Is Texas One of the WORST Places to Buy Real Estate?

I hope not, because I just calculated that we have had a 32% increase in the physician population of our state since 2000. And that’s good news for Texas real estate.

Now a commenter offered a different look at Texas Real Estate. Can’t say I totally disagree with him, he’s spot on about property taxes:

Candy, keep on spreading propaganda about Texas’ economy. Keep believing that you will be able to pay the bills as a real estate agent. Texas has the nation’s highest property taxes (not to mention the nation’s highest homeowner’s insurance and highest closing costs), making Texas one of the worst states to buy real estate.

Stop cherry-picking inaccurate cheerleading pieces on the economy and real estate and start getting patched into reality. It’s a depression; a depression in real estate and a depression in the economy. And it isn’t going to end anytime soon.

So no cherry-picking. There is a real possibility that our government won’t be able to meet payroll in August. Social Security checks, military veterans, Medicaid payments to physicians and hospitals — the president has warned that without a budget deal by the August 2 deadline,  “there may simply not be the money in the coffers to do it,” Obama told CBS TV. I have a tenant who depends on her social security check to pay rent. if she cannot pay it, then how will I pay my mortgage payments on the property? If this happens, truly the dominoes will line up.

Experts say such a default could cause a spike in interest rates, which we do not need right now, of course. That’s a gloomy national outlook, of course, and the current upward blip in home sales could very well be wiped out. That’s also national. If all of this happens, all states will suffer.

But do you agree with this comment? Glenn Beck may be loving Texas because we have created 4 out of every ten jobs in America and pay no state income tax, but our corporations pay taxes and our property taxes are among the highest in the nation. And many analysts say those jobs we are creating are not exactly for rocket scientists — many are low level clerical. Or the hamburger flippers at In N’ Out. Over at The Business Insider, Beverly Mann picks on that recent cheerleading story in the LA Times on Texas job growth written by Rick Wartzman, executive director of the Drucker Institute at Claremont Graduate University. Other states cannot duplicate our oil and commodities industries, but they can learn from our limits on taxes, regulations and lawsuits:

“At the same time — and this, of course, is the tough part for those on the left to swallow — it is clear that the state’s limits on taxes, regulations and lawsuits are contributing to the job machine. “The most important thing I think that’s happened to us is tort reform,” Fisher, the Dallas Fed president, has said. He added that when John Deere and other companies have decided to hire in Texas, they’ve been largely driven by steps the state has taken to cap non-economic damages in medical malpractice suits and to make it harder to bring product liability and class-action cases.”

She goes onto say that Texas is a “lowest-common-denominator state”  for pro-business laws, which is why it is attracting businesses from other states, grabbing the hiring  that would have gone elsewhere. Yet she says the numbers don’t prove that tort reform helped, because companies can get sued from other states, and doctors are not flooding in to work in Texas.

Wrong. Doctors are actually coming here in droves because of tort reform. Checking with the Texas Board of Medical Examiners, there were 33,622 licensed physicians in Texas in 2000, prior to tort reform. By 2005, there were 41,316 physicians, by January of this year there were 50,595 and 51,058 by May, 2011. That’s a 32% increase, some of which comes with our general population growth.

If we had NATIONAL tort reform, that would solve her other beef. We did some very good things in Texas which is why we created 43% of the new jobs in America from 2009 to 2011, a brutal period.  Things may be bad out there, and they may get worse, but I’d still rather be buckling my seat belt in Texas

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  • Candy,

    Raw Dr #s don't tell you anything. All that really tells us is that we had a lot of people in TX (our population expands through immigration and birth). What you need to do, is to compare the Dr growth to the general population growth and see if the Drs as a % of the population changed. But, that won't be the whole story either — you'll also need to do the same thing for *other* states, to see if this was just a change in people becoming Drs nationally — or unique to TX.

    The taxes and insurance are *brutal*. Take a fairly decent priced home @ $300,000; when you tack on the Taxes and Insurance, the mortgage payment nearly *doubles* — that's a *giant* burden (and one that no other state bears that I can think of — ok. WI is close, but no one moves there). The taxes in MA, CA, NY, FL, etc for a similar property would be hardly noticeable (rather than being a 2nd mortgage payment).

    Plus, don't forget the ubiquitous and out of control HOAs in TX — you don't have that anywhere else. What other state would create de-facto government and give them "all powers" but not create any way to keep them in check or stop them? You guessed it — only TX. While this may be less of a problem in Austin, Houston, etc — its a *HUGE* problem in the Metroplex (and, it just drives up the true cost of owning land in TX).

    So, we created a lot of jobs in the last 2 years — do any of them pay more than roughly minimum wage? If not, do we really care or want to brag about that? Its not like we created that number of jobs, and all of those people are gonna turn out to have worked at Facebook (thus, becoming ultra wealthy and paying a giant amount of taxes and consuming tons of goods — thus, extending the cycle of wealth). If it was a bunch of people to manage the huge line at In-n-Out Burger for $5/hr — how much do you think they'll be able to do with their $$ other than pay the insurance & gas on their car and buy a few groceries? Its not quantity of jobs, its *quality* of jobs that matter.

    I think I've joined the camp of — don't bother with TX, not much to see here — move along….

  • Candy,

    Raw Dr #s don't tell you anything. All that really tells us is that we had a lot of people in TX (our population expands through immigration and birth). What you need to do, is to compare the Dr growth to the general population growth and see if the Drs as a % of the population changed. But, that won't be the whole story either — you'll also need to do the same thing for *other* states, to see if this was just a change in people becoming Drs nationally — or unique to TX.

    The taxes and insurance are *brutal*. Take a fairly decent priced home @ $300,000; when you tack on the Taxes and Insurance, the mortgage payment nearly *doubles* — that's a *giant* burden (and one that no other state bears that I can think of — ok. WI is close, but no one moves there). The taxes in MA, CA, NY, FL, etc for a similar property would be hardly noticeable (rather than being a 2nd mortgage payment).

    Plus, don't forget the ubiquitous and out of control HOAs in TX — you don't have that anywhere else. What other state would create de-facto government and give them "all powers" but not create any way to keep them in check or stop them? You guessed it — only TX. While this may be less of a problem in Austin, Houston, etc — its a *HUGE* problem in the Metroplex (and, it just drives up the true cost of owning land in TX).

    So, we created a lot of jobs in the last 2 years — do any of them pay more than roughly minimum wage? If not, do we really care or want to brag about that? Its not like we created that number of jobs, and all of those people are gonna turn out to have worked at Facebook (thus, becoming ultra wealthy and paying a giant amount of taxes and consuming tons of goods — thus, extending the cycle of wealth). If it was a bunch of people to manage the huge line at In-n-Out Burger for $5/hr — how much do you think they'll be able to do with their $$ other than pay the insurance & gas on their car and buy a few groceries? Its not quantity of jobs, its *quality* of jobs that matter.

    I think I've joined the camp of — don't bother with TX, not much to see here — move along….

  • Honestly, I wish you would narrow your blogposts to showcasing and highlighting beautiful properties and homes in Dallas/Fort Worth. That is what made me start reading your blog in the first place! These little tirades are really detracting from the quality of this blog. Let's keep on topic and minimize the flood of random, unqualified statistics.

  • Honestly, I wish you would narrow your blogposts to showcasing and highlighting beautiful properties and homes in Dallas/Fort Worth. That is what made me start reading your blog in the first place! These little tirades are really detracting from the quality of this blog. Let's keep on topic and minimize the flood of random, unqualified statistics.

  • Reading you loud and clear!

  • mm

    Reading you loud and clear!

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