All Topics / Overseas Deals / Texas Market

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  • Profile photo of LiamTLiamT
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    @liamt
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    Does anyone know about the Texas market? I was told that Austin is the fastest growing in terms of market value and rental demands. I also heard that it is easier to get financing than other states like Florida.

    Profile photo of speedy gonzalesspeedy gonzales
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    @speedy-gonzales
    Join Date: 2010
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    Hey LiamT,

    I've been investing in Texas for a while now…both residential and commercial stuff.

    Chart
    This might give you some idea that price have been rising steadily for a while. It will be harder to find a good cash flow deal in my opinion. I don't invest in the lower end of the market type of stuff. Austin has it's share of the lower end homes just like any market does but the average price in Austin is pushing $250,000-00. I have seen better cash flowing deals in Dallas & Houston. I also haven't seen any decent finance available outside these cities. I got 2 of mine financed in Dallas at 30% down on really good terms and conditions.

    Profile photo of VideoInspectorsVideoInspectors
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    @videoinspectors
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    Texas accounts for around 3.5% of the Foreign Investor market in the US and Austin doesn’t show up in the Texas numbers. That of course doesn’t mean there are no opportunities in Austin, just not many international buyers looking there (Florida accounts for almost 40% of Foreign Investor market) Hope this helps.

    Profile photo of LiamTLiamT
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    @liamt
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    Thanks, so basically, its not the cheapest nor the most attractive market for foreign investors. However, if you are willing to shell out a few real dollars its a good deal.

    Profile photo of Texas Cash Cow Investments AustraliaTexas Cash Cow Investments Australia
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    @texas-cash-cow-investments-australia
    Join Date: 2011
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    According to the 2011 National Association of Realtors Profile of International Home Buying Report….
    Florida (31%), California (12%), Texas (9%) & Arizona (6%) account for 58% of all foreign national buyer transactions.

    I'll accept it's not the cheapest market but it is certainly being found attractive by foreign national buyers due to the many positive factors such as low unemployment, high jobs growth and high population growth. We have finance available for foreign nationals with 30% down and a rate of 5.75%. Many of our clients find it more attractive to put say $30K down as a deposit on a home and get a much more solid investment that will be paid off in full in less then 15 years by the rental income alone. Really depends what the investor is trying to achieve I guess.

    Profile photo of Invest to RetireInvest to Retire
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    @invest-to-retire
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    Austin is a good choice for investing in buy to let property because of its young population and the number of schools in the area. If you could get property near UT, great.

    Profile photo of Texas Cash Cow Investments AustraliaTexas Cash Cow Investments Australia
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    @texas-cash-cow-investments-australia
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    This video is also a good link for anybody wanting to know a bit more about Texas.

    http://www.youtube.com/watch?v=KmqKic5Y8DI&feature=player_embedded

    Profile photo of Texas Cash Cow Investments AustraliaTexas Cash Cow Investments Australia
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    @texas-cash-cow-investments-australia
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    Looks like Texas is leading the way with new home construction as well…

    http://www.theatlanticcities.com/housing/2012/06/texas-housing-juggernaut/2288/#

    Profile photo of jazzlegjazzleg
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    @jazzleg
    Join Date: 2010
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    So Texas sounds like a great state for property investment. Dallas, Austin, San Antonio and Houston are often mentioned in this matter. Anyone has any view on how they stack up against each other?

    Profile photo of speedy gonzalesspeedy gonzales
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    @speedy-gonzales
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    Interesting. Just read that Qantas is increasing it's flights to Dallas/Fort Worth next month to a daily service. Last May when they dropped the San Francisco route in favour of DFW it was only 4 flights a week…in January it was increased to 6 flights a week and now starting July 1 it will be a daily service.

    http://www.bizjournals.com/dallas/news/2012/06/19/qantas-ramps-to-daily-service-for.html

    Profile photo of Nigel KibelNigel Kibel
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    The Texas market is great, its because the economy is strong. If you look at Forbes they predict that when looking at the top ten boom cities all the major cities in Texas are there. So is Orlando in Florida. I love Austin as a city but it is a lot harder to get good deals there. It can be done, however you have to dig a little deeper.

    Nigel Kibel | Property Know How
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    Profile photo of jayhinrichsjayhinrichs
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    but then you have to live there UGH……

    No comparison to living in the SF bay area

    Of course in Texas you can buy a mansion for 500k… In SF and then penninsula you cant buy a shack for 500k…

    Houses are 1 to 50 million.

    Reason:

    The SF bay area has some of the worlds best climates.  No humidity,, no thunderstorms or tornados… ( occasional earthquake) but tornados and lightning kill more americans every year than one earth quake every 20 years.

    As well as headquaters for :

    Google
    facebook
    intel
    varion
    Hewlit and packard
    Cybase
    Cisco
    lockheed martin
    Oricle
    genentech

    And the list of multi billion dollar high tech companies go on and on.

    Texas is Oil and gas which is great and Texas instruments and Dell…

    big differnce is In Norcal  Bayarea you are land restricted just like OZ

    Texas is not the case, therefore prices will never really sky rocket.. they will stay stable but no real huge gain.

    JLH

    Profile photo of Nigel KibelNigel Kibel
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    Hi Jay I agree with you there. Thats why I am more interested in apartment complexes over there rather than houses.
    I will also stick to my development model in Australia.

    Nigel Kibel | Property Know How
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    Profile photo of jayhinrichsjayhinrichs
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    word of caution with Apartments in Texas.

    2 companies I worked with lost their apartments and you will see numerous one's forsale in distress.

    REASON:

    Little to no building codes… You have a nice complex perking along then low and behold right down the street a new one pops up.. they run rent specials and half your tenants move to the latest and greatest.

    I have seen this play out numerous times since the middle 80's

    Just be very very cautious in multi in Texas…. SFR are safer in my mind.

    JLH

    Profile photo of speedy gonzalesspeedy gonzales
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    @speedy-gonzales
    Join Date: 2010
    Post Count: 149
    jayhinrichs wrote:
    but then you have to live there UGH……

    No comparison to living in the SF bay area

    Of course in Texas you can buy a mansion for 500k… In SF and then penninsula you cant buy a shack for 500k…

    Houses are 1 to 50 million.

    Reason:

    The SF bay area has some of the worlds best climates.  No humidity,, no thunderstorms or tornados… ( occasional earthquake) but tornados and lightning kill more americans every year than one earth quake every 20 years.

    As well as headquaters for :

    Google
    facebook
    intel
    varion
    Hewlit and packard
    Cybase
    Cisco
    lockheed martin
    Oricle
    genentech

    And the list of multi billion dollar high tech companies go on and on.

    Texas is Oil and gas which is great and Texas instruments and Dell…

    big differnce is In Norcal  Bayarea you are land restricted just like OZ

    Texas is not the case, therefore prices will never really sky rocket.. they will stay stable but no real huge gain.

    JLH

    Hi Jay,

    Granted there is no comparison to Texas versus San Francisco……if it came to where I would live….SF wins hand down. But we are talking investing…not living there. Just like here in Australia…..I have investment homes in places I would never dream of living but they make me money anyway.

    Just not sure about your comment about prices not skyrocketing. I have compared Texas, Arizona, Florida & Georgia using data from the FHFA.

    GEORGIA HOME APPRECIATION RATES

    Since 1990 +80.77% or an annual rate of +2.89%

    Last 10 years +20.81% or an annual rate of +1.91%

    Last 5 years -5.96% or an annual rate of -1.22%

    Last 2 years -9.35% or an annual rate of -4.79%

     

    FLORIDA HOME APPRECIATION RATES

    Since 1990 +97.34% or an annual rate of +3.33%

    Last 10 years +41.91% or an annual rate of +3.56%

    Last 5 years -31.79% or an annual rate of -7.37%

    Last 2 years -15.21% or an annual rate of -7.92%

     

    ARIZONA HOME APPRECIATION RATES

    Since 1990 +98.76% or an annual rate of +3.37%

    Last 10 years +27.89% or an annual rate of +2.49%

    Last 5 years -32.49% or an annual rate of -7.56%

    Last 2 years -21.24% or an annual rate of -11.25%

     

    TEXAS HOME APPRECIATION RATES

    Since 1990 +95.67% or an annual rate of +3.29%

    Last 10 years +37.03 or an annual rate of +3.20%

    Last 5 years +12.14% or an annual rate of +2.32%

    Last 2 years -0.56% or an annual rate of -0.28%

    Looking at the data it seems that Texas can match it with the other states that enjoyed the super growth rates

    Profile photo of jayhinrichsjayhinrichs
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    @jayhinrichs
    Join Date: 2011
    Post Count: 1,177

    speedy

    let me know when you sell a house for a profit in Texas..

    Not including a wholesale purchase sold to a long term investor…or another words ist gen wholesaler selling to your average OZ investor for long term hold,,, we all know there is profit in those transactions to the wholesaler and marketing companies.

    I mean the long term buy and hold investor, be curious to see if any of them have sold and made equity gain..

    Profile photo of mattstamattsta
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    @mattsta
    Join Date: 2011
    Post Count: 604

    I think Austin could be good when investing in real estate, as well. Still, other Texan cities, such as Victoria, Dallas, and Houston are well-known to be quite attractive for investors or potential homeowners to live.

    Profile photo of jayhinrichsjayhinrichs
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    @jayhinrichs
    Join Date: 2011
    Post Count: 1,177

    Austin,,, is like a West coast or upper east coast town… Not at all like the rest of Texas..

    i think all the texas lovers on this site will agree

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