Here’s my view of the shaky economy: We can all thank our lucky stars we live in Dallas. The next 10 years are going to be a lot brighter for those who live in Texas than almost any other state in the country.
Consider the following question to help build your personal confidence to navigate through uncertain future: If you were sitting down three years from now, looking back over the last three years, what has to happen for you to feel happy or secure with your progress?
Let’s break it down:
What are the biggest dangers?
1. Runaway government spending
2. 9 percent unemployment
3. Politicians who won’t make the difficult decisions needed to turn the economy around
4. Depressed real estate values
5. Fear of the future
1. Texas has created 50 percent of all U.S. jobs in 2011
2. Low cost of living
3. No state income tax
4. Dallas real estate market one of the busiest and best in the country
5. Oil and gas industry is thriving
6. Institutional investors favor investments in Texas
7. Local city government is pro-business
1. Many opportunities to buy real estate at below replacement cost
2. Dallas is the city of choice for companies looking to relocate
3. Low-cost, well-trained, available workforce
4. Lowest interest rates in history
5. Texas has one of the best business climates in the country
When you look at the dangers, compared to the opportunities and strengths of Texas, you should have great confidence looking into the future.
There are many cities around the country that have a grim outlook, but not Dallas. Rub your hands together and kick up your heels! Considering the opportunities and strengths, and looking three years out, I see continued job growth improving the real estate market, with the possibility of development in some submarkets.
Institutional investors are focused on Texas real estate. With the increased flow of capital into the market, values have to go up, and continued investor demand will provide an exit for those who invest now.
Whatever you buy today will look like a great value three years from now. Stop worrying about the dangers and start focusing on the opportunities and strengths the Texas markets provides.
William R. “Bill” Cawley is chairman and CEO of Cawley Partners. Contact him at email@example.com.