The real estate market in Austin is arguably the best in the nation. The city’s laid-back lifestyle, natural outdoor beauty and strong job market are just some of the factors that make homeowners flock to Austin and their average rent prices for a big city.
That being said, there are some important factors you should consider before investing and things you should know about the real estate markets from single-family homes to other residential properties. The key among these is the location.
The right location can make all the difference in property investing. It determines whether a property generates handsome profits consistently or whether it does the exact opposite.
With that in mind, here are the 5 best Austin neighborhoods to consider when investing in Austin, Texas.
1. Dripping Springs
Home to just over 4,600 residents, Dripping Springs is an oasis for families living in the Austin area. It offers big-city amenities and has a small-town feel.
The neighborhood is known for many things. First and foremost, it’s known as the wedding capital. It’s home to over 35 wedding venues within just a seventeen-mile radius. Many couples go there to exchange “I do’s” near the amazing attractions spread over the area.
Dripping Springs is also one of the top destinations in the state for craft distilling. The ingredients used in these distilleries are hand-selected. Some of the popular distilleries in the area include Stinson Distilling, Desert Door Texas Sotol, Frog Pond Distilling, Treaty Oak Distilling and Deep Eddy Vodka.
2. Round Rock
A pleasant family environment, abundant amenities, top-rated schools and the presence of numerous employers make Round Rock a top investment destination. There are many single-family homes available to invest in.
Round Rock is located about 20 miles from Austin. It is estimated to have a population of about 120,000 inhabitants. Once known as a sleeper one of Austin’s suburbs, it has grown to become a booming neighborhood, surpassing other Austin suburbs.
From healthcare to tech, it;s is home to major employers. These include Hospira, TECO-Westinghouse, Emerson, and Dell. With such employment heavyweights in the area, there is no doubt Round Rock is an employment hub.
There are various types of homes in the neighborhood. They range from those built in the 70s and 80s to the recently built modern ones. Whether you’re looking for single-family homes or apartments, Round Rock has something for you.
The neighborhood is also conveniently located beside abundant outdoor experiences, making it a top spot for investors.
What’s more, Round Rock has a much higher safety score than many parts of Texas. In fact, in a recent survey, 90 percent of residents reported feeling safe in the neighborhood.
3. East Austin
The East Austin neighborhood is an older section of Austin. As such, it’s a mix of historic and new construction and appeals to many aesthetic tastes. It’s conveniently located near downtown Austin and the University of Texas.
Martin Luther BLVD and Manor Rd are some of the most sought-after areas by UT students. So, if you’re thinking of investing in either of these areas, consider providing student accommodation.
4. University of Texas – Austin
The University of Texas is, without a doubt, a major asset in the city of Austin. It boasts of a population of no less than 50,000. Within a 5 mile radius of UT, there are about 10 neighborhoods.
Obviously, the big population of students influences the local business and environment.
One of the most sought-after areas for off-campus living is the West Campus area, which has a population of around 17,000 people. Again, offering student accommodation is a no-brainer if you’re thinking of investing in this area. Investment property taxes are similar to the national average.
5. South Austin
South Austin consists of small neighborhoods awash with a wide variety of attractions. These include entertainment districts, popular outdoor recreation areas, coffee shops, bars and restaurants. As you can tell, these attractions are popular with singles, students, families and young professionals.
Some of the small neighborhoods that make up South Austin include:
- Travis Heights: this offers convenient access to downtown Austin and is one of the oldest neighborhoods in Austin. It has more than 20,000 homes consisting of apartments, condos, large historic homes, and newly built modern houses.
- Barton Hills: this neighborhood is popular with professionals and young families. Most homes here were built around the mid-70s. Barton Hills is one of the trendiest in the South Austin real estate market and has many single-family rental homes.
- Zilker: thanks to being accessible to various outdoor destinations, Zilker is popular among outdoor enthusiasts.
Renters in these areas have a wide array of rental options. What’s more, over 60% of residents in South Austin are renters.
Now that you know where to invest in Austin, what’s next?
Once you have settled on a location, whether it be downtown Austin or elsewhere, there are a few other things you’ll also need to consider. Austin has some of the best real estate markets in the country, but that doesn’t mean you don’t have to do your research.
First and foremost, you’ll need to consider your budget. How much would you be willing to spend to buy a home? Knowing this will enable you to figure out what rental property type you can afford. For example, it could be a studio apartment, a 2-bedroom apartment or even a villa.
Another thing you’ll have to consider is the expected return on investment. Ask yourself how much you can realistically expect to get as a profit.
Thirdly, you’ll need to consider how you’re going to finance the property. If it’s through a mortgage, you’ll need to research the various lenders available.
And fourthly, you’ll need to consider whether you’ll be going for a fixer-upper or a move-in ready property. Have you ever done an extensive home renovation project? If so, buying a fixer-upper can be a good option for you. However, if you have never done this, buying a move-in ready/rent-ready property would be in your best interests.
There are many great reasons to invest in real estate in Austin, Texas. But in a competitive real estate market, it’s important to know just what you’re looking for.
Location is undoubtedly crucial when it comes to real estate investing. Thanks to a combination of factors, investing in Austin’s real estate can be lucrative.
Among other things, the job market is strong, it has a laid-back lifestyle and there are endless attractions! Invest in Austin’s rental market and you won’t regret it!