Central Austin is "the" hot spot for investment property. If I can have my pick for places to put my own money or a client's money, this is where I head. Around the capital, the areas adjacent to the University of Texas, the Mueller redevelopment, Town Lake, Zilker Park. That's where you get that downtown energy. That's where everything is happening.

The reasons I like Central Austin for investment opportunities are pretty simple and straightforward:

- desirability,
- good demographics (more on this in a sec),
- and rents that appreciate.

Demographics. You're going to be getting young professionals and students; middle-age professionals who are downsizing from a family home and up-scaling in terms of location (the so-called "empty nesters"), and a healthy vacation-rental clientele.

All the big events in downtown Austin draw renters because the hotels fill up so quickly. South by Southwest, the Austin City Limits music festival, the annual motorcycle rally. Add to that the year-round draws: live entertainment, museums, and the academic activities associated with UT.

This is definitely an area with healthy demand. Think cottages and condos, restored bungalows. All highly sought after by a very definite demographic. And remember, the value of any property is determined by demand.

When you're surveying Central Austin with an eye toward buying, look In particular look at:

- 78723, which compromises the Mueller redevelopment,
- 78722 and 78702 south of Mueller, and
- 78704 (Travis Heights and Bolden Creek).

But really, anywhere in or adjacent to downtown is a high quality opportunity with good appreciation and healthy returns. This is all cream of the crop in investment terms.

Is Central Austin the only place you can make your investment dollars work? Absolutely not, as you'll see next week, but if you can pull the money together and you can find something available, Central Austin is definitely the first place you want to look.

Posted by Monte Davis on
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That all makes sense...Central Austin is a great place to own a property! What are your recommendations for someone looking to spend less than $200,000? Do you find it a challenge to find something central (less than $200k) that is built recently or updated properly so that you avoid high maintenance costs/high condo dues?

Posted by Todd Hower on Thursday, October 14th, 2010 at 9:10pm

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