The Hypothesis
To begin, I posit two items: 1) If you’re living in Austin and in hi-tech, you’re younger than me, and; 2) you are likely a lot smarter than me… Having established that you are likely younger and smarter than me, let me also establish that as an end result of being older, there’s a good chance I’m wiser than you. And the purpose of this missive is for me to share some of that wisdom with you.
The Situation
If you live in Austin and are renting your home, you are making someone else wealthy and making yourself poorer. In Austin, average rent is $2,245/month. And with a median price for a home in Austin $624K, even if you want to buy, chances are you’ve been priced out of the market. What’s more, every month it is getting worse.
The Alternative
For about the same you are now paying for rent – at your loss and someone else’s gain – you could be building equity in your own home, enjoying significant tax benefits – which effectively lower your monthly payments – and looking out for the long term. Generally speaking, over the long term, housing is among the best, safest and most predictable investments one may make. And this has been true for over 150 years.
Right now, today, for what you’re paying in rent, you could be paying off a 30-year loan on a $415K home. And that number includes the amount towards principal, interest, tax and insurance (PITI.)
The scenario depicted assumes a 20% down payment and assumptions about tax and insurance. And depending upon the loan you seek, the down payment can be as little as 5%, 3.5% and even 0%.
US veterans are eligible for 0% down loans. And even if you are not a veteran, you may qualify for a 0% down loan from the USDA, yes the Agricultural Department! In addition, The State of Texas has numerous programs for first-time homebuyers and Texas veterans. And I have partners that can help you determine what you qualify for. Allow me to introduce you to them.
But Where?
San Antonio, TX is now among the country’s top 10 moving destinations, ahead of even Austin and Dallas. And, at only about a 90-minute drive to Austin (heck, it can take two hours to drive from San Jose to San Francisco) San Antonio is near enough to commute to the office a couple of days a week, while being far enough away to avoid the high housing costs and rampant homelessness. And New Braunfels, roughly halfway between the two cities, is served by two international airports and is a truly wonderful place to live.
And while the median cost of a home in Austin is $624K, at $305K, the median cost of a home in San Antonio is less than half. The average cost of of a home in San Antonio at $351K is a little more than half that price. What this means is that you can get an equivalent home for roughly half the price.
What’s more, because of its vibrant downtown, pedestrian-friendly streets and concentration of tech and healthcare jobs, San Antonio is now rated as one of the best cities to buy a home. This is even more so for those who either have children or are planning to.
Stop Procrastinating
Because of increasing interest rates and rapidly rising rental and home prices, each month you delay will make it more difficult and more expensive to buy a home. Stop procrastinating! From now on, every time you write your rent check imagine your landlord getting richer and you getting poorer.
Be in charge of your finances. Be independent. Be an adult. Be a homeowner.
Time For Action
Okay, so you’re younger and smarter than me. And now you have my wisdom; it’s time to do something with your smarts and wisdom. Think about the configuration of the ideal home you’d like to have and the minimal home you’d like to have. Think about “must-haves” and “have-to-haves.” Think about the type of neighborhood you’d prefer, urban, suburban, rural and anything in between. Then reach out to me.
We’ll discuss what you’re looking for and, if you’d like, we can then spend a day or two touring neighborhoods and homes to help narrow down what truly suits you. Additionally, I’ll introduce you to loan officers that can help you determine your budget.
After 30+ years in hi-tech I’m semi-retired and doing this because I like doing it. Therefore, there is zero pressure, only coaching and advice. You have absolutely nothing to lose and potentially a lot to gain by us having a conversation.
Help Someone to Help Themself
If you know anyone that might benefit from this essay, please share it. Visit my website: CopaceticTeam.com for a lot of good information about the San Antonio area. NOTE: To get to the “good stuff” you need to register but I promise I won’t SPAM. It is to prevent others from stealing the info I put a lot of time collecting.
Bill@MissionRealtyGroup.com | 408.827.8484