Foreclosure in Austin>Question Details

Pranshu, Other/Just Looking in Austin, TX

is manor a good area to buy rental property?

Asked by Pranshu, Austin, TX Sat Aug 25, 2007

how does it compare to buying property in austin?

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7
Manor is pretty far from central Austin. The properties have decent cashflow but in the past they have seen pretty poor appreciation. When more people move to Manor builders just build more houses which makes appreciation difficult. In contrast in central Austin their is not alot of vacant land left so when the population increases prices tend to go up.

So in the end it depends on what you are looking for cashflow or appreciation.
2 votes Thank Flag Link Sat Aug 25, 2007
I agree with Julie on this one actually. Buying in Manor is like buying a knock off Prada bag in N.Y. and hoping some one will appreciate it like the real thing. Builders often raise(when building in phases) and lower (when closing out) their prices at will; and many of the foreclosed you begin to see on the market are dumped in new subdivisions, which translates to low comps and low resale. If an agent is advising you to buy in Manor it's because they live there and they should be fired, or what your looking for is only possible in Manor.
1 vote Thank Flag Link Mon Aug 27, 2007
there are some opportunities there as investors are beginning to liquidate portfolios -- whether they want to or not -- there are a couple of developments that have high section 8 populations -- buy 'em right n they'll pay -- but not appreciate
0 votes Thank Flag Link Thu Dec 13, 2007
I think if you are looking for positive cashflow manor would be one of the last places i would look into. right now the rental market cant keep up with the sales market. unless you are planning on keeping the property for a substantial amount of time and are putting down a large down payment i would look into downtown or south austin. good luck.
0 votes Thank Flag Link Thu Oct 18, 2007
Buy rental property where people tend to pay the rent better... Yes I said better because - and no surprise, the lower the rent, the more likely the tenant has extra flash cash in his or her pocket... This means that if they get into a anything, like... an unexpected bill, they will not be able to afford to pay the rent on time. Buy in areas that attract a tenant with more positive credit features. Downtown is a great example.
0 votes Thank Flag Link Wed Aug 29, 2007
I think we're all on the same path here ... I believe we will see continued growth in and around Manor which equals new construction and it will take years for builders to stop building out there so the downside is that when someone needs to sell, the resale market is marginal because you cannot compete with new builds. I like to buy rental property in neighborhoods where I feel I could get out of it if I needed or wanted to liquidate vs. being stuck. We saw a fair amount of this happen in Pflugerville and Round Rock over the past 8 years or so. If you know you're going to hang on to the property for some time, I think there is opportunity and a healthy outlook for the area.
0 votes Thank Flag Link Mon Aug 27, 2007
I agree with what Ki said- well stated! Its like anywhere that has a lot of development: you might get good cash flow but not so good apprecation. I know we have known investors to purchase in round rock over the last few years, where there is a lot of development, and they have a hard time getting their properties rented. It serves logic that Manor would be similar.

That being said, the increase in foreclosures in Texas (while lower in Austin than the rest of texas) might be creating something of an increased rental market. This is just speculation.
0 votes Thank Flag Link Sat Aug 25, 2007
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