How much will your home rent for?
When it comes to property in Austin, Texas there’s a lot to take in. Real estate is booming and the job market is ripe with opportunity. It makes sense to live in the area, but if you’re looking for a change and want is it better to go ahead and move to a new house or renovate your current one? The answer is an obvious one, but one that is often overlooked; move to a new home and rent out your current one. Here are three reasons why you should go about your property business in this fashion.
1. Less Expense – Renovating costs a lot of money, and often people find themselves moving anyway. With the real estate prices being some of the best they’ve been in years, it’s a much better option to just go ahead and relocate, while keeping your current property and turning it into an income property. Most homes don’t need any major updates or renovations to make perfect income properties, so very little expense is put into the property. With the right planning and marketing, you can cover the costs of your rental and make some money off of it as well, so you don’t have to worry about two house payments either. On top of that, there are tax benefits to owning a rental property, meaning that you’ll be saving even more money than you were before.
2. Population Growth – With the job market as fresh as it is in Austin, as well as the student population always looking for housing, you’ll never be short of people wanting to rent your house. Quite a few people who move to a new area to work, or for school, aren’t looking to buy a home right off the bat. They want to get to know the area a bit more and find a perfect location to settle down. Rentals are the best way for them to do so, and you can offer them that perfect starting point. There’s no need to worry about your house sitting empty when you’re located in as bustling a city as Austin. What kind of renter you’ll have also depends highly on where you’re located. Students will be looking near the University, business workers will be looking for a home near their jobs (usually in neighborhoods that are near the industrial parks), and families tend to look in the suburbs.
3. Very Little Work Needed – There’s very little effort on your part when it comes to renting out a home. The most you need to do is make sure your house is in living condition and then find a renter. The rest is just earning some passive income, on your part. On top of that, house values are increasing, so when you are ready to sell in the future, your home has increased in value without you needing to do anything to it. And having someone paying you rent has, most likely, helped to pay down any remaining mortgage left on that property, allowing you even more income from a future sell. (Or, if you don’t sell, and the mortgage is eventually paid off, you gain all of the rent money as income.)
If you’re looking for a change, don’t bother with a costly renovation, relocate and make an income by renting out your property. You’ll find the experience to be worthwhile, the income to be a great boon, and the added bonus of having a security blanket to fall back on if you ever need to move back to your previous area. It’s an all around win to own an investment property in Austin. Learn more about investing in Austin by contacting us today. We’re always willing to answer any of your questions regarding becoming a landlord and owning a rental property in our great city.