|It is one of the most common questions we get from investors who are considering purchasing investment property here in the Houston area. What about the property taxes?I know when I hear this that I have someone who pays attention to detail and very often they are quite good with numbers and calculations. Very important attributes when considering real estate investment but there is so much more to the picture than simply gathering and crunching numbers. You need to do that, but you also need to take a step back and gain the perspective of how a market/area is performing and the underlying reasons for the performance.
A quick review of our Houston area available inventory will reveal property taxes that range from 1.87% to 3.09% with the majority coming in around 2.5%. If you were to use this as your predominant metric to measure where you should consider investing, you might choose to invest in somewhere other than Houston, TX. And you would be missing the forest because of the trees.
The Houston area has grown to over 7,000,000 people due to investment and diversification of the economy and by having one of the lowest overall tax rates and highest standards of living in the Nation [and therefore the world]. We are the 4th largest city in the Nation with housing prices that are far below the national average and any of the larger Metroplexes in the Country.
The steady investment of Corporate America in our infrastructure and economy continues to fuel massive job growth in our market and that keeps people moving to our area to find their fortune and build their future. We have one of the largest and fastest growing millennial populations in the world.
Investment Properties that are appreciating in value, cash flowing, with rising rent rates and investor friendly rules and laws. Do you realize that if someone stops paying rent, you can have them removed here [usually] in less than 30 days?
And we are under inventoried in Single Family homes here. May MLS numbers showed only 4 months of inventory [unchanged from a year ago] while home sales continue to grow year over year.
Now is the perfect time to start, or add to your portfolio with a Houston area property.