“You may all go to hell, and I will go to Texas.”

Davy Crockett said it best, "You may all go to Hell, and I will go to Texas". In the 1830s as a new republic fighting for independence from Mexico, Texas stimulated a spirit of pride amongst its new residents, most of whom were immigrants from the United States or Mexico. Today, Texas is now a member of the Union but still carries state pride high. Texas can fly the state flag at the same level as the U.S. flag. Most Texans will argue we can legally secede from the Union. School children say the Pledge to the Texas Flag immediately following the Pledge of Allegiance. And of course…we remember the Alamo! Setting aside our sense of pride for a minute (not to worry, it's within easy reach) and fast forwarding to today let's look at the population & job growth in Texas to see if Crockett would still make a visit today.

In the past century and a half the Texas economy, Houston in particular, seemed to have an unusually large number of migrants. My mom, a Louisiana native, likes to quote her favorite bumper sticker, "I wasn't born in Texas, but I got here as fast as I could." According to the US Census Bureau from 2000-2008
U.S. population growth was at 11.355% and in Texas during the same period population growth was 17.66%, exceeding the national average. In fact in Fort Bend County, Texas alone growth was 5.3% between 2007 & 2008, making it the 7^th fastest growing county nationwide while Montgomery County held firm in 12^th place.

So, are people moving to Texas because of wonderful culture or because of jobs? Nationwide 131,003,000 jobs were reported for August 2009 over last year when 137,002,000 jobs were reported. That is a –4.4% growth rate. In the same period, Texas reported 10,316,300 in 2009 and 10,611,700 in 2008. That's –2.8%. So, while employment isn't as good as it has been in the past, it's definitely not as bad as the national average. Likewise, unemployment nationwide for August 2009 was 9.6% and in Texas it was 8.1%. Economists suggest a healthy unemployment rate is 5-6%. Again, it could be worse; you could live in California which had 12.1% in August 2009 or Michigan with the over 14%.

Another contributing factor to the population increase in Texas is the low cost of living. Real estate in Houston is 143% less expensive than Chicago, 72% less expensive than Los Angeles, 68% less expensive than New York City, 64% less expensive than Phoenix and 30% less expensive than Orlando. In addition to the low housing costs, Texas has no state income tax, maintains low business taxes and boasts one of the highest median incomes in the nation.

In the past, the largest contributing factor to the high number of migrants/immigrants is the oil & gas industry. You say "Texas" & I say "oil." The "train wreck" that was the 80s brought not only a collapse of the industry but set in motion a domino effect that would crash the job & housing markets nationwide. Interest rates soared to as high as 21% and foreclosures rose to almost 2% nationwide. While the energy industry will probably always be the "belt & suspenders" of Texas economy, diversification over the years has brought new growth to the economy. To avoid another economic disaster Texas has worked hard to diversify its economic make up. The industries with the largest growth in Texas from August 2008 to August 2009 were Health Services & Education at 4% growth, government at 2.9% and leisure/hospitality at .01%. In addition to diverse industrial make up, there are 118 Fortune 1000 firms in Texas and 64 Fortune 500 firms. Not too shabby, eh?

Overall, it would appear that even in a downward sloping economy things can still look up. Of all the states you could live in the best opportunities are in Texas: lower unemployment, higher pay, lower real estate costs and a lot of Texas Pride. So, my friends, while it may seem like the national economy is going to hell in a hand basket, do like Davy and come to Texas!"

Other Great Resources:

• Newsweek "Houston We Have No Problem", by Mike Goss. http://www.newsweek.com/id/142633
  
• ABC News "The US Boomtown," by Sharyn Alfonsi http://abcnews.go.com/WN/story?id=5397007&page=1&page=1
  
• City-Data.com
  http://www.city-data.com/us-cities/The-South/Houston-Economy.html
  
  

By Elizabeth Rozier

First Time Home Buyer Tax Credit Expires Soon

by Elizabeth Rozier

Have you ever been given free money? I have. This year I bought my first home and my check is in the mail. That's right, you buy and the government pays. Because of the downward slump in the nationwide housing market over the past couple of years Congress passed a bill in February 2009 to boost the nationwide home sales. Whether you are a fan of the bill or not, there are some tangible benefits to the buyers of 2009: free money for first time homebuyers like myself. There are qualifications, but most first time home buyers qualify for them. Even if you have owned a home previously but not recently, you may get free money. It's better than Christmas. Want to know more details? I can give you the basics, but if you need more detail information you can find it on the sites below.
So, want to know if you qualify?

• 
  
  Income restrictions:
  
  • Single tax payer may earn up to $75,000 (adjusted gross income)
    
  • Married tax payers filing jointly may earn up to $150,000 (adjusted gross income)
    
  The Payoff….how much will you receive:
  
• 10% of the purchase price up to $8000. Ex. If you purchase a $60,000 residence you will receive $6000 back; if you purchase a $150,000 you will receive $8000.
  
•  "First time buyer" status:
• You must not have owned a principle residence in the last three years.
  
• You should still qualify if you owned a home outside of the U.S. in the last three years so long as you did not own one in the U.S.
  
• If you are married both spouses must be a first time home buyer to qualify.
  
• Homes that qualify:
• You must purchase and close on the property between January 1, 2009 and December 1, 2009.
  
• The home must used as a principle residence during the following 3 years (a full 36 month period). If the house is no longer used for principle residence the credit must be repaid in full on that year's tax return.
  
• How do I receive the credit:
• If you purchase the home in the qualified time period, you can still file an amended return for 2008 or you can file with your 2009 return. Either way you will need Form 5404. If you are filing an amended return you will also need form 1040, but it is recommended that you visit the IRS website below for more detailed instructions.

Here are some helpful things to know about buying in general that may affect your ability to qualify.

• With new laws passed in Texas and the U.S. this year it now takes loans 30-45 days on average to process. So, in order to close by December 1 you will need to be under contract no later than October 17, 2009. Yes, that means you need to start looking now.
  
• It can take less than 24 hours to get pre-approved for a loan
  
• Local real estate markets can be very different than nationwide trends so, you may be faced with some competition in certain parts of Texas and even certain parts of Houston. That means you may have to submit a few offers before finding the right one for you.
  
• Good credit is still required but lenders have let out some slack in the restrictions in the last year (as compared to the previous year). They are, however, still being very stringent in their approvals. They only way to know if you are a qualified buyer is to apply or speak with a lender. You might be surprised at what they have to say.
  

Helpful Links:
The Bill: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h1enr.pdf
IRS Info: http://www.irs.gov/newsroom/article/0,,id=206291,00.html