Looking for University of Texas Housing?
If you are a student visiting this page, then you may want to think about proposing to your parents that they purchase a condo near the school as an investment property (unless you have the money to buy it yourself, which means I should have picked YOUR major when I was in college!). Here are a few reasons to consider buying versus renting during your college years.
The Austin real estate market has positive appreciation trends and a strong rental market (especially near campus). For example, let's say you bought a 1 bathroom/1 bedroom condo when you started college in 2005 and then you decided to sell it in 2010 (and remember, a recession hit during this time). Your appreciation trend would look like this (this is for 1/1 condos within a mile radius of University of Texas):
Year - Average Sold Price - Average Sold $/SF - (# of condos in average)
2005 - $75,707 - $121.51 - (15)
2010 - $103,794 - $186.61 - (17)
So you spent 4-5 years in college paying a mortgage (with interest rates then, payment was probably around 1% of the sales price, so around $750/month). You build equity through the college years through payments and appreciation. Without calculating out cost of sale or adding in equity, your return on investment is more than $28,000.
Renting is wasteful in Austin (as long as you know you are going to live in a particular area for at least 5-7 years, which most college students know this!). In the above scenario, the buyer of this condo could have wasted $36,000 or more in rent ($750 X 4 years). Instead, the smart college student above asked his parents to help him buy a condo and helped them pay off the cost of his education. Wow, who needs college when you are this smart?
Do you have Room for Improvement? Remember the above statistics are for AVERAGE Homes. Let's say you bought a place, watched DIY videos (when you are not studying of course), and tiled that bathroom or added a glass back splash to the kitchen. OR contact me to give you the best and most cost efficient person to do this job for you. In 2010, at the top of the market, a 1/1 condo sold for $212.28/SF!!! Yes, I am saying you could almost DOUBLE in value if you made the right improvements in our market (and talk to a good Realtor about what kind of improvements to make...and not just any Realtor, ME please!).
Ready to search for Listings? Click Here for condos listed within a mile radius of the University of Texas
Want to see my listing?! Click Here And call me to set up a private showing
Currently, prices for condos within a 1-mile radius of the University of Texas range in price from $109K - $499K. Call me to help you analyze this opportunity. Thanks for reading and I hope I helped you decide to BUY versus RENT when you are considering The University of Texas Housing.
Laura Ivy Blessing blogs about the Austin and Cedar Park known and lesser known happenings with a splash of real estate savvy for today's buyers and sellers. Please call her today to consult and advise you through your next real estate transaction.
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photo credit: <a href="http://www.flickr.com/photos/akumar/3284045080/">Kumar Appaiah</a> via <a href="http://photopin.com">photopin</a> <a href="http://creativecommons.org/licenses/by-sa/2.0/">cc</a>
photo credit: <a href="http://www.flickr.com/photos/9731367@N02/6988181354/">Philip Taylor PT</a> via <a href="http://photopin.com">photopin</a> <a href="http://creativecommons.org/licenses/by/2.0/">cc</a>