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dAustin TX Foreclosure Market Keeps Real Estate Affordable

By
Real Estate Agent with Copeland Group Realty

Austin Habitat for Humanity needs more land to build affordable homes. Austin struggles with affordability, so charities like Habitat are needed to create more home owners. Habitat for Humanity offers affordable housing to low income families. The charity uses volunteers to rehab these newly acquired foreclosed properties or in extreme cases, tears them down and rebuilds.

While many struggle to keep their homes and avoid foreclosure, rising national foreclosures have created a window of opportunity for charities like Habitat, who strive to keep home ownership costs low. This controversial topic has even reached Congress (read later).

The National Foreclosure Crisis Rescues Affordability

The national foreclosure crisis caused hundreds of thousands to lose heir home, but Habitat for Humanity, to purchase properties below market value. Many Habitat for Humanity chapters across the US are snapping up dozens of empty lots and unoccupied homes - some for as little as half price.

"The down real estate market is a wonderful opportunity for all Habitats," said Gage Yager, executive director of Trinity Habitat for Humanity in Fort Worth. "As prices drop, we have the opportunity to acquire at prices that just weren't available a few years ago."

Habitat Homes Can Help Cities Grow

Some criticize that Habitat is taking advantage of someone else's misfortune, but renovating an already vacant property is far better than leaving it abandoned, resulting in higher crime rates and lower property values.

For example, in Fort Worth, Habitat is negotiating to buy part of a 160-lot subdivision that a developer left unfinished. The plan is to purchase 50 of the remaining 100 vacant lots at a 30-40% discount and put single-family homes on them. In Dallas, a Habitat affiliate has acquired approximately 150 lots at a roughly 50 percent discount.

Legislation before Congress might help Habitat and nonprofit housing agencies take greater advantage of bargains. One bill would provide $15 billion to the hardest-hit states for the purchase and improvement of foreclosed property. States could then make those properties available to nonprofits such as Habitat. However, the Bush administration has threatened a veto.

To learn more about Austin TX real estate, please call me at 512-697-9140 or visit CopelandGroupRealty.com.  You may also begin searching for homes here!

Image Credit: Habitat for Humanity Maui

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