Property Types – What Should I Buy?

Different Geographic Regions

Now that we have a general idea of what property type we´re looking for, we need to figure out where to look.

There are four main local regions that we recommend to investors:

The Technology Corridor (green boundaries on map) – Austin´s job market is largely about the future – specifically technology, media, entertainment, alternative energy, and education. Therefore, we love areas in town where we can find affordable investment property close to these jobs of the future. When we refer to "The Technology Corridor", we´re usually referring to the area north of Highway 183 (Research Blvd), West of Interstate 35, and extending north and west to Lake Travis.

South Austin (purple boundaries on map) – one of the area´s hottest regions recently, South Austin boasts affordable housing, close proximity to the cultural institutions around the University, and some of the best stock of investment property in the area. Castle Hill Investments believes The Technology Corridor and South Austin is the best fit for most entry-level and beginning Austin area investors due to the lower cost of entry and higher cash flow.

Central Austin – (black boundaries on map) the most expensive (and the most prestigious) area of investment (also primarily student and wealthy intellectuals and "limousine liberals"), investors can expect the best equity appreciation in coming years, but also the highest entry costs and lower corresponding cash flow.

Peripheral Central Austin - (red boundaries on map) the areas around the University, but just outside the most expensive areas, we call "peripheral Central Austin", and these areas have seen some of the best equity appreciation the last few years. Bounded by Hyde Park and Rosedale going out to 183 (Research) north, and south of the River down to Ben White in the South – it is becoming increasingly difficult to find bargains in this area, but our clients who are investing here are seeing great gains in both rents and equity values.

The Austin Property Tour will take clients through all of these general areas with a commentary on each. Though there are investment pros and cons of each area, we generally try to identify those areas which our clients feel the most comfortable in – this can sometimes just be gut instinct - and we do our part as advisors by providing the vital market statistics.

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