Austin’s real estate market is undoubtedly one of the best in the U.S. for a long time. Over years, it is continually attracting investors from other states who wish to enjoy business-friendly regulations in Texas but also a rapidly increasing number of job-seekers. How can you ride a wave of people who wish to settle in the Lone Star State capital? Simply, if you invest in rental properties in Austin. And if you’re wondering where to find the right property and how to benefit from this form of investment, luckily, the clues have never been more straightforward. As always, all good answers begin with good questions.
Why should you invest in rental properties?
Investing in real estate has always been one of the most ambitious investments one could make, but at the same time, one of the most cost-effective. As long as we need homes we will need rental properties – and there are five reasons you should invest in one. Rental properties provide
- convenient passive (or active) income.
- stable retirement income.
- available tax deductions.
- high return on investment.
- higher profit in more affordable cities.
A reliable source of income
If job-seekers are overflowing the city and the pool of renters is growing, you know that you have found the right location for your rental property. Moreover, an ideal source of income involves only as much work as it suits you. Being a landlord all but implies that.
Security in the retirement
It’s never too early to begin preparing for retirement. Which is one of the reasons why buy-to-rent residential loans are attractive especially if you plan on living in Austin. And it’s fairly obvious that the advantages are many, so the sooner you invest in rental properties in Austin, the sooner they will appreciate and the higher your profit will be. While there isn’t an entirely risk-free investment, owning and renting a property comes pretty close.
Variety of tax benefits
Favorable tax laws have always been a lure for investors. When it comes to property ownership, these benefits are even more pronounced. You can benefit from a plethora of tax write-offs aimed at real estate owners. For example, you can deduct repair costs or some interest rates and insurance premiums connected with your rental property.
A great chance for great ROI
It doesn’t surprise that lenders are eager to provide loans to all who have solid finances and a rental real estate investment plan. It is simply because this type of property has an excellent chance to result in great returns. For lenders and future landlords.
Follow the lead
Whenever you’re uncertain if it’s the right time for investment, look at what big corporations are doing. Small investors have more to lose but big players are keen on every opportunity to increase their capital. So, why not follow those who already spent resources to find the best place for investment? Giants like Apple and Tesla, to be precise.
Why should you invest in rental properties in Austin, now?
Austin is a leading destination for investors, big and small, for years and it seems that it doesn’t plan to slow down. There are again five good reasons for that. The capital of Texas has
- a strong and steady economy
- affordable properties and high appreciation rates
- a fast-growing population
- the most attractive Airbnb regulations.
- low loan interest rates.
No. 1 metropolitan city economy
Austin is topping all economic metrics for years in a row. So it doesn’t surprise that the demand for renting local housing continually increases and that it attracts people, as moving professionals from State to State Move claim. In such a strong city economy, investment in rental real estate documents minimal risks and results in major returns. You can invest in a rental property with the help of a rental loan that repays itself. As you receive rent, a part of it will go toward loan repayment.
Affordable property prices
Within the last year, we had to redefine affordability. People were required to make radical changes in their lifestyles. Those who found a way to adapt by shifting to remote work realized that the best way to save is to move to a less expensive residence, away from the city center. But what if the metropolitan city is affordable and liveable?
The good news is, Austin real estate is reasonably priced if you avoid the hidden costs when buying a home, that is. The better news is that it features quite appealing appreciation rates. Why is this important? The greater the appreciation over time the higher your return on investment. It gives you the liberty and a choice to do with your rental property whatever you wish – keep renting or sell it.
A lucrative Airbnb investment
There’s no stopping Airbnb in Austin now. However, controlling your Airbnb property may prove a challenge if you currently live too far from the capital of Texas. Moving closer to your rental property is a great way to directly perform your landlord role. If the idea of moving your home troubles you, know that you can get help relocating no matter how far you are from Austin. Rely on experts in everything you do and save time, money, and priceless energy.
Steady population growth
As giant corps settle in Austin, so do their (potential) workers. But there’s one more thing that this city offers to its residents: vast green areas for outdoor activities. Achieving work-life balance has become easy, which particularly appeals to millennials surging into the city. The pool of renters is expanding and it seems that Austin’s rental real estate market is future-proof.
Benefit from decreased interest rates
A vast variety of financing options, followed by significantly reduced interest rates, transfer from 2020 into the new year. These two factors make now a perfect time to invest in rental properties in Austin. You can choose a tailored financing plan and profit from discounted interest rates. And besides, applying for a good loan and making your rental house sustainable has never been more simple. Being at the right place (Austin) and the right time (now) makes an investment prosperous. Hopefully, you have grasped why you should invest in Austin rental property now of all times.