Cedar Park Growth and Investment (Austin, Spring: buying a house, buying, new construction)

[akslp2080]

Hi guys,
I am going to buy a SFH or a villa type house in the next 2-3 months in North Austin. I have been in Austin for 3 years and not one of the CA or NY investors but actually will be staying here. But i am looking for a area where I can atleast get a better ROI.
I wanted to ask which areas do you think will be a good opportunity to invest in and live there and probably in 5-10 years I would be getting a good amount on resale ?

I am thinking of buying a house in North Austin/Cedar Park and I nearly know most of the builders and the communities here.

I know this is a hard question as you cannot predict the growth and the bubble etc. But just wanted views of some experts here.

[10scoachrick]

I'm not an expert and I never played one on TV; but I think the real money was made on properties purchased at least 2 years ago. There aren't any 'bargains' for first adopters in new developments(not that I've seen) and most very desirable places are squeezing the last dime out of new buyers(Northwoods, Pearson Place, Highland Horizon and myriad townhome developments). The key would have been to buy during the downturn(places like Crystal Falls, Cold Springs, Cedar Park Town Center), live in it for at least 2-3 years and then turn it over. IF you were talking 10+ years, maybe something in Leander close to the train station OR 183A would be reasonably priced now and could appreciate as the area gets built out...the kicker being 10+ years or more down the road. A decent sized parcel in Liberty Hill could work IF you are looking at even a greater time frame. It would take something really special for a property out 183 or Ronald Reagan to appreciate while thousands of homes are still under construction. Maybe, maybe something out toward Lago Vista? My two cents

[Jimmyp25]

your late, way late...chances are you will get a in a bidding war with some rich cali folk paying cash that want to live in the house, making your chances of making money lower

[akslp2080]

Thank you for the quick response guys.
@Jimmyp25 - Sorry I did not mention, we were targeting new construction homes which ofcourse have fixed prices.

I was thinking maybe if I go for some small homes/villas in 2100 sqft for around 350K and then (Hopefully) they will be go and rise to around 500K in next 7-8 years. After all austin is developing and many employers are coming in.
Also the Cedar park has a lot of development plans like the Destiantion BELL Blvd (which got approved last month) which may increase the cost/price of the homes later.

And the places I am looking at is close to Metro Rail at lakeline and also close to 183.

[riaelise]

I just wouldn't bank on it if I were you. At this point, you're already paying an inflated price new construction price to begin with. I really doubt a townhome even by the metro is going to be $500k in 5-10 years. There's still a lot of land to build on and places to live.

[centralaustinite]

New construction won't appreciate much above inflation until the entire subdivision is built out. Until then you will compete with nearby builders with much deeper pockets. Who will want your resale house when there are new built homes close by?

[10scoachrick]

Originally Posted by akslp2080

Thank you for the quick response guys.
@Jimmyp25 - Sorry I did not mention, we were targeting new construction homes which ofcourse have fixed prices.

I was thinking maybe if I go for some small homes/villas in 2100 sqft for around 350K and then (Hopefully) they will be go and rise to around 500K in next 7-8 years. After all austin is developing and many employers are coming in.
Also the Cedar park has a lot of development plans like the Destiantion BELL Blvd (which got approved last month) which may increase the cost/price of the homes later.

And the places I am looking at is close to Metro Rail at lakeline and also close to 183.

I don't know if that is a boondoggle or a pig in a poke; but I don't expect to see anything like the final 'plan' in place during my lifetime.

[JT-3]

Originally Posted by centralaustinite

New construction won't appreciate much above inflation until the entire subdivision is built out. Until then you will compete with nearby builders with much deeper pockets. Who will want your resale house when there are new built homes close by?

Exactly.

[akslp2080]

Thank you all for your responses....

"New construction won't appreciate much above inflation until the entire subdivision is built out. Until then you will compete with nearby builders with much deeper pockets. Who will want your resale house when there are new built homes close by?"
- Well, looking at the rate houses are being built and being sold immediately. I think the north of austin and start of cedar park will already by sold.

Also - Would it make sense to wait for maybe 1-2 years and see if the prices are coming down. As I am not in a hurry. But what I worry about is I would have to move to leander or above if the prices dont come down and if there are no new construction homes available.....
Moving north of leander would be too far if I work in downtown.

This is what is killing me.... Should I buy now? or should I wait for prices to go down (and hope I would not have to go far)?

[tom331]

Originally Posted by akslp2080

Thank you all for your responses....

"New construction won't appreciate much above inflation until the entire subdivision is built out. Until then you will compete with nearby builders with much deeper pockets. Who will want your resale house when there are new built homes close by?"
- Well, looking at the rate houses are being built and being sold immediately. I think the north of austin and start of cedar park will already by sold.

Also - Would it make sense to wait for maybe 1-2 years and see if the prices are coming down. As I am not in a hurry. But what I worry about is I would have to move to leander or above if the prices dont come down and if there are no new construction homes available.....
Moving north of leander would be too far if I work in downtown.

This is what is killing me.... Should I buy now? or should I wait for prices to go down (and hope I would not have to go far)?

You should buy the property near town even it costs more. The appreciation is ALWAYS better for the properties closer to Downtown. In addition, the trend has changed in recent years. Younger and older generations are moving to the city. I believe that the trend for urban living will continue.