Texas is the second largest land-mass state in the union. A California first-time homebuyer wants to move to the Lone Star State to buy a home, but her research has only just begun.

Hi Blanche,

My name is Amanda, and my husband and I would be first time home buyers. We are looking to move from California to Texas so that we could buy a home. I was just wondering if the housing market there is increasing? Say if we needed to move in 3 years out of Texas to somewhere else would our home gain value if we remodeled things in it to update it or make it nicer? Also what is a good loan to get usually with no down payment? I know with some of them if certain taxes go up so does your mortgage and I don't think we would really want that.

Thank you very much in advance for any assistance and recommendation you can give.

Thanks Amanda

Realty Times responds:

Dear Amanda,

You're not alone in looking at the homes in Texas as a good place to buy. Thanks to the oil crisis of the 1970's, the savings and loan crisis of the 1980's and the technology slowdown of the late 1990's, Texas is still laying on the mat as far as home prices go. The state has been under the national median for home prices for over 15 years.

There are other concerns, too. Unlike California, in which liveable space is severely limited by geography -- desert and ocean -- Texas only has a relatively small percentage of beach, mountain ranges, and desert. California also has many communities which actively limit household growth. That also holds up prices.

Then there's demand. Those ocean and high desert breezes are awfully nice, not to mention the incredible natural and man-made attractions. One out of nine people in the U.S. lives in California.

Now you know why as a first-time homebuyer you're being priced out of the market to the point that you have to move out of state to afford your own home.

You'll be welcome in Texas where homes tend to be large-scale, affordable, and plentiful. You'll be shocked at how much space and land you will be able to afford. However, that doesn't mean that homes don't appreciate here -- they do, and in some areas as fast as California homes, but overall, Texas barely meets inflation. The trick is you don't want to end up in a place where jobs are dependent on a single economy, which is often true of smaller and more spread-out communities. Look for a diversified economy.

But where are you going to live? A lot depends on where you are coming from and how you want to live. Do you want an urban or suburban environment? A house or a condo? Yard or no yard? What are your activities that you can continue to enjoy in Texas? (Golf, boating, biking?) What do you do for a living, and which city/town offers the best job possibilities? As you can see the answers to these questions will point to the right location for you, so start making your wish list.

Texas offers every flavor of town from the sophisticated (Dallas, Houston) to the dynamic (Austin) to the historical and forward-thinking (San Antonio, Fort Worth.) If you like Victorian homes, think about Waxahachie. If you like slick new builder homes, try Frisco, Round Rock or Katy.

In other words, your question is too big, so the first thing you should do is narrow it down to where you are going to find rewarding jobs and then go from there to other quality of life issues like where you want to live, where you want to have your family, what kind of activities you enjoy, and so on.

To learn about places to live in Texas, check out our Market Conditions Reports and talk to the Realtors you meet online. They can help you with communities, neighborhoods and homes that will meet your needs.

After that you can consider affordability. If you have to buy with a zero down loan, that's fine, but don't strap yourself so much that you can't handle life's expenses. For example, you mentioned you don't want your property taxes to go up. Join the club, but the reality is that as your home value increases, so do your property tax assessments, so plan for it upfront. When you are figuring your monthly payments as you look at houses, ask your Realtor what the tax rate is and what the ceiling is for increases annually. Budget the maximum and you won't get shocked.

Last, this whole process will be easier if you relocate with the help of a good Realtor. Not only will a good Realtor be empathetic to your situation, but he or she will do more than simply find you a home. A good Realtor will help you find a good lender (I simply don't know enough about your situation to offer any help on your finances.) Moreover, they'll help you integrate into your new home through sharing contacts, information, and suggestions.

Keep in touch and let me know how your search is going, and I'll follow up with good contacts for you.

Welcome to Texas, pardner.

Published: November 1, 2006

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