It’s not surprising that in conversations with my friends, business and finance are among the most frequently covered topics. Recently, one of my closest friends asked me an interesting question: If I were able to give just a single piece of advice to a future real estate investor, what would it be? I was happy to offer what I consider to be an extremely useful insight.
One of the most valuable keys to becoming a successful investor is to notice trends occurring in a region that could positively impact the real estate market. It sounds basic, but it’s fundamental to making good investment decisions.
In most cases, it’s possible to examine any hot spot for real estate investment and identify specific factors that explain the success of that area. As an investor, you want to train yourself to pick up on these factors quickly so you can locate areas that may become hot spots. Of course, this can be difficult to do on your own, so it helps to enlist the services of an experienced firm that has experts who already have this skill.
One factor you should pay close attention to is the job market within a specific region. If the job market is healthy, then you can predict that the region is likely to have good real estate investment opportunities now or in the near future. This may be especially true depending on the type of real estate you’re seeking.
If you’re looking to transfer or sell your current investment property for another investment property (such as multifamily apartments) in a 1031 exchange, you will ideally want to choose an area with a thriving job market, such as Austin, Texas. The relatively healthy job market in Austin is one reason why you could consider this location for your next investment.
In 2016, job growth in Austin averaged 3.8%, which was significantly higher than the national average of 1.8%.
Moreover, the average job growth in Austin from 2009-2016 was 3.0% as compared to the national job growth during that same period of 0.7%, which speaks to the area’s resiliency.
These strong numbers indicate that the region is likely to have good investment opportunities because, if the job market is healthy, then people will be financially capable of consuming local products and services. This financial capability plays a large role in promoting the health of real estate markets.
Apartments a Wise Choice for Austin Real Estate Investment
In the case of Austin, the lack of affordable housing in recent years has created an especially intense demand for rental complexes. Home prices are too high for many people in the Austin buyers’ market, and these high prices have pushed residents to look for rentals.
Given the city’s current positive job market realities, apartment rental complexes should remain strong investment possibilities.
Looking at trends that affect real estate markets, like the job market in Austin, is one of the best ways to guide your real estate investment decision making. Working with a competent real estate investment management firm can help you identify those trends and capitalize on them as early as possible.
CWS Capital Partners has an established track record of helping investors make excellent investment decisions in the metropolitan area of Austin. Contact us today to discuss your next real estate investment.
The information provided here is for your general informational purposes only. It should not be considered a recommendation or personalized advisory advice. CWS has made this third party information available from authors it believes are knowledgeable and reliable resources. However, its accuracy or completeness cannot be guaranteed and sentiment may change due to legal or economic conditions.
All investments involve risk including the possible loss of principal. You should familiarize yourself with all risks associated with any investment product before investing.
Advisory services are provided by CWS Capital Partners LLC, a registered investment advisor.
Securities offered by CWS Capital Partners LLC are through an affiliated entity, CWS Investments. CWS Investments is a registered Broker Dealer, member FINRA, SIPC.