Austin is heating up because everyone wants a piece of this new American dream.
Young professionals are flocking Austin from left, right, and middle in search of a better life. Billionaires, millionaires, venture capitalists, and other investors are keeping tabs on Austin. Many are looking for a way in and the right moment to start the next chapter in their business journey.
However, the exploding interest is driving real estate prices. The median price for a family home in Austin is now close to $490,000, which marks a staggering growth of 15.8% compared to last year. Take into account that these are pandemic times, and global mobility is severely reduced and impaired.
If you bought a house in Austin’s city limits just last year, you could already sell it for 20% more. The trend shows a slight drop in the number of homes sold, so the market is pretty heated. If you’re looking to get into real estate investment, then Austin is a good place to start. The rent prices are expected to continue on the same rally over the next few years.
Disclaimer: This is not investment advice. Please, consider this story as financial entertainment.
How to start investing in Austin’s real estate?
First, get outline your strategy.
Start with a simple rule of business if you don’t have anything particular in mind. Buy cheaper and sell higher. How can you nail the price difference?
- Buy a property in up-and-coming areas and wait for young professionals to gentry the area, boosting property prices. Gentrification is a natural market process in this case.
- Find a beat-down property in downtown Austin, and refurbish the place with an additional investment. Change doors, floors and freshen up the living spaces.
You can find plenty of other ways to boost your property value in Austin, but these two are the classical tactics that seem to work.
We’re focusing on up-and-coming places in Austin that you can still find for a reasonable price before the area booms. Please, we have to stress this again. Every investment is risky, and there are no guarantees in the business. Follow your research and be mindful of your risks. This article is not investment advice.
Here are perfect areas in Austin that are ready for new real estate investment.
1. St. Elmo in East Austin
St.Elmo is still affordable, but this may change any time soon. Young professionals and families are already settling in East Austin and driving the prices of everything around them.
St. Elmo is not cheap by any standards, but it’s a good bang for your buck right now. This may change any month now, as we’re already seeing some property prices soaring by 50% or even 60% in value compared to last year.
2. Wooten in North Austin
Wooten, Georgian Acres, Quail Creek in the area of North Austin are perfect for big plans. You can find relatively affordable family houses from the 1950s or 1960s for half the asking price of similar real estate in Austin’s center.
North Austin is a good opportunity for family house development. You can find plenty of up-and-coming areas from Wooten to Georgian Acres.
3. Manor, Texas (far East)
Manor is technically not Austin, but that soon won’t matter. The city of Manor is located some 12 miles east of Austin and boasts a beautiful environment that’s just ready to boom. Manor is a potential golden ticket for investors. Government officials are introducing a new light-rail system that should better connect Manor to Austin and combat the lack of housing space in the city.
Imagine Manor as Austin 10 years ago, both in terms of prices and development. You can find a comfortable home in the area of 200k–300k. If everything goes well, Manor could fall within Austin’s city limits in a few years. Of course, this is all speculation, but it seems possible from today’s perspective.