Nobody knows exactly where the economy will be in 3 years. Sure we appear to be at a bottom but the only way to know that is looking back and it's too early to do that right now. If you purchased a home back in 2007 or 2008 you very well may have lost money or broken even selling it 5 years later.
Austin is a great place and there are fantastic values to be had all over. The important thing is finding the good values and understanding the market to put the odds in your favor of making a good purchase that will pay off in the years ahead.
Three years is not really enough time to guarantee any type of appreciation. While Austin has lots of factors in it's favor this is something to be aware of. On a $300k purchase the home would have to appreciate to at least $330k just to break even. While that is definitely possible and many areas have seen appreciation much higher it all comes down to making a good educated decision and knowing that your parents may or may not walk away with a profit.
I would put together a contingency plan where they may look at the possibility of renting the property for several more years in the event the market is not supporting the necessary appreciation they need to make a profit. That may be a good solution if things do not go as planned.
Always plan for the worst case scenario and be aware of the consequences and make sure your parents are OK with them.
Best of luck to you!
REALTORÂ® | Mortgage Broker
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