A comment I have been hearing lately is "I think I'll RENT now and BUY in a YEAR"
While I understand this sentiment, it might be a costly decision over the long haul. The most common thing these people say is "I want to learn the areas before I buy". I get that but it may be a costly plan. Let's use a few assumptions and play this out financially.
You want to rent a 3/2 home with a garage in an assumed target area. Let's choose Circle C. You can expect the average rent to be about $2,350. ($2,350 x 12 = $28,200)
Now let's look at a home for sale in Circle C at $377,000 (today's price) and you can do 20% down. By my calculations (rough estimate) your monthly payment would be about $2,250 including principle, interest, taxes & insurance.
So now you rent for a year and the Austin market remains on it's current path (8%-12% increase). The same house that was $377,000 will be about $415,000 a whopping increase of $37,700 at 10% year over year increase. Now again assuming interest rates stay the same at about 4.125 (which most doubt) your monthly payment would be about $2,400 per month or an increase of about $150 per month for 30 years! ($54,000 )
So lets' recap. You spent an extra $28,200 on rent and your payment went up $150 per month by waiting a year. That's almost like throwing away $30,000! Heck, there is a good chance that if you decided you didn't like the place you bought in the first place you could sell it in a year and not loose money even after expenses.
The Greater Austin Area is home to some fantastic schools and school
"Buying or selling a house it the Austin area? I recommend Violet Leff , she is a first rate real estate agent. Violet worked with me to sell my home in South Austin. She had it sold the day it went active, but due to unforeseen circumstances we were not able to complete the sale and had to temporarily take the property off the market. During that time, Violet checked the property regularly, made sure the yard was taken care of and was in constant communication with me. Once we were able to put the property back on the market, Violet held a weekend of open houses and the property went under contract immediately as a result. I received a good offer very close to list price and a quick close of escrow. Call Violet, you will not find a more service oriented real estate agent."