Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
What's up with Texas real estate?
Old 09-21-2006, 10:57 PM   #1
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
What's up with Texas real estate?

I just noticed that 7 out of the 10 most undervalued areas are in Texas. I've never been to Texas, maybe REW or others can shed some light why it's so undervalued.

__________________

__________________
Work is something you do to get enough $ so you don't have to....Me.
73ss454 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: What's up with Texas real estate?
Old 09-21-2006, 11:16 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,455
Re: What's up with Texas real estate?

Maybe people who live there remember the great real estate crash of the 1980s?

Audrey
__________________

__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Re: What's up with Texas real estate?
Old 09-21-2006, 11:21 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,253
Re: What's up with Texas real estate?

You have to go back a couple of decades.. back to the 70s and 80s...

The recession of the late 70s early 80s did not hit Texas as the rest of the country as we were 'big oil".. and finance... but, the savings and loan debacle hit Texas very very hard... RE droped 50% in many locations... some neighborhoods had 70% of their houses repoed...

It has been recovering ever since.. but even without that.. we have sprawl... I live in "Houston"... but in the north outside of the city... my Mom lives in the SW of Houston... and my sister lives in the SE... My mom is 45 miles from me.. my sister is 22 from her... and there are houses all along the way.. it is also CHEAP to build houses with the cheap labor.. so.. there you go..
__________________
Texas Proud is offline   Reply With Quote
Re: What's up with Texas real estate?
Old 09-22-2006, 12:32 AM   #4
Thinks s/he gets paid by the post
Leonidas's Avatar
 
Join Date: May 2006
Location: Where the stars at night are big and bright
Posts: 2,847
Re: What's up with Texas real estate?

Quote:
Originally Posted by 73ss454
I just noticed that 7 out of the 10 most undervalued areas are in Texas. I've never been to Texas, maybe REW or others can shed some light why it's so undervalued.
Simple answer - there is an abundant supply of land, prices were depressed for years and there is plenty of cheap labor.

The cities are huge – Houston is 600+ square miles and Dallas is about 400 – with equally large SMSAs (approx. 10,000 and 9,000 square miles respectively). But the population density is comparatively light and vast areas of ranch and pastureland surround each city. There’s plenty of room to grow, and both cities/SMSAs have expanded (as have San Antonio, Austin and El Paso).

A contributing factor, as TP and Audrey pointed out, is that Texas RE had the crap kicked out of it in the early 80's when oil became incredibly cheap at about the same time as the savings and loan fiasco blew up and unraveled inflated prices. It has taken a long time to recover from that.

Cheap labor is still readily available thanks to illegal aliens working in the construction industry.
__________________
There is no pleasure in having nothing to do; the fun is having lots to do and not doing it. - Andrew Jackson
Leonidas is offline   Reply With Quote
Re: What's up with Texas real estate?
Old 09-22-2006, 07:57 AM   #5
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,072
Re: What's up with Texas real estate?

What everyone else has already said.

Supply and demand play a big role in the price of everything, including real estate. In my particular area (San Antonio), the economy and therefore the population is booming. But due to the availability of land and the unprecedented growth of new subdivisions, the supply of housing is pretty much keeping pace. For example:

Eight years ago we moved to a low density rural subdivision outside San Antonio. On our drive into "the city", it was 15 miles until we reached the first high density development. Today we reach the first one after traveling six miles, and there are six more between that one and what used to be the closest to us. And that's just what fronts the highway. Behind them are more than a dozen other new developments, including a Dell Webb Geezer Farm (apologies to all my fellow geezers out there). According to the local news, there are more than 15,000 new homes planned for this area over the next eight years.

I'm sure it will come as no surprise that the leisurely drive to the city on a two lane road is becoming a traffic nightmare.

73ss, now you know why real estate is undervalued and why I strongly discourage anyone else from moving here. Have I mentioned the rattlesnakes, scorpions, ...

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: What's up with Texas real estate?
Old 09-22-2006, 08:10 AM   #6
Recycles dryer sheets
 
Join Date: Mar 2004
Posts: 124
Re: What's up with Texas real estate?

I agree with what everyone else has said.*

In addition, I believe that high property taxes provide a brake to higher prices.* With +/- 3% to pay on top of the mortgage cost that makes property pretty expensive in TX.
__________________
too cheap to even use dryer sheets - never mind recycle them!
jj is offline   Reply With Quote
Re: What's up with Texas real estate?
Old 09-22-2006, 09:10 AM   #7
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
Re: What's up with Texas real estate?

Well thanks guys, I guess I should be glad I'm going to Florida. At least I hope I am.
__________________
Work is something you do to get enough $ so you don't have to....Me.
73ss454 is offline   Reply With Quote
Re: What's up with Texas real estate?
Old 09-22-2006, 09:24 AM   #8
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,072
Re: What's up with Texas real estate?

Quote:
Originally Posted by 73ss454
Well thanks guys, I guess I should be glad I'm going to Florida. At least I hope I am.
Since you have family there, I'm betting it will work out great for you.

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: What's up with Texas real estate?
Old 09-22-2006, 11:00 AM   #9
Full time employment: Posting here.
 
Join Date: Mar 2005
Posts: 927
Re: What's up with Texas real estate?

These replies kinda make one wonder about the term "undervalued."

I had always thought that the value of anything was what someone else was willing to pay for it at that moment.

But then, financial article writers are much smarter than I am...
__________________
Caroline is offline   Reply With Quote
Re: What's up with Texas real estate?
Old 09-24-2006, 07:42 PM   #10
Full time employment: Posting here.
 
Join Date: Nov 2003
Posts: 926
Re: What's up with Texas real estate?

Quote:
Originally Posted by Caroline
*

But then, financial article writers are much smarter than I am...
Don't be too sure. I used to think Bob Brinker was a world class
idiot. Then I discovered Suze Orman, and now I have read
some of Dave Ramsey's stuff. I don't think any of these folks
know "jack". I am quite serious about this. Why, there is more good stuff right here than in all of their books/seminars/columns
combined. EOR

JG
__________________
Some of us have pretty stories, about good friends, good times and noodle salad.
Mr._johngalt is offline   Reply With Quote
Re: What's up with Texas real estate?
Old 09-24-2006, 10:34 PM   #11
Recycles dryer sheets
 
Join Date: Dec 2004
Posts: 273
Re: What's up with Texas real estate?

Quote:
Originally Posted by REWahoo!

73ss, now you know why real estate is undervalued and why I strongly discourage anyone else from moving here. Have I mentioned the rattlesnakes, scorpions, ...

Don't forget those west Texas killer roadrunners. Or even being hunted by wild boar near Imperial, TX!
__________________
time flies like an arrow, fruit flies like a banana
larry is offline   Reply With Quote
Re: What's up with Texas real estate?
Old 09-25-2006, 08:02 AM   #12
Full time employment: Posting here.
 
Join Date: Nov 2003
Posts: 926
Re: What's up with Texas real estate?

Quote:
Originally Posted by larry
Don't forget those west Texas killer roadrunners. * Or even being hunted by wild boar near Imperial, TX!
You forgot fire ants.

JG
__________________
Some of us have pretty stories, about good friends, good times and noodle salad.
Mr._johngalt is offline   Reply With Quote
Re: What's up with Texas real estate?
Old 09-25-2006, 05:18 PM   #13
Full time employment: Posting here.
 
Join Date: Jun 2006
Posts: 718
Re: What's up with Texas real estate?

I have a cousin who just purchased a 3400 sqft house outside of Alvin Tx. 210k in a developement on a 10sqft lot. Brand spanking new. Taxes will run him over 6000 a year but that is a really cheap price compared to a California house
__________________
Mwsinron is offline   Reply With Quote
Re: What's up with Texas real estate?
Old 09-25-2006, 05:21 PM   #14
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,072
Re: What's up with Texas real estate?

Quote:
Originally Posted by Mwsinron
I have a cousin who just purchased a 3400 sqft house outside of Alvin Tx. 210k in a developement on 10sqft lot a. Brand spanking new. Taxes will run him over 6000 a year but that is a really cheap price compared to a California house
Must be a high rise...
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: What's up with Texas real estate?
Old 09-25-2006, 06:10 PM   #15
Full time employment: Posting here.
 
Join Date: Nov 2003
Posts: 926
Re: What's up with Texas real estate?

Quote:
Originally Posted by REWahoo!
Must be a high rise...
Cute!

JG
__________________

__________________
Some of us have pretty stories, about good friends, good times and noodle salad.
Mr._johngalt is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Real estate as an investment wzd FIRE and Money 46 09-30-2008 12:04 PM
Frugality (and real estate) scores another win wabmester FIRE and Money 18 10-24-2005 08:15 PM
leveraged real estate investments vic FIRE and Money 9 10-07-2005 09:27 PM
Know a Good Real Estate Attorney in Toronto? ESRBob Other topics 0 04-26-2005 01:55 PM
Real estate horror stories sgeeeee Life after FIRE 25 09-03-2004 04:48 AM

 

 
All times are GMT -6. The time now is 05:09 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.