Texas Ranch Connection - Index

Texas Ranch Connection - Texas Ranch Connection - Index

and sanity to the overall market.”
Much of the same can be said of the South
and West Texas regions as well as the Hill
Country where hunting for recreation reins
supreme—and still manages to prop up many
local economies with tax revenue from deer leases.
And though Texas may lack the towering
peaks of the Rocky Mountains, it still possesses
the type of sought-after topography, namely
rolling hills, panoramic vistas, and meandering
rivers, that many seek when purchasing land.
Economists such as Gaines are noticing that
quality properties are continuing to appreciate in
value despite the fact that the percentage points
may not be as high as they were a year or two
ago. “In the Texas Hill Country, things were
appreciating anywhere between 17 and 20 percent,”
says Gaines. “People may not be getting as
high a rate today, but they’re still getting around
10 percent, which is still very significant.”
Hill Country broker Michael Lindley of the
Lindley Land Company has seen the ranch market
swing many different directions over the
past few decades. Only four years ago, you
could buy property at about $2,000 per acre. In
the recent year or two, prices have sky rocketed
to more than $7,500 an acre. And though the
current economic client will help with a market
adjustment, quality properties will continue to
go for a high asking price.
“There are still people looking in the Hill
Country, and the market is still there,” says
Lindley, “but people are buying to put down
roots because they have a special connection to
the area. Those deals where someone just wanted
to buy a little cabin to visit on the weekends
aren’t happening as much. It’s those that have
the capital to make the investment that are able
to buy in this market.”
The Hill Country in particular is seeing a lot
of the Baby Boomer generation buying property
in lake developments such as Horseshoe Bay
on Lake LBJ or in smaller subdivided properties
with lake access such as Sunrise Beach or
Granite Shoals. New recreational communities
near popular tourist towns such as
Fredericksburg and Boerne are drawing large
appeal as well. They may not offer the thousands
of acres and hands-on ranching experience
many have aspired to own, but the amenities
have drawn a demographic of people who
want to feel like they have a piece of the “real
thing.” At places such as Boot Ranch outside of
the historic town of Fredericksburg or
Cordillera Ranch in Boerne, big city dwellers
from Houston, Dallas, or Austin can escape to
world-class golfing, fly fishing for bass along the
Hill Country natural rivers, and even skeet
shooting and horseback riding.
Gaines and many regional brokers believe
the downturn we’re experiencing in the real
estate market will correct itself in the next year.
Some believe this “cooling off” period was necessary
to help stabilize land prices and weed out
those potential buyers who were getting in over
their heads.
Whether you’re looking for an escape for
weekend get-aways with friends and family, an
eventual home after retirement, or simply a
sound place to invest your money, the Texas
ranch market is still alive and well. Though
there may be some slow down, industry professionals
would argue that it’s no time to shy away
from a purchase if you have the means to invest.
Just be sure you can hold onto it for a while.
Not only will you find a financial return on
investment, you’ll likely find a return on
lifestyle investment as well.
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