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Advice for Austin - Rent vs Buy

1,777 Views | 14 Replies | Last: 1 yr ago by 12thMan9
Millner5220
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Family and I are going to be relocating there for work for minimum 2 years. Could be more long term, but I'd put those chances around 33%.

Work is going to be giving a healthy per diem package, we could rent a place around $3250/month from what I've seen and be happy.

Conversely we like the idea of buying, if the market continues to grow. The houses though that we like are in the $650-700k range, so that mortgage is Closer to $4300/month. And that's with 20% down which we can do (also welcome advice there: should we throw that much in or more?)

But if it's only for 2 years, Do you think the volatile market make it worth it to sell the house later and know we'd still cover the delta from the down payment and the approximate $1k additional in renting.

Also we'd be looking closer on the north side of town, round rock and Georgetown areas.

Thanks
Medaggie
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2 Yrs rent. With the high interest rates, carrying costs, property tax you will neg NOI every year using it as a rental.
Matsui
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Rent
Red Pear Felipe
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My advice would be to rent unless your expected hold is 5 years or more. If you have little ones, I'd also recommend looking at a house to rent that feeds into Leander ISD. Look for something around the Vista Ridge HS area.

I'd be happy to find a rental home for you whenever you are ready!

felipe@myredpear.com

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JP76
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Rent

600-800k houses were 300-400k 1- 1.5 years ago. I saw houses drop 20-30% in the austin area in months back in 2000-2001 as the foreclosures started picking up. Also you will see the rent drop as people get desperate to cover notes instead of letting the bank take the property. What is different this time is that housing had a steady increase then versus a parabolic move that has happened in the past 20 months. Couple that with much higher taxes and i know a lot of landlords are sweating have to pass it down by raising rents on existing properties.
Martin Cash
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You couldn't pay me to live in the City of Austin.
Keeper of The Spirits
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He didn't really ask about Austin, Round Rock and Georgetown are not really Austin. The burbs will be hit harder by any pull back than Austin will but the supply is still real low here, the job market is on fire, and rent is only going up, sign a multi year lease if that's the route you go
The Silverback
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When you factor in closing costs for financing/buying as well as when you go to sell you would need quite a bit of appreciation just to break even on the deal.

That being said, if you had a way to retain the house after 2 years and turn it into a rental it might end up being a good deal for you?
SteveBott
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The basic transaction cost to buy and sell are roughly 2.5% on the buy and up to 8% on the sell. So 10.5%.

The market is hot and getting 10% annual growth…for now. No guarantees that stays constant. 2 years is a very narrow window to recoup those costs.
Red Pear Realty
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SteveBott said:

The basic transaction cost to buy and sell are roughly 2.5% on the buy and up to 8% on the sell. So 10.5%.


Not if you buy and/or sell with us!
Sponsor Message: We Split Commissions. Full Service Agents in Austin, Bryan-College Station, Dallas-Fort Worth, Houston and San Antonio. Red Pear Realty
Millner5220
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Thanks all for the comments and feedback. Know the smart move of course is renting as everyone said.

Curious on the groups thought on if you think Taylor Tx is primed to make a big jump as much as the rest of Austin area, or more, or less? Know it's always been further out but with the huge Samsung plant moving in there does that accelerate it's market faster than even Round Rock or Georgetown area?

Thanks all
WestTexasAg
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Millner5220 said:

Thanks all for the comments and feedback. Know the smart move of course is renting as everyone said.

Curious on the groups thought on if you think Taylor Tx is primed to make a big jump as much as the rest of Austin area, or more, or less? Know it's always been further out but with the huge Samsung plant moving in there does that accelerate it's market faster than even Round Rock or Georgetown area?

Thanks all
That's a good question. My personal opinion is the east side of Hutto will blow up first.
Red Pear Felipe
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https://www.kvue.com/article/money/economy/boomtown-2040/samsung-taylor-community-reactions/269-e6061f80-4650-4775-826b-06abdef6a511
Sponsor Message: We Split Commissions. Full Service Agents in Austin, Bryan-College Station, Dallas-Fort Worth, Houston and San Antonio. Red Pear RealtyAustin Monthly
The Silverback
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Millner5220 said:

Thanks all for the comments and feedback. Know the smart move of course is renting as everyone said.

Curious on the groups thought on if you think Taylor Tx is primed to make a big jump as much as the rest of Austin area, or more, or less? Know it's always been further out but with the huge Samsung plant moving in there does that accelerate it's market faster than even Round Rock or Georgetown area?

Thanks all
No point to mess with Taylor unless you don't want to live in Austin, don't have the budget for Austin or just like small towns. While I am sure Taylor will appreciate just fine its all relative, generally speaking the closer you are to town the more appreciation
12thMan9
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Millner5220 said:

Thanks all for the comments and feedback. Know the smart move of course is renting as everyone said.

Curious on the groups thought on if you think Taylor Tx is primed to make a big jump as much as the rest of Austin area, or more, or less? Know it's always been further out but with the huge Samsung plant moving in there does that accelerate it's market faster than even Round Rock or Georgetown area?

Thanks all
You didn't mention what you would be doing or where. Taylor is a little over 30 miles to Austin, so you would, one would suppose, factor in your windshield time.

I don't care, I would not want to live in or near Austin.
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