Over the last few years, Austin, Texas has been receiving tons of buzz—and for good reasons. This capital city has had a booming real estate market and now holds the title of the hottest real estate market in 2017. Many families, students, startups, and budding business owners are looking to relocate to Austin. If you’re a real estate investor, look no further than Austin as one of the best locations to invest your money in this year. Here are the top five reasons not to miss this real estate opportunity.
- Homes values are rising steadily
Over the last ten years, Austin’s homes values have risen by 64 percent, making it the highest increase across the United States and beating out rival cities by almost 20 percent. That mean that if you’re looking for a real estate market with a high ROI (return on investment), then Austin is right up there on the list. Considering the city’s excellent livability score and friendly Southern charm, buying a new home in Austin will not just be a savvy economic investment but also a personal one.
- Historically low mortgage interest rates
Even though the city is growing more populous every day, mortgage interest rates in Austin are still historically low. This has encouraged many more Austin residents to become homeowners, which has caused a spike in the city’s real estate market. This is a huge opportunity for real estate investors as they won’t have to wait several months just to find the right home buyer. As many more people relocate to Austin, the city’s real estate market will continue to be a big hit and the earlier you invest, the higher your chances of getting a better ROI.
- Increased loan limits
Right at the start of 2017, home buyers in the Austin area have had more purchasing power because of loan limit increases for many loan products. VA and Conventional loan limits rose from $417,000 to $424,100. In areas like Austin-Round Rock, single-family FHA loan limits rose from $333,500 to $361,000. This means many more people living in Austin are now more financially equipped to become homeowners rather than just renters, which makes it the perfect time to invest in Austin real estate.
Guess what’s growing faster than Austin’s population? Its businesses! Over the past nine years, about 307 businesses have relocated to Austin, according to the Greater Austin Chamber of Commerce. Austin is also a tech hub with industry giants like AMD and IBM as well as smaller startups generating many more jobs for the city. Other booming industries in the Austin area include biotechnology and pharmaceutical companies, education, independent local companies, and municipal services. As the city’s business sector is booming, many more people will relocate to Austin—and they’ll be in need of a place to live.
Education is at the top of the priority list for many aspiring homeowners. Fortunately, Austin boasts many great public and private colleges like Huston-Tillotson University, University of Texas at Austin (UT), St. Edward’s University, and Concordia University. Texas also has an outstanding public education system, with a high school education graduation rate of 88%. That huge success rate is second only to Iowa. So if you have kids leaving the nest in the next few years, or even if you’re thinking more long-term, Austin is a great place to invest in your children’s future.