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How to Invest in Commercial Real Estate Real Estate Trends in Austin, TX

Meeting Your Financial Goals Through Austin Real Estate Investment

While every investment has associated risks, some investment options can be more unpredictable than others. Investors in the stock market know the highs and lows the market has experienced since the beginning of the Covid-19 crisis, but did you know that some investment options are not so closely related to the ups and downs of the market? Austin real estate investment is one promising option for those who want a less volatile investment opportunity and the ability to earn passive income.

During such economically uncertain times, it’s important to carefully consider risks and look for investment options that show a history of growth. Austin real estate investment is one such option as the need for commercial and residential properties in Austin continues to expand.

Investment Firms Save You Time
One concern many potential investors face when considering real estate investment is that real estate is both a time and financial commitment. Some investors may feel wary of pouring time and money into a property that may take years to earn back enough revenue to cover the initial investment cost, but the right property can actually have a higher return on investment in the long term than many investments in a portfolio.

You don’t need to be an expert to excel in real estate either, but you may choose to work with an expert to get the most out of your investment. There are many investment firms that can assist you with the process of acquiring, refurbishing, and managing an investment property. Having someone else handle the details frees up time for you to do other things, and once the property is rented out, you receive a passive income without the hassle of managing the property yourself.

Additionally, investment firms often hold some stake in the investment properties. They benefit when the property does well, just like you do, so working with an investment firm makes your investment a collective effort. There are also laws and regulations in place to protect investors, adding another layer of security to this investment option.

Want to learn more about incorporating real estate into your portfolio? Connect with our team of specialists today!

Employment and Population Growth 
The two most important factors when considering whether a city is a viable real estate investment option are employment and population growth. Generally, if a city’s unemployment rate is low, jobs are being created in the area, and the population is growing, there will be a demand for both commercial and residential properties.

Austin in particular has seen growth in many industries as companies like Apple and Amazon move offices into the area. Austin also continues to see population growth with the population expected to reach 3.6 million in the next twenty years, and it was named the fastest growing city in America in 2019 by the Rice Kinder Institute for Urban Research. For this reason, Austin real estate investment has become an appealing option for many investors. 

Austin also has social appeal as a large city with its vibrant culture that draws in many young professionals who are more likely to look for multi-family housing (like apartments) when moving into the city. A recent dip in mortgage rates is also making home buying a more realistic option for the millennial demographic in Austin. The cost of living in Austin is much lower than other cities in the U.S. such as New York and San Francisco, which means new residents have more expendable income to put towards rent.

While there is no such thing as a “fool proof” investment, there are certainly many strong indicators that Austin is a lucrative real estate investment option.

Low-Risk, High-Return Investment
There is more than one way to invest, but some options are more risky than others. You may choose to focus heavily on your 401(k) for retirement or buy and sell stocks for a profit, but the difference with real estate investing is its ability to create a reliable passive income from an investment which helps to lower-risk and generate a higher-return.

As an example, real estate investments tend to outperform the S&P 500 in times of volatility, making it an attractive option than stocks. Even during the recent Covid-19 crisis, multi-family real estate investments have remained resilient. Properties are still being bought by investors and rented by consumers despite the current economic situation.

New investors will be encouraged to know that while Austin real estate investment requires more capital to get started, it also allows for a potentially higher return on that investment in the future. With Austin’s growth expected to continue for at least two more decades, investors still have time to reap the benefits of the Austin real estate market.

Austin Real Estate Investment Remains a Solid Option
Real estate remains one of the best investment options for those willing to play the long game to receive a higher ROI. New investors should consider working with an investment firm who can help them make the smartest investments while saving them time.

With a growing population and thousands of jobs scheduled to come to the city in the next few years, Austin real estate investment remains a viable option for investors as the need for housing and commercial spaces will only increase. While real estate investing can require more money to get started, the ROI can be better than many other investing options while providing the ability to generate a passive income stream for investors.


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Ari Rastegar

Ari Rastegar

Ari has built a portfolio network designed to reduce risk and provide strong quarterly cash flows, with an emphasis on asset classes such as self-storage, multifamily, office, retail, and industrial. He’s been recognized for his specialties in recession-resilient strategies and commercial real estate investments.