Where are the middle class buying in Austin? (sale, leasing)

[Mrs.JT]

Originally Posted by Austin97

actually you didnt mention that at all. You made references to in the city limits and that you had looked on the east side.

No, not at all. I took time to post homes in Preston Village and The Springs at Walnut Creek because north/south wasn't specified. I picked up on it several posts later.

So many people giving very good input, but no cigar.

[riaelise]

Don't get me wrong, Austin has become quite pricey. Think how the longtimers feel! They remember the days when a $200,000 house could be easily obtained in a prime area. Hell, I remember not too long ago when you could still find bargains (below $250) anywhere. It's just not to be had now because the market is sizzling. That's what I meant by "late to the party"... now, you'll be paying more and getting less. You're not going to ride the appreciation wave as someone who paid $200K ten years ago and the same house is $400k now.

At the same time, the middle classed person can do very well in Austin. Moreso than in many other parts of the country. The lifestyle we lead here would cost us dearly in my home state. Austin's housing isn't "cheap" but it's still pretty decently priced in comparison to other places.

[gpurcell]

It's tough to wrap my head around what's happened to real estate in this town...and that's with looking into houses from time to time. (E.g., just looked into SFH feeding into Lee Elementary. Eight available, cheapest $398K. I fully expected to see SOMETHING on the east side of Red River in the 250K-275K range. Absolute insanity.)

[gpurcell]

Originally Posted by riaelise

They remember the days when a $200,000 house could be easily obtained in a prime area.

Yep, 187K for my 2/1 in 78705 back in 2003...and I was freaking out at the time because the PO had purchased it in 1993 for about 85K.

[CptnRn]

I purchased my first house, brand new, 3 bdrm, 2 bath, 2 car garage in 78749 for $51,000 back in 1981. Interest rates were 16% back then, I could barely afford it.

[Trainwreck20]

Yeah, I guess that is the part that bothers me a little - very few people at or near median income have ever been able to get everything:
- location close to downtown
- affordable
- large
- good condition
- good schools
- high expectations of appreciation.

I mean, really? If that was the case, a huge portion of the suburbs would be living there.......

[CptnRn]

Originally Posted by Trainwreck20

Yeah, I guess that is the part that bothers me a little - very few people at or near median income have ever been able to get everything:
- location close to downtown
- affordable
- large
- good condition
- good schools
- high expectations of appreciation.

I mean, really? If that was the case, a huge portion of the suburbs would be living there.......

Yes, people are complaining like this is a new thing, its not. I could not afford a house with all of those things when I was young and starting out my professional career back in 1981. This is nothing new.

The few friends of mine that bought a house in 78704 had to settle for something that was old, run down, and in need of an enourmous amount of repairs. Typically something built on piers over a crawl space, with foundation settlement problems and uneven floors, poor energy efficiency, little insulation, leaky windows etc. etc. We looked at a lot of houses like that, which cost more then the brand new house we bought in what was then, Oak Hill.

That $51,000 house we bought is worth close to $200,000 now.

[787]

Originally Posted by CptnRn

We looked at a lot of houses like that, which cost more then the brand new house we bought in what was then, Oak Hill.

That $51,000 house we bought is worth close to $200,000 now.

^^^^ Thank you! this is what I'm trying to do. Buy a brand new house, and have it go up 4X in value, which people on this board are telling me impossible and I'm foolish for trying. I guess I just need to find out which area will be the next to be established and go up in value like Oak Hill did.

[riaelise]

Originally Posted by Trainwreck20

Yeah, I guess that is the part that bothers me a little - very few people at or near median income have ever been able to get everything:
- location close to downtown
- affordable
- large
- good condition
- good schools
- high expectations of appreciation.

I mean, really? If that was the case, a huge portion of the suburbs would be living there.......

Exactly. It's a give and take. Most of the people who get it all (and even then, not really) are people who make way more money. Nothing wrong with that...more money should give you more, I suppose.

[Trainwreck20]

Buy a brand new house, and have it go up 4X in value, which people on this board are telling me impossible and I'm foolish for trying.

No, it is not impossible at all, but it is a crap shoot, and a patient one at that. I think CptnRn said he bought the house in 1981? So, the house has gone up by 4x (or a little less) over the last 32 years? That is right around 4.3% a year, which is a very nice return; however, it is not doubling in value overnight. I suspect a lot of that appreciation occurred relatively recently (say, the last 15 years) when the Oakhill area started really building out a bit and everything closer in got more expensive. Note that CptnRn bought a house in what was then a pretty 'far flung' area of the city (was it even in the city at that time?).

So, the trick to getting that return is to buy an inexpensive house further out and wait a long time..... Assuming a constant appreciation, CptnRn would have made 88% (not 400%) after 15 years (instead of 32).