How to Save for a Home Purchase In Austin TX

Historically in Texas, homes have appreciated at 4.5% annually Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale (according to Texas A&M Real Estate Center). This is the expected appreciation we use when making real estate investment assumptions as well. Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale For example, a $200,000 home would increase in value to $209,000 if appreciation was 4.5% for that year Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale.

If you wanted to save for 1 year a 5% downpayment for a $200,000 home in Austin Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale, you would save 5% of the future value of the home, not the current value. You would Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale save for a $209K purchase, $10,450, not $10,000, if saving just for 1 year Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale.

Starting in about 2012, homes in Austin have appreciated at a much greater rate Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale, closer to 8% annually. This makes it harder to save for a down payment, like chasing a vanishing horizon Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale. Also, there are no more $200,000 homes. The median value of a home in Austin is now about $400,000 if you want to actually be in Austin itself, versus the greater Austin outskirts areas Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale.

So, today, if you want to save for a $400K median value Austin home Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale, and you want to buy it in 3 years with a 5% downpayment, for example, and 8% annual appreciation Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale rates continue, you will need to assume the median value Austin home will cost $503,885 in 3 year. That really sucks doesn’t it? If you are trying to live cheap and save for a downpayment? Waiting 3 years will cost you another $100K in purchase price Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale.

So, you will figure $503,885*0.05 = $25,194 down payment Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale in 3 years versus $20,000 downpayment if you bought the same home today Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale. You’ll need to start saving $700/mo for 36 months to afford the current $400K home which in 3 years will be a $503,885 home Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale.

Meanwhile, you also have to consider whether your income Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale will increase enough to keep up with your ability to qualify for a purchase price $503K in 3 years. Today, the gross income Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale needed to qualify for a $400K home in Austin is is about $10,300/mo, or $123,600 per year, assuming a 30 year loan at 4.5% with 5% downpayment Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale.

In three years from now, the $503K home will Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale require an income of $13,588/mo assuming a 30 year loan at a higher 5% interest (interest rates will absolutely increase Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale in coming years) and a 5% downpayment. The total monthly mortgage will be about $3,800 in this scenario. You will need a household income of $163,056/yr Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale.

Your income will need to increase over 30% in 3 years. Not likely as the cost of buying outruns your Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale income increase, and most employers don’t hand out 9% annual raises. If you even make the kind of income we’re talking about here to start with Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale.

You might be thinking “Screw Austin, Pflugerville here I come! Austin is just way too expensive now!“.

You won’t be alone. I hear you. Pflugerville, Hutto, Manor, Leander, Cedar Park, Buda, Kyle and other surrounding Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale cities will continue to boom because Austin has become increasingly too expensive not only for median income earners (appx $75K/yr in Austin) Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale, but for upper middle class earners as well. Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale

But beware the commute. To the cheaper home “Total Cost of Ownership” calculation you make for those areas, you have to add commuting costs if you still work in Austin. Traffic will only get worse as well Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale. So getting to and from your cheaper home outside Austin will involve some commuter suffering in exchange for affordability Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale.

This creates a “rock and a hard place” scenario for Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale young couple with kids trying to save for a new home downpayment and who also desire good quality public schools and want to live “in” Austin. Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale

The Affordability train has left Austin as it has become more of a playground for those coming to party Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale or attend a festival than a place for middle income families to live Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale.

We may soon start seeing sub-cities Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale, or suburbs that seek to replicate the cool urban vibe that makes Austin so desirable. But if you want the “real deal”, an “Austin” address, and easy access to downtown and the central environs that make the city attractive to visitors and locals Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale, better get out the calculator and start figuring out your savings plan.

Also be nice to your parents Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale. Younger buyers Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale are increasingly coming to the closing table as a result of financial help from parents. But that’s a separate story I may write about later Austin Homes for Sale Round Rock Homes for Sale Lakeway Homes for Sale Lake Travis Homes for Sale West Lake Hills Homes for Sale Leander Homes for Sale Cedar Park Homes for Sale Pflugerville Homes for Sale Lake Austin Homes for Sale Georgetown Homes for Sale Bee Cave Homes for Sale Dripping Springs Homes for Sale.