Austin Is An Opportunity

I ran across an article on Yahoo News Where The Richest People Live by Vanessa Wong, who based her article on information from Andrew Schiller, founder and chief executive of NeighborhoodScout.com   I really was not interested in where the richest people lived in this country but as I scanned the article I noticed Houston and Austin were mentioned.  River Oaks in Houston holds the title for the most expensive homes in Texas and then he mentions little ole Austin, which holds many titles, but not for the most expensive homes. Schiller notes that Austin real estate could have those high price tags. This information combined with all the TITLES (Green, Young, Jobs, etc.) Austin does hold -- should continue to fuel the city’s growth. 

 

Excerpts from the article:

“Size and style can determine much of a home's value, but other factors can weigh more heavily. Within a single city, the prices of similar homes can display huge differences depending on the area -- and even the street -- in which they are located. The two key drivers of value are access to work opportunities and access to amenities, says Andrew Schiller, founder and chief executive of NeighborhoodScout.com. A few streets' distance can make a difference in perceived proximity to school districts, recreational amenities, and transportation routes.”

“Exclusive communities migrate over the years as opportunities shift to new places. Beverly Hills did not develop until movie stars began moving there in the early 1900s, according to the city's website. While the most expensive place in Texas is currently the Afton Oaks-River Oaks section of Houston, whose median home value is about $1.7 million, Schiller predicts that prices in Austin will rise as government activity, job growth, and the University of Texas attract more home buyers to the area.”

“Neighborhoods near Austin and other emerging cities may not be expensive now, but the right combination of amenities and job opportunities might one day push them to the top of the price ladder.”

Sales Tax on Homes?

This from an expert CPA! Robert Ellis

That is not exactly correct, but it is closer to the truth than comfort allows.

Since Obama’s health care bill passed, it has been circulating around the web that a 3.8% sales tax on home sales was included in the legislation.  But I could never find anything in the literature, so I basically discounted it.

However, it turns out where there is smoke there is fire.  There is such a tax.  Right now the tax is supposedly limited to high income taxpayers.  But when was the last time Congress wasted a great tax on a limited part of the population?  Never?  (As an example, even retired people must pay tax on their social security.)

Besides, even if you aren’t “high income” according to the government definition, you can still be caught up in this tax.  All you have to do to be subject to this tax is sell your house for $250,000.  You pay 6% commission then you pay 3.8% tax.  10% total is $25,000.  In today’s market, that could spell the difference between being right side up and upside down.

Plus, the tax is broader than just on home sales, it includes all investments you may have.

To be fair, there is some dispute over the reach of this legislation, but I personally no longer trust the MSM to report the truth.  A government in search of money can do what they want, unfortunately.

Read it on Snopes.  http://www.snopes.com/politics/taxes/realestate.asp

This Should Make You Feel Good About Buying Real Estate in Austin

The 5 counties that make up the Austin metropolitan area (Travis, Williamson, Hayes, Bastrop and Caldwell counties):

●lead the nation in job growth during the last year - both in percentage increase and actual number of new jobs - wow!!

●Forbes magazine ranked Austin #1 in the nation on its list of best large cities/regions for job growth.

●Monster.com also named Austin as the #1 city in America for job growth.

●Kiplinger's Personal Finance magazine ranked Austin #1 in America on its list of Ten Best Cities for the Next Decade

●The Milken Institute ranked Austin #1 in America on its list of Best Performing Cities In 2009 where jobs are created and sustained.

●Porfolio.com ranks Austin #1 in America in its Small Business Vitality rankings for 2010.

●RelocateAmerica.com ranked Austin the 3rd best city in the United States to move to.

●America's Top 100 Places to Live For 2010 ranked Austin the 2nd best City in America.

●Airports Council International's survey of passengers at 118 airports worldwide ranked Austin's airport as #1 in North America - and #2 worldwide.

●The Brookings Institution named Austin as one of only 10 American Cities as a "Next Frontier" Metro Area based on exceeding national averages on population growth, diversity and educational attainment.

●The Brookings Institution also reports that Austin and Raleigh, North Carolina lead the nation in growth among "pre-seniors" (55 to 64 year olds) - translation, Austin area is a great place to retire.

●Add on top of all of that Samsung's recently announced $3.6 Billion direct investment for Phase 2 of its semi-conductor fabrication plant in northeast Austin - the largest private capital investment so far this year in the U.S. - and in the top ten largest private capital investments in America in the last decade - creating 500 new, high paying permanent jobs and more than 1,000 construction jobs - and total payroll of $105 million per year - double wow!!

●Plus Hanger Orthopedic, Pioneer Surgical, Face Book, Legal Zoom, Formula One Racing.........all coming to Austin.

Even two of our local bars took best of show in Playboy's best places to drink list,then there is the news that Dell sales up 19%, reclaims No. 2 ranking on the world’s computer maker ladder.

Austin Up - Texas Dominates - Houston No. 1

A concentration of talent, the presence of alumni from prestigious schools, big company headquarters and good job growth make Houston, Austin and Dallas headliners in Forbes list of top 10 cities in the nation where young professionals are most likely to succeed.

Houston takes top billing on the list with Dallas in the 6th spot and Austin rounding out at No. 10.

It is a good thing we are friendly in Texas because it looks like we are going to have some new guys and gals in state.

Welcome!

Do You Know This About Austin?

I am amazed at the press that circulates about the economic viability of Texas and Austin in particular. During the past week Austin ranked HIGH on 'Quality of Life' in a new study released by Portfolio.com. Stated in the report, Austin ranked highest on the job opportunities for young adults, Houston taking the 5th position and Dallas 7th. In another report released by NEWSMAX, Texas ranked numero uno for business, the result of a recent survey of CEO's and stating that "Texas is pro-business with reasonable regulations. The article went on to mention that Texas is where 70% of all new U. S. jobs created since 2008 are based.
There is more -- Kiplingers just released an article ranking the top 10 cities in the nation for the next decade. Guess which city is #1 – A town. The article states that while smart people and great ideas charge a city -- collaboration supercharges. Another characteristic that is usually always mentioned when referencing Austin -- it is just a fun city to live, work, play and visit.

Tax Credits are Kaput -- Bond 77 to the Rescue

When I first heard about this program, I was worried that the average home price in Austin, which is around $180K would not qualify, but it does. Note the lofty limits below.

TDHCA Bond 77 Map Search/Program Details
This program is NOT for investors, second homes, and multi-family
Areas in blue are considered “Targeted” areas by the TDHCA; all other areas are considered “Non-Targeted” areas.
Austin Map

TDHCA Bond 77 Program Details
The TDHCA (Texas Department of Housing and Community Affairs) has rolled out a new bond program to assist buyers with their down payment when purchasing a home. “Bond 77″ is its largest financing allotment to date and is an incredible 500 Million in funds, released monthly in 50 million dollar increments. This program comes just in time to fill the void left behind by the Federal $8,000 home buyer tax credit which expired April 30th. With liberal income limits and availability to both existing home buyers and first time home buyers alike, this affordable alternative for down payment assistance will surely be a hit. Below I have listed some of the major details – for more information feel free to email me at John.McClellan@SupremeLending.com or simply fill out the form above.

Are You Eligible?
There are income Income limits:
• Targeted areas (Location determine using Census Tracts, use our maps above)
o 1-2 persons = $87,960
o 3+ persons = $ 102,620

• Non- targeted areas
o 1-2 persons = $73,300
o 3+ persons = $84,295
• “Income” is defined as: the sum of the current monthly income of the mortgagors and anyone both living in the property and listed on the Deed.
• “Targeted Areas” are defined as: a census tract in which 70% or more of the families have incomes that are 80% or less of the statewide median income or an area of chronic economic distress, see maps above.


Property Price limits:
• Targeted areas: $316,177
• Non- targeted areas: $258,690
Other Details:
• Targeted areas: First time home buyers OR previous homeowners
• Non- targeted areas: First time home buyers only
• Choose either below market interest rate OR 5% down payment assistance
• No interest, no payments, note balloons in year 30
• NOT for investment properties, vacation homes, apartments, or multifamily

Ready, Set, Go -- Austin, Texas

I am amazed at the press that circulates about the economic viability of Texas and Austin in particular.  During the past week Austin ranked HIGH on 'Quality of Life' in a new study released by Portfolio.com.  Stated in the report, Austin ranked highest on the job opportunities for young adults, Houston taking the 5th position and Dallas 7th. In another report released by NEWSMAX, Texas ranked numero uno for business, the result of a recent  survey of CEO's and stating that "Texas is pro-business with reasonable regulations.  The article went on to mention that Texas is where 70% of all new U. S. jobs created since 2008 are based.
There is more -- Kiplingers just released an article ranking the top 10 cities in the nation for the next decade.  Guess which city is 1 -- The A city.  The article states that while smart people and great ideas charge a city -- collaboration supercharges.  Another characteristic that is usually always mentioned when referencing Austin -- it is just a fun city to live, work, play and visit.

Austin Rental Rates Increase

The numbers are out for the first quarter for the top 10 spots in the nation that have experienced rent rate increases. Austin is No. 7 on the list. While this not good news for those that lease, such as our large student population, it is good news for existing landlords and those looking to invest in Austin. Read the article from the Austin Business Journal. I would have to caution my seller’s that this does not mean they can raise their asking price, it is only a 1% increase. Below is just one of my properties that I lease for my investor clients and it stays leased and seldom does the owner concede on the rental rate.