Despite a housing crunch that continues to take its toll on housing prices throughout the country, there are many places where real estate is still an excellent long-term investment. When investing in real estate, the key to success is hiring the right real estate team to assist you in identifying and purchasing the right property in the right area.
One of the best places to invest in real estate property is in Austin, Texas. Austin has experienced incredible job growth and very stable home prices despite the nationwide economic downturn. In the greater Austin area, the population and jobs continue to grow– a factor for keeping inventory low and prices stable. There are also several other benefits of investing in rental property in the greater Austin area.
Rental properties offer investors the opportunity for an income stream while also allowing them to leverage their assets with a down payment and a loan secured by the property. Additionally, rental properties offer tax benefits and deductions for landlords (Always check with a tax consultant to determine real estate tax implications). Purchase rental and investment properties here and you’ll get back 20% of the commission in cash.
Owning a rental property entitles you to special tax benefits. Often, what you spend on repairs and upkeep for a rental property is tax deductible. You may also get a tax break for depreciation, an allowance for the wear and tear over time on your property. However, most rental property investors do not rely on tax breaks to make a profit. You should look for property that will rent for more than the monthly mortgage payment, insurance, property taxes, maintenance, and repairs.
Most of the real work of real estate investing is done in the beginning when doing research and property selection. Once you have selected a neighborhood and purchased a property, you simply need to maintain communication with your property management company.
There are some great real estate professionals around Austin who have done your research and homework for you and can help you find the real estate property to invest in. These customer-service oriented professionals assist you in all your real estate/rental property needs and provide real estate services for multiple markets and other surrounding communities in Capital City.