We live in uncertain times. Financial assets are depressed and volatile. Returns and yields on those assets are dismal. Who would have guessed a few years ago that a savings account paying 1 percent interest would appear attractive? Investors all over the country are looking for safe investment with a strong upside, but for Texans it is right before their eyes – the Texas coast.
Texas coastal real estate is reminiscent of Edgar Allan Poe’s story “The Purloined Letter” where the letter could not be found because it was in plain sight. Interestingly, Texas has the world's 12th largest economy but it is home to the least expensive coastal real estate in the United States. Texas beach towns like Port Aransas, Rockport, Port O’Connor and Padre Island continue to be top vacation destinations for families, vacationers and sportsmen alike. The coast offers nine months of beach season, world-class fishing and average highs of 69°F in February and 93°F in August. The Texas coast is conveniently located within five hours of more than 85% of the State’s population and greater numbers of vacationers are visiting every year. In a time where people are looking for solid investments and safe places to park money, we can all agree the Texas Coast looks very promising.
Theodore Roosevelt once said, “Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming financially independent. For real estate is the basis of wealth." These words could not be more true. Following TR’s wise words and the time honored investment rule “buy low, sell high,” one of today’s smartest investments is in a second home or investment property. As government spending and taxation increase people are more attracted to hard assets that provide immediate tax benefits, a hedge against inflation, the potential for significant appreciation and a good tan.
National headlines about real estate still cause alarm and many people are justifiably apprehensive about real estate. However, markets across the United States are vastly different and where you buy is often as important as when you buy. Florida has a glut of beachfront condos and homes available for deeply discounted prices. Yet, Flordia real estate is languishing on the market because of investor and second home buyers’ fears. Even after steep discounts property prices in Florida remain high relative to Texas. The average price of a condo in Destin is over $560k! Florida real estate was “discovered”…decades ago. The long term investment potential in Florida has been realized by those who purchased property in the 1970’s and early 1980’s.
In contrast, Texas has weathered the economic storm far better than most and the coast’s growth potential is unrivaled. After 16 months of job losses nationally, the state's economy experienced its third month of positive annual employment growth. The growth rate from July 2009 to July 2010 was 1.3 percent compared with a rate close to zero percent for the rest of the nation. The state’s private sector posted a positive annual employment growth rate of 1.2 compared with a zero percent growth for the rest of the nation.
Earlier this year Forbes ranked the top ten fastest growing cities in the United States; four of them are in Texas. Encouraged by a healthy economy, a comparatively low cost of living, no state income tax and great weather, Texas’ population is expected to grow a staggering 66% over the next 20 years, bringing the total population to roughly 40 million by 2030.
Another Forbes article listed the nation’s top 20 cities for jobs; of the 20 cities nine of them are in Texas. A pro-business environment has encouraged many major corporations to relocate their headquarters here. The state is now home to 58 Fortune 500 companies, more than any other state. They include Exxon-Mobile, Dell, Fluor, and J. C. Penny to name a few.
All signs point toward a bright future as Texas continues to grow and prosper. Furthermore, the long-term prospect for second homes in Texas is very strong. Currently, 38.7 million people in the United States are ages 50 to 59 and 45.3 million people are between 40 and 49 — prime years for buying a second home. Individuals in these groups are still in their peak-earning years. They have both the means and desire to purchase second homes as an enjoyable investment or retirement destination.
Texas coastal real estate is reminiscent of Edgar Allan Poe’s story “The Purloined Letter” where the letter could not be found because it was in plain sight. Interestingly, Texas has the world's 12th largest economy but it is home to the least expensive coastal real estate in the United States. Texas beach towns like Port Aransas, Rockport, Port O’Connor and Padre Island continue to be top vacation destinations for families, vacationers and sportsmen alike. The coast offers nine months of beach season, world-class fishing and average highs of 69°F in February and 93°F in August. The Texas coast is conveniently located within five hours of more than 85% of the State’s population and greater numbers of vacationers are visiting every year. In a time where people are looking for solid investments and safe places to park money, we can all agree the Texas Coast looks very promising.
Theodore Roosevelt once said, “Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming financially independent. For real estate is the basis of wealth." These words could not be more true. Following TR’s wise words and the time honored investment rule “buy low, sell high,” one of today’s smartest investments is in a second home or investment property. As government spending and taxation increase people are more attracted to hard assets that provide immediate tax benefits, a hedge against inflation, the potential for significant appreciation and a good tan.
National headlines about real estate still cause alarm and many people are justifiably apprehensive about real estate. However, markets across the United States are vastly different and where you buy is often as important as when you buy. Florida has a glut of beachfront condos and homes available for deeply discounted prices. Yet, Flordia real estate is languishing on the market because of investor and second home buyers’ fears. Even after steep discounts property prices in Florida remain high relative to Texas. The average price of a condo in Destin is over $560k! Florida real estate was “discovered”…decades ago. The long term investment potential in Florida has been realized by those who purchased property in the 1970’s and early 1980’s.
In contrast, Texas has weathered the economic storm far better than most and the coast’s growth potential is unrivaled. After 16 months of job losses nationally, the state's economy experienced its third month of positive annual employment growth. The growth rate from July 2009 to July 2010 was 1.3 percent compared with a rate close to zero percent for the rest of the nation. The state’s private sector posted a positive annual employment growth rate of 1.2 compared with a zero percent growth for the rest of the nation.
Earlier this year Forbes ranked the top ten fastest growing cities in the United States; four of them are in Texas. Encouraged by a healthy economy, a comparatively low cost of living, no state income tax and great weather, Texas’ population is expected to grow a staggering 66% over the next 20 years, bringing the total population to roughly 40 million by 2030.
Another Forbes article listed the nation’s top 20 cities for jobs; of the 20 cities nine of them are in Texas. A pro-business environment has encouraged many major corporations to relocate their headquarters here. The state is now home to 58 Fortune 500 companies, more than any other state. They include Exxon-Mobile, Dell, Fluor, and J. C. Penny to name a few.
All signs point toward a bright future as Texas continues to grow and prosper. Furthermore, the long-term prospect for second homes in Texas is very strong. Currently, 38.7 million people in the United States are ages 50 to 59 and 45.3 million people are between 40 and 49 — prime years for buying a second home. Individuals in these groups are still in their peak-earning years. They have both the means and desire to purchase second homes as an enjoyable investment or retirement destination.
When one considers Texas’ economic strength, job creation and population growth it’s understandable that available coastline is dwindling. Of the 375 miles that make up the Texas coast, 293 are unavailable (State and Federal preserves and parks), 56 miles are fully developed and only 26 are still available. It seems in a few short years affordable property on the Texas coast may be a thing of the past.
Are you considering a vacation home or coastal investment? Let me help you find the beach house you've been looking for! I am a buyer's agent specializing in Texas coastal vacation property. There are a lot of issues and obstacles to navigate when purchasing a vacation property. Who is looking out for you? Protect yourself with an experienced buyer's agent who will represent you and your interests. Contact me to find your vacation property today!
Best,
Marcus Cox
Avalar Coastal Real Estate
512.921.3111
marcus@avalaraustin.com
I am so sad to be leaving this area. My husband has been just been transferred and we are now looking at Dallas Real Estate. I hope to one day be able to move back down to the coast.
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