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Why Invest in Houston Real Estate ?
January 17, 2013
A variety of economic conditions in Texas make our state an ideal place for real estate investing. In Houston specifically, the economy is strengthened by the multiple centers of industry that make the market here so strong. Energy, technology, medical and other trades all keep Houston thriving, despite any conditions in other parts of the country.
Houston was recently named the #1 healthiest metro for housing in 2013. And Forbes Magazine ranked Houston no. 20 in the nation for The Best Places for Business and Careers. All great facts, but how does this affect the real estate market?
The strong job market, reasonable cost of living and historically low interest rates all culminate in an environment that’s ripe for sellers and investors alike. According to the latest monthly data prepared by the Houston Association of REALTORS® (HAR), December single-family home sales increased 11.4 percent versus December 2011. Contracts closed on 5,039 homes, driving inventory down to 3.7 months, the lowest level since December 1999.
Also, single-family home sales rose 16.1 percent for the year and sales of all property types experienced a comparable increase of 16.3 percent. On a year-to-date basis, the average price climbed 5.4 percent to $225,330 while the median price increased 6.1 percent to $164,500. Total dollar volume for full-year 2012 jumped 23.3 percent to $16 billion compared to full-year 2011.
And on top of the incredible demand for home ownership, the rental market is just as strong. In December 2012, rentals of single-family homes rose 3.1 percent compared to December 2011. The average rent among single-family lease homes increased 3.8 percent year-over-year to $1,552 per month.
All of these statistics show that Houston housing is in demand—there is no doubt about it. So how can you capitalize on the market today?
First, investigate all of the options for investing in real estate. Visit with local realtors and network with people in the investment real estate business by visiting the RICH club (Real Estate Investment Club of Houston) or one of the many other valuable sources for investing advice.
Next, set an action plan. It’s a new year and now is the time to make decisions about your investment strategies. Even if you purchase only one rental property in 2013, now is the time to make that leap. Low interest rates make it even easier to ensure a positive cash flow. Keep to properties that have an after repaired value of $150,000 or less, in areas that have low homeowners association dues, reasonable taxes and good schools. There are prime opportunities out there right now and if you know how to buy right, your investment will appreciate over time while your rental income pays off your debt.
Once you’ve found some good resources for investment advice, decided you’re going to buy your first rental property and then acquire it, you’ll want to renovate and rent it out. If you don’t have time to manage it yourself, there are several good property management companies out there than can manage your rental properties for a small fee. It’s worth every penny to put a professional in charge of maintaining your property, ensuring that tenants are screened well and paying on time and managing any small issues that may come about.
After you’ve got it rented and producing income, you can re-finance the property and use that capital to go find another good deal. It’s easy to put a self-sustaining system in place a build your long-term wealth in Houston real estate.
The strong market throughout the state will ensure growth. According to texaplex.com, forecasts show that by 2030 we will add an additional 14 million people to the major cities in the state. That’s the equivalent of adding another Dallas, Houston, and Austin within the next 17 years. And everyone who finds their way to our big state will need a place to live—so the possibilities are endless. The statistics for Houston’s real estate market growth in 2012 are just the beginning of growth trends to come.
If you would like to learn more about how you can secure income and asset appreciation by capitalizing on the market in Houston, contact an agent at Big State Home Buyers today by calling 713-263-7466. Visit us on the web at www.BigStateHouseDeals.com to learn more about the inventory we have available, and check out our recently sold deals as well to see the types of bargains we historically offer to the investment community. We look forward to serving you!