Texas Realty Blog

Cental Texas Toll Roads to Open This Week

Central Texas residents have finally realized that they lost the battle against toll roads. An obscure provision on the 2003 ballots allowed for Proposition 14, which allowed toll roads. Houston has thousands of roads and three toll roads. Austin has a handful of major roads, yet we have three toll roads as well.

The toll road controversy is that the Texas Department of Transportation (TXDot) is not only planning to toll existing roads, but Austin now has one of the highest toll road fees in the nation. Some fees are 75-cents while other are almost $1.50. With the highest property taxes in the state, Austin residents are going to start feeling the financial squeeze even more.

Questions arise because most of us still don't understand where profits from these expensive tolls will go. Since road fees are paid out of the gas tax, once the toll booths are paid for and maintained, who will see the profit? Are they paying for parks or schools? Are they going to give teachers much-needed raises? Most of us still can't answer these questions.

News stations KXAN and KVUE weren't as outspoken in their coverage of this story.  They simply said today that the toll roads will be open this week, but didn't discuss the effect on the lower and middle-class families here.  With fuel and housing costs on the rise, the families with less income will be most affected.

The University of Texas- Daily Texan covered the controversy in depth. Read it at Viewpoint: For whom the tolls toll - Daily Texan.

J. C. Penney to open two Austin locations

The Austin Business Journal reported that JC Penney will be opening two locations in Austin. The first is at Tech Ridge in North Austin and the second is at Southpark Meadows in South Austin. I wanted to bring this up because those two retail centers are doing quite well. They've attracted good, stable, long-term tenants and are examples of what is to come in Austin.

Southpark Meadows is right of IH 35 in South Austin off Slaughter Lane. For those of you who are not familiar with Austin, any street past Ben White BLVD (about 10 mins north of Slaughter Lane) used to be far, far South. As a matter of fact, Slaughter Lane used to be the marker for when you are pretty-much out of Austin and well on your way to San Antonio. Now, the three-phase 425-acre parcel of land at this intersection is well on the way to being one of the premier retail developments in Austin. I'd previously reported that the city is eyeing land near Southpark Meadows
for a "multi-modal" transit station, similar to what is found at Tech Ridge in far North Austin.

Both TechRidge as well as Southpark Meadows are family-oriented shopping areas near busy residential developments. Both are also right off IH35 in high-growth areas that will see even more residential developments on the way. Investors should heed the foresight of J.C. Penney by finding investments in and around these areas. They will definitely appreciate in upcoming years as more commercial and residential business comes to town.

Link: J. C. Penney to open two Austin locations.

City of Austin Seeks Board & Committee Members

The City of Austin is seeking citizen and professional service providers for various boards. Vacancies are always listed on the City Clerk's website. Sometimes, citizens are appointed to the boards by nomination, but you can also submit an application if you are interested. I attend the East Austin Summit last Saturday and Councilman Sheryl Cole asked that we call 512-974-2266 if we'd like to volunteer for a citizen committee or board.

I received an email today because there are several vacancies. I applied for the Robert Mueller Municipal Airport Plan Implementation Advisory Commission as well as the MBE/WBE Small Business Advisory Committee in order to get more involved in decision-making in those areas. I bring this up on a real estate blog because these boards can provide direct access for investors. Not only would you get a chance to meet policymakeres on the committes, but you'd also have a better pulse on changes in the marketplace.

If you dont' plan on being on a board, check the city website for meeting times. You can also get involved the Real Estate Council of Austin, which is always at the forefront of political issues affecting real estate.

Texas Cities Top Growth Charts

Texas A&M recently reported on Texas growth. 

In the five years ending in 2005, Texas was the only state to have more than one city among the fastest-growing in America, and it had four...Texas population patterns show the state's large cities are not just growing rapidly, but even those such as Austin, which struggled during the post-2001 recession, have recovered...While such large U.S. cities as Detroit, Philadelphia and Chicago lost population in the first five years of this decade, big Texas cities attracted new residents by the thousands and drove real estate markets to record levels.

According to the article:

1. The Top Ten Most Populated Metros in 2005 were Houston (#4), San Antonio (#7), and Dallas (#9).
2. Fastest Growing Texas Cities 2000-2005 were San Antonio (#4), fort Worth (#5), Houston (#7), and El Paso (#10).
3. U.S. Rankings by Percentage Growth 2000-2005 were Fort Worth (#1), San Antonio (#4), El Paso (#7), and Austin (#10).

Although growth is expected to continue in fort Worth, recent reports from the fort Worth Star Telegram is expected to slow in 2007.

Gotcha Guide™: Details Can Cost Sellers Thousands

NOTE: This information is part of a forthcoming book, the Gotcha Guide™ to Buying and Investing in Real Estate.  
by DeeinAustin™

I spoke to some investors yesterday about how understanding buyer psychology and staging homes can save them money. I explained that I had several designations, which they probably could care less about, but through the process of obtaining them, agents are taught "best practices". For instance, the Graduate REALTOR Institute, National Association of REALTORS, and Council of Residential Specialists have done decades of research on all aspects of the real estate transaction.

They ask: what are buyers looking for in a home, what helps them choose the home they purchase, what motivates a seller, what's the best home buying or selling process to follow, what are the most cost effective repairs or remodeling projects, etc. These organizations make home buying, selling, and investing a science, then provide this data to us for free or through certifications.

One of the areas where I see sellers or out-of-town investors lacking knowledge is in aspects of preparing a home to sell. New Home Builders stage their properties because they know that a good-looking, showcased home will get you top dollar. The buyer can more easily see themselves in the house and will also often overlook small flaws.

In the case of the investor I was speaking with, their painter had painted over door knobs, ceilings, shelving, even wall plates. The house had not sold as fast as they had hoped, so I was there to offer advice. I told them about the numerous small issues such as not painting the inside of a closet, not putting down new sod, or replacing rotted wood under the sink.

I summed up the buyer experience in this way, "When a buyer is walking through their potential home, it's not just a house. It is where they will raise their family and enjoy special moments. They want to walk in and be wowed. Buyers have a move-in condition form in their mind and if they see a great deal of obvious, noticeable, small flaws, they wonder what else is wrong. You have to earn their trust that they can move in and the house won't fall apart the next day." In this case, I'd suggested they purchase a pre-inspection to help the buyer understand that they did their homework. They could have also fixed small issues and staged the home.

-All Rights Reserved

1415 S. Redondo in 78721 On Market Soon

I have a pocket listing that will be on the market soon. It's on 1415 South Redondo in Austin, TX 78721. The 78721 zip is being revitalized as the hot 78702 area becomes too expensive for many families. The home was picked up by one of my investors and remodeled, so it is in move-in condition. It's a 2/2 with a carport. Price will be set below $125k. We'll have pictures soon.

City of Austin Vision Available Online

The City of Austin has a lot of links on their website. One of them is the city page that describes the vision of where city officials would like Austin to go. I found it last night as I was looking for City Council Committees. I am interested in getting on several committees, including those around Transportation, Mueller, CAMPO (Capital Area Metro Planning Organization), Emerging Technologies, and Small Business Policies. I'll be scaling back on my involvement in business organizations in 2007 so I can do more work with local government.

The reason I wanted to point to this resource is because it will provide Austin real estate investors, buyers, and sellers more insight on the plan our city has for us. I'll write an article on it soon, but the City of Austin has plans to become a hub for medial research and biotechnology. The University of Texas has formed alliances with Williamson, Hays, Bexar, and other counties to this hot sector.

I urge to you to read the city vision page and follow the links. There's too much information to cover in one article, but I'll try to write on them soon.

Link: City of Austin - Vision: Comprehensive Planning.

Austin Historic Landmark Commisson Drafts "Iconic Preservation" Ordinance

From the Austin Chronicle- City of Austin advisers and staff are showing strong interest in the fate of the historic buildings and their tenants. At this Monday's meeting of the Historic Landmark Commission, a draft of a new "iconic preservation" ordinance was introduced by Dave Sullivan of the city Planning Commission; the discussion referenced Las Manitas.

The proposed new "iconic" designation could be requested by a business owner located in leased space, like Las Manitas and Escuelita; provisions would prevent the landlord from retaliating against the tenant. From the city's Historic Preservation Office came a timely early report from Steve Sadowsky on recent research into the 200 block of Congress. To date, the office has found historical significance dating back to around 1915 for the buildings that house the cafe, day care, and Tesoros Trading Company – all slated for teardown.

The Iconic Preservation Proposal will be in front of city council in November. Link: The Austin Chronicle News: The Good Fight.

Austin Quality of Life Bonds Up for Voting in November

I wrote yesterday about the upcoming bond election. I'm putting this on a real estate blog because these bonds will affect our city. The Mayor said in yesterday's CRS meeting that Austin municipal bonds have been selling at AAA rating even though they are just under AAA. Either way, he said we have a very high rating for a city, which is unusual.

I wanted to outline the bond package because I learned a lot at yesterday's meeting, so wanted to provide extra details on what Mayor Wynn said. Here are the 7 bonds. More details can be found on the Mayor's bond website.

1. Transportation. Includes $103.1 million of investments in Austin’s multi-modal transportation network. I didn't ask the mayor, but wanted to know what the toll roads were supposed to pay for and why we're paying additional money for roads.
2. Water Quality. $95 million for drainage improvements and watershed   protection and $50 million for open space to protect water quality in Barton   Springs and the Edwards Aquifer.  
3. Parks and Facilities. $20 million for acquiring new parkland, $10.2 million   for new recreation facilities, and $54.5 million for renovations and improvements   of existing facilities.
4. Creative Economy.31.5 million in investments in both new and existing   artistic and cultural centers. This would go to phase II of the Mexican Cultural Center, a new Asian Cultural Center, and upgraded facilities for the Austin Film Society, which have helped bring millions to the city.
5. Affordable Housing. $55 million investment package to help address   critical unmet needs for affordable housing in the community. This will provide $33M for incentives to rental housing builders and $22M for home ownership programs.
6. Libraries. $90 million investment in the Austin Public Library to   build a new central library facility and improve efficiency and performance   of the entire library system. The central library is outdated and we have to replace a book everytime we buy a new one.
7. Health and Safety. $58.1 million in investments to upgrade and improve   Austin’s public safety and health services. This includes $12M for the animal shelter, which is in a 40-year flood plain.

I plan to vote for all 7 bonds because, as the Mayor said, the city actually needed more money in these areas, but we want to at least have these funds set aside for our astronomical growth during the next 8-10 years. I may not necessarily visit the library or understand the road package, but I'm sure the citizens who were involved in these meetings did.

Visit 7steps4austin.com for more info to make the decision for yourself.

Mayor Will Wynn Urges Austin Voters to Approve $567M Bond Package

I attended the Austin CRS meeting October 18th to listen to Mayor Will Wynn discuss Austin's economy and how the bonds will fit in. He was a nice, well-spoken guy and I liked what he had to say. Austin is the 16th largest city in the U.S. and we're considered on many lists to be one of the the safest, healthiest, cleanest, best places to live. Mayor Wynn said the purpose of the bond package is to keep our current quality of life. With our huge population boom and continued growth, the city will be in trouble if we don't save now and get these packages for the future.

Mayor Wynn also pointed out that the bonds will be paid out over the next 6 or 7 years, so not all of the spending will be up front. The mayor created a Political Action Committee to get the bonds approved. They  are outlined on the PAC's website.

The 7-part, $567.4 million bond package proposal is the product of nearly   two years of work.  Recommendations from city staff were reviewed and   refined by an appointed citizen committee, with thousands of hours of community   input...The package was crafted to meet Austin’s current critical needs while   preparing for future growth at a price Austinites could afford. Approval of   the total bond package would increase property taxes by about $4 a month for   the typical Austin homeowner.  The new rates would be phased in between   2008 and 2010.

The $4 property tax increase was based on the fact that property taxes account for about 1/3 of the
revenue sources for the city. Other sources include fees and fines, previous funds, sales tax, etc. Outlined are the 7 bonds. Voters are urged not just to vote for the bond that meets their needs, but to approve all 7 to help keep Austin high in national rankings in all of these areas.