Marie's Blog About South Padre Island, Port Isabel, Laguna Vista & Bayview

Who Buys On South Padre Island

Marie Ferrier (Service 24 Real Estate) — Mon, 22 Dec 2008 16:52:10 -0600

Yes, I know, the obvious answer is a beach lover, but I'd like to get a little more specific geographically. SPI has long been a favorite of folks from Texas , including the Rio Grande Valley, San Antonio, Austin, and Dallas; from our neighboring states of Oklahoma, Arkansas; from the mid-west corridor of Missouri, Iowa, Minnesota, Nebraska, North Dakota, South Dakota, Kansas, Illinois, Wisconsin, Michigan, Indiana; Kentucky in the south; Montana, Wyoming, Idaho in the west. Over the last few years, our buyers have branched out more to include states from both the east coast and the west coast. Life and real estate on the Island and the surrounding areas also appeal to an international clientele, specifically Mexico and Canada with occasional purchases by Europeans and Scandinavians.

Our abundant natural resources draw visitors and ultimately buyers from a multitude of locations. We are a premier birding and wildlife destination and have immense appeal to those interested in a variety of water sports from surfing, to kite boarding, wind surfing and the list goes on. Our bay and gulf waters offer outstanding opportunities for anglers as well.

While our real estate market has slowed, we have not been as impacted as many other locales. A typical buyer will either be in search of a second home with an eventual hope to use it as a primary residence or will be an investor interested in acquiring the property as a short term rental vehicle.

Our prices have shown a small decline this year and offer some good opportunities for buyers considering diversifying their investments.

South Padre Island - Beach Nourishment Update Dec. 2008

Marie Ferrier (Service 24 Real Estate) — Mon, 15 Dec 2008 15:34:52 -0600

What is believed to be the largest beach nourishment project in the history of Texas will soon begin. The beach was impacted by both Hurricane Dolly and the storm surge from Hurricane Ike, which struck Galveston. According to Jerry Patterson, Texas General Land Office Commissioner, more than 400,000 cubic yards of sand will be moved through dredging maintenance of the entrance to the Brownsville Ship Channel. Work is set to begin in December, 2008 and should be completed by March, 2009. The project is a cooperative effort of South Padre Island, the US Army Corps of Engineers, and the Texas General Land Office. The Port of Brownsville/Brownsville Navigation District is providing significant assistance as well.

South Padre Island continues to work on dune restoration with volunteers regularly assembling, under the direction of University of Texas at Brownsville marine scientists, to plant vegetation to enhance the strength, health and beauty of our beach. Volunteers are always needed so check with the town web site for opportunities to help vegetate our dunes www.townspi.com

South Padre Island and Undeveloped Land to the North - Update Dec., 2008

Marie Ferrier (Service 24 Real Estate) — Thu, 11 Dec 2008 13:02:03 -0600

UPDATE- The Laguna Madre Water District Board awarded a contract to Jimmy Closner & Sons Construction Co. to install water and sewer lines to service properties located on the undeveloped, northern part of the Island. The lines will be extended to approximately 1 mile north of Beach Access #6. This is a significant infrastructure step to potentially open additional development along the Gulf of Mexico and the Laguna Madre Bay.

Market Cycles

Marie Ferrier (Service 24 Real Estate) — Tue, 05 Aug 2008 16:06:24 -0500

Yes, I know I'm remiss in just now reading the July issue of Tierra Grande. If you haven't yet, please, for business' sake, make time. As always, Mark Dotzour delivers an excellent over-view of housing markets and Ali Anari gives us a brief lesson on real estate cycles.

The majority of my market consists of second-home as well as investment property. While we have not been as impacted as some markets, these articles allowed me to step back a little to view our market situation in a better perspective. They have also caused me to take the time to reflect on the history of our market since I began selling here in 1995.

While we are now facing the aftermath of Hurricane Dolly, I can take heart that real estate is still alive and rebounding. The cycles will continue to come around.

Real Estate After Dolly - 1st Update

Marie Ferrier (Service 24 Real Estate) — Wed, 30 Jul 2008 16:40:01 -0500

Our welcome mat is drying out and we are open for visitors! One week ago we were being battered by the slow-moving, Category 2 Hurricane Dolly and we are so glad to say - Good-bye, Dolly!

Many thanks to the care and concern of our Emergency Management Team, Town and county officials and employees, and hundreds of folks who have come to our aid - law enforcement officers, utility workers from across Texas, and also from our neighbors in Louisiana and Oklahoma, Red Cross volunteers, FEMA representatives, insurance companies, disaster recovery companies, and more!

As of today about 75% of the Island has power and power has been restored to Port Isabel, Laguna Vista, and Bayview.

Our traditional Friday night fireworks during the summer is on again this Friday and it promises to be a real extravaganza!

Many businesses have re-opened and many others have assessed damages and have begun repairs. Several of our great eateries are open and we are looking forward to others re-opening soon (love that shrimp!). Several hotels are also open again and looking forward to showing our visitors our hospitality.

While some properties have sustained damages, repairs are underway. The health of the real estate market on South Padre and surrounding communities is on the mend. I've been busy checking properties of clients and have been able to give good reports with minimal impact.

I'll post another update soon, but in the meantime, if you have any questions, just contact me.

Real Estate and More on South Padre Island, June 2008

Marie Ferrier (Service 24 Real Estate) — Thu, 19 Jun 2008 15:01:03 -0500

Summer solstice begins tomorrow, but summer is in full swing on South Padre Island! Real estate has never been at a standstill here, though it has slowed. Properties are still selling, especially beach front or properties that have shown good rental income. We have seen an "up tick" the last 4-6 weeks. Many of our owners buy as a second home/investment; they may use the property some themselves, but they also take advantage of rental income possibilities. A new luxury beach front condominium complex, The Sapphire, is expected to be ready for occupancy later this summer. It is a beautiful addition to our skyline and will provide an attractive option for our visitors. There are still 42 condos available for purchase. The condos are designed to enhance the Island experience with gorgeous views of the Gulf of Mexico and the Laguna Madre Bay and the amenities provide a luxurious complement, including The Sapphire Spa.

Our beach is lovely and wide and our water is blue and our sky is sunny so visitors are coming and enjoying a vacation in the sun and away from stress. We have reliable public transportation, The Wave, and many visitors are taking advantage of that free service instead of using their own cars or rental cars. While gas prices are high, and will probably remain that way for the foreseeable future, our Island remains an affordable and popular vacation destination.

Summer activities have begun with a bang - our Friday night fireworks began Memorial Day week-end and will continue every Friday night through Labor Day. Fishing is good. Kiteboarding and wind-surfing are great with our bay breezes. Sailing is even more popular (no gas!). Kite flying is popular with everyone and The Flats by the bay is the perfect place (you can even see world champions flying most week-ends). Dolphin families are coming out to say hello during dolphin watch cruises. Shrimp dishes are plentiful and the margaritas are ready.

South Padre Island and Port Isabel Events in May, 2008

Marie Ferrier (Service 24 Real Estate) — Thu, 24 Apr 2008 17:29:53 -0500

Fireworks, Turtles, Volleyball, and Lighthouse Movies! If you're looking for fun and unique events, look no more. Our tropical tip of Texas has some great events coming in May.

The 4th Season of the Port Isabel Lighthouse Establishment Cinema begins on May 9th with a showing of "The Pirates of the Caribbean". Over a century and a half after construction, you can not only still enjoy the beautiful architecture and climb to the top for a 16 mile view over the Laguna Madre Bay and South Padre Island to the Gulf of Mexico, but you can also load up the family and lawn chairs and blankets, sit back under the stars and enjoy an evening at the cinema as the featured movie is displayed on the lighthouse itself.

Turtle Days begins on May 16th with the Lighting of the Tiki Torches. The flotilla begins at Ted's Restaurant at 5:30pm and kayakers and non-motorized boaters are welcome to join in as the flotilla travels along the bayside lighting torches. The route ends at Palm Street Pier and the Turtle Days Celebration begins. The next evening features The Turtle Ball, which is a fanciful masked ball, island style. The event will be held at Club Pelican West.

SPI Beach Volleyball Tournament on May 24-25 at Boomerang Billy's at the Surf Motel. Annual Men's, Women's, and Co-ed competition right on the beach. Great week-end to enjoy sand and surf.

Summer tradition continues with our Friday Fireworks! Every Friday from Memorial Day to Labor Day enjoy Fireworks Over the Bay. Glorious displays for all to enjoy are shot from a barge in the bay right by our Entertainment District.

Stay tuned for further information on the Black Dragon Pirate Ship!

Second Space

Marie Ferrier (Service 24 Real Estate) — Tue, 22 Apr 2008 11:50:31 -0500

I'd like to know if anyone has experience with SecondSpace.com or ResortScape. Thanks for any feed back you can give me.

Events on South Padre Island 4/10/2008 Week-end

Marie Ferrier (Service 24 Real Estate) — Fri, 11 Apr 2008 17:16:11 -0500

We are in the midst of a pirate invasion this week-end! To celebrate the 35th birthday of the Town of South Padre Island, there will be 4 fun-filled days of family activities for all ages and aptly named "Pirate Days". We are also preparing for the possibility of a pirate invasion from the bayside! A-r-g-g-g matey, prepare the sails! Our neighbor across the bay, Port Isabel, will soon be home to a sea-going pirate ship. When details are announced, I'll let all know so you can get ready to pillage and plunder, too!

To add to the mix this week-end (things should never be dull), we are also welcoming the annual Beach & Biker Fest. We are a great destination for bikers and also host a fall event, Roar By The Shore. A Mexico Run is popular with participants for both biker events.

If you'd like to stay informed about all the great activities and events, check out www.sopadre.com , which is maintained by our great South Padre Island Convention and Visitors' Bureau, and also www.portisabel.org.

Real Estate on South Padre Island

Marie Ferrier (Service 24 Real Estate) — Mon, 07 Apr 2008 14:55:27 -0500

My business partner, EJ Wilkerson, and I wrote this article to appear in The Guide to South Padre Island, which is a publication of the South Padre Island Chamber of Commerce, for the convenience of our visitors. I thought it would be an appropriate way to introduce you to our area.

"Despite stumbles in other markets, South Padre Island and the lower Laguna Madre area have seen a healthy increase in the market value of all types of property, regardless of location or style over the past decade. Two major reasons for this increase are the large numbers of people continuing to move to our region and the realization that our region has been largely under-valued compared to other coastal locations. The increasing population and international attention have benefited the area with the expansion of business, educational, and recreational opportunities. While vacation and investment property buyers are facing the challenge of affordability for coastal property in other parts of the country, buyers in South Padre Island and the lower Laguna Madre areas can reap the benefits.

The rediscovery of this hidden paradise should come as no surprise. The natural blessings of our coastal area have for generations attracted individuals who could envision the potential.

Colonel Sam Robertson was just one such individual. In the 19th century, Padre Island real estate centered on ranching, but that concept changed dramatically in the 20^th century when Robertson dared to view the Island as a resort. Ferry service was established and two hotels were constructed - the Twenty-Five Mile Hotel and the Sportsman's Hotel, also known as the casino.

With the completion of the Queen Isabella Causeway in 1954, real tourism began. John L. Tompkins stepped forward to attempt to make this Gulf island a resort playground. Tompkins commissioned a conceptual drawing to translate his vision onto paper and it is very close to how South Padre looks today. Tompkins began to sell lots - $1,250 for a beachfront lot and $250 for an interior residential lot.

In 1964 the Port Mansfield Gulf Channel was completed and Padre Island was divided into two. By 1969 a few hotels and condominiums had been built along with beach cottages and the occasional luxurious home. Dramatic change came in 1974 when the new Queen Isabella Causeway was erected to carry the ever-increasing volume of traffic between Port Isabel on the mainland and South Padre Island.

By the mid-1980s, South Padre was a growing Gulf Coast resort and the late 1990s saw even more expansion as building cranes became part of the skyline, new families moved in, and more visitors discovered the Island.

Many who visit are drawn to owning a bit of paradise, either as a primary residence or a vacation/second home or as an investment (or a combination). In addition, the changing pattern of retirement, fueled by technology, has provided opportunities for property owners to split their work and leisure time between their primary and second homes.

Many property owners on the Island started as renters on vacation. They began to ask questions. Could they become property owners, enjoy it when they want to and be able to earn some rental income, take advantage of tax benefits, accrue equity, and see the value of their property increase? Could they move here as a primary residence and enjoy coastal living full-time? The answer is "yes".

A recent study by the National Association of Realtors stated, "Ownership of more than one home is increasingly common. A 2005 National Association of Realtors survey of homebuyers found that 15% of recent buyers owned two or more homes. In addition, approximately 40% of home sales in 2005, equivalent to more than 3.3 million new- and existing home sales, were second homes." The survey also "noted that their interest in water sports was one of the motivations for purchasing" for over half of the vacation home owners.

In considering a purchase of resort property, a buyer, often in consultation with a professional Realtor, will weigh the merits of types, sizes, and locations of properties on the market, will decide whether the property will be in a rental pool, and may consider the possibility to transfer tax deferred equity via a 1031 tax deferred exchange.

In diversifying, a buyer may also weigh the merits of purchasing pre-construction property. A developer determines the demand for the condominium project or subdivision project through pre-construction sales and gives incentives to prospective buyers early in the process since a buyer is being asked to purchase something that is still intangible. During the course of construction, prices typically increase thereby enhancing the probability that an early purchaser will accrue equity in the property before construction is completed.

Property management companies located on the Island offer varied services to the owner/investor regarding rental properties and the buyer will want to evaluate these services, such as fees, variety of services offered, hours of operation, and internet presence. There is also a growing segment of property owners who choose to use technology and local contacts to enable them to manage their own rental properties.

The land within the present boundaries and to the north of the Town of South Padre Island is limited and developers/investors are stepping forward to take advantage of the remaining tracts and lots. According to the Coastal Texas 2020 study by the Texas General Land Office, Texas has approximately 367 miles of shoreline along the Gulf of Mexico and approximately 26 miles or 7% remain available for additional development or to add to the substantial amount already considered coastal natural resource areas. New projects have been announced in 2007 and others are on the drawing board. Regarding future development to the north of the present Town, studies are underway to gather data regarding infrastructure and environmental issues, including the possibility of a desalination plant as well as a second causeway.

The land to the north of the Town of South Padre Island offers the best of both worlds - land that may be developed as well as land that has been set aside to hold in safe-keeping for the benefit of generations to come. The continuing evolvement of South Padre Island now lies with the current generation of dreamers and doers who are providing the determining impulse to continue the evolution of our Gulf Coast isle."