Best places to invest in Real Estate in Texas?

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Best places to invest in Real Estate in Texas?

Austin best place to invests in Texas
Maybe it’s the weather, or business friendly climate, but Texas again leads the nation in the best places to buy real estate. A Forbes study listed five Texas cities in their top 300 housing markets in the nation for real estate development.

Austin was named No. 1, and has been in the top five each year for about a decade. Austin’s population grew 8.9 percent between 2010 and 2013 and it has a healthy annual job growth rate of 3.6 percent. Austin also has a diverse economy and relatively low cost of living, which also helped its rating. Austin continues to grow with no slowing down in sight as the city is a place where people want to live and work. In recent years it has added more hi-tech businesses to its list of opportunities. The average home price in Austin is $261,000.

Houston was at No. 3 in the Forbes study, due in part to its oil based economy. Houston has a diverse economy though, and the area’s job growth is one of the best around at 4.1 percent. The average home price in Houston $214,000.

A good business climate, lower taxes and a lower cost of living were all things that make for a strong economy, which is good for real estate development. The top five cities in Texas had these things in common, as well as a diverse economy. Combined these five Texas cities have seen homes increase in value between seven and 12 percent, which lends itself to a strong position in the real estate market. The study said flipping houses might not be as profitable in this scenario, but the long term investment outlook remains strong.

Dallas was No. 5 in the study with a job growth rate of 3.8 percent. Homes in Dallas average $197,000. San Antonio came in at No. 6 and a 2.5 percent job growth rate and an average home price of $189,000. Fort Worth was No. 10 and has a job growth rate of 2.6 percent and an average house price of $180,000.

Forbes listed the top five Texas cities for first time buyers and single family units. Rentals are also good in these cities, but buying rentals as an investment is a different type of real estate.

Another study, done by CNN Money, said Wichita Falls is the best city in the nation for buying rental property. The city has relatively low housing prices with the average house selling for $84,000. The economy is based on farming, and having Sheppard Air Force Base nearby also helps with a growing need for rental units. Investors in this city were seeing double digit return on their investment.

The study listed Lubbock as another great place to buy rental property, with a median price of $111,000 on homes. Investors here too are seeing more than a 10 percent return. Here oil and gas rule the economy, but having Texas Tech University nearby also helps a lot.