If you are planning on investing in the Austin Real Estate market in 2023, this guide is for you. We’ll be taking a look at nine tips that will help you succeed with investing. What you’re looking at is one of the hottest real estate markets in the entire country.
The sooner you jump on the opportunity, the better. It’s important that you make sure you’re able to follow these tips so you can increase your chances of success. Nothing is guaranteed, but you can be able to find your own success even if you’re new to investing in real estate. Let’s get started with the following list of tips below.
1. Find a realtor who can help
If you are new to real estate investing, you’ll want to connect with Austin realtors who know the area. One of them is Teifke Real Estate. They’ll be able to help you find the properties you want so you can invest in them and get the best return possible.
However, you won’t get a good ROI if you are unable to follow the rest of the tips below. Let’s take a look now at the others so you can get a better understanding of what you need to do.
2. Understand the current market trends
This is where you’ll want to zoom in from the national real estate market. Local markets may differ from one community to another. It’s important that you consider doing your research on the current market trends regarding real estate in the Austin area.
The more you understand, the more equipped with intel about the Austin real estate market you’ll be. It will also help you when you follow this next tip we’ll share. Let’s just say this will be the most vital part of your real estate success going forward.
3. Do your due diligence
Due diligence are two words that should be embedded in your head. Especially if you are investing in almost anything other than real estate. You will need to do your research about a certain area of Austin.
This includes what neighbors are saying about the area. This also includes other nuggets of information such as the proximity of highly rated schools, nearby amenities, or average commute time among others. This will give you a good idea of who your ideal tenants should be.
If you are investing real estate in a suburban neighborhood, your ideal tenants may be people with families. It can be married couples with children who want to live near a school. They may also want to live close to the downtown area where they can find things to do.
Of course, they want to live in an area where it’s safe. Safety and security, especially for children, should be a top priority for your ideal tenant. Properties in an ‘unsafe area’ will not bode well for your return on investment.
Doing your due diligence will make the difference between a good investment from a bad one. Not doing this will cause more harm than good. We highly recommend that you perform it with every property investment opportunity you’re looking at.
Yes, the desire to increase your income is there. However, you need to be patient. You also need to be careful with what you’re getting into.
4. Know which properties are desirable (and what isn’t)
What’s the difference between a desirable property from one that isn’t? Let’s take a look at the following. There are two properties: both single family homes.
The first one has a nice sized front and back yard. It’s about five minutes away from the downtown area and close to mass transit stops. It’s also close to a school and a park for the kids.
The second one is close to an airport. There is a front yard, but it’s close to a busy street. The backyard is a bit small.
So which is which? If you chose the first one as the more desirable property, you’re right. The second one is noisy and unsafe.
You’ll want to decide what makes a property a good investment from one that is bad. This way, you’ll make it easier to purchase a property or pass it up.
5. Keep your eye on the real estate market
Real estate market trends change. So it’s important that you keep an eye on it at all times. This can make the difference between acquiring more properties or selling them.
Making the right move can make a huge difference in your return on investment. One wrong move can cause you to miss out on something greater. You’ll learn that now may be a time to acquire a property (or sell it at a higher price point).
6. Know your financial options
Whether you’re in Austin or any place else in the country, you have financial options for purchasing properties. It’s important that you are able to meet the requirements for conventional loans provided by lenders.
Not all requirements are the same. They vary from one lender to another. One of those factors may include the credit score.
Keep in mind that you also have hard loans to consider. So if you don’t qualify for conventional loans yet, you can put those to good use.
7. Familiarize yourself with surrounding communities
You might not be able to snag your first property in downtown Austin. And that’s OK. You may want to consider branching out in the suburbs such as Round Rock.
Familiarize yourself with these communities. Learn about their real estate markets, neighborhoods, local economy, and so on. This will help you get a good understanding of who lives in the area and perhaps draw a bare bones example of who your ideal tenants should be.
8. Watch for economic trends
Austin’s economy is growing and looking good. It’s important that you keep an eye on it, even if it seems boring and shows little movement on the needle. This will help you decide on whether you should purchase more properties, hold on to them, or sell them.
9. Slow and steady wins the race
If you are new to real estate investing, know that rushing into things is not needed. You’ll want to be slow and steady when it comes to growing your portfolio. You may run into properties that are not worth acquiring.
You may find a hidden gem in the Austin area that no one seems to see. No matter what, don’t give up. Austin has real estate opportunities and they might be hidden in plain sight.
No matter what, be patient and keep doing your due diligence.