| Central Texas Investment Property Update - March 26, 2009 |
Where is the bottom?
When the Dow Jones Industrial Average fell below 6,500 for the first time since 1996 exactly two weeks ago, an article appeared in the Wall Street Journal that I suspect will stay with me for years. The article (read article) salaciously asked, "Dow 5,000? There's a Case for It".
Today, as the Dow climbs back to 8,000 and the markets regain confidence (read article) in the Fed and Treasury, it appears likely that we may look back and see March 9th, 2009 as the official cyclical bottom of the stock market.
Friends have remarked to me that they withdrew money from the stock market (or were angry that they hadn't) because they were tired of being wrong that "now" was the right time to buy stocks (first at 11,000, then 10,000, etc..). Reading a newspaper had become a depressing exercise in negativity (if the newspaper is still being printed).
My unscientific theory is that a market bottom occurs when most people have thrown in the towel. When even the mighty Wall Street Journal gives up (Dow to 5,000? - oh-my-God - maybe so!!), it may be time to buy stocks. There's no room left in the public psyche to endure more fear, and we become convinced we can never again ask the bartender for Grey Goose (read article), much less buy groceries at Whole Foods (read article).
Real estate experts tell us that the direction of property values historically lags the stock market by six to twelve months, because it takes longer to sell property than stocks and bonds.
Amongst our property listings, those that are priced with built-in value are getting the most activity. It's clear that buyers feel nervous about the future direction of property values (Dow to 5,000? Anyone? Bueler?), and are being selective about condition. Buyers will certainly still make offers on "less than perfect" houses and duplexes, but sellers must price accordingly in order to seriously be considered.
By the time the national real estate market recovers (read article), Austin's median value may still be increasing (read article). It is nice to have strong market fundamentals on your side (Austin was just named #2 fastest growing U.S. metro).
The bottom line is that we won't realize the market bottom has happened until it is in our rearview mirror, and the folks who bought Central Texas real estate at the equivalent of "Dow 6,500" will be patting themselves on the back.
We are seeing a lot of activity in the owner occupant market, as interest rates have hit new lows, and buyers are hoping to benefit from more eager sellers. The "HomePath" program (listings here) allows buyers historically beneficial terms and very low downpayments. We think now is very likely the best time for first time and move-up homebuyers to make their move.
Please contact preferred lender Amy Krause at 512-219-5858 to discuss your pre-qualification, or check with your Castle Hill Investments sales agent. We have the best roster of listings we've ever had - great choices and great value.
This past weekend saw another South by Southwest Music, Film, and Interactive Festival in Austin, and this year was the most fun of any I can remember in 16 years. More Austinites put their work aside and attended this year, and though clearly an event with global recognition, 2009's event had more of a local feel than in years past. Though a lot of the bands I heard reminded me of recycled versions of other bands, there was also some real originality. The best art seems to be made during challenging times. - Robert Grunnah |
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$10,000 Off for Close by April 15th |
Click Here for Virtual Tour
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| Duplex |
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- Constructed in 1975 / A is
a 2/1.5 and B is a 2/2 / 1,908 sq ft
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A unit: $1,175/mo expires March 2009 / B Unit
left Vacant for Owner Occupant (or $1400/mo)
- Taxes are approx
$6,601/yr
- Pro forma available upon request
Great owner occupant or investment opportunity in prestigious Barton
Hills. Hill country views from recently renovated units with tile backsplash
and modern touches. Huge backyards, recently replaced roof, and lifetime
engineer-certified warranty on the foundation. Broker/Owner, Robert Grunnah. $10,000 off asking price for closing by April 15th
for tax purposes.
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Hot South Austin Neighborhood - Priced to Sell
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Click Here for Virtual Tour
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| Duplex |
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- Constructed in 1982 / A is
a 2/1.5 and B is a 2/1.5 / 2,014 sq ft
- A unit: $725/mo / B Unit
$725 Mo (Month to Month could be vacated for owner occupant)
- Taxes are approx
$3,711/yr
- Pro forma available upon request
Value priced to sell in quiet cul de sac. Pre-inspection available. FHA
approved and could be owner occupied (B unit on month to month), or solid value
investment.
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Value Priced Condominium near the
University of Texas
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| Condo |
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- Constructed in 1980 / 1 Bed-1 Bath / 693 Sq Ft
- Unit leased until August 2009 for $850/month
- Monthly HOA Fee: $150/Month
- Taxes are approx $3,087
Property is
located 3 blocks from the University
of Texas. Complex
includes a pool and extra guest parking. A condo with this proximity to the
University would be great for an investor or a family that has a student
attending school.
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Spacious Duplex in Southwest Austin
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| Duplex |
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Constructed
in 1983 / A is a 2/2 and B is a 2/2 / 2,112 sq ft
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A unit: $900/mo expires May 2009 / B Unit $885/mo expires May 2009
-Taxes are approx $4,107/yr
This duplex would is the ideal property for an owner occupant or
investor. Located in Southwest Austin, this
property has easy access to two major highways. The roof was replaced in 2009.
Spacious floor plan and good closet space which is important in Texas!
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Great Value in Northwest Austin
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Click Here for Virtual Tour
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| Duplex |
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Constructed
in 1981 / A is a 2/1.5 and B is a 2/1.5 / 2,007 sq ft
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A unit: $795/mo expires January 2010 / B Unit $750 Mo expires June 2009
-Taxes are
approx $4,649/yr
- Pro forma
available upon request
Value! Well-kept investment in quiet cul de sac. This
property is priced to sell. Might
be able to owner occupy with acceptable offer. Advantages this property has
include a larged fenced in yard, hardiplank and breakfast areas inside the
units.
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Owner Occupied Quality in Technology Corridor |
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| Duplex |
- 1980
Construction / Each unit is 2 Bedroom, 1 Bathroom / 1,672 Sq Ft
- A unit:
Owner Occupied (Market Rent $700+) / B unit $700/mo Month to Month
- Taxes are
approx $3,083/yr
- Pro forma
available upon request
Seller just completed new roof installation and repaired siding -
property is in superior condition to many in area. A unit is owner occupied and
you can tell that owner has taken good care of the unit. Pre-inspection
performed Feb 12th and available by request. Solid cash flow in a good rental
area close to major Technology employers. This one will probably go quickly.
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Quarter Acre Lot Northwest Austin
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Click Here for Virtual Tour
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Single Family
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Constructed
in 1955 / 4 Bedroom-2 bath / 1,733 sq ft
- Taxes are approx $3,224/yr
Seller says "Must Sell ASAP" - Bring all offers. Now priced to
move. Needs TLC; great lot, great potential. Quarter acre lot that is zoned
commercial "Instant Equity" Listing = Motivated Seller = Best deal on
the market.
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Under $80K per unit for four 2/1 units in Crestview!
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Click Here for Virtual Tour
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| Fourplex |
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Constructed
in 1984/ Each Unit is a 2 Bedroom/1 Bathroom / 3,564 sq ft
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A unit: $675/mo expires August 2009 / B Unit: $750 mo expires March 2009
C unit: $695/mo expires March 2009 / D
unit: $695 mo expires March 2009
-Taxes are
approx $4,738/yr
Under $80K per unit for four 2/1 units in Crestview! Will almost
certainly be great condo conversion candidate some day, and in the meantime
cash flows well. Owner occupant could use FHA to get into a Central Austin fourplex for as little as $11K - and let
the tenants pay the mortgage. Some deferred maintenance, and the rents
could definitely be improved, but overall in good shape and value priced to
sell quickly.
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Value Oppurtunity in Hyde Park!
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Click Here for Virtual Tour
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| Duplex |
- 1982
Construction / Each unit is 2 Bedroom, 1 Bathroom / 1,812 Sq Ft
- A unit:
$1000/mo and expires July 2009 / B unit: $750/mo and expires March 2009
- Taxes are
approx $6,354
- Pro forma
available upon request
Modern amenities not found in many Hyde Park
properties. Alley access. Picking up a good deal in central Austin neighborhoods is how most of the
successful area investors have made their money. When the market improves,
these areas see the spikes first.
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Click Here for Virtual Tour
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| Duplex |
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Constructed
in 2003 / A is a 4/2 and B is a 2/1.5 / 2.367 sq ft
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A unit: Vacant for Owner Occupant / B Unit $900/mo and expires February 2010
-Taxes are approx $4,621
- Pro forma
available upon request
Value! Large 4/2 home built only a few years ago, cleaned up and spotless
and ready for an owner-occupant or investor (market rent $1,000+). Located in Central / East Austin and very near the new Mueller Development -
Designated as some of Central Texas' "Rising
Star" neighborhoods, this area has seen property values that have increased
substantially in recent years. Young couples, students, and other groups that
want to live close to downtown but cannot afford prices West of Interstate 35
have began significant gentrification in this area.
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Architecturally Interesting Duplex,
Single Family Feel
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Click Here for Virtual Tour
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| Duplex |
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Constructed
in 1973 / A is a 2/1 and B is a 2/1 / 1,921 sq ft
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A unit: Vacant for Owner Occupant / B Unit $
-Taxes are approx 2.1%
- Pro forma
available upon request
Best duplex value in NE and the lowest price per square foot. A unit is currently vacant for an owner occupant - let your neighbor pay $825/mo of your mortgage. Property is architecturally interesting and looks like a single family home from the street.
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Download the Lot Survey
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ˇ 1.3 acres, No HOA Fees. Right next to Kellywood Estates, & Ranchland Hills, & Northlake Hills (gated community)
ˇ View of Lake Travis from 2nd story
ˇ 115' x 400'
ˇ Located in Jonestown, off of FM 1431 & Reed Park Road. This is a 15 Minute drive to Lakeline Mall, Cedar Park, & Leander
ˇ Two Marinas in the neighborhood 2 minutes away
ˇ 5-10 minute boat drive to Carlos-n-Charlies, Volente Beach, Café Blue, & Mansfield Dam
ˇ $88,900 is priced below surrounding lots.
ˇ Seller Finance possible
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