According to a recent article in the Austin American Statesman, the Austin Chamber of Commerce recently hosted an economic forecasting event and there is good news for Austin area residential real estate. They forecast that Austin, because of its diverse labor skill pool coupled with the number of employers coming here will keep Austin growing for years to come. Joe Quinlan of Bank of America stated Austin’s growth is not just because it is attracting people but also corporations. And Jon Hockenyos, a long time reader of the area’s economic tea leaves stated that Austin is in the early states of a growth surge. He was quoted as saying that Austin will be one of the great global cities of the 21st century. Both Quinlan and Hockenyos stated that one of the main constraints to our growth will be the lack of housing. And that is where we come into play.
All of these new transplants have to live somewhere, so why not with one of our fine residential rentals? Think on it. You bought an income property a year ago and today on average in our area it increased in value over 20%, while Uncle Sam allowed you to depreciate the property, and the rents have increased over the last year. And when you need cash to buy that new boat that you always wanted, you don’t sell because that would trigger income tax. Instead, you take out a loan on the property, tax free, buy the boat while rents are probably increasing to help pay off the loan!
So how many rent houses are enough? Just one more!
Disclaimer, always check with your tax professionals and financial advisors before making any investment decision.