bring our investors in or not, we look at three big picture items:  Population growth, job growth and intangibles.  We define intangibles as things that make a market a nice place to live and things that attract people to the market.  One intangible that most of our markets have is water features, a river running through &/or lakes and streams nearby.  Here is an example of another "intangible" that most wouldn't think of yet it definetly makes Austin a nice place to live and it attracts people to the downtown area.  You can follow the link to the entire article. 

http://austin.bizjournals.com/austin/stories/2007/03/19/daily9.html

Austin named one of best cities for walking

Austin Business Journal - 10:32 AM CDT Tuesday, March 20, 2007

Austinites are getting some more national attention for getting off the couch.

Prevention magazine and the American Podiatric Medical Association have named Austin the second

best city in the country for fitness and walking.

This is the second year in a row that Austin has topped the list of the top 12 American cities best

suited for walking.

Now for the mandatory call to action:  If anyone out their has a client that is interested in Austin, TX please refer them to me and receive a 25% perpetual referral fee.  Everytime your referral does a transaction with us you receive the fee.  Fyi, most of our clients do multiple transactions because they are building portfolios.

Hope everyone has a great weekend.

 

Tim Wade
RE/MAX Realty Champions - Wolfeboro, NH
Another great blog.  We are always wondering what's happenening in other parts of the country.
Jun 12, 2007 11:29 PM
Chris Lengquist
Ad Astra Realty - Olathe, KS
Kansas City Real Estate Investing

I am so sick of hearing about Austin...  :)

But seriously, the real estate agents and the city have done such a good job marketing themselves down there.  I hear it's a great college city.  One day I have to make it down.

Jun 13, 2007 06:38 AM
Doug Boedecker
Sunbelt Network - Pleasanton, CA

Tim & Pam, thanks for the reply.  I checked out your website, New Hampshire looks beautiful.  Never been but now I want.  I found the fact you have listings by pond or lake very interesting.  Something you don't really see out here, or least I haven't.  Not enough lakes close enough together probably.

Hey Chris, thanks for the reply.  I feel honored that such an established real estate professional and blogger read it.  We had another brief presentation today from our Austin Market Advisor.  I gleened one new factoid not mentioned above (you gotta love the MA's).  According to the Housing Predictor Austin is forecast as the 4th best appreciation market out of it's Top 25 appreciation markets.

Of NorthPoints markets:  Albuquerque #1, Austin #4, Portland, OR #12 and Raleigh, NC #18.

If we have inventory, contact me for details.  A couple of Albuquerque properties (Rio Rancho) have equity built in.  Austin & Raleigh will cash flow neutral and positive with 20% down. 

Jun 13, 2007 08:48 AM