Real estate prices are going down in most of the American cities because of recession. Bank loans are hard to get and buyers find it difficult to pay in lump sum. Seller Financing in Austin, Texas has helped the inventories to come down and helped the real estate prices remain steady. (What is Owner / Seller Financing?)
Austin, Texas is one of the fastest growing cities in America with low inventories for real estate properties. There are sellers who want to sell their houses fast but do not want to sell them cheap. They take the option of financing the buyer who comes with a down payment or a bank loan. Buyers will have the option to pay in monthly installments. The total period and the rates of interest are based on the mutual agreement between the purchaser and seller. This concept of seller financing has worked well and have stopped the depreciation of homes for sale in Austin in great way.
Advantages of Seller Financing
There are nearly 150 neighborhoods and communities in Austin and each of them is special in its own way. Most of the houses that are available for sale is less than 10 years old and it shows the growth of the town in the recent past. People do not want to sell their houses for a cheaper rate though there are urgencies like transfer. Seller financing have worked in their favor and inventories have come down drastically. Owners are much more open to this option because they get fair value for their property and also a good interest for the investment. This has made Austin properties very hot. Even in this recession hit times; there is no great fall in Austin real estate.
Though government loans for housing are much cheaper, they come at 0% to 3.5% according to the longevity of repayment, they are hard to get. There are many formalities to qualify for government loans. If you have the money for down payment, which is usually between 15 and 20% in Austin, Texas, rest of the payment will be taken of by seller financing. If you make an agreement for monthly repayment, the total amount payable every month will only be little more than monthly rental payment. Austin property is always hot and it is poised to grow in near future. Therefore, your investment will be safe and appreciating as well.
Seller financing option will make their houses sell very fast and they will get higher price for their property. It may not be affordable to shelve out a heavy amount for complete settlement at the time of purchase without bank loans for a buyer. In these days of recession, bank loans are hard to get and only few people get qualified for loans. This will make the real estate prices in Austin go down as in many other American cities. If Seller himself finances the buyer under mutually agreed terms, real estate prices will remain steady. (Can you sell your house with Owner Financing?)