For better or for worse, there remains a ton of useful and even critical information that goes unnoticed in the overwhelming pursuit of buying a home. The information below serves to inform, warn, and encourage those looking into this option. Whether you are more or less likely to purchase a home due to examining the material below, the hope is that you can make an informed decision.
Real Estate is Nearly the Foremost Industry in Texas
For those unfamiliar with the significance of GDP (Gross Domestic Product), it is the market value of all officially recognized goods and services produced within a certain geographic region within a particular period of time. To give you an idea of the presence that the real estate industry has in Texas, it accounts for nearly 7.8 – 12 percent of the GDP of the entire state of Texas. By way of comparison there are only two other industries in the state that can top that. Of course this data was provided by the US Bureau of Economic Analysis, so I don’t know how trustworthy it is (wink). The fact that half a million dollars of revenue is generated in other venues of Texas’ economy for every 1 million generated in its real estate is certainly revealing. To a would-be investor, this is certainly welcomed news, underscoring the healthy nature of a decision to make a move in this direction.
Property Tax is Very High
It is not uncommon for a state to have an income tax, which typically supplies public entities such as police, schools, etc. With Texas this is not the case. So where are the multitudes of funds generated to maintain the various public services Texans have come to enjoy? You guessed it… home owners. Of course this is by no means THE source of revenue; however it is the largest source fueling public services. Here is how it works: You have your local taxing bodies that determine how much money they need in order to continue to make their services available. As mentioned above these are organizations such as police, public schools, etc. Next you have the appraisal district, which asses the value of your property. Once the value of the home is determined then the taxable value is multiplied by the tax rate in order to determine the amount. Should any disputes arise between the tax payer and the appraisal district, there is an Appraisal Review Board in place to handle any disputes.
There are Many Assistance Programs Available
A simple visit to a Texas home programs site could easily revel nearly a hundred different programs that are in place to make the purchase of a home a reality for many who otherwise assume they have no business even thinking about it. There are down payment assistance, first time buyer programs, mortgage advocacy, and down payment and closing cost assistance to name a few. Often times these programs can often be specific to a particular city e.g. Dallas, Waco, etc. so you actually have the help of the city who certainly want to make it as welcoming as possible to become a member of the community. Often times it is in the best interest of the cities and or counties to make these programs available, so one should never feel like they are trying to win the lottery. There are countless numbers of homes filled with families that never imagined they would be able to own their own home.
Daniel functions as a content developer in the U.S., helping businesses grow and communities to be informed.