When thinking about saving for the future, it’s best to realize the process is more of a marathon instead of a sprint.
There are many factors that go into what you should invest in due to your own personal situation. However, diversifying your financial portfolio is an absolute must when saving for the future.
Dave Ramsey suggests that you start investing after you have paid off all debt (besides your home) and have at least 3-6 months of income tucked away in a savings account.
If you’ve already done that…where do you start investing?
Making sure you are contributing to your company’s 401k plan is critical, especially when most companies match the contribution up to a certain percent. If your company does not offer a 401k, the next best option is to set up an IRA account, which allows you to save money with tax benefits.
Other investing options include the stock market and real estate, which are both LONG TERM investments. You only put money in these two places if you can afford to live comfortably without that money for at least 3-5 years.
What makes real estate a great investment is that regardless of the volatility of the market, property is always worth something. However, on the flip side, real estate can be risky and takes longer to liquidate in the case of an emergency.
Even with the recent mortgage rate hike, Austin’s 2017 real estate market could have another record-breaking year – which means our market is healthy and strong.
What makes Austin such a great place to invest in real estate is that it has a university, is the capital of Texas and the economy continues to be better than the rest of the nation and that doesn’t look like it will change in the foreseeable future.
Plus, we hear it all the time that once you come to Austin…you stay in Austin. It’s just an awesome city to live in.
In addition, we have several options for investors that yield high rents in many areas of the city. These include: single-family residents, condominiums, duplexes, four-plexes and townhomes. New areas are cropping up all the time and getting into the neighborhoods before the prices inflate is the best time to invest.
Austin also has several older communities throughout the area that have opportunities for renovations and upgrades for the fixer-upper.
Investing in real estate is not for everyone, but if it’s for you, we would love the opportunity to help you with your real estate endeavors. Please contact Kathleen Bucher at KathleenBucher@mac.com or 512.794.6644. It would be an honor to earn your business!