11th Jul, 2010

Opportune Time for Young Investors in Texas Real Estate

Young investors are finding motivating investments in the current Texas real estate market.  Whether it is vacation real estate in the Hill Country communities of Fredericksburg and Kerrville or principal TX homes in Austin or San Antonio investment properties, first-time buyers and young people are discovering enviable bargains to add to their portfolios.

Results of information compiled by The National Association of Realtors® revealed that during the first seven months of 2009 first-time homebuyers aged 25-45 purchased approximately 45 percent of homes across the nation.  Unafraid to invest when prices are low, many picked up additional investment properties.

Some took advantage of the benefits offered in current legislation.  The $8,000 tax credit for first-time buyers was a big hit.  Then the government helped boost immediate sales by offering programs that allowed people to use that $8,000 for their down-payment monies.  Additionally, the government increased to ten the number of investment properties that a single investor is eligible to finance.  The ceiling used to be four.

Moreover, interest rates are still very low today.  That may be short lived however, as the government begins to grapple with the enormous debt incurred this year.

Another reason for the upsurge, especially in our area of the nation, has to do with the ratio of income to housing prices.  Incomes are much higher than they were when the median home price was previously this low.  That trend will inevitably reverse in regions where the housing market has begun and sustains an upswing.  Housing prices will edge up at that point.

In an AP article from the Daily Real Estate News on October 6, 2009, Chip Cutter quotes a senior financial planner with T. Rowe Price.  “If you’re young…This is the time to be in the market.”  He cites a study by the investment company that illustrated that between 1970 and 1990 the annualized rate of return for the S&P was 11.5 percent.  Over time, real estate investments in healthy areas of the nation such as in The Lone Star State also show a solid rate of return for long-term investments.

For more information about relocation, investment properties, and real estate in the Hill Country, click here to contact Dale Cook or call 830-997-1035.

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