The Austin Board of REALTORS (ABOR) reported in their January 2017 Market Statistics that inventory remains at all-time lows; “the inventory of single-family homes priced under $250,000 is now less than 1.0 months of inventory in many local markets.” While low inventory makes finding rental properties for purchase challenging, limited housing contributes to high rental rates and limited vacancies. In sum, with the help of a great real estate agent, you are likely to find an ideal property for real estate investing.
Investors Still Attracted to Austin Real Estate
As a result of the current real estate conditions in Austin, Austin real estate investing continues to be increasingly popular. David Brodsky, principal at David Brodsky Properties, points out that “high rental demand leads to higher rent. Consequently, investors should see the cash-on-cash returns they require on their investments.”
Flexible Financing Options Available
Most homebuyers assume they need to provide a minimum down payment of 25% for investment property financing. Today, lenders like Leaman Team offer investors down payment options starting at 15% for up to 10 properties per borrower. Most lenders limit four loans per borrower due to investor overlays; however, as a direct seller to Fannie Mae, Leaman Team is not subject to the same investment loan overlays.
Interest Rates Still at All-Time Lows
Historically, today’s interest rates are at a record-setting low, although rates may see a rise by the end of 2017. To put this in perspective, the average interest rate in the year 2000 was over 8%, 1990 was over 10%, and 1980 was over 13%. By acting now, you have an opportunity to purchase an investment property at one of the lowest interest rates in history. By waiting, you may see interest rates rise 1% or more in the next few years.
If you have questions about real estate investing, please contact your David Brodsky Properties team for assistance. Leaman Team is available for assistance with investment property financing for purchase, refinance and renovation home loans.
Max Leaman is Branch Manager/Sr. Loan Officer with Leaman Team at PrimeLending, A PlainsCapital Company. Since 2001, Leaman Team specializes in a stress-free home loan experience. In 2012, 2013, 2014, 2015 & 2016, Austin Business Journal ranked Leaman #1 Lender in Austin. Offering Conventional, FHA, USDA, VA, Jumbo, Condo and Renovation loans, to name only a few loan products. Leaman Team closes most loans in only 3-4 weeks and assists with loan emergencies. NMLS: 151263. Equal Housing Lender. Visit us online: www.MaxLeaman.com