Some November 2021 Real Estate Stats (San Antonio, Austin: rent, houses, purchase)

[atxcio]

Steve, what do you think about the increasing amount of out of town investors in the market? I’m slightly concerned, because they are counting on those huge appreciation numbers, that’s the only reason they are in. If even a small drop happens, I could see the investor component paring down significantly, which could add to the drop.

[Need4Camaro]

Originally Posted by atxcio

Steve, what do you think about the increasing amount of out of town investors in the market? I’m slightly concerned, because they are counting on those huge appreciation numbers, that’s the only reason they are in. If even a small drop happens, I could see the investor component paring down significantly, which could add to the drop.

My guess is the investors who already possess property will probably hold off until 'on-season' before making an irrational move. It may slow new investors from snagging up properties though.

[cheeva]

Originally Posted by Need4Camaro

My guess is the investors who already possess property will probably hold off until 'on-season' before making an irrational move. It may slow new investors from snagging up properties though.

Austin is still a safe bet to hold. It sounds like new investors may turn to SLC or other hot markets next year.

[anjalisarinna]

Originally Posted by cheeva

I hope not, that would be a 25% decline from 2021. I don't think that's what you meant though.

My thought process was that we're not going to have a steep "fall off the cliff" level of decline. I am happy that the market is "correcting" those who are overreaching with the sales prices of their houses (i.e. the 'greedy sellers' Steve's mentioning).

[TexasHorseLady]

Originally Posted by cheeva

THL. I would suggest that you sell it to Ashbeigh for what you paid originally (adjusted in 2021 dollars) under the condition that she not tear it down.

You could also agree to rent it to ashbeigh, and only charge enough to cover your yearly taxes, which would be around $1,300/month.

Already rented to people we consider family who we know will take care of it.

Forgive me if I choose not to take advice on anything at all from you.

[Need4Camaro]

Originally Posted by TexasHorseLady

Already rented to people we consider family who we know will take care of it.

Forgive me if I choose not to take advice on anything at all from you.

Not exactly trying to be that guy. I empathize with the emotional aspect of your cause of Austin’s changing character, but I can’t quite empathize for the principality of someone getting upset over the rising costs on the Austin area while she’s holding onto property and selectively renting it out… no offense but… it doesn’t support your case at all if the rising costs are a big issue for you. If preserving Austin’s character is an issue then that is a better case but keep in mind places like San Francisco and Boston did very similar things by trying to retain the architecture and character of the city which hendered new inventory and we all see how that turned out in terms of home values.

If you want to preserve the old Austin, you can’t complain about how expensive this place is becoming, you’re every bit apart of the problem and in no way different than any investor in terms of the effect on the market.

[TexasHorseLady]

Originally Posted by Need4Camaro

Not exactly trying to be that guy. I empathize with the emotional aspect of your cause of Austin’s changing character, but I can’t quite empathize for the principality of someone getting upset over the rising costs on the Austin area while she’s holding onto property and selectively renting it out… no offense but… it doesn’t support your case at all if the rising costs are a big issue for you. If preserving Austin’s character is an issue then that is a better case but keep in mind places like San Francisco and Boston did very similar things by trying to retain the architecture and character of the city which hendered new inventory and we all see how that turned out in terms of home values.

If you want to preserve the old Austin, you can’t complain about how expensive this place is becoming, you’re every bit apart of the problem and in no way different than any investor in terms of the effect on the market.

You have no idea what rent we're charging, just for a start.

[Need4Camaro]

Originally Posted by TexasHorseLady

You have no idea what rent we're charging, just for a start.

It doesn’t matter what rent you’re charging. The issue is you’re holding onto a property which someone else could potentially live in. This boosts the value of available properties within its vicinity higher because your property is not available to purchase and in selective cases even rent. You have a right to do this, I’m not condemning the act, but I am explaining that it creates just as much of an ripple and effect on the local real estate market as any investor would.

[ashbeeigh]

Originally Posted by Need4Camaro

It doesn’t matter what rent you’re charging. The issue is you’re holding onto a property which someone else could potentially live in. This boosts the value of available properties within its vicinity higher because your property is not available to purchase and in selective cases even rent. You have a right to do this, I’m not condemning the act, but I am explaining that it creates just as much of an ripple and effect on the local real estate market as any investor would.

Not everyone is in a financial or life position to purchase a home. (Which you seem to regularly forget). You also don’t know where in the area the home is to even guess if it’s an area where the real estate is hot. It’s serving THL just fine. (Also tried to rep you but I couldn’t). She never asked for financial/ real estate advice and was just sharing her experiences in real estate in Austin.

[Need4Camaro]

Originally Posted by ashbeeigh

Not everyone is in a financial or life position to purchase a home. (Which you seem to regularly forget). You also don’t know where in the area the home is to even guess if it’s an area where the real estate is hot. It’s serving THL just fine. (Also tried to rep you but I couldn’t). She never asked for financial/ real estate advice and was just sharing her experiences in real estate in Austin.

She plainly said it was in Barton Hills. If it’s anywhere in the Austin metro we can easily assume it’s experienced rapid appreciation.

Also I havent forgotten anything. What the error is, is understanding communication… I’m perfectly aware of the problems you address but I do not argue based on emotions and feelings. Feelings are variable and too subjective to construct logical and firm arguments. They vary too widely, and most importantly, they have no foundation. I argue based on principals. In terms of principals, nothing has been stolen from these people. As I’ve stated before, housing is not an entitlement. We were never gaurunteed housing. We make adjustments necessary to obtain what we want in terms of housing. I’ve had to do this, and I came out of a hole of which I thought was practically inescapable.

If it’s serving THL fine, that’s well within her cause, but her cause does not make her better than the greedy investors she accuses. She produces the exact same effect on the RE market, just in a different method.