Texas is one of the best states to invest in real estate. It is a Sunbelt state, the job market is diverse and affordability is high. When buying real estate investment property, you want to look in areas of high growth. Texas A&M University’s 2000-2005 statistics show that Texas was the only state to have more than one city among the fastest growing in the nation with San Antonio gaining more than 105,000 people, Fort Worth – 82,700, Houston – close to 60,000 and El Paso with almost 35,000. Fort Worth, now the fifth largest city in Texas, was the city that had the fastest growth percentage in the nation at a whopping 15.3% increase.
More and more people are packing up and moving to Texas. I spoke to someone the other day at the airport who currently lives in Westlake, California. He told me that living in California was too expensive and that he is tired of working only to pay the mortgage and barely getting by on his income. Instead of waiting around for better days, he said that he was going to move to Texas and start over. With a few interviews scheduled, he was flying out to Texas to buy a house near Fort Worth. There he will have many options for jobs and be able to afford the lifestyle he wants. Dallas-Fort Worth had one of the top five biggest increases in jobs last year in the U.S.
Texas is one of the best areas to buy right now and the prices are relatively low. Fort Worth had median price of $115,200 in 2006. Texas has the great prices, a diversified job market, sunny climate and the affordability is a lot higher than states like California and New York. What about property taxes? It is true that Texas has fairly high property taxes, but the low cost of housing and the high rent creates a beneficial balance. The numbers work better in Texas than in most of the country. If you were to buy a rental property in most areas of California, Arizona or Nevada, you would need to put at least a 50%-60% down payment for California to break even and 40% or more for the latter two with a 30-year fixed rate mortgage. In Texas with its high rental rates, you can break even with as little as 20% down. In ten or less years, there is a good chance that the price of the home would double, making the property taxes seem like small change. Why would anyone not want to invest in Texas?