Update On Austin Housing Market

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On the pricing front, the sweet spot in the Austin area market continues to be homes priced between $350,000 to $500,000, in general, “although sweet spots are a little misleading in our city since pricing varies so much between neighborhoods,” said David Pruitt Sr., broker and vice president of sales for Coldwell Banker United Realtors in Austin.

For rentals, choose those between $300k-$400k. Age between 7-10 years.

The austin real estate market is hot— invest intelligently and you won’t get burned

The reality is that the median income of the real estate investor is $86,100. It’s not much higher than the median income of the primary residence buyer: $72,400. And nearly 40% of investors made less than $75,000 in 2011. Today’s real estate investor is really just the average American homebuyer.

True in SFBA too? Average in SFBA would be those earning $168k-$288k, net worth $2.8M, right?

Many new investors tend to think in terms of appreciation, but intelligent investors know that investing for cash flow helps ensure a profitable investment regardless of appreciation.

Talking about you @manch

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I don’t want something that yields only 6 or 8% a year. Without appreciation that’s the best you can do with RE. Why not put it in the stock market and ride out the secular bull market?

The last housing bust was the once in a lifetime opportunity to buy RE. I am not sure going forward RE will still be the best investment.

Diworsification :grinning: Passive income.

My suspicion is sideways for many years for fortress.

Stock is even more passive than RE.

In fact if you don’t use leverage you can do better than S&P by putting into small caps like Russell 2000. It’s more volatile but if you don’t lever it doesn’t matter.

After accounting for DRIP, is about the same.

Is why the really rich guys don’t invest in RE rentals. They owned RE for vacation and recreation :slight_smile:

Looks like this is no longer a real estate forum

Well many people here dislike stocks and invest in RE instead. Regardless of investing we all need to buy houses to live in. I may be in the market myself end of next year.

The lack of interest in RE among RE investors on this forum could be a bullish sign. Nationwide people think RE prices are soft. Maybe time to look for bargains

palo alto, or north los altos, right?

I thought the lack of interest is from bad price/rent ratios making it tougher to acquire rentals.

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That’s South Bay. Too hot for wife. Most likely millbrae aka Cupertino of the peninsula.

boo. ok.

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In the BA yes. Still plenty of deals in the exburbs.
Not many on here just looking to buy a home.
BA prices have peaked. Question is this a 2016 or 2006 scenario?
Won’t know till next year.

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Can’t afford the real thing?

CupertIno is too hot. And according to @notabene people are rude there. :smile:

But I am very impressed by the number of after school tutoring centers in Cupertino. Truly a tiger mom town.