The Highland Lakes Parade of Homes 2010 is the first three weekends of October. The homes available to preview are located in Horseshoe Bay, Marble Falls, Kingsland, Burnet, Lake Buchanan and Smithwick all located in the fabulous Texas Hill Country. To purchase tickets go to www.bia-highlandlakes.com and for your buyers representative PLEASE choose Jay Turner as your Realtor of choice at 830-220-2441 serving the entire Highland Lakes and Texas Hill Country area.

My husband and I always say “Buy beachfront property — they’re not making any more of it.” We think for years that has been really good advice. We have invested in beachfront property for the last six years.
Over the past years, we saw modest oceanfront homes in places once costing a few hundred thousand dollars, soar in value. Annual appreciation of 10 or 30 percent was common. Prices were doubling every three to five years.

Then the great real estate bubble burst and property of every variety and location suffered declines in value. Beach property, took far longer to feel the effects of the bust. But those effects are now certainly being felt.  The amount of time it takes to market, sell and settle a beach house has also significantly increased.

But in every market type there is opportunity. For investors, second-home buyers or retirees who have been sitting on the fence for years, 2010 may be the time to dive into the beach market. Prices are now almost back to pre IKE levels, and buyers previously priced out of this market may now be able to afford their dream vacation home. In addition, the inventory of  homes is quite favorable to a beach buyer right now.

But before taking the plunge, home buyers must heighten their level of due diligence. It is no longer acceptable to simply make have a home inspection and perhaps a pest inspection and then hope for the best. Today’s savvy buyer must also find out the cost of windstorm and flood insurance associated with their purchase. If you decide to build a beach house make every effort to use qualified builders, wind storm engineers and real estate agents that know the in’s and out’s of buying Coastal Property. If you decide to purchase a Condo, please check out the financial stability of that condo’s association. Make sure they don’t have any large debt or assessments. That can severely impact your bottom line in terms of money and budget. A beach-home buyer should obtain and review these records before making the investment in a condo.

A buyer also should consider inserting a clause in the purchase offer making it contingent upon the buyer’s receipt of and reasonable satisfaction with these public condo documents. Should this review reveal unacceptable financial or legal circumstances, the buyer should have the option to cancel the purchase offer and have his earnest money returned. Then neither party should have any further liability under that contract. Condominiums and common area associations are already legally required to make most of these disclosures.

Beach-home prices are at bargain right now, the total cost of ownership and deferred maintenance must be factored into the overall buying decision. Total cost of ownership includes real property taxes, water and sewer charges, and insurance premiums, including for liability, casualty, wind (TWIA) and, flood insurance.

In recent years, insurance premiums have become a much larger percentage of the total cost of ownership. For community associations, total cost of ownership also includes homeowner’s, condo or recreations fees and may include special assessments for maintenance, repair or replacement of common areas. Reserve accounts should be reviewed to ensure that common area associations have sufficient funds on hand when major items such as roofs, elevators, parking lots, pools, tennis courts, decks or swimming pools require replacement. Good planning and management of reserve accounts can avoid the need for unwelcome special assessments.

Now is the time to buy at the beach, but only after performing additional due diligence. That should include structural, pest and even environmental or geological inspections; review of HOA and condo budgets, financial statements (focusing on delinquent accounts), reserve accounts. 

While there is never any guarantee that one’s beach investment will be a winner, undertaking this heightened level of scrutiny will increase the beach-home buyer’s chances of making a prudent investment that can be enjoyed for years to come.

It takes three years for pricing to recover after a hurricane. Prices are going up every day.  There are many deals to be found on the Texas Coast. Buy your beach house today, bring your family and friends and enjoy all the benefits for years to come, all the while you watch you beach investment grow. This is a great time to buy a beach house or condo for rental income. Rent your beach investment out for peak weeks during the summer.  You can then defray the cost the next coming year and still reap the benefits of being able to use and enjoy your investment.

You could travel the world over
But nothing comes close to the Texas Coast!
Come party with us!

Here are some more reasons why:

Improvements: The Texas Coast has spectacular new developments underway that are transforming our coastal areas into world class destination resorts. We also have a strong built-in buyer pool and rental demand from our nearby nation leading metros: Houston, Dallas, San Antonio and Austin.

Hurricanes Ike and Dolly severely slowed our sales after September 2008, but now our coastal markets are seeing billions of dollars coming in for new construction – and our rebuilding efforts are focusing on more sustainable communities. Also, our newer storm resistant homes and high-rises proved they can hold-up under the hurricanes.

Value: Our area has not seen the dramatic drop in values that some areas have experienced. Although the number of sales is down, the median prices have increased slightly in many areas. This means you might be able purchase most homes at values from two or three years ago or less. Another good thing about us not being affected like other areas is that we will be the first to benefit as the market increases. Even with the occasional slow markets we have experienced, real estate has historically gone up in value and is one of the basic necessities of life that will always be in demand.

Mortgage rates: Fixed-rate mortgages are already lower than they have been in more than 30 years and might even go lower. Every drop in interest also increases the price of the home you qualify for. Contrary to some reports, mortgage money is available and on very good terms.

Variety: Since sales have been slow, you now have a larger variety of homes in a large variety of sizes, ages, prices and locations. As the market improves, your choices might become more limited.

Investment: Real estate has always been a solid investment, one that has been proven over and over again in all economic climates. Real estate is a long-term investment and should never be expected to make short-term gains, although under certain circumstances it will do that too.

The beauty of real estate as an investment is that it can be used while it’s gaining value, and in many cases even generate an income. If you compare it to alternative investments, such as the stock market, it is a safe and attractive investment.

Demographic Trends Favor the Texas Second Home Market
Renowned Economic Forecaster Harry Dent’s new book, “The Great Depression Ahead – How to Prosper in the Crash Following the Greatest Boom in History”, shows how Demographic trends are the greatest driver of our economy and how Texas is one of the few states that will thrive through difficult economic times.

Dent’s conclusions are supported by actual data analysis collected by the TexasGulfCoastOnline.com network of top Brokers & Developers, forecasts by top economists at the highly regarded Texas A&M Real Estate Center and actual economic data compiled by leading Federal Government agencies.

Let’s look at some of the conclusions:

Demographics are destiny and our economy is affected by the average age and size of its population.

The average household in the United States peaks in spending between the ages of 46 and 50.

Housing will fall in overvalued markets with decreasing immigration and increasing domestic out-migration rates. States in the mid-west faring the worst.

Housing will rise in:

undervalued markets with
increasing immigration and
increasing domestic migration.
Texas is one of the few states having all three.

Different sectors of real estate boom and peak as we age over our consumer life cycle. The Vacation/Retirement Home Cycle peaks with age groups in the late 40s and mid 60s.

Vacation home buying is typically around 10% of the total market and is growing with our rising affluent aging baby boomers.
The first, broader round of vacation home buying is among households that have seen their kids starting to leave the nest but may still be funding college educations and have less to spend. The second round is about the “ultimate dream home away from home.”
We are in the beginning of the Baby Boomers second round of vacation home spending and Baby Boomers are migrating in the greatest numbers to Texas.
Immigration is also coming in the greatest numbers to Texas supporting the starter home market necessary for the “chain of home purchasing and selling” that Texas’ in-state vacation home/retirement home buyers need to obtain their “ultimate dream home.”
Dent predicts a Vacation/Retirement Home boom from 2011/2012 through 2025.

“The Great Depression Ahead shows you how to position your retirement savings and other investments to take advantage of predictable market trends that could otherwise cause you to lose your savings just at the time you will be relying on them most for your future financial security. Harry Dent is a master at understanding these demographics and shows you how to have your money in the right place at the right time and when to make critical changes.” —Ed Slott, CPA, author, IRA expert, founder of Ed Slott’s Elite IRA Advisor Group

Sneak peek into what you’ll see at the 2010 Parade of homes!

301 Bisset Court

Size: 4,575 square feet
Price: Sold
Builder: Jenkins Custom Homes
Style: Italian villa with Spanish Revival influences
Features: Large wall of glass facing lake; bar grotto for entertaining; master balcony with sleeping porch and louvered panels; coffee bar off master; mosaic tile in master shower; hidden room.

302 Bisset Court

Size: 4,140 square feet
Price: $985,000
Builder: VII Custom Homes
Style: One of the first Hill Country Contemporary houses to be built in Rough Hollow.
Features: Green home designed for maximum energy efficiency and sustainability; incorporates natural light; ‘smart home’ network integrates lighting, appliances and other electronics; master with spa/resort-style bath; large outdoor living space with kitchen.

303 Bisset Court

Size: 4,650 square feet
Price: Sold
Builder: Zbranek Custom Homes
Style: This Tuscan-style home is the Lake Travis Youth Association Benefit Home.
Features: Will be Energy Star-rated with energy-efficient insulation and tankless water heater; hand-hewn wood beams throughout house; large glass walls for Lake Travis views; custom faux-painted ceilings; granite surfaces; hardwood and stone floor; and outdoor living spaces include pool, JetStream outdoor cooling system.

304 Bisset Court

Size: 4,200 square feet
Price: $965,000
Builder: Triton Custom Homes
Style and Features: No details available at present time.

305 Bisset Court

Size: 5,500 square feet
Price: Sold
Builder: Master’s Touch Custom Homes
Style: Italian architecture with French and rustic accents.
Features: Elevator; secret-passage bookcase in second-floor library; 23-foot-tall great room with cathedral round trusses; clay-brick pizza oven in kitchen; onyx waterfall in powder room; family room with massive stone fireplace; and domed ceiling with ribbed vaults in the study.

306 Bisset Court

Size: 3,750 square feet
Price: $899,000
Builder: Stonewood Custom Homes
Style: Classic ‘Texas Hill Country’ using native stone and stucco, with standing-seam metal roof.
Features: Energy Star-rated with Energy Star appliances, lighting and on-demand water heaters; grand ceilings in living room and kitchen; patios and courtyards with water features and fireplace; stone and wood floors; and low-maintenance landscaping with native plants.

206 Bisset Court

Size: 3,700 square feet
Price: $850,000
Builder: Rostrata Builders
Style and Features: No Details available at present time.

Copywright: Austin American Statesman

America’s 10 Best Islands- Mustang Beach #6

by Jordan Simon

Posted Aug 24th 2010 11:46 AM 

Fun Fact: Mark “Sand Man” Landrum acts as Port A’s official “Sandcastle Dream Builder,” offering lessons in engineering elaborate moats and machicolated battlements.

 

So, I think it’s safe to say the economy has been slow.  People and businesses across the country have experienced a drop in income or revenue and are subsequently tightening their belts.  Not surprisingly, the State of Texas is anticipating a budget shortfall as high as $18 billion dollars this next session.  The Texas Rainy Day Fund is roughly $10.5 billion dollars, so even if it is completely used the state is left with a major shortage.  Most experts agree that rather than reduce spending the Legislature will look for creative ways to make up the difference in the form of taxes.  There has been talk of a real estate transfer tax for years.  In fact, this last session, more than 11 attempts were made to pass a real estate transfer tax. Thankfully all of these bills were defeated.  It doesn’t take a lot of time to figure out why their defeat was such a good thing.  Transfer taxes raise the cost of purchasing and selling homes, prices some buyers out of the market and reduces economic activity.

In a time where people are watching their budgets and unemployment is still alarmingly high it seems foolish and short-sided to impose a real estate transfer tax.

For years we have seen the heavy emphasis cities and states have placed on affordable housing campaigns, and rightfully so.  Realtor organizations, property rights groups and affordable housing advocates have made substantial efforts to provide homeownership opportunities for as many Americans as possible.  It is unfortunate in a fiscally uneasy time governments would resort to damaging taxes that would not only discourage economic development but put an undue burden on first time home buyers, seniors/retirees and low income families.  Simply put, at their core, real estate transfer taxes threaten affordability.  Regardless of what the pundits say, fewer people will realize the dream of owning a home with a transfer tax.

It is easy to say a transfer tax would hurt property owners and potential buyers, but tangible numbers make a more meaningful impact.  So what exactly is a transfer tax and what do the numbers look like?

A real estate transfer tax is a tax assessed when ownership of property is transferred from one party to another. Some states also assess such a tax on long-term leases. This type of tax typically comes in the form of a percentage of the value of the property. The National Association of REALTORS® commissioned a study to analyze the effects of a transfer tax on real estate. The report assumed a tax rate of 0.5% (one-half percent) and a $125,000 purchase price (fyi: Austin’s median homes price is roughly $194,000). Based on these assumptions, the cost of buying a home would increase by about $600, and home sales would decline by almost 3%. In addition, the Real Estate Center at Texas A&M University concluded that the creation of a transfer tax on real estate may create more problems than it solves. This type of tax could cost Texas $955.5 million in lost economic activity with an astonishing 11,575 jobs lost!

Quick points: Transfer tax

• A real estate transfer tax is a tax assessed on real estate when ownership of a property is sold or transferred from one party to another. It is essentially a new sales tax on real estate.
• Real estate transfer taxes are highly regressive, meaning higher burdens for low-income people. Growing families, first time homes buyers, seniors/retirees, and transferred employees and military would also be heavily affected.
• Real estate transfer taxes increase the closing costs of buying or selling a property.

This kind of taxation is damaging and, as we have seen in other states, opens Pandora ’s Box.  Voters in other states have often been promised that a ½ or a 1 percent transfer tax is all that’s needed.  But, once a transfer tax is established it is often increased (often repeatedly) as a quick fix for irresponsible budgets.  Any real estate transfer tax would be extremely damaging to low-income or first time buyers, retirees and the real estate market in general.  The legislature is going to be looking at a transfer tax this spring in the 82^nd legislature.  Be sure to voice your concerns to your state office holders as often as you can, our economy can’t afford a real estate transfer tax.

Best,

Marcus Cox

Mark your calendars and get ready to party. Port A celebrates its Centennial Year the weekend of October 16th. Fun filled days including an old fashioned picnic at Roberts Point Park, a parade through Old Town and a time capsule will be buried in the courtyard in front of the Port Aransas Museum. Visit the new exhibit at the Port A Museum and while there sign up to be a member. Join at the Centennial Membership level at $100 and receive a DVD of historic old photos of Port A including the most famous, President FDR catching a tarpon in a Farley boat.

Kari Morrison, Vice President and Corpus Christi Store Director for Julian Gold celebrates the Port A Centennial, Saturday, October 16th with a fashion show at the Moorings pool side. Save the Date!

Click here for more info.