I was watching the local news last night, and they did a short segment on the area housing market. Basically, it was the same old "real estate market is undervalued" mantra, but one thing stuck in my head. The reporter was asking a local Realtor® a few questions, and ended the segment with a question "The bottom line?" to which the Realtor® answered "If you are going to buy a home in central Texas, now is the time." Now this wasn't really news to me or others in the local area, but it did drive home a simple fact: the Texas real estate market is poised for a boom. Appreciation rates have been pretty stagnant the last five years, and only now are seeing positive growth. One local investor I spoke with recently said market appreciation has averaged about 4% since last year, which seemed rather high to me from what I've seen. While I am not big on speculation, I do think that now is the right time to buy real estate in the Austin metroplex. I've seen a lot of growth in the area in the last year, and with the addition of Highway 45 and TX130, things will only get better.
Maybe I shouldn't be passing on some of these deals so quickly. :-/
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4 comments:
No, I think you're doing the right thing. Bottom line, speculating for appreciation is like gambling. That's not to say, it isn't a good way to make money in real estate! But, I prefer to let any appreciation we receive on a property of ours be icing on the cake! You should always have cashflow in the forefront of your mind when purchasing a property--always.
Thanks Trisha! I hope I have the will power to control myself IF the market takes a quick turn upward here. You are definately right about positive CF from the outset. It has saved me on several deals thus far.
I don't disagree that now is a good time to buy real estate in your market. But from a Realtor's perspective, isn't now always the best time? ;P
trisha, it's so refreshing to finally here somone want to make money on more than gambling for appreciation.
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