Austin Buyer's Blog

If you’re thinking about buying a downtown condo…existing condos generally are offering better value than new or very recent ones. Long-range investors have some attractive opportunities, for several reasons:

• Existing condo projects are largely sold out, reducing the pressure on prices
• Existing condo prices are based on a historical sales, not hypothetical future ones
• Homeowners Association fees may be lower and/or more stable because they’re shared out among a larger number of owners
• Many new and very recent condo projects are in the luxury price range

In short, they have more measurable value than presales or recently offerings. Still, existing resales are discounted from 15-25%.

If you believe the stock market anticipates future economic activity, now may be the time to buy. Real-state investment trusts are down 50% from their highs, so real estate assets may be a bargain.

Residential downtown Austin is an exciting and newly developing area. The land area has not changed much from the original plat in 1838. It is bounded by the Capitol on the north,and the lake on the south. Much of the arts, entertainment and dining experiences in Austin are located in and around this grid. New high-rise condos are currently under construction BUT there is an existing condo called the 5 fifty five. This condo, while of recent construction (2004), has several close out units on the 29th/30th floors below $500 psf. This is for condos with great views of the lake, downtown and the Capitol. With the new construction like the Austonian, the W, etc being offering at an average of $700 psf for these larger condos located on higher floors and offering great views. For those in the market you should check them out.

Recently a customer who was looking to buy a student condo in Austin told me that due to the election results she didn’t want to go ahead with a purchase. Now we all know that buyers have many reasons for not wanting to purchase but I had to laugh at the notion of not buying because of an election.

Economic cycles …yes, job status….yes, moving to another city…yes, those are good reasons. However not purchasing property because of an election means you don’t understand the intrinsic value of real estate. Real estate outlasts political terms in this country. In fact it outlasts governments. Remember that Texas and Austin, in particular, was owned by Mexico, the Republic of Texas, the Confederacy and now the United States.

Throughout all those years Austin has grown and prospered albeit with some ups and downs. This is one of those down times. Make it work for you. Look to the long term and I know you will realize that today’s market represents a buying opportunity.

www.happyrenews.com

Forbes picks Austin as best bang for the buck city for real estate in US:

Forbes In Depth: Austin Real Estate

This is the best buyers’ market I have seen in Austin for years. For choice, price and potential - buyers have not seen this kind of market since 2002-2003. There are a lot of options and aggressive buyers should be taking advantage of them.

Fear of hurricanes??…move to Austin. This year three tropical storms/hurricanes have struck the Texas coast. While Austin is centrally located in the state of Texas and only 167 miles from the coast it has been unaffected by the storms. No rain, no high winds and no evacuations. So, Austin has the best of both worlds…coastal living is only three hours away and yet no need to worry every time you see a hurricane warning.

I did find a very interesting condo complex in central Austin. Close to cash flow. South of the University and north of downtown. Could be a student condo or legislative condo during the session (which is coming up in January)? These starter condos are small in the 500-600 sq ft but nicely updated and priced to sell.

Lots of cranes. Many new projects are now underway and some have recently closed. Some of the announced downtown projects are still scrambling for funding. If you are looking for a downtown condo you would do well to consider some of the older established projects such as Plaza Lofts and the 5fiftyfive. The Brown Building and Brazos Place Condos are close to great restaurants, the Capitol, downtown entertainment but more moderately priced than the new condos coming online.

Austin offers other condos than the downtown highrise options. The outlying townhouse or condos in the central Austin area are usually lowrise buildings that may offer downtown views, small yards and a definite neighborhood feel. Many are located within walking distance to shops and restaurants. South Austin offers many possibilities and others are now being built in the great older neighborhoods, such as Old Enfield.