Does anyone know an average percent of how much houses appreciate in texas per year. Need to borrow against equity due to some tax problems (not my own). Thanks…!
Different in different cities, Houston 3%
THANX A LOT! Gives me an idea at least…it is a house in Abilene, TX. two years ago it appraised for 187,000.
Hey,
For anything you want to know about Texas real estate go to:
www.recenter.tamu.edu.
Peace,
Richard
Dallas has been appreciating at 6% the last 2 years.
Also, Texas is (if memory serves me right) the lowest appreciating state since 1980 at less than 6% per year (Mass. is the highest).
San Antonio, 10% last 12 month. wow!!!
If you want see the correct Appreciation for a porperty, best talk to a realtor, and give you a up to date CMA.
Hey,
El Paso - 21%
Peace,
Richard
As a general rule in Texas, appreciation usually runs at about 3-5% depending on area. It is one of the lowest appreciating states, however, it is also one of the most consistent. Some pocket areas will see larger numbers, but for investment purposes, I would count on around 3-5%. Unfortunately I see investors from out of state, like California, to buy properties and expect similar results. Investing in Texas is a lot different than many other states. Here in Texas, many successful investors buy a property and hold it for cash flow from the rental. In other states, many investors will buy the property, hold it for a couple of years and then flip it counting on appreciation. If you are looking to invest in Texas, I wouldn’t count on cashing out on appreciation in a couple of years. There are still a lot of properties that you can cash flow on the rent. For example, I manage a house for a California investor that bought a house for $189,000, and he now rents it out for $1300. I wasn’t the agent involved in the purchase of that house. He was referred to me for the management of it. he asked me if that’s what he would have done. My honest answer, no. I got his property rented, and he is ok with it, but I think he’ll look differently at his next property. I told him that instead of purchasing one house at $189k, I would have bought 4 houses at around $50k a piece that could rent for $650. It gives you a lot more flexibility should you run into problems later. It also cash flows right off the bat. If one house is vacant for a while, then you still have 3 others bringing in income. If his one property is vacant now, he has no cash flow at all.
The point of all this is, different states have different opportunities. Know the market you’re going into, or find an investor-friendly person that does before purchasing investment property.
Lee Warren
Inspector -
I agree with your California investor’s statement. I had a birddog give me a lead recently from an investor in California who owned 12 properties in my area (central Texas), but was (supposedly) falling on hard financial times. He put 5% down on each property several years ago, and he is now upside-down on a few of them (most of the others are at, or just below, FMV). Even though he was on the verge of financial ruin, he still had the idea that the properties were somehow worth a lot more than they were. I guess he just had the California investors mentality of overnight appreciation.
Hey,
Correction due: El Paso = 14.5%
FYI: DFW = 4.5%
Data from RECON (http://recenter.tamu.edu)
Peace,
Richard
Recon will be reliable. They outlined the appreciation rates of the top markets in their April 2006 Tierra Grande issue.
http://texasrealestate.blogs.com/weblog/2006/05/texas_real_esta.html
http://recenter.tamu.edu/tgrande/vol13-2/1773.html