The availability of labor, quality education and capital, a favorable tax environment, and lower operating costs make Austin an in-demand location for tech firms and professionals – and a good bet for residential and commercial real estate investors.
“Home to 5,500 startups and tech companies, Austin has become a favorable alternative to the Bay Area and New York City for companies of all sizes that are looking to grow,” CompTIA says in its Tech Town Index report, released November 10.
What are the best communities around Lake Travis? We were considering moving outside of the Bay Area, anywhere outside of California we’d want a property on the water. Looks definitely possible in Austin. Are all those cities a pain to commute from?
Good taste. Pretty expensive neighborhoods because of good lake view. But if you’re working, can be quite a commute. Your neighbors are likely to be rich retirees or executives from Apple, Google and FB.
So far, I have driven around Steiner Ranch, beautiful mountain and lake view, serene but too windy and hilly for a person who use to flat land like Singapore.
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Have to wonder who are buying in Pflugerville. Hi-tech investors (from CA) or locals upgrading to bigger square footage. The annualized appreciation of the house cited by @manch is nearly 9% since 2014, very good appreciation for Pflugerville which use to appreciate at 2-4% historically.
Yes, Pflugerville is still fairly cheap. If you want to invest (for reasonably yield) and growth, this is the correct neighborhoods in Pflugerville. There are cheaper zip codes (e.g. East Austin, Manor, Taylor) that are recently gentrified but may not pass your criteria of good tenants I pass for such neighborhoods until they are quite gentrified - I don’t like to take too much risk, not financial sense, possibility of bad tenants.
For a house to rent for $1900 in Roseville, that house will be worth around 400K. So without looking at the expense side this Austin suburb has much better rent yield.
One big expense is property tax - it is almost double to CA tax and on top of it, your tax bill can increase as valuation of the house goes up (rent may or may not catch up for landlord). Landlord insurance is slightly higher as well.
How about maintenance? $2000 rents a big house in Austin but a relatively small one in California. I suspect it will cost more to maintain a bigger house?
I don’t see that much different in maintenance, but there’s stronger weather exposure like my fences has been getting replaced due to strong wind. Inside the house, it is pretty much the same number of water heater and kitchen appliances. More space come from bigger rooms and family rooms. So the house has more carpet and more regular wear and tear. You would probably switch to Laminate on the first round anyway.
But yeah its out there. I work in data science, and that is a portable job. Plus Covid WFH push, I wouldn’t have to commute much but yeah for her maybe it’s too much of a drive.
My PM doesn’t like laminate somehow. He says buy houses with carpet for most place, tile for walking area e.g. doorway. Austinites wear shoes inside the house rather than take out before entering.
neighborhoods because of good lake view. But if you’re working, can be quite a commute. Your neighbors are likely to be rich retirees or executives from Apple, Google and FB.
appreciation for Pflugerville which use to appreciate at 2-4% historically.
and further away. My WAG is $1800-$2000.