Is Leander a good option if I plan to sell the house for profit in 2-3 years? (Austin: to rent, how much)

[lisb1]

I looked extensively in Cedar Park and Leander a couple years ago but never settled on a house. We moved away and are moving back to Austin and realized how much house prices went up in Cedar Park! Our max budget is $320K but would really prefer to stay under $300K. We really wanted to live in Cedar Park. My husband wanted a new construction but we realize that to get the sq footage we want (2000+), it will bring up near the top of our budget.

We considered Leander because it is cheaper but I'm concerned if Leander homes are good for reselling compared to Cedar Park. We plan to take any profits from this home to invest in another home. Any members have experience selling a Leander home recently or moved into a Leander home? The market doesn't seem to be in as demand for Leander homes as Cedar Park and I'm wondering if it's worth investing in Leander and if I should just try my luck in Cedar Park even if it means a smaller home.

[Austin97]

3 years is too short a time because of all the associated costs. A home is a place to live, that is coincidentally also an investment.

[lisb1]

Originally Posted by Austin97

3 years is too short a time because of all the associated costs. A home is a place to live, that is coincidentally also an investment.

Thank you for the advice. I guess if for investment, we'd be considering possibly 5 years+. I just looked up the issues with taxes on profits for your home. I suppose 5 years+ is best.

[riaelise]

I agree with Austin97, your home is your home. IMHO, there's little difference between the two cities other than one is farther out from Austin. It's the wintertime, so the selection isn't robust. I'm sure you'd find more in your price range in spring/summer. You live in an area because that's where you really want to love. moving is a pita.

ETA - you wouldn't reap a lot more "profits" buying in cedar park. the days of making 100k off a home in a couple of years is basically over.

[FalconheadWest]

We have gone through a Market Shift. Just like 3-5 years ago no one could predict how much appreciation would have happened, we can't predict what will happen in another 3-5 years. What reports have shown is that the Austin market, as a whole, will go back to a 3-5% appreciation year over year. If you take those numbers, you will break even (ish) at 3 years, as you have closing costs to pay when you sell. If you stay 5 years, you'll make a little more, but we're not talking about $100k more.

Leander sells very well right now, because of the price point. Who knows what will happen as the prices continue to go up. You can only use other indicators. People didn't really think buyers would pay over $250k for Pflugerville, but they do. People didn't think buyers would pay more than $200k for Hutto, but they do... you can say this about all the lower price point areas a few years ago comparing it to now.

3 years? 5 years? crystal ball...

[lisb1]

Originally Posted by riaelise

I agree with Austin97, your home is your home. IMHO, there's little difference between the two cities other than one is farther out from Austin. It's the wintertime, so the selection isn't robust. I'm sure you'd find more in your price range in spring/summer. You live in an area because that's where you really want to love. moving is a pita.

ETA - you wouldn't reap a lot more "profits" buying in cedar park. the days of making 100k off a home in a couple of years is basically over.

Yes. We're not moving to Austin until April so April/May is about the time we are going to search.

[lisb1]

Originally Posted by FalconheadWest

We have gone through a Market Shift. Just like 3-5 years ago no one could predict how much appreciation would have happened, we can't predict what will happen in another 3-5 years. What reports have shown is that the Austin market, as a whole, will go back to a 3-5% appreciation year over year. If you take those numbers, you will break even (ish) at 3 years, as you have closing costs to pay when you sell. If you stay 5 years, you'll make a little more, but we're not talking about $100k more.

Leander sells very well right now, because of the price point. Who knows what will happen as the prices continue to go up. You can only use other indicators. People didn't really think buyers would pay over $250k for Pflugerville, but they do. People didn't think buyers would pay more than $200k for Hutto, but they do... you can say this about all the lower price point areas a few years ago comparing it to now.

3 years? 5 years? crystal ball...

Thank you for the advice. Is Cedar Park/Leander included in those Austin market reports?

[FalconheadWest]

Originally Posted by lisb1

Thank you for the advice. Is Cedar Park/Leander included in those Austin market reports?

Of course. No matter how much people want to think of the suburbs as individual areas, they really aren't. Yes, they have city names and their own incorporated dates. But overall, it's all "Austin" and Austin is a huge metro area. When people get priced out of the main city, they go to the nearest 'burb. When priced out of that burb, they go to the next burb. Most people don't "choose" to live in Hutto/Kyle/Leander, but their price point for what they want in a house has put them into that area.

I talk to buyers all the time who want to be "in" Austin and have no idea that they can't buy in Austin until I show them the listings. It's educating the buyer about where they can buy for their price and what they need/want in a house, and then driving those areas to see if they actually like it. Some come back to me and say they rather continue to rent than live that far. That's their financial choice to continue to rent...

[riaelise]

Originally Posted by FalconheadWest

Of course. No matter how much people want to think of the suburbs as individual areas, they really aren't. Yes, they have city names and their own incorporated dates. But overall, it's all "Austin" and Austin is a huge metro area. When people get priced out of the main city, they go to the nearest 'burb. When priced out of that burb, they go to the next burb. Most people don't "choose" to live in Hutto/Kyle/Leander, but their price point for what they want in a house has put them into that area.

I talk to buyers all the time who want to be "in" Austin and have no idea that they can't buy in Austin until I show them the listings. It's educating the buyer about where they can buy for their price and what they need/want in a house, and then driving those areas to see if they actually like it. Some come back to me and say they rather continue to rent than live that far. That's their financial choice to continue to rent...

Can't speak for Kyle or Hutto, but Leander has some beautiful hill country topography in some areas. there are people who want acreage and views (even though both will come at a price these days).

i disagree, there is distinction between the suburbs and Austin and there are many who truly desire a suburban/country/semi-rural lifestyle. I would never say a suburb such as Georgetown is an extension of Austin. It is different in almost every conceivable way. If there are similarities between the burbs and Austin, I'd say that far North Austin is similar to the northern burbs.

[kjkw]

Haven't read other responses but I don't think you will make much if any profit it that amount of time after factoring in interest, taxes and agent fees when you sell.
Cedar Park is in higher demand but also costs more upfront.