Occassionally I help folks find a home to rent in Austin. The rental market is very tight and few homes come available. Often, there is competition for Austin rental homes and landlords get multiple rental applications, especially for the more affordable and desirable homes in certain neighborhoods. In fact, every potential renter I have helped this year has had to compete with others for a property. Because of strong demand for Austin rental homes, rents have increased in the past 12 months too, making buying more attractive than I have seen in many years.
Of course, down payment prevents some from buying, but with FHA, you only need 3.5% down, and that can come from a gift from a relative. One local bank has a 3% down payment program for certain professions and incomes that makes buying even easier for teachers and public service sector employees. Even the credit score requirement is fairly liberal. Closing costs can often be negotiated into the purchase price so that the seller pays them on the buyers behalf, resulting in very little cash needed to purchase a home. The stories floating around that 20% down payments are the norm is just not true. With 3 to 4% of the purchase price and reasonably good credit, home ownership is still very attainable in Austin, Texas.
Example: The southwest Austin neighborhood Legend Oaks offers 3 and 4 bedroom homes for about $250,000. That home can potentially be purchased with just $7,500 move in cost. The monthly payment on a 30 year loan would be about $1,900 per month. Renting this same home could easily cost $2,200 per month and require landlord deposits of up to $3,000. With just a few thousand more dollars, renters can be owners and enjoy a lower monthly payment vs. renting. In fact, the extra cash needed up front can be recouped in a little over a year through monthly payment savings AND buyers enjoy tax advantages that further decrease the cost of ownership.
The next time you think about renting, consider buying instead. Contact me anytime to see if you can qualify to buy an Austin home. As a lender and Realtor, I am uniquely qualified to answer all your home and loan questions and can usually get you preapproved in 24 hours.
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Jeff Harris, Realtor|Lender|Broker
Direct: 512-917-8142
Jeff Harris
Realtor/ Mortgage Broker
True Austin Properties
The leafy Deep Eddy neighborhood offers some of the most eclectic homes for sale in West Austin. In 1915, AJ Eilers bought land around a spring fed swimming hole in the Colorado river and built the state's first outdoor concrete pool. Now a public pool, it is still in use, not chlorinated, and still spring fed. It is a registered National Historic Landmark.
brought new construction of larger homes, and by 2000, much larger traditional homes were built along with a number of homes that celebrated the renewed interest in modern architecture. New homes are still being built around Deep Eddy today and many of the vintage bungalows and cottages have been renovated and expanded. Buyers like the lazy tree lined streets and gently rolling hills and awesome location near Downtown.
While all this physical built change is going on, the neighborhood retains its true Austin vibe. It's right in the city but still feels sleepy and original. I live in this area and love it for it's excellent central location 1 mile west of Downtown Austin and the quick access to Lady Bird Lakeand Mopac. Magnolia Cafe on Lake Austin Blvd. is open 24 hours with good food whenever you want it and one of my favorite margaritas (on the rocks with a splash of sangria) is at Maudie's Tex Mex right down the street.
Last week it was reported that Austin, Texas apartment occupancy has risen 3.5% since last year. Now 91% of Austin apartments are occupied. Since December, the number of occupied apartments in Austin has increased by 4,800. 88% of the additional occupied units were in "Class A" apartments. Rents rose 2% as fewer incentives are being offered and far fewer apartments are being built. Downtown, I have noticed that the generous incentives of 3 months free rent has been cut in half and occupancy in some Downtown Austin buildings is closer to 95% and staying there.
Although national real estate headlines and statistics may not look so good, the 