Real estate prices in Texas continue to rise, with some median figures increasing up to 28.6 percent, according to Norada Real Estate. Right now, the Texas real estate market is a seller’s market, and it seems that it is going to stay that way for some time. That’s why right now is the best time to get your foot in the door of real estate investment. Whether you intend to use the land to flip for a profit, run a business, or develop for residential use, you should buy now before prices get even steeper. But that still doesn’t convince you, here are three major reasons why you should invest in real estate in Texas right now.
Inexpensive Investments And Plenty Of Tax Write-Offs
The first advantage of land investment in Texas is how inexpensive it is, even despite the statewide inventory shortage. This makes it the perfect gateway to investing, as it often takes just a few months to save up for your first lot. This makes it easy to make money off of real estate even without getting into development. You can just buy up cheap properties and flip them to buyers who can find a use for them. Texas also has a lot of conditions in which you can write your property expenses off your taxes. For example, if you intend to use your land for farming, you can file a Schedule F to deduct farming expenses from your taxable income. If you took out a loan to buy your land, this also lets you claim a discount on the interest. Similar exemptions exist for other usages such as pasture, timber, and wildlife habitat.
Property Development Is Simple And Lucrative
While you can generate a tidy income stream just by buying and selling properties, you can make much more money if you develop them. Development restrictions in the state of Texas are very lenient outside of the greater metropolitan areas. This makes the land development process much more streamlined and simpler than anywhere else. When developing Texas land, you will need approval from local authorities such as county and municipal officials. Development can either make your investment more profitable when sold or make it pay for itself by leasing it or running a business on it. Leasing the land for farmers to use as pasture is a safe bet if you don’t want to take on the risks of farming yourself. You also can’t go wrong with an inn or bed and breakfast. If the land you bought is large enough, you can also turn it into hunting or camping grounds as well as a hospitality business. Having a body of water such as a lake also opens up other commercial uses, such as boating or fishing.
Texas Is Experiencing A Population Boom
The state of Texas is growing in both population and wealth. However, this only bodes well for real estate investors. In Houston alone, the population grows 2 percent annually. In fact, the city expects to add more than 1.2 million more residents by 2029. So whether you want to develop land, run a business, or just flip properties, these facts practically guarantee that your bottom line will trend upwards in the coming years. Of course, this effect will be more pronounced the nearer you are to the greater metropolitan areas. But with a little bit of savvy and researched expert advice, you can buy a property that’s still profitable however distant it may be from large cities.
Whether you are going to use land yourself or sell it for a profit, now’s the time to take this opportunity to dig in the market. After all, as prices keep rising, you will either have the opportunity to avoid overpaying for properties or sell at a higher markup.