I am going to tread lightly here, but this was the same project that disrupted Las Manitas mexican restaurant and day care.  Remember that?  I don't think the word Karma applies here, but ouch!

While the project is temporarily on hold, there is a good news at the end that based on our strong economy in Texas the project will likely get pushed through, and most projects will be safer here than elsewhere in the country.  Fascinating times people!

Article Link: Click

It is good news then, for Austinites who, although we are not immune to the market’s volatility, will definitely fare better than the majority of the nation. We live in a city that currently ranks high on the top of most lists – best places to live and work; best city for singles; best city for live music; best city for technology; best city for outdoor recreation; and the list goes on and on. There will always be a strong desire for people to live in our beautiful city, and because of the demand and the reasonable real estate prices, we will always have stability in the midst of national uncertainty.

The Austin Business Journal recently shed some light on why Austin’s market will bounce back faster than others will amidst the economic downturn. Check out what they have to say here.

Let's take a quick look at the luxury market, that is, homes listed above $1 million dollars.  In Austin, many of these properties are geographically located to the West and out by the lake.  Currently, there are over 575 homes that fit this criteria on the market!

This is a staggering number.  This means that almost a billion dollars of inventory is sitting out on the market.  What will the absorption rate for this be?  How are banks and mortgage companies handling this?  How are the homebuilders doing?  These are all questions with complex answers.  Based on talks with luxury homebuilders they really seem to be sweating the homes they have built without a buyer contract, the “spec” home.  Many of them could float their spec homes if they were getting new clients to build for, but with so many new luxury homes available on the market, many times it makes more sense for a buyer to get a good deal on an existing home than pay to build a new one.

The funny thing about the way the free market works is that because of the choices available on the market right now, construction costs are actually dropping, and now might not be a bad time to build new and get exactly what you want.  It is fascinating to watch how the market seeks to correct itself in strange ways.

So, what would I do if I were in the market for a million dollar plus home?  Hire a smart Realtor who was going to find me the best deal possible in an established neighborhood!

Notes from South Austin Business Council LuncheonWhat’s Really Going on Downtown?

Tuesday, July 15, 2008

Currently there are 8,000 residents Downtown 67,000 day employees work Downtown § 90,000 day employees within a one mile radius of Downtown § Projects shaping Downtown include:    o DT Austin Texas plan    o Downtown Retail    o Parks Master Plan    o Waller Creek Restoration    o Transportation    o Hotels    o Downtown Living § 4,730 condo units planned for development since 2000 § 2,500 units are currently completed § Prices have remained pretty constant    o $300-350 per sq ft    o $500-550 per sq ft for super luxury § Buyer profiles are varied – under 30, over 60; not very many families with children § 68% of buyers currently live in Austin, Texas § 14% of buyers are from other Texas cities § 19% of buyers are from other states § 70% of buyers will use as a primary residence § 18% of buyers will use as secondary residence § 12% of buyers will purchase as an investment – resales are limited by resale  restrictions because we have learned from other markets. § Vertical developments are a great market for small businesses § HOA fees depend on amenities    o $0.22-0.69 per sq ft § Residents will experience savings in gas prices and utilities (party wall savings) § Typical Development Process:    o Identify    o Acquire or Contract    o Entitle/Design/Plan/Finance    o Pre-Sale    o Construct    o Convey 4 Frequently Asked Questions: § Are we overbuilding? – No    o Demand is currently meets supply, not outpacing it.    o There are strong fundamentals to the build up of Downtown; much of it targeting young professionals.    o Developers face barriers to entry – so it’s harder & longer process to get permits, etc. § Who is moving in?    o 60-70% are young professionals    o Empty nesters    o Techies, lawyers    o Not so many students; they tend to choose the West Campus area   o Not so many families with young children – the missing element Downtown is a daycare! § Should I wait? – No!   o Demand is increasing    o Construction costs, entitlement costs, and gas prices are all going up – so price reductions are at the end of the list of options for developers to consider. § What are the biggest draws for living Downtown?    o Lifestyle    o Rising gas prices – no longer have to drive on nights & weekends    o Green/sustainable consciousness

We would love to hear your thoughts on Development. Whether you live, work or play there - or if you dabble in all of these areas, the Downtown development in our special city impacts us all on some level. I will continue to keep you abreast of the latest news and updates! Here are a couple of articles regarding development in the Greater Austin area for your review as well:

Catellus laying infrastructure for more homes at Mueller development 

Prime East Austin land to hit market

Round Rock Development – New vision for Eastern Round Rock: 100 Acres with homes, stores, offices

Lake Travis ranch on the auction block

Forbes is very accurate to rank Texas so high.  While it may not feel like anywhere in the U.S. is a good place to buy a house right now, a lot of the slow-down in the market here is due to the weakness in the lending industry as well as a fear that the slowdown on the coasts will hit us here. 

From my perspective, this is just false.  Lending is, without a doubt, the major hurdle right now for any purchaser, as they are not handing out loans like candy anymore.  Two years ago, you could call a mortgage broker or a bank, and with no verification of assets and no money down you could get right into a house.  There is no way that that business model could sustain itself long-term, so now you have a lot of banks that have tightened up considerably.  Also, banks cannot sell mortgages on the market like they used to, but that is an entirely different subject for another day.

Beyond the lending issues, the fact is that Texas never experienced the absurd inflation and price jumps that places like Florida and California experienced.  Those are two good states to compare to Texas because of their size and economies.  While those two states had home prices that were going through the roof, Texas maintained a steady home appreciation rate.  Couple that with the fact that our cost of living is lower and jobs (especially coveted tech jobs) are being added incrementally, and you have a real recipe for success.

This is where Forbes is on the money when it comes to recommending so many Texas cities.  We are in the unique environment of low cost of living, coupled with reasonable home prices and a growing economy and job market.  So take advantage of this and stop paying someone else's mortgage!

The real key, and where the money is made, is you buy when everyone is selling and you sell when everyone is buying.

Austin's landscape continues to evolve, and the Austin Business Journal included an article this week about the redevelopment of the Green Water Treatment Plant and Austin Energy Control Center site. Check out the latest news surrounding it:

Austin Redevelopment

Also big in Austin's real estate news, the proposed homebuilding ordinance which would require disabled-friendly features, such as wheelchair ramps, on new homes, was mentioned. See what people are talking about regarding this:

Homebuilding Ordinance Update 

Lastly, we can't hardly go a day without talking about the high gas prices across the nation. Whether we want to hear it or not, it's an issue affecting all of us, so check out this fun story from CNN about driving techniques people are using to get the most bang for their buck at the gas pump:

CNN's "Hypermiling"

Enjoy! I look forward to spreading good news about Austin's real estate market to you on a regular basis.  

Christy

The condominium form of ownership or real property did have its earliest foundations during the Roman Empire when there were records of common ownership by two or more people. In 1804 in the Napoleonic Code of France, this form of ownership was put into law.

If you look up the root words from Latin, we have con-, com- "together" and dominium "ownership, rule,”.  Easy?  Not so fast!

Condominium does not refer to an architectural style, but rather an organizational style, so to speak. Did you know that in order to have a condominium, there must be three distinct components?

The first is the exclusive ownership of a single unit.  This is what you look for when you surf the web late at night searching for that ideal, carefree space where you can feel released from the continual demands of exterior maintenance on your home!  The realtors load images up on local and national data bases which display an array of interiors you can choose from.  The variations here will be many. Where the unit is located in the complex, what views it has, whether or not it is a corner unit, what kind of flooring, cabinetry, kitchen amenities - all of these will effect the price.  You will own everything that is within the interior walls, halfway to the studs.

The second component is joint ownership, as tenants in common with others, of common areas.  This includes the exteriors of the buildings – the walls, the roofs, the walkways, the grounds, the trees, the roadways, etc.  Often these are not posted on the web and have to be viewed on site to get a full picture so to speak. Pools, extensive landscaping, automatic gates, etc. all add to the desirability of the complex and all require money to maintain.

And the third component is an agreement among owners for the management and administration of the total condominium property.   This may be seen as a loaded image up on the web as kind of context to the visual  impact of the complex as a whole This is the behind the scenes component which  does effect what you see and feel as you view the property in its entirety. If you have a poorly run property management company, then guess what, your home surroundings, and your investment (!), will not receive the appropriate care.  You will be paying money and getting very little in return. 

So think – exclusive ownership, shared ownership, and an agreement to manage what is shared – when you begin your search for that perfect condominium!

For simplification, I have grouped the questions in terms of Personal and Product and within these two categories, the WHO, WHAT, WHERE, and HOW's

PERSONAL QUESTIONS:

Here are the WHO(s):

Who is the decision maker?  You? A partner? A parent? Your dog?

Who is paying for it?

Who is moving into it?

And next the WHAT(s):

What is motivating you to own rather than rent?

What is your current life situation?

What is your lifestyle?

What is your age?  

What is your income?

What amount of debt is you approved to carry?      

What amount of debt do you want to assume?  

What form of ownership are you interested in - owner occupied or investment?

What is your time frame to purchase?

What is the length of time you plan to own this property?

What kind of representation do you want?

Followed by the WHERE(s):

Where do you work?

Where do you want to live?

Where can you afford to live?

And finally the HOW:

How will I pay for it?

PRODUCT QUESTIONS:

Here are the WHO(s):

Who is (was) the developer/contractor for the condominium complex?

Who is the seller? A corporate entity, a private LLC, a homo sapient?

Who is listing the property and who is marketing the property?

Who is the property management company?

And next the WHAT(s):

What year was the condominium built?

What kind of condominium is it – a new build, a resale or a conversion?

What is the quality of construction?

What upgrades or improvements have been made?

What is the energy efficiency of the unit?

What permits, if any, have been pulled on the project?

What is the price per square foot?

What are comparable properties in the same subdivision or zip code selling for?

What is the ratio between owner occupied and investor owned units?

What are the limited common elements?

What are the Home Owners Association (HOA) dues?

What do the HOA dues cover?

What are the provisions in the HOA documents for leasing your unit?

What are the provisions in the HOA docs for conducting business from your unit?

What are the pet breed restrictions, if any?

What are your rights as an owner?

Followed by the WHERE(s):

Where does the developer live?  (If new or a conversion)

Where is the property located? Nearest highway, airport or train station?

Where is the closest gas station, hospital, recreational or Dog Park, school or university, bank, grocery store/pharmacy, yoga studio, coffee shop, movie theatre church or bar?

And finally the HOW:

How does the condominium meet my emotional, physical, and financial needs?

These questions will either be answered by default or by conscious research and reflection.  My goal here is to help you dig deep in this real estate choice and ensure a successful outcome.  With this in mind, this is just the beginning of a series of blogs I will be posting on the subject that will address each of these questions one by one.  Get ready!

Villa Muse (Website) is planned as a large development encompassing state of the art movie and music production studios and on-site neighborhoods that will be designed in different themes to be used as backdrops in movies.  They are still planning on staying in Texas, but a new location has not been announced.

Perhaps Villa Muse was asking too much of the city of Austin when they requested that their plan be given certain incentives, such as being exempt from city control during the construction process, but I personally wish that they would have worked a little harder to come up with a way to make this successful for both parties.

While Villa Muse may not have been perfect, it was exciting to think that Austin would be home to such an impressive project.  While I cannot speculate on what other major projects are planned for the city, I hope that Austin can embrace an idea like this and create a place for creative and artistic individuals to bring their ideas to life.  Austin needs to stay true to the artistic and individualistic roots that make this such an exciting place to live, and we all must foster an environment that not only attracts artists, musicians, directors, and the like to move here, but also to keep them here!

Austin, Texas.It’s hard to talk about anything else as this is personal for me.Pioneering family members carving a future for themselves in the early 1800’sMother born there.  Me spending summers there learning to fish, hunt, walk barefoot, cozy up to armadillos and rattlers and the sound of june bugs slapping against porch lights at night.Over the years witnessing growth and sophistication collide around music and art and science.  Memories of my first girlfriend swinging on a tire hanging from a long rope tied to a high branch.  Later friendships-Willie Nelson, Terrence Malick, Ann Richards.  I love Austin. I love its new, adventurous, homegrown energy.I’m glad we shot this catalog there.  I wish we had shot it at my grandfather’s house on Scenic Drive.  It still stands there.Enjoy.

Well spoken Mr. Redford; we love Austin as well!