🤠🏡 Selling Austin #14

Welcome everyone! Happy Friday!

Pay attention to the build-to-rent boom and how to buy a house in 2024 with a 3% interest rate 🔍️ 

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WHAT'S INSIDE

• 🔢 THE DATA

• 🤠 WHAT’S HAPPENING AROUND TOWN

• 👀 DEAL OF THE WEEK

• ⁉️ WHAT THIS MEANS FOR YOU

• 🤤 HOUSE WORTH DROOLING OVER

🔢 THE DATA

Wanted to spend time on surprising graphs. Let’s dive in.

Heading back to 2020 (just for a second!) -
Real estate was insane and unpredictable. 10+ offers within 1 day, $100,000+ above list price, all cash offers…

A whopping 63% of homebuyers made offers sight unseen in 2020. Me included - anyone else? 😬 

This has been resurfacing on Reddit. The graphic below shows the age at which most residents are homeowners. Where do you fall?

🤠 WHAT’S HAPPENING AROUND TOWN

There is a lot of talk about private and institutional investors buying up property and pricing out the regular homeowner.

Texas is at the forefront of this “build-to-rent” boom.

What’s that?
Well, it is what it sounds like. Large communities, typically backed by institutional investors (hi, Blackstone 👋) that are built expressly to rent. If you’re buying where these investors are - your competition is really, really rich. 🤑

psst: in January, Blackstone announced it would take Tricon Residential private in a deal worth $3.5 billion. Tricon owns about 38,000 U.S. rental homes.

Why haven’t I heard of this before?
You’re not alone. Last year, developers completed 27,500 new build-to-rent properties. That number alone isn’t crazy - but this is: this marks a 175% increase in build to rent since 2021.

What’s next?
Texas has the largest supply of built-to-rent homes, at 15,600. Austin and San Antonio are both in the top 10 list. We will see the practical effects as these properties hit the market. Stay tuned 👀 

Read more: here and here

👀 DEAL OF THE WEEK

Rates have been going up with no relief in sight. What if you could buy a property today at a 3% interest rate?

You can. This Bee Cave home, tucked in the gated East Village Community comes with an assumable VA loan at 3.125%.

Tell me about assumable VA loans.
Ok, here’s the TLDR:
- you do not have to be in the military to assume a VA loan
- fewer fees than a traditional loan
- not a standard % down - you owe the equity the owner has in the property at closing. this can be covered via cash or loan (this loan will likely be counted as debt by lenders in your debt to income ratio)

Check this out -

• assuming 20% down you are

  • saving $2,100 a month

  • saving almost $750,000 over the lifetime of the loan

Read more about Assumable VA loans: here

Great find by Danielle Fountain on X!

⁉️ WHAT THIS MEANS FOR YOU

If you’re a buyer/seller/investor/renter or just interested in real estate - this weekly newsletter will help guide your decision making and help you better understand the market.

🤤 HOUSE WORTH DROOLING OVER

I just mentioned Lake Como in Austin, but how about a slice of Tuscany today?

You have to check this one out.
Yours for $11,750,000

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