Invest in real estate in this economy? It’s true that we’re in a full-scale recession, but even so, many financial advisors are suggesting that savvy investors can still make money in the real estate sector. Unfortunately days of flipping homes to make a fast profit have vanished and making a quick buck in real estate is doubtful. Today’s real estate investments are likely to be long-term investments. This is a sound idea simply because over the long term, homes always rise in value due to the rising cost of living and increasing inflation. So is Austin Texas real estate investing worth a look? Yet bet!
Today the real estate market is flooded with available homes priced to sell. With interest rates very low, the right investor with the right piece of property could make a fortune from a single investment. This is a genuine possibility… even in this economy.
Much of the media has consistently placed Austin on top of the “best places to live” lists. These praises have brought an influx of families, businesses, and organizations to Austin. Forbes placed Austin on top of their list of America’s Fastest Growing Metros in 2008. Job growth, available talented workforce, high median family income, exports, manufacturing, and the relatively undervalued real estate market all contribute to the Austin area’s appeal. And let’s not forget the effect the high-tech industry, the booming film industry, and the University of Texas continue to have in 2009. As a result, investors can find profitable opportunities in this are of the Lone Star State.
Fortunately for Texas, the recession began a lot later than it did in the rest of the country. Although the national recession started in December 2007, the Texas economy didn’t begin to slow down until six months later. Key indicators such as job growth and manufacturing fell in the second half of 2008, but that still didn’t dim the luster from Austin’s coveted position on the “Best” lists. Forbes.com named Austin #3 on its new list of “Recession Proof” cities, with the unemployment rate, real estate prices, and gross metropolitan product growth as criteria. That said, Austin is best positioned among the nation’s metropolitan areas to ride out the current crisis.
All of this gives Austin prime real estate investment potential even during this recession. And yes, no one can predict the future of Austin’s economic condition, however, using historic date we can determine that this city is among the better places to invest and as a whole is one of the few pockets of prosperity in the country today.
So… where in Austin should one invest? Long-term investors may want to look at neighborhoods with high rents, prominent growth, and developing infrastructure. Local Austin real estate firms can direct you to current areas with these potentials.
If you’re looking to buy a property that you yourself can improve and maintain, downtown is a good choice for local investors. On the other hand, a remote investor would benefit from a purchase situated in a more suburban area where newly constructed homes with fewer maintenance problems are in abundance with competitive pricing.
Bottom-line, when you’re looking at these two scenarios, suburban areas tend to have less maintenance and greater cash flow while inner city neighborhoods tend to have finer and older properties with higher appreciation potential.
Keep in mind that whether we’re in a recession or not, your decision should be sound. The lowest-priced property may not be the best one. A great property is only as great as its surrounding community. And always get a new property thoroughly checked by an inspector. If you are considering jumping on the Austin Texas real estate investing train, confirming that the property’s low price reflects today’s market and not the property and its issues is vitally important.
For more information regarding real estate investing see:
http://homebuying.about.com/od/buyingahome/qt/012108_HseReces.htm
Christine Andreski
