Austin housing bubble (real estate market, refinancing, house)

[Jimmyp25]

Originally Posted by Austin97

i vaguely remember reading that investors made up about 30% of houses purchased in 2021



The huge change in values will definitely hit investors and will shift more of the tax burden to investors over homesteaders.

my neighborhood i left back in october was basically a entire rental neighborhood. It was literally a revolving door. No sense of community. People came and went. It was horrible.

Id say that 65%+ of the houses were rentals. A investor even bought my house when I sold it. Good Riddance.

[Trainwreck20]

On the plus side, the investors have no homestead exemption and get to pay taxes on the entire increase in valuation, basically lowering homeowners taxes .

[atxcio]

Originally Posted by Trainwreck20

On the plus side, the investors have no homestead exemption and get to pay taxes on the entire increase in valuation, basically lowering homeowners taxes .

True, but they can deduct 100% of those taxes, to offset their taxes on income. Homeowners can only deduct 10K max due to the new SALT limitations. So the investors still kind of win.

[cheeva]

Originally Posted by Jimmyp25

my neighborhood i left back in october was basically a entire rental neighborhood. It was literally a revolving door. No sense of community. People came and went. It was horrible.

Id say that 65%+ of the houses were rentals. A investor even bought my house when I sold it. Good Riddance.

https://www.bizjournals.com/austin/n...-build-to.html
You aren't imaging things.

[ashbeeigh]

Originally Posted by cheeva

https://www.bizjournals.com/austin/n...-build-to.html
You aren't imaging things.

But these are built with no intention of buying. It’s different then investors going into new master planner communities and buying up streets full of houses.

[cheeva]

Originally Posted by ashbeeigh

But these are built with no intention of buying. It’s different then investors going into new master planner communities and buying up streets full of houses.

It's a different type of depressing. Yes.

[riaelise]

Originally Posted by Need4Camaro

Yeah. Prices are not going to drop short of a massive economic disaster. Level off is more realistic.

I have observed more price reductions and homes above 700k are sitting longer, whereas last year they were pending in a couple of days.

That being said, prices are still very high, so we're talking about a reduction of an already higher sales price.

The mortgage rates have impacted things for sure. It is costing more to borrow and many people still have mortgages, especially when the home is in the 700k-1M category.

Even in the sub $500k range, with a close to 5.7% interest rate, people will need to put a lot more down to offset.

[Austin97]

Originally Posted by atxcio

True, but they can deduct 100% of those taxes, to offset their taxes on income. Homeowners can only deduct 10K max due to the new SALT limitations. So the investors still kind of win.

it is essentially a transfer from federal to local. They still pay full local taxes even if they get a federal discount.

[ScoPro]

For Travis County land parcels, asking prices are still crazy.
The 50 acres that borders my 25 next to the CotA race track is going on the market listed at $9/sq.ft.

[done working]

Saw land next to a rv park go for $1m per acre over 20 bucks sq ft. Demand is still there