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Austin Market Favors Buy vs. Rent

By
Real Estate Broker/Owner

Occassionally I help folks find a home to rent in Austin. The rental market is very tight and few homes come available. Often, there is competition for Austin rental homes and landlords get multiple rental applications, especially for the more affordable and desirable homes in certain neighborhoods. In fact, every potential renter I have helped this year has had to compete with others for a property. Because of strong demand for Austin rental homes, rents have increased in the past 12 months too, making buying more attractive than I have seen in many years.

Of course, down payment prevents some from buying, but with FHA, you only need 3.5% down, and that can come from  a gift from a relative. One local bank has a 3% down payment program for certain professions and incomes that makes buying even easier for teachers and public service sector employees. Even the credit score requirement is fairly liberal. Closing costs can often be negotiated into the purchase price so that the seller pays them on the buyers behalf, resulting in very little cash needed to purchase a home. The stories floating around that 20% down payments are the norm is just not true. With 3 to 4% of the purchase price and reasonably good credit, home ownership is still very attainable in Austin, Texas.

Example: The  southwest Austin neighborhood Legend Oaks offers 3 and 4 bedroom homes for about $250,000. That home can potentially be purchased with just $7,500 move in cost. The monthly payment on a 30 year loan would be about $1,900 per month. Renting this same home could easily cost $2,200 per month and require landlord deposits of up to $3,000. With just a few thousand more dollars, renters can be owners and enjoy a lower monthly payment vs. renting. In fact, the extra cash needed up front can be recouped in a little over a year through monthly payment savings AND buyers enjoy tax advantages that further decrease the cost of ownership.

The next time you think about renting, consider buying instead. Contact me anytime to see if you can qualify to buy an Austin home. As a lender and Realtor, I am uniquely qualified to answer all your home and loan questions and can usually get you preapproved in 24 hours.

Search updated listings of all Austin homes for sale:

http://www.myaustinhousehunt.com/

Get notified when homes you want hit the market.

Apply for a mortgage on line at www.myTXhomeloan.com

 

Jeff Harris, Realtor|Lender|Broker

Direct: 512-917-8142

jeff@trueaustinhomes.com

 

 

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