Are You Considering an Investment in Texas Real Estate?
If you are considering to purchase under market value, out of state investment property, you probably will be considering the state of Texas as a possibility. Texas generally offers some great benefits for out of state property investors and has some of the best cities to invest in real estate.
According to Forbes, (“Do Your Homework When Investing In Texas Real Estate“, by Ingo Winzer), in the past five years, the population of Texas grew 10 percent, three million people – more than Florida or California. Part of the increase was immigration, legal and illegal, but a larger part was people moving there from other states.
Texas is a big place, so some markets will do better than others. Houston and smaller markets with a large energy-related sector – Odessa, Beaumont, Midland – are strongly affected by the current low price of energy. The winding down of shale oil and gas development in Odessa and Midland puts those markets off-limits for normal real estate investment for a while. The refinery business in Beaumont and Houston, and the energy-technology business in Houston are more cyclical, so slack demand right now can be an opportunity for investment in future demand – but with the knowledge that success can be years away.
Austin, the Texan tech capital, according to the Urban Land Institute’s Emerging Trends report, the city’s attractiveness to millennials continues to fuel economic gains, and scores of sizable developments showcase healthy growth in the tech sector.
Dallas increasingly resembles a mid-20th-century California, with a future of sunny weather and big growth up ahead. Dallas alone has added 717,000 jobs since 2010, according to data from CBRE, a commercial real estate firm, and recent corporate relocations, such as Toyota, suggest more companies see a bright future in Texas.
Houston also has strong growth in jobs, a booming population and low housing prices. The average price here currently is $214,000. Some experts say the housing market in Houston is still undervalued, so if you are looking for under market value property to invest in, you could do well in Houston.
San Antonio is the #9 fastest growing city, according to Forbes. This means strong demand for owner finance and rental properties, and is a great option for out of state property investment.