Do you or someone you know have a kid heading off to college in Austin? As if there is not enough going on for you now, but rent is ridiculous in most places around the state, and particularly in Austin, TX. Apartments.com reports that you can expect to pay about $1250-2000 per month for a one bedroom apartment near downtown/ campus area. It will be more like $1800-3000 for a two bedroom. This does not indicate luxurious living either. I can tell you from direct experience and my direct market analysis, you can expect to pay at least $2 per square foot in rent and much more ($5 and up) for one of those swank places in the sky in the shiny buildings downtown.
So, why not invest in a property? This is a perfect opportunity to take advantage of some programs available in these situations. Ever heard of the kiddie condo loan? It is actually not a sanctioned FHA term, but a catchy way to describe the FHA “non occupying co-borrower”. Though this name is a bit deceiving. The loan program is NOT limited to condos. Townhomes and SFR are also eligible properties. This program does a few things. First it curbs the increase in rent in the Austin area over the next four or more likely five years for college. Second, it allows the co-borrower to establish credit. Third, when the co-borrower graduates, they should have some equity if they choose to cash out and start the next phase of their lives. There are also federal income tax bonuses, and you always have a place to stay for SXSW.
By using the “non occupying co-borrower” caveat, as long as the co-borrower is related by blood/ consanguinity (i.e. parent, grandparent, sibling, etc.) then the loan requires as little as 3% down. The co-borrower can lease rooms out under this loan program, as long as they occupy the property. There is also a lower interest rate for owner occupied versus investment/ lease property.
So, what can you get in the Austin area? Click below to see an active snapshot of condos available in the Austin and surrounding are that are $200,000 and under, with at least two bedrooms:
The following link gives you an idea of what condos are available on the MLS now in and near the downtown area. Just click around. Home prices are on the rise in Austin and have been for a while. Read some of my other articles about the incredible market increases both in Austin and in the DFW area.
I know this is a tough time, and maybe buying is too overwhelming at this point. Even renting takes a skilled and knowledgeable professional so that you get the best home for the best price in the right area, which trust me is not cheap or easy around here. I can help you make that transition either by connecting you with the best lenders in the state and finding the best property for you. Or if you decide that leasing is best for you and your family, please let me know. I can help you find a killer apartment or service in Austin.
I hope you enjoyed reading this article. Please contact me with any questions or concerns. Also, feel free to pass this on or use it, but just give me credit, please.