Port Aransas Real Estate

PORT ARANSAS, Texas - Construction is underway on the five final townhomes in the first phase of The Cottages at Pirates Bay in Port Aransas.  The new three bedroom, two bath units offer the popular features that have made this development a tremendous success.  Coastal interiors with scored concrete floors, grainite counters, glass tile backsplash, wainscoting and stained wood ceilings just to name a few.  Also included are impact/storm windows and doors. Priced at $204,900 and completed Dec 2011 - January 2012

Two of the units have already sold and only three units remain in Phase I.  Low HOA fees and vacation rental revenue make these townhomes a popular choice.

PORT ARANSAS, Texas - The Texas Transportation Commission announced yesterday that approximately $690,000 was approved in the Setember meeting.  These funds will be used for planned improvements which include replacing the Automated Weather Observing System (AWOS) and engineer/design for pavement and lighting improvements.

Project costs will be funded through TxDOT's Aviation Facilities Grant Program, which preserves and improves the state's general aviation system and the City of Port Aransas.

Mustang Beach Airport Port Aransas

PORT ARANSAS, Texas - Port Aransas has been chosen as "Best Weekend Getaway" by the Houston Press.  They noted that "The water is much prettier and greener than that of the Upper Coast, and there's both grit and family friendly fun in this Coastal Bend town less than four hours down the Southwest Freeway."  Read the complete article at houstonpress.com.  Earlier this year readers of the San Antonio Express News selected Port Aransas as their preferred weekend getaway.

PORT ARANSAS, Texas, Activity has been brisk in recent weeks at The Cottages At Pirates Bay in Port Aransas.  Four new three-bedroom units are under construction with another five set to begin at the end of the month. Several of these new units are still available for sale.  In addition to the new construction, all the existing Phase I units have been sold but the sales office / model home (Unit 118).

Buyers are discovering the incredible value and the cash flow opportunities that these popular vacation rentals can produce.  The new three bedroom units are priced at $204,900 and comparable existing units will generate $35k+ in gross rental revenue this year.  Based on all the recent activity, it appears to be a winning combination.

Construction has begun on four new 3BR Townhomes in Port Aransas

The lagoon pool at Pirates Bay

Thank you for visiting the Port Aransas real estate blog.

Keith McMullin – Broker/Realtor

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PORT ARANSAS, Texas - Two recent articles in national publications support what is occuring in the Port Aransas real estate market.  "Market for Vacation Homes Is on the Rise" reports the Wall Street Journal earlier this month.

The vacation home market on the Texas Gulf Coast is closely tied to the economic conditions of Houston, Austin, San Antonio and Dallas.  The relative stability in these markets has prevented the extreme highs and lows seen elsewhere in the US (Florida, California, Nevada, etc).

Although the article "Real Estate: Finally a Good Investment?" in Smart Money (1/18/11) is geared towards the residential market rather than vacation homes, the logic holds true in both cases.  Interest rates are still at or near historic lows and the long term prospects for inflation are likely.  Typically, real estate performs well during inflation.

Investment income from short-term vacation rentals has been steadily increasing in Port Aransas.  There are a number of theories as to why more and more people are opting for a family vacation on the Texas Coast.  For most Texans, it is a short drive from home.  Travelers can avoid the headaches associated with air travel (TSA pat downs, baggage fees, layovers, etc).  The "Staycation" concept which keeps people close to home while getting away is another popular theory.

As a result, numerous condos and homes produce $30k to $50k+ in annual gross rental revenue.  This can go a long way in covering expenses.  What many prospects and buyers are saying is quite simple.  They are looking for a sound investment that they can enjoy with their family.

If the trend from late 2010 and early 2011 is any indication, this could be a strong year for sales in Port Aransas and elsewhere along the Texas Gulf Coast.

Port Aransas / Mustang Island

PORT ARANSAS, Texas - Despite what you might hear on CNBC or read in the National Press about the US housing market, buyers are still active in Port Aransas.  Eight new homes are under construction at Village Walk with one more about to start.  Each of these homes are sold and the owners will be ready to enjoy the Spring/Summer season on Mustang Island.  These new homes bring the total number of homes in Village Walk to 55.  There will be 98 upon completion.

Two New Homes In Village Walk Phase II

Vacation rental revenue continues to be strong for Village Walk owners seeking investment income.  The three-story units grossed $50k to $60k in 2010.  

A Three-Story Home Nears Completion In Phase II Of Village Walk

Five homes are sold and under construction at Sunrise Cottages.  The four bedroom cottages will build on many of the design features made popular in Twin Palms, Royal Palms and Village Walk:  open kitchen/dining/living areas featuring polished concrete floors downstairs and wood floors throughout the second level. The units surround a central swimming pool, pavilion and landscaped common area.  Five cottages remain and are priced at $230k.

New Construction At Sunrise Cottages In Port Aransas

Thank you for visiting the Port Aransas real estate blog.

Keith McMullin – Broker/Realtor

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PORT ARANSAS, Texas - The 2010 Cinnamon Shore Seaside Home Tour is well underway.

This tour features a collection of the best work and new ideas by the area’s top designers, architects, and builders. Visitors will be able to tour distinctly beautiful homes set in a traditional seaside village.

Tour Dates and Times

June 9 – Sept 6
Wednesday – Sunday 11AM – 5PM

$5.00 admission with 80% of the proceeds benefiting the Port Aransas Education Foundation.

More About the Home

Simple elegance describes this 5 bedroom, 5.5 bath home. A classic beach home with porches on two sides and gulf views that extend beyond the horizon!

PORT ARANSAS, Texas - Construction on Sunrise Cottages will begin in October and will be completed in time for the Spring 2010 Season.  Port Aransas Coastal Homes (Nick Lorette) will be the builder for the 4 bedroom, 2.5 bath, 1,380 sq ft cottages.  

The Cottages will build on many of the design features made popular in Twin Palms, Royal Palms and Village Walk: Detached homes with open kitchen/dining/living areas featuring polished concrete floors downstairs and wood floors throughout the second level.  The inclusion of a one-car garage will also provide ample storage for fishing and beach gear. A screened front porch will will offer comfortable outdoor living space.   The units surround a central swimming pool, pavilion and landscaped common area.

After decades of custom home building in Austin, Nick says that he enjoys creating coastal cottages that fit the needs of today's buyers.  "When you come to Port A, you want a comfortable place with a coastal look and feel that requires little, to no maintenance." 

Pre-sale activity has been strong as six of the ten units are reserved.  The four remaining units will be listed in MLS this week at the pre-sale price of $225k.  One of the reasons that the cottages have been so well received is that they are zoned to allow short-term vacation rental.  Based on comparable properties, they could produce $20k in annual rental revenue.

Six Of The Ten Cottages Are Already Reserved

Sunrise Cottages - 301 East Avenue C At Tenth Street In Port Aransas

The 1st Floor Features An Open Kitchen/Dining/Living Area

The 2nd Floor Features A Comfortable Master Suite Plus 3 Bedrooms And A Bathroom

Thank you for visiting the Port Aransas real estate blog.

Keith McMullin – Broker/Realtor

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PORT ARANSAS, Texas - The question on everyone's mind is whether or not now is the right time to buy.  Will prices go lower?  Will mortgage rates go down?  There is one undeniable truth.  Nobody knows where the bottom of a market is, until it has passed.  Trying to time the market is exceedingly difficult.

The Port Aransas real estate market continues to outperform most other markets.  Prices have come down in some cases, but condos and homes have not seen the sharp declines experienced in other communities.  Many properties continue to appreciate.  The only segment that is undergoing a market correction would be in residential lots and unimproved land.

It is a buyer's market with a large inventory.  On Mustang Island, there are currently 290 condos & townhomes, 124 detached homes and 282 lots on the market (MLS 8/22/09).  30-Year fixed rate mortgages are still in the historically low range at just under 5.25%  Let's take a look at The Big Picture.

Supply

They're not making any more coastline.  Why is Port Aransas a growing community?  Part of the reason is that Mustang Island boasts a large portion of the total Texas coastline available for development. Of the 375 miles that make up the Texas coast, 293 miles are unavailable for development, 56 miles are fully developed, and 26 miles are available for development.  Many of those 26 miles lie on Mustang Island.

Demand

All the long-term trends show that the population of Texas will grow significantly.  The Real Estate Center at Texas A&M published "Looming Boom - Texas Through 2030" which shows the population to grow by ten million people, from about 23 million in 2005 to 33 million by 2030, a 43.5 percent increase.  A June 2009 article in the Austin Business Journal illustrates the projected robust growth in the Texas major metropolitan areas.  Released earlier this year, "The Texaplex" sums up these forecasts in an impressive video that is a must see.

The increasing Texas population coincides with a growing number of baby boomers planning their retirement.  There are countless studies indicating that it is the desire of many to retire to the coast.  I hear and read this trend daily in phone conversations and emails from prospective buyers.  Most are trying to get a foothold in the local market with retirement still on the horizon.

Timing

Mortgage rates are low, inventory is plentiful and long-term trends are frankly a bit overwhelming.  This may not be the right time for some, but it sure looks good when you consider The Big Picture.  If you missed any of these recent posts, you might want to check out: Why Port A?  Condos And Homes  What Are The Costs? and stay tuned for more information.

Take a little time and explore Port A

Thank you for visiting the Port Aransas real estate blog.

Keith McMullin – Broker/Realtor

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PORT ARANSAS, Texas - The purchase of a second home or condo on the coast has many of the same mechanics as buying a primary residence in an inland community.  However, there are additional costs and some important considerations.

Financing

Despite what you may have heard in the news, there are plenty of lenders eager to loan money to qualified buyers.  That remains true for the purchase of vacation properties as well.  Loans for detached, single-family homes are more readily available.  Some lenders do not participate in condotel loans.  However, there are plenty that do.  It is important to note that the terms will differ and it is advisable to do your homework in advance.

Speaking of doing things in advance, one of the most important things a potential buyer should do is to get pre-qualified for a loan.  This does two things:  It helps define an appropriate spending limit and it also increases your bargaining power with sellers.  A contract/offer from a pre-qualified buyer carries more clout.  

Property Tax

In the immortal words of Benjamin Franklin, "In this world nothing can be said to be certain, except death and taxes."  Ad Valorem/property taxes on vacation properties do not qualify for the homestead exemptions that are applied to a primary residence.  In Port Aransas, a good assumption to calculate a "ball park" amount for annual taxes on any given property is to use 2% of the sales price.  This will of course change over time, but this serves as a good starting point.

Insurance

Hurricanes are a fact of life for those of us that live and own property on the coast.  Here are two important things to remember:  Insure your property and get out of the way.  There are three insurance policies that are required by lenders and appropriate for all island property owners:  homeowners, windstorm and flood.

Inland property owners are familiar with homeowners insurance.  These are typically broad coverage policies that offer protection for the dwelling, possessions and personal liability.  

Insurance for windstorm coverage can be costly, but it is of critical importance.  In Texas, coverage is typically provided by the Texas Windstorm Insurance Association (TWIA). These supplementary policies cover Gulf Coast property owners in the event of catastrophic loss resulting from wind and/or hail.  

The National Flood Insurance Program (NFIP) is managed by FEMA.  Flood damage is not typically covered by a homeowners policy.  Coverage through the NFIP is relatively affordable with policies on most properties costing $500 or less per year.

Condo Insurance

Generally speaking, Home Owner Association (HOA) fees in a condominium development include coverage for general liability, windstorm and flood.  In most cases, owners only need to consider additional coverage for contents and furnishings.

Have Questions...Get Answers

Although some of these subjects may seem a bit foreign, they are all quite common for those of us in a coastal real estate market.  Remember that there is no such thing as a stupid question.  If the team at Port Aransas Realty can answer any questions or be of any assistance, we would love to hear from you.

Thank you for visiting the Port Aransas real estate blog.

Keith McMullin – Broker/Realtor

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