It has been a long, hot, dry summer here in West Texas. I believe close to 45 is the number of days we have seen over 100 degree temps. But finally, we are getting some much needed Rain today. It is rather refreshing!
Speaking of refreshing, I attended a conference that Stewart Title sponsored for the West Texas Home Builders Association. Dr. Ted Jones, Senior Vice President and Chief Economist was the speaker. He talked about several issues and how the economy was certainly struggling but if you have money to invest, real estate is the way to go.
A really good example he used in his talk was gold vs. real estate. Dr. Jones stated that gold increased in value about 137% since 1980 and real estate increased in value by 225% in the same amount of time. Long term investment in real estate is the winner. Seems to me investing in real estate is the way to go. With gold you have to store it somewhere. You can live in your home while it increases in value.
Let's not foget about renters! He stated that he is seeing an increase in rental rates between 5% and 8%. Owning a home and living in it is one thing -- owning investment property is yet another good thing. Being diverse in your investments is key.
The Texas economy is strong (thank goodness!). Five thousand jobs were created in Texas over the last 12 months. The demand for housing is greater than the inventory. In one of Dr. Jones' blog posts, he stated, " In my opinion, this is a great time to overweight into the real estate investment side."
As a Realtor and someone who watches the market in our area as well as studying the trends nationally, I agree with Dr. Jones. Investing in real estate is a good choice -- whether it is for a home in which you want to live or a place to use your money for investments in rental property. You can find Dr. Jones blog at http://blog.stewart.com/ted/. Thanks, Dr. Jones, for coming to Lubbock and sharing your insight.
Looking for a home in Lubbock or a place to invest? Check out my website at www.lubbocktexashomesforsale.com.