The Carvajal Group Blog

Build Real Wealth with Real Estate

June 3rd, 2011

You see, never before have rental rates been so high in Austin, Texas.  The rapid increase is due to a number of factors including the growing population and low consumer confidence.  Many people are moving from all over the country to Austin, Texas because of available jobs and affordable cost of living.  However, as these people migrate from other parts of the country that were hard hit by the most recent economic downturn, most are afraid to purchase.  Many lost their homes or saw friends and family get wiped out and thus are reluctant to pull the trigger.

However, as we all know, everything is cyclical including consumer confidence and the Austin real estate market.  As rental rates continue to rise and interest rates remain at record lows, the pendulum must shift creating a buying frenzy.  But that has not happened yet!  Thus the time is perfect to purchase real estate in Austin and build real wealth.

You see, renting a property is becoming more and more expensive relative to the cost of ownership and in fact is surpassing the cost of ownership as we speak.  I have personally been selling real estate in Austin since 2002 and never have I seen a market in which you can buy for less than you can rent.  I have also never seen so many jobs created in Austin, Texas, such a strong desire to live in Austin, Texas, or such a promising future for Austin, Texas.

Wealth is created through savings and investment.  Rather than throwing away dollars each month in rent, one can put that towards a loan to purchase an appreciating asset.  Land is a scarce resource and even scarcer is land in central Austin.  As more and more people desire to live in this city, the value of Austin real estate will increase.  The difference in buying vs. renting is not just apparent in the difference in actual month to month cost but also in the opportunity for appreciation that is gained or lost depending on the road one takes.  The property you buy today can be your retirement for the future.

If you take a look at some of the wealthiest individuals in the world, they do not rent real estate and they did not get their renting real estate.  They invested in real estate and used their purchasing power to buy real appreciating assets when the cost was affordable.  They continue to purchase real estate still today.

People are so afraid of the risk associated with owning real estate which is liquidity but really all that means is that one must stay put at times when one may desire to move.  The rental market in Austin has been and always will be strong enough that one can always rent out their property if they need to move.

It is my recommendation that anyone with a salaried job in Austin contact a mortgage professional today to discuss the costs of owning real estate and get prequalified to buy.  There is no commitment or obligation required and going through this process is 100% FREE.  If anything you will get a wealth of knowledge about buying real estate in Austin.  Even if you think you cannot buy or are afraid to buy, talk to someone because I really believe you will be pleasantly surprised at the outcome.

For a recommendation on a mortgage professional in Austin, Texas or for assistance with your Austin home search, contact our team today at (512) 419-7770

Put your money to work!

Tags: Austin Home Search · Austin Real Estate Market · Buying a home in Austin