News Flash : It's Cold in Austin

I am fighting my second cold of the winter season! What gives? I am generally a one cold per season kind of gal. This Austin weather could have something to do with it. It is really cold for Austin and I love how we kind of collectively go crazy as a city when it gets cold here. We drive weird or refuse to drive at all and we openly complain to anyone that will listen about how cold it is, even though in many other parts of the nation/world folks are resorting to full body sweater wearing as pictured here:

I include myself in the collectively crazy for sure---I mean, as we speak I have on a lot of socks---like multiple pairs of socks and my pantry is stocked in a way that suggests I am expecting company---all because the temperatures have dipped into the 20s. A few days ago we had a little snow. In the time that it took me to contract my second cold of the season, it had melted. This is the type of snow we are more familiar with:

Soon enough it will be so hot that we won't even be able to remember the wonder of Wintertastrophe 2011. So, drip your faucets and make some soup and wear that crazy scarf I knitted you that one year when I was knitting A LOT because I had just quit smoking---and try to enjoy the wonder that is winter in Austin.

Fun Fun Fun Fest 2010: The year Brandi is reminded of her age and her mortality

Fun Fun Fun Fest 2010 was the fifth year of a music festival that we are so lucky to have in Austin. It has a markedly more DIY (in the best way possible) and less corporate feel than the better known ACL music festival and the programming is more punk rock centric (hip hop, indie, metal and electronic music are also well represented). This year along with great acts like The Gories, Strike Anywhere, The Hold Steady, OFF!, Peelander Z, "Weird Al" Yankovic, The Bronx, Bad Religion, Deerhunter, The Casualties and The Dwarves---the Descendents were booked as a last minute replacement for Devo (who are also so GREAT) because they had to cancel due to a band member's injury.

The Descendents are a band that I loved as a young Brandi and still love as an older Brandi. My love affair with punk rock started around my 14th birthday and has waxed and waned over the years, but it is a genre of music I hope I will always have in the mix. It is rare that a band's music endures for me over really long periods of time. Not to imply that I am fickle, it's just that as we change and stuff happens/is happening in our lives certain music may speak to us more at one time than another. The Descendents wrote songs about food and girls and coffee mugs and not wanting to grow up and turn into boring jerks. They wrote songs about being yourself and questioning authority.

I may know myself better now than I did when I was 14, but I still sometimes have a hard time being myself and I am self employed primarily because I don't like being told what to do. I also really like food.

So, here's where I get to the part about being reminded of my age and my mortality. Because this was possibly going to be my only chance to see the Descendents play live I decided I needed to be near the front of the stage for the show. This is something younger Brandi would have done and therefore older Brandi--having been very in touch with younger Brandi over the past 48 hours---did and the result was the opposite of cool. The minute the Descendents started playing the crowd crush was dramatic to say the least, and I quickly found my feet literally off the ground (and I am really tall) as my body became not my own as it was absorbed into a mass of movement. The feeling was one of total lack of control and since I was pressed between what felt like 1000 lbs of weight I could not get the space or leverage to throw an elbow as I so jubilantly recall doing in my younger years. I realize now that when I was going to shows as a teenager I was often one of maybe 50-100 people in the crowd and that's totally easy to maneuver ---Sunday night was not easy to maneuver and along with not really being able to focus on the show, I was about to lose it if I did not get out of there. It is also worth mentioning it smelled really bad---really, really bad, which was weird because there was so much dust in my nose and it was not very hot outside.  I was able to grab the boyfriend just long enough to yell in his ear that I was getting out of there and that I wished him luck and good fortune.  Amazingly, once my mind was made up I successfully escaped the crush of the crowd pretty quickly and found a very civilized spot with a great view and proceeded to have my mind blown by one of the most fun shows I have seen in a long time. The boyfriend also escaped unscathed.

The crowd that would later crush me

Descendents at FFF

The whole FFF weekend was really great and even though I was reminded of my age and my mortality---that's ok. Sometimes I need reminding.

South Austin Neighborhood Profile: Southwood

I am working on a series of  Austin neighborhood profiles. Those of you who know me, know that South Austin is where I live and often work---so it seemed like the best place to start!

Do you like to avoid IH 35? Do you like Sno Cones? Do you like to go to a corner store that is not corporate owned? Would you like to have a couple of chickens? Do you value space over status? If so, Southwood could be the neighborhood for you!

Geographically, Southwood is defined by Ben White Boulevard to the North, Manchaca Road to the west, W. Stassney Lane to the west (to the RR tracks) and to the east, South First Street including the greenbelt surrounded by Williamson Creek east of the intersection of South First Street and Emerald Wood Street .

You see a lot of bumper stickers around town promoting the virtues of South Austin and their corresponding zip codes and there is an undeniable sense of neighborhood pride that exists south of the river. South Austin represents a lack of pretense and harmony for many of it’s residents and I am really proud to count myself among them.

In recent years,  home values in the Travis Heights, Bouldin Creek, Zilker and SOCO neighborhoods have increased greatly, pricing out many first time home buyers. In my experience, those buyers are heading south of Ben White and it’s easy to see why.

In Travis Heights a 2 bedroom / 1 bath house under 1000 sqft can cost $350,000 and up. It will probably be really awesome and charming. It will be within walking distance to all kinds of cool stuff. Don’t get me wrong, I love Travis Heights and the surrounding neighborhoods, but for many folks this is not a viable financial option.

In the Southwood area you can find a 3 bedroom / 2 bath house, 1200 sqft + with some good yard space for under $225,000! A majority of the houses were built in the 60’s and 70’s. These eras  don’t always conjure up charm and style for many folks (much like the 30’s and 40’s era houses do), but these properties have great potential and many creative folks are making great design choices and are realizing that you don’t have to sacrifice style for space.

This neighborhood is also shaping up to be a good place to invest. We have seen very healthy appreciation in this area in the last 5-7 years and there is no indication that it won’t continue.

People who want to buy in the Travis Heights, Bouldin Creek, Zilker and SOCO neighborhoods, but can’t--don’t want to go north, so south of Ben White is where they are choosing to live. It's easy to get to downtown and avoid IH35, Central Market and a Newflower Market are nearby, there are many parks and public pools around, and lots of taco stands and sno-cone trucks.

Contact me if you would like to know more about Southwood or other South Austin neighborhoods.

Austin is voted super bad ass, again.

Kiplinger's magazine, the source for all things financial, loves to make best and worst lists. I really love these lists because I, much like many of us in this day and age find that I suffer from information overload and lists are a great way to present information in a concise way. The quality of life in Austin is something that is often mentioned in the media and those of us who live here understand why. There's lots to do here indoors and out, the people here are friendly and the local economy has weathered the recession very well.

Well, look out decade to come because Austin is on track to own your ass! Read more about Austin being voted the top city to be in the coming decade here!

Also in recent "Austin is rad" news, yesterday the Austin City Council voted to rename 2nd Street after Willie Nelson. Look, I know that there are bigger and more important issues before our city council, but the fact that we live in a city that will name a street after a pot smoking, tax evading musician is fine by me! Read more about the street name change here. I hope we get a Kris Kristofferson Avenue next!

Investment Property Update: Austin Texas

Here is some really good information about buying and running investment properties in Austin.



Outlook for Rest of the Year

Along with the stellar Spring weather comes the historical high point of the real estate sales season. Several factors suggest that 2010 will continue to see surging demand for small multifamily real estate in the Central Texas area:

Reasons for Optimism:

• Central Texas unemployment is the lowest in the US at 7.2% and continues to drop. (link to http://www.bizjournals.com/austin/stories/2010/03/22/daily45.html) As we've said many times, job growth is the single most important factor in real estate values. And our jobs are good ones. Most recent announcements of thousands of new jobs include Facebook, Yingli Solar Energy, and Hangar Orthopedics.
• Interest rates remain at all time lows.
• Our prices remain relatively affordable compared to other cities with a similar quality of life in other areas. U-Haul rates from California to Texas are still twice as expensive as rates in the opposite direction.
• We continue to be heralded in national publications as the best city in the U.S. for whomever and whatever (you name it). After watching the swarms of people attending this year's South by Southwest festival, I wasn't surprised to hear that $100M is injected into our economy every year from this event alone.

Potential Pitfalls:

• The $8,000 homebuyer tax credit expires April 30th. Some fear that the market will slow without this incentive, but I don't see the expiration as deeply reducing demand.
• The Federal Reserve will soon stop buying mortgage backed securities. This will almost certainly increase mortgage interest rates, though probably not too steeply.
• The Double Dip Recession seems increasingly unlikely, but remains a potential threat.
• Pressure to reduce the deficit will eventually require Washington to make some tough choices about taxes such as long term capital gains and possibly the mortgage interest deduction (which would both have an impact on real estate prices). Given how politically unpopular such moves are, however, we probably will not see any action here until 2011 or beyond, when the recession is an increasingly distant memory.

Remember, the days of rapid appreciation are gone, and will not return any time soon. Investors should always assume that real estate prices will rise in tandem with job growth and inflation. The more vibrant the area's economy, the more people moving to the area for jobs, and the more people buying real estate.

The Golden Rules of Property Investment Revisited

• Income must exceed debt service and operating expenses.
• Equity appreciation is nice, but should never be the primary factor in acquiring real estate.
• Focus first on cash flow, then on neighborhood, then on property.
• Working class neighborhoods are fine if they're in the path of progress and not at the end of their life cycle with deteriorating demographics.
• Like most experienced Central Texas investors, I like to stay as close to Central Austin as reasonably possible
• Keep a vigilant eye on operations.
• Are you protesting your appraised value with the county each year?
• Are you holding your property manager and leasing agents accountable for their performance?
• Make readies and maintenance shouldn't be eating up more than 20% of your monthly rental income.
• Don't raise rents! Wait until the tenant moves out, and then readjust to slightly under market value for the next tenant. Vacancy is the worst enemy of cash flow. Don't be penny wise and pound foolish.

Help Save the Cathedral of Junk

The Austin landmark, the Cathedral of Junk is in danger of being outlawed! Read more about it here---


http://austinist.com/2010/03/24/cathedral_of_junk_may_be_junked.php

Austin home sales up by 38% for 10.09!

The Austin American Statesman reports that existing home sales are up by 38% for the month of October. The Austin market has weathered the economic storm so much better than the rest of the nation and this article verifies it! Check out the full story at:

http://www.statesman.com/business/content/business/stories/realestate/2009/11/19/1119homesales.html