Bigger is Better
We buck the national trends because we are self-sufficient.  Here in Texas, we have more resources, natural and economic, than most countries!  This is why our real estate market, like other markets, is holding strong despite the national recession and the crumbling prices the news shoves into our heads each day.

• If Texas was a country, it would be the 10th largest country in the world
• If Texas was a country, it would have the 12th strongest economy based on GDP
• If Texas was a country, it would be the 5th largest oil & gas producer
• 82.5% of the Texas population is in Metros… DFW, Houston, San Antonio, & Austin
• Texas has more Fortune 500 companies than any other state
• Austin was #1, San Antonio was #2, in Forbe’s recent national “Best Bank for Your Buck Cities” report while Houston made #4 and Dallas made #7!
• Builder Online Ranked Houston #1, Austin #2, Fort Worth #3, San Antonio #4, and Dallas #5 for “Healthiest Housing Markets in the Nation”!
• Many of the best universities in the nation are right here in Texas

I highly recommend watching this video, supported by many including Governor Rick Perry, to help demonstrate why Texas is so strong:

Latest Statistics (hover for detailed figures)

The report from the Association of Foreign Investors in Real Estate ranks members’ top cities for U.S. and global investment in 2009. Austin ties for 11th place in the new survey, up from 16th place in 2008.

The only element to Austin’s real estate market that is not stable is the emotional factor.  There is no escaping the news and the horror stories of what is happening around the country and Austinites wonder “are we next”?  While we worry, foreign investors are setting themselves up to make money from our panic.

With 37 percent of member’s votes in the survey, the United States ranked first among nations in terms of opportunities for capital appreciation, followed by Brazil, China, the United Kingdom and India in that order.

The world knows that we are strong, and that Austin is one of the strongest cities in the country.  Why don’t we?

My advice is in a move-up situation, you’re getting ahead of the game.  Not only are you getting bigger savings on the home you’re buying than any losses in the home you’re selling, but you’re also able to lock in amazing interest rates (saving you much more for years to come).

But what pockets in Austin are holding up the strongest to today’s economic fears?  The Statesman reports that the market is still slow moving, great for buyers, frustrating for sellers.  What IS selling are those properties under $400,000.  The lower prices have less risk, and this is probably an area were professional investors and flippers are able to best take advantage of the sluggish market without over-extending themselves.  The median sales price in November was $180,000, well within reach of many novice flippers and investors who are willing to weather this storm to make a few bucks.

The Statesman also reports that on the high-end, northwest Travis county is holding the strongest.  On the low-end, it is little surprise that “fixer-uppers” are dominating, again likely with those hoping to take advantage of the current economic and emotional climate.

In the end, it appears that those who are so afraid to loose money will likely end up losing the biggest as their fears inhibit them from taking advantage of this rare Buyer’s Market in Austin’s home market.

Shailesh Ghimire at the AgentGenius blog recently speculated that the high gas prices would in turn cause rates to go up too.  His logic is simple:  the more money we send over to the middle east, the worse our rate of inflation.  In the long-term, that means our rates will go up.  Inflation causes the price of Mortgage-Backed Securities to rise so loans cost more to consumers.  Here’s yet another reason to buy now if you’ve been in the fence.

• Smart
• Creative
• Ambitious
• Goal-Oriented
• Practical
• Efficient
• Networked
• Logical

I love investors because like me, they make decisions based on logic and numbers, not emotion.  They are creative wealth-builders who won’t retire poor.  They are business-minded, practical people with a forward-thinking mentality.  Investors love other investors, and I love connecting them.  Some of the greatest projects I’ve worked on were Joint Venture investment projects.

Austin is a great place to invest in real estate.  Investing in Austin is easy; a no-brainer.  Where else can you find such consistent growth?  Where else can you find such a beautiful and unique city that can’t help but attract more and more businesses and people?

I tried the stock market in 1999 and today my stocks are worth the same as they were then.  I make my first real estate investment in Austin in 2002 and let’s just say it worked out well for me.  Real estate is something I grew up with, know, and understand.  I love investing in it myself and sharing opportunities I find with other smart people.

One less-known way to invest in Austin real estate is to invest with a builder. Basically, you purchase a lot and/or put the construction note in your name. Then the builder does all the work. In this climate, builders need capital while they sit on lot inventory and often even large spec home inventory. The profit split can be amazing and you can just sit back and wait for the home to be sold (aka payday). Of course, you still need to do your research. Builders in Austin are a dime a dozen these days — everyone wanted to get in on the boom in 2002 and 2006. See how long a builder has been in business and ask about success other investors have had. It’s a good idea to see if they will let you contact any previous investors as a reference.

Want more information? I’d be glad to point you in the right direction, so feel free to email me. After growing up in a real estate family in Austin, I’ve learned a few tricks myself.

Builders like Corias Homes, Inc. currently have investment opportunities available and have stood the test of time and work with only the best lots. Currently, Corias has a lot inventory available for investors:

• 8900 Calera Drive in Barton Creek just off the Fazio Canyon’s Golf Course
• 9407 Angelwylde Drive off Patterson Road in Westlake, a 7 acre estate lot
• 3107 Westlake Drive is a new 2 or 3 lot subdivision with Lake Austin Waterfront
• A 1 acre “interior Westlake” property will soon be available, email for details

The process is a simple one for the right investors, someone who can sit back and relax while their investment grows with the structure. I am happy to help anyone who would like more information as I have experience in this process!

Aria Schoenfelt
ariakristen@gmail.com
(512) 771-1776