Thought about investing lately? No, not your 401(k) or mutual fund.
Investing in real estate.
There’s a tremendous opportunity right now to become a real estate investor here in the Austin area for multiple reasons. And it’s much easier than you might think. In fact, it’s a very simple process. Rental properties are evaluated just like any other single family home and all you need is at least a 15% down payment.
Why should you invest in real estate?
Home values in the Austin area continue to rise. According to the most recent information from the Austin Board of Realtors, the median price for single family homes is 10% higher compared to the same period last year. Can you name any other type of investment that provided such a return? Plus, your equity is secured by a first lien. Unlike other types of investments, your rental property value will never drop to zero!
Another motivating factor is the current state of interest rates. Interest rates for rental properties have been so low for so long that rental payments cover the mortgage, property taxes, insurance and maintenance costs in most cases. Rental rates in Austin are also on the rise meaning the rents take care of your loan, maintenance costs, and you’re actually making money, or cash flowing, each month.
Here in Austin, there has been considerable interest in investment properties and rightly so. The combination of low rates and higher rents make investment real estate a very attractive option. In addition, if the property you buy currently has tenants, the lender can use the rental income to help qualify for the new loan. And speaking of financing, these low rates are fixed, not adjustable, so your cash flow and equity will continue to grow well into the future.
This article is sponsored by Tera Gilbert of New Penn Financial. If you’ve been thinking about investing in real estate here in the Austin area or want more information, contact Edwin Lui or Tera Gilbert for a free consultation. There may never be a better time to buy a rental property in Austin than right now.