Evaluating states to invest in is not an easy thing to do. There are many factors to consider before investing in anything. This article endorses Texas because of the strength of the local economy, the role of state government in business and good population demographics.
Booming Economy
Texas is a major economic force. The state has the second largest economy of any state in the union. In fact, If Texas were its own country it would have the 14th largest economy in world.
Texas is in the middle of an economic boom that is a result of investment in a variety of different energy industries. Texas has a long established history and successful history with oil drilling and exploration. A recent discovery of shale deposits makes Texas one of the richest states in the country for natural gas. Texas’ arid/sunny climate and geographic location within the great plains also make it prime territory for solar and wind energy. It is smart to invest in Texas real estate because new energy jobs ensure a steady demand for real estate in the future.
Low taxes and business friendly
Texas has one of the smallest and least intrusive state governments in the country. Texas’s low taxes and laissez faire attitude towards business make it very attractive to outside investors. State and local taxes only account for 7.9% of the local economy compared to the 9.8% national average. Texas is one of only seven states that does not a have a state income tax. Businesses in Texas are not required to contribute to workers compensation coverage. The pro-business culture of Texas means that entrepreneurs can thrive. Unlike other localities, they are not caught up in a bureaucratic stranglehold, or taxed to death. The booming economy attests to that.
Good Demographics
Texas is growing with talented people. Since 2000 Texas’s population has grown at an average rate of 1.85%. Compared to the national average of 0.9%, this amounts to huge growth. One of the biggest factors that accounts for this population growth is and influx of entrepreneurs. Texas is one of the most entrepreneurial states in the country; 400 of every 1000 adults in Texas own their own business. 17% of people living in Texas did not live there the year before. All these factors help the demographics of the state and make it a good place invest.
The United States is an investment friendly country. US laws do not for the most part restrict corporate ownership or investment. There is little to no country risk here. Within this context, Texas is a particularly attractive place to invest, with its energy wealth and corporate friendly laws. The biggest challenge may be choosing from the wealth of opportunities. Something to consider in conclusion is that the world is demanding more and more energy. Both in the established economies but even more so in emerging booming economies like China and India.
That means that the energy sector of the Texas economy will continue to grow. And as part of that growth newcomers will flock to Texas. So it seem safe to say the energy and real estate will continue to have plenty of growth potential deep in the heart of Texas.
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