Properties for Sale Can Be Good Homes, Investments, or Both!

What’s the difference between any home and what is called an “investment home”? Generally speaking, they are properties for sale that are purchased in the expectation that their underlying value will appreciate. Whether you choose to live in an investment home or rent it out, the prospect of growth in its value is the determining factor. (You’d be right to notice that if you can rent it for more than its cost, it’s also a good investment – but kindly forget about logic, we’re talking real estate lingo here). For purposes of this discussion, an “investment home” is one whose underlying value grows over time. Next question: how do I find one of those? While there is no fail-safe way to isolate Austin area properties for sale that will guarantee you can just sit back and watch it increase in value, there are rule-of-thumb characteristics that point to homes and neighborhoods that can help investors predict the direction of future value. Some of them are – • Look at homes in an area that shows steady population growth • Look for above-average rental prices • Pay attention to the infrastructure in the area (and avoid properties in under-maintained neighborhoods) • Avoid homes in the top 10% of the price range • Build a lasting relationship with a good real estate agent who will ultimately be able to help you decide when to sell • Choose a home that isn’t in need of major structural repairs About that last point: when you are searching for properties for sale in Austin, you should expect to do some maintenance and renovation work. An investment home’s value can take the biggest leap when a new owner applies a bit of smart fixing-up to enhance its livability while forestalling long-term maintenance issues. Not all properties for sale in Austin are good candidates to qualify as investment homes – even those that would provide excellent accommodations for your family. However, when you target investment value from the start, the financial rewards can be well worth the scrutiny. So…how else can you find one of those? Short answer: call us today!

Austin, TX Homes for Sale Search All Homes For Sale What is Your Home Worth? Austin Real Estate Goldwasser Real Estate 512-470-2277 info@gretx.com

Austin Investment Properties Offer Long Term Potential

Never mind what those TV get-rich-quick infomercials would have us believe: building long-term wealth requires focus and patience. Patience, because a steady growth is a more reliable strategy than flashier single investment ‘wins’ — and focus, because opportunities slip past when daily demands soak up all our attention.

For financially secure individuals, current real estate trends deserve some attention. Right now we have an environment that may be unique in our lifetimes — one that calls for seriously considering the long-term potential investment properties offer. If you agree that investment properties in Austin are worth investigating further, you will discover multiple financing alternatives:

• Finding a mortgage for Austin investment properties is the choice most people think of first. However, since the lending market is still in recovery mode, it may be a while before most down payment requirements drop below 20%-30%
• By setting up a self-directed IRA, you may be able to make investments through your existing savings. Such investments come out of your IRA, and the profits generated remain there and grow tax-free until you retire. There are limitations to this method of financing: don’t rely on this route until you have sought the advice of a qualified financial advisor or your tax attorney.
• For anyone 62 or older, an idea that is not often considered is the reverse mortgage. The object is to allow you to access equity from the property you currently own without having to sell it. Unlike a regular mortgage, the equity released need not be repaid until the mortgaged property is sold or the borrower dies; but it may be repaid with the interest accrued without penalty at any time.

To be sure this or any of the other financing paths work to your advantage, you’ll need a sharp pencil — and guidance from a reliable licensed financial counselor. If you’ve already been thinking that the time is right to start or grow your investment portfolio through the purchase of real estate, contact me for hot leads on some of today’s best investment properties in town.