When we as real estate investors turn our eyes to a new region to invest in, it’s important for us to investigate the area. After all, we’re putting a lot of time, energy and capital towards real estate investing — shouldn’t we know what we’re getting into?
At Memphis Invest, when we looked to open a new market, Dallas was the no-brainer market for our company. We were highly familiar with the state of Texas and the positives that went beyond just "real estate" were readily apparent. The state was growing in both population and jobs. The MIMI Index from Freddie Mac was super strong indicating some of the top markets were in Texas. Both Dallas and Houston were showing up as markets set to explode in investor activity. Look like we were right. But we had one other reason.
Nothing beats the knowledge that comes from actually living there. Our family was raised in Texas and if you ask me, I still claim to be a Texan even though I operate out of Memphis, TN. There is something about having intimate knowledge of markets that make for smart investing. However, that doesn’t mean investors need to be in the dark when it comes to remote investing. It just means you have to be smart about who you listen to!
Right now, the world of real estate is all abuzz when it comes to two Texas cities. Dallas and Houston are hotspots for real estate investors — a trend that’s expected to continue through 2015.
For real estate investors looking to put a slice of Texas in their portfolio, it’s good to brush up on pertinent facts and statistics. If you’re looking to invest in Dallas real estate, here are a few things you might like to know:
7 Things You Should Know About Dallas, TX
The price of living is (relatively) low.
6.1 percent below the national average, in fact. The cost of living, low taxes, and a competitive real estate market make Dallas a desirable place to live and work — and invest. We have pointed out multiple times that the Affordable Housing Index for Dallas continues to remain relatively low at 2.9%. Anything under 3 is extremely affordable when you consider many desirable, big-city markets such as San Diego, Los Angeles, Miami, San Francisco to name a few have affordability indexes of 6+. That means the median home price is six times the median income. Very difficult to afford.
The workday hustle is more manageable.
Hate the morning commute? If you’re a professional in Dallas, you’re in luck. The average workday commute is a mere 26 minutes. You get the big city without insane, gridlocked traffic. Now Dallas has its share of highways and crazy tall fly-overs! But, the city is relatively easy to get around.
Employment is on the rise.
As of July 2014, the professional and business services sector experienced a 9.5 percent increase in just one year. Overall, Dallas as a job market is faring better than many metropolitan areas of the same size.
Business is booming.
In 2014, Texas was named the best state in the U.S. to conduct business by CEO Magazine. Not only that, but 18 Fortune-500 companies and 12 of Forbes top companies are located in Dallas. The gross domestic product for the Dallas-Fort Worth metropolitan area in 2013 was $447,570 billion dollars. If it was a country, it could compete in the global market. The Dallas market it expected to maintain its spot as a Top 20 GDP city in the world through 2025.
The population is on the rise.
Every four minutes, the population of Dallas grows by one person. The 2014 Texas Relocation Report revealed that over 584,000 out-of-state resident relocated to Texas in 2013. People are coming to Dallas. Period.
Dallas is home to an educated bunch.
Roughly 60% of workers over the age of 25 have some college education, with more than a third of those boasting a bachelor’s degree or graduate degree.
It’s an international hub.
In Dallas, transportation is king. Dallas-Fort Worth International Airport is larger in size than the island of Manhattan, covering 17,207 acres, and its 7 runways make it the highest capacity commercial airport in the world.
When looking to invest in a new city, brush up on the facts. They can give real estate investors a good idea of what to expect!
What do you like to know about a city before buying an investment property in it? Share your questions with us in the comments. You can also Download A Dallas Buying Guide for starting investors. Download the guide to read at your convenience and let us know what you think.