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Texas is romantic and living in its capital, Austin is fabulous. To enjoy your living in this happening lake city, you must have a home to call your own. Rented apartments unnecessarily drain on your pocket. So if your work, studies or simply the love for the city has taken you here, you must consider investing an Austin real estate.

The Austin real estate market at the moment is dominated by the condo projects. There is a number of reasons why you should consider buying an Austin condo instead of staying on in a rented apartment. Real estate investment means Federal income tax deduction from your interest expenditure. By owning an Austin real estate, you also get exemptions from your state tax too. A housing loan will require you to pay interests over a considerable stretch of time and this tax cut adds to your annual saving.

In addition to that, property taxes are also deducted from your income tax as you become a home owner. On the other hand if you choose to live in a rented apartment in Austin, your monthly expenditure in form of rents are gone for good.

This is not all; by owning a condo unit in Austin, you are entitled t enormous capital growth on your real estate asset. Austin is a city which despite all the housing crises, the property prices are on a constant rise due to steady population growth and the other city attractions including celebrity residence.

While owning an Austin condo is a great idea, it makes an expensive real estate investment. Here is how you can calculate the initial cost of having an Austin condo:
•    The initial deposit---this amount is to be submitted to the developer as a token of your commitment toward the deal.
•    The down payment---the percentage of the total condo price which you have to cough up at the time of settlement.
•    Closing costs---the costs of administrative works relating to the process of property buying.

If you proceed through a real estate broker, your earnest money will be put into an escrow account. If your offer is accepted, the amount will be included into the down payment or closing costs. In case of a non-acceptance, the money will be returned to you. Depending on the type of mortgage, the amount of your earnest money for Austin condo will vary.

The larger your down payment, the lesser you have to pay for your mortgage payments. For the first time property buyers, a FHA loan is perfect for investing in an Austin condo. This loan typically requires 3% or lesser down payment.

So far as the closing costs are concerned, you must ask for an approximate estimate of the total costs at the beginning so that it comes as a shock at the latter point of time.

These were some of the money related points you should keep in mind before sealing the deal for Austin condos. These points will help you organize your budget and other expenses in advance.