Robin's Blog

San Antonio good news roundup for real estate investment and relocation

2008-06-24T09:27:08Z

From the awesome Texas Real Estate Research Center come these news items illustrating my belief that San Antonio is still a stable, growing market for residential real estate:

A great place to live
"San Antonio has been named the fifth best large metropolitan city in America for relocating families by Worldwide ERC and Primacy Relocation. The two companies examined several factors, including job growth figures for 2007, percentage of nearby top-ranked colleges, average in-state tuition for four-year public colleges, the amount of pediatricians per 100,000 population, and taxes."

Job growth
San Antonio's "entire private sector grew by 1,000 jobs, and medical facility growth gave a leg up on employment in the education and health sectors, which posted 900 new jobs. Commercial activity continued influencing the construction and mining sector, which posted an increase of 200 jobs. San Antonio's business-cycle index from April 2007 to April 2008 outpaced the growth in Austin, Dallas, and Fort Worth, but lagged behind the strong gains in Houston."

Foreclosures declining
Although still higher than 2007 levels, foreclosure filings in the San Antonio metro area continue to decline for the past four out of five months.

"Lenders filed to auction far fewer single-family residences, accounting for the bulk of the decline.... Some property types still are experiencing growth in defaults. Foreclosures postings for commercial property and condos were up 23.5 percent and 50 percent, respectively, between June and July."

South Texas Medical Center impact
"The total estimated annual billings and economic impact associated with the inpatient and outpatient visits to Medical Center facilities: Approximately $600 million. Full- and part-time Medical Center employment was up 5 percent in 2007 - to nearly 28,000 workers. There are, according to Medical Foundation officials, another 29,000 people who are employed by non-medically related businesses or organizations in the Medical Center. A total of more than $190 million was spent on research in 2007 in the Medical Center - an 8 percent increase over 2006 and a 54 percent increase over 2000. Leading the way was the Health Science Center, where research spending was up more than $13 million in 2007 compared to 2006. All of this momentum is attracting more players to the area. America Development & Investments Ltd., for example, is working with another Metroplex company, Reliant Healthcare Partners, to develop a roughly $24 million 60-bed rehabilitation hospital."

Fort Sam Houston expansion
"The U.S. Army has awarded Satterfield & Pontikes Construction Inc. a $33.4 million contract to build a new primary health care clinic on the grounds of Fort Sam Houston."

Fort Sam Houston is San Antonio's largest employer. For a ranking of San Antonio's other large employers, which include USAA, AT&T, Wachovia, and Citibank, visit the San Antonio Economic Development Foundation's webpage: www.sanantonioedf.com/index.php/xarpages/major_employers .

In other news: another of my favorite places, the McNay art museum at the edge of Alamo Heights, has reopened after adding a new exhibition center.

Rock Band rocks - a good time was had by all, especially the drummer

2008-06-09T19:04:13Z

Last weekend I played drums and did a little singing with a newly formed Rock Band. A friend came over with his Xbox and a playlist of Metallica and Weezer tunes, among others I didn't recognize, and I got to play a couple hours' worth of drums. My husband got to sing, our friends played guitar and bass, and I ignored the game aspect of Rock Band and just played drums.

It has been many years since my drum lessons with Chuck "Chick" James in Honolulu, but I can still keep a beat. I've always wanted to play drums, but just haven't gotten around to getting a drum kit. I want the electronic version so I can program a bass line, change the sounds, and mute the sound so my neighbors don't complain and their dogs don't howl. It's on my 2008 to-do list now. No more putting off my lifelong dream any longer.

Who are my drum heroes, you ask? Buddy Rich and Neil Peart. Both were/are not only extremely talented musicians, but composers and band leaders.

Next on my list are Squeeze's ex-drummer, Gilson Lavis, Peter Gabriel, and Stewart Copeland of the Police. I like them because they come up with interesting, complex rhythms. Although it's hard to beat John Bonham's solid bass drum beat.

So becoming a great drummer, or even a good drummer, is something for me to aspire to. A couple more closings this month, and I'll be shopping for some e-drums.

The beautiful Sunken Gardens / Japanese Tea Gardens of San Antonio

2008-04-16T19:52:04Z

Last Sunday, I went to see the restored Sunken Gardens at Brackenridge Park. The gardens used to be one of my favorite places to go, but over the last few years they deteriorated and had to be closed. On March 8, they were reopened, and this was my first chance to go see them.

You enter them through a stone pagoda, from which you can see the walkways and the waterfall at the far end of the gardens across the ponds.

They are one of the most beautiful, romantic places in San Antonio--and they are free to visit, although once you've seen them, you'll probably want to make a donation for their continued restoration and upkeep.

Enjoy the show, and press the Details button at the end for more information!

Randolph jets up in the sky over Cibolo / Schertz, Texas

2008-04-03T17:33:44Z

Normally, I see the training jets from Randolph AFB swooping over Universal City and Live Oak, and they go a bit farther to the northeast over Schertz, too. The other afternoon, they came right over my house and I went racing outside and managed to get some shots of them from my back yard.

I know nothing about aircraft, but I really enjoy air shows and have fond memories of watching one in 2002 at Fairfield airfield from my father-in-law's back yard in the UK.

I wonder if the pilots can see me waving?

Spring flowers in Cibolo / Schertz, Texas

2008-04-03T17:23:48Z

Here's what's blooming in our back yard so far:

Sprightly columbines that did nothing last year

Rampant dill, overwhelming the coriander and parsley. The swallowtail caterpillars love it

The three-year-old clematis vine, which suddenly produced the most and largest blooms in its life so far

Along with the flowers we want, we have plenty of weeds that we don't want. Pulling them keeps me busy and gets me out into the fresh, somewhat muggy, air. Plus, the hummingbirds are back already, at least a pair of them, so I've put out a feeder and it's emptying quickly. I love spring!

Relocating to Lackland AFB? An overview of nearby San Antonio neighborhoods

2008-03-27T15:15:49Z

If you're in the Air Force, chances are you've been to Lackland Air Force Base for basic training, but if you are coming to San Antonio for a longer stay, you might be interested in this overview of the local housing market.

Lackland is located on the west/southwest part of San Antonio, where for a long time new residential development has languished. Many of the neighborhoods close to the base were built in the 60s and 70s, before Kelly AFB was decommissioned, and prices today range around $50,000 to $80,000. These include Lackland Terrace (and other neighborhoods with the name "Lackland"), Indian Creek, Valley Hi, and Sky Harbor. Shopping and restaurants are readily available at Ingram Park Mall off Loop 410 (San Antonio's "inner" loop) and at South Park Mall, off S.W. Military Drive. Major employers nearby include Southwest Research Institute, HEB Foods headquarters, and Boeing (a facility is at Kelly USA); and the Toyota Tundra truck manufacturing plant is within commuting distance.

In the past few years, however, builders have "discovered" the city's far-west side and have developed neighborhoods in price ranges averaging $120,000 to $280,000. Shopping, services, restaurants, new employers, and new schools have followed.

You may have to get a little farther away from Lackland to find more established neighborhoods, but they'll still be in easy commuting distance. On the city's northwest side, the homes average 15 to 25 years old, and are typically built on larger lots. Oak trees shade the streets and yards, and although the neighborhoods often feature pools and parks, the homeowners association dues tend to be under $200 a year. These neighborhoods include Braun Station/Heights/Oaks, Northwest Crossing, Great Northwest, New Territories, Mainland Oaks, and Village in the Woods. Shopping and dining are available at all four corners of the intersection of Bandera Road and Loop 1604, and other nearby attractions are La Cantera Mall and Fiesta Texas, as well as major employment magnets such as the South Texas Medical Center, West telemarketing, Valero oil, and insurance giant USAA.

On the other hand, if you're looking for a newer or possibly larger home, you'll find plenty to choose from to the west and southwest. Familiar names such as KB Home, Pulte, DR Horton, Continental, and Centex offer new subdivisions, as well as many locally known builders. You may have to sacrifice garage and yard space, and wait for the shade trees to grow, but you'll have a better chance of getting a more modern floor plan. This would include higher ceilings, an open-plan kitchen, dining, and living arrangement as well a game room. These neighborhood names include the words Westover Hills/Crossing/Creek and others, Westcreek, and Westwood (are you sensing a theme here?); as well as Sierra Springs and Spring Vistas, Brycewood, Laurel Mountain Ranch, and Hunt Crossing, among many others. Sea World is located in this part of the city, as are major employers such as Citibank, the Hartford, Capital Group, and World Savings, as well as the Hyatt Hill Country Resort and QVC.

Like the rest of the nation, the San Antonio real estate market has seen a decline in sales prices and an increase in days on the market, up to an average of 6.5 months. However, that qualifies it as just barely a buyer's market. Unlike other cities, San Antonio did not experience extremely high rates of appreciation (other than in a few neighborhoods, such as prestigious Alamo Heights), and so has not had the subsequent fall in prices or huge increase in foreclosures. The economy is diversified and vibrant, so people continue to relocate here in search of good jobs and nice weather. In addition, the cost of living is low compared to other major cities (San Antonio is the seventh-largest by population), especially taking into account its reasonably priced homes. The city has so much to offer in terms of outdoor recreation, family-oriented lifestyle, and unique culture that many military retirees buy a second home here or even keep their first home and come back to San Antonio to live.

The Texas Two-Step and scenes from a drive through Cibolo

2008-03-05T10:14:20Z

Well, last night I participated in the Texas Two-Step. I had already voted, so I went back to caucus last night, showing up 15 minutes early for what I thought would be a half-hour process. As a result, I only had to stand in line in the parking lot at my polling station for 2 hours. It was cold last night, too!

Thanks to some friendly and funny folks I waited with, I managed to survive the ordeal--one of them very kindly lent me his jacket. Once I got inside the building (which was warm, and mostly empty, since only a dozen people at a time were being let in), it only took 5 minutes to register my selection. By that time, I was too tired and hungry, plus my feet were killing me, to hang around afterwards to caucus and choose delegates. At 8:45, the two lines of people waiting still stretched from the doors all the way across the parking lot to the street. Next time, I think I will volunteer to help so that this doesn't happen again! And at least I'd get to be inside.

Earlier in the day, I went to the post office in Cibolo and took my camera with me. Cibolo, like Schertz, is one of the fastest-growing towns in Texas. The contrast is not as great, because the original town is smaller, but it's still interesting. Builders have bought cheap land all around Cibolo and built homes ranging from entry-level homes in the $120,000 range up to spec and custom homes in the low $300,000s.

Many home buyers (and renters) live in the area because of the town's convenient proximity to Randolph Air Force Base. It's also an easy commute to Fort Sam Houston and Brooke Army Medical Center via IH-35. Farther to the north along IH-35 is a nice older community built around a golf course, Northcliffe, and an over-55 neighborhood being built on the north side of the course.

I hope you enjoy these scenes from Cibolo! Click the Details button at the end of each show for more information.

Remember to pay your bills when you buy, rehab, and flip houses

2008-02-25T19:19:47Z

If you're going to buy, rehab, and flip houses, be sure to pay your contractors and the other members of your team.

The star of the first two seasons of Flip This House, Armando Montelongo, is accused of not paying his appraisal bills for the properties he bought to rehab. Here's the story from San Antonio local newspaper website:

http://www.mysanantonio.com/business/realestate/stories/MYSA022308.01C.Montelongo.1b79700c.html

I never liked that guy anyway. He came across as a bully to all the "little people" involved who helped make him successful--and a star.

Heard any scritching, squealing, or thumping noises up on your roof or in the attic?

2008-02-20T09:44:46Z

Today, get out your binoculars if necessary and walk around your house. Look up at the eaves and the edge of the roof overhang and the roof itself. See any holes?

You might have a furry little family in your attic. Even if you haven't heard any noises, they may have entered on the other side of the house from your bedroom and you can't hear them. There are two reasons you don't want critters dancing on your ceiling: they might be the kind that chew on wiring (rats and squirrels), and they might start stinking up the place with their droppings (raccoons).

You see, I have a client whose house I'm trying to lease. The former tenants have moved out, but have left a very smelly upstairs, and my handyman has to go seal up their front door in the eaves and trim away the branches. I don't want to show it to any prospective human tenants until I get rid of the odor.

And just last night, our own personal raccoon was discovered noisily clawing away at a small hole in the eaves above our bedroom window, trying to enlarge it so she could move in and raise her family. So my handyman will have another project this week.

I love animals (except crocodiles, big spiders, and sharks, which is why I have elected not to live in Australia), and I am a firm believer in humanely rehoming them or encouraging them to move on, rather than trapping or exterminating them. With all the development in San Antonio and outlying cities like ours, many animals' habitats are being cut down or covered with concrete. However, others have adapted pretty well to living with humans, and in fact, are useful for keeping the bug and fire-ant population down. According to the Texas Wildlife Rehabilitation Center, raccoons, possums, and squirrels eat roaches, and armadillos (see my previous post) can even handle fire ants. Some animals carry rabies, such as skunks and bats, but as long as you avoid them and keep your pets indoors at night (which you should be doing anyway), the risk is small.

So if you see a hole in your house or roof, or have heard suspicious noises, follow the recommendations of the TWRC and kindly rehome the family. Please be aware that if it's the time of the year they are having babies, the mother may need time to remove them. If they die in your attic, not only will they make an even worse smell, but you will have Very Bad Karma.

Plus, I will come after you with a crocodile.

Photo: what you do NOT want to see (from gobsmackedagain.blogspot.com)

Great employers and more good jobs make for a healthy San Antonio housing market

2008-02-19T10:20:30Z

Texas is one of the few states to be continuing to add jobs, just one of the reasons that the real-estate downturn has not had as much of an effect here as in other states. And two companies headquartered in San Antonio have made it onto Fortune magazine's annual list of top 100 employers. They include Valero Energy, the largest oil refining company in North America that nobody's ever heard of, and Rackspace Managed Hosting, which Microsoft designated Worldwide Hosting Service Provider of the Year in 2007.

Valero's campus is on the northwest part of San Antonio, close to the University of Texas and a little farther from USAA and the Medical Center, two other major employers. The average annual salary for Valero employees is $97,730 and for Rackspace is $55,883.

Rackspace is relocating its headquarters near the Medical Center to the repurposed Windsor Park Mall on the city's northeast side. In the process, it is planning to double its workforce to approximately 3,000 in the next few years. It was just named tenth-best company to work for in Texas by Texas Monthly magazine.

Finally, Boeing, with facilities located at the decommissioned Air Force base now known as Kelly USA and Lackland AFB on the city's fast-growing west side, recently announced that they are doubling their production of 787 Dreamliners. Average salaries are $68,700 companywide, and Boeing will be adding another few hundred jobs to the San Antonio area with the new 787 contracts.

Thank you, IRS! An unexpected tax refund--NOT

2008-02-17T20:18:49Z

I just received an exciting e-mail from the IRS:

After the last annual calculations of your fiscal activity we have determined that you are eligible to receive a tax refund of $480.23. (Goody! Er, does this mean you've been monitoring all my fiscal activity?)

Please submit the tax refund request and allow us 3-6 days in order to process it. A refund can be delayed for a variety of reasons. (I'll bet it can.)

For example submitting invalid records or applying after the deadline. (What deadline? You didn't mention any deadline!)

To access the form for your tax refund, please click here (URL removed; but it pointed to a site in Japan, where I guess the IRS has its headquarters now.)

Note: For security reasons, we will record your ip-address, the date and time. Deliberate wrong inputs are criminally pursued and indicated. (I'm not sure how I'm supposed to change my IP address, date, or time, but I sure am scared to try now.)

Regards,

Internal Revenue Service

George Washington, the first American hero - big deal

2008-02-17T09:21:40Z

I was sick and tired of hearing about what a great guy George Washington was: how honest he was, what an inspiring leader he became in cold weather, how sharp he looked with his wooden teeth--blah, blah, blah.

Well, recently I got the goods on old George. Last week I talked to a lady from my mom's jujitsu class who channels part-time. George was out of town, or whatever the equivalent is Over There, but we were told we could leave a message and he'd get back to us.

Instead, one of George's high-school buddies volunteered to talk to us. The spirit of Clarence (names have not been changed to protect privacy; this guy's been dead for a couple hundred years, for heaven's sake) told me George always insisted on standing up in the front of the boat. He was kicked off the rowing team for just that reason. In fact, for that painting of George crossing Delaware (it was a really small state in those days) the artist had to work fast before George's incensed boat-mates pushed him overboard.

Next in line to reminisce from beyond the grave about our first president was the lady who lived on the corner, Mrs. Hancock, who revealed that not only did George leave the wash hanging on the line for days on end, but he never chopped down trees, even for firewood. George was totally hopeless with a hatchet (the country had to wait for Abe to come along before a president could be nicknamed "The Rail-splitter"), and he was pretty defensive about it, too. After a storm blew down an overgrown cherry tree next to the privy, George told his father that he'd chopped it down himself. Understandably skeptical, his long-suffering parent merely replied, "Yeah, right, George." Crestfallen, George admitted he could never tell a lie. He would always begin to perspire noticeably.

My mom's friend then tried to get through to George's wife, Martha. After a couple of wrong numbers (Dinah Washington was quite gracious), she managed to channel George's mother instead. We soon tried to change the channel. Mrs. W griped about George's taking off with the new carriage and not filling up the horses before he came home, usually way after his curfew. In addition, he and his friends often trashed the house (of Burgesses) with their keg parties and annoyed the neighbors with loud fiddling music that went on into the wee hours. George's mom said he never did his chores and was always getting grounded.

Then he entered politics.

"I knew he'd never amount to anything," she cackled triumphantly.

We hit the jackpot, though, on the next spirit to be channeled, Alexander Hamilton, recognized on fine sawbucks everywhere. He recalled that George played a major role in starting a rebellion, considered a useful public-relations event ever since the Boston Tea Party, which was a big hit. George's original plan had been to stage the Gin-and-Tonic-with-a-Twist Uprising, a sly dig at the national beverage of Britain, but an untimely cold snap wiped out the citrus crop. The nation was stumped. After brain-storming with his wiseguys one night, George finally saved the situation (he had already won the pot) when his gaze fell on his strangely empty glass.

"Aaron! Alex!" he shouted (they were still friends at the time), "I've got it--we'll have a Whiskey Rebellion!"

The idea went over big. Grabbing their bottles, everybody immediately tore outside to start plucking hapless chickens and heating up tar.

Finally, when Alex started getting emotional and reciting Washington's farewell address (although he got the ZIP code wrong), we decided it was time to disconnect the line to the great beyond.

After crossing the channeler's palm with a book of Elvis stamps (now there's a real American hero), I went home and started to think. The folks who'd known George in his glory days, i.e., when he was still breathing, had described a different person from the one I'd been taught to Revere* . I realized that maybe George was just an average Joe who had somehow managed to land a high-profile job.

He must have had some special talent, though. After all, he is known as the father of our country.

* Don't even get me started on that guy.

What were they thinking? More bad MLS photos from agents

2008-02-15T08:50:18Z

These photos speak for themselves, although they're probably not saying what the listing agents wanted them to. They aren't the worst photos attached to the listings, they are the ONLY ones.

A lot for sale--is this the seller? A neighbor? A security guard?

Another lot for sale, with nice dirt and healthy weeds.

I don't mean to be judgmental, but is this really the best they could do? If the property was on the market before, they could even have "borrowed" an old photo from the previous listing. I've seen that done a lot when I look at the History report of a listing.

Perhaps that explains the date on the following photo. This active listing is from a different MLS, so I don't know the number of days on market.

TGIF!

Photos from a drive around Schertz, Texas

2008-02-14T17:32:59Z

A couple of weeks ago, I had to kill some time and run a couple of errands in Schertz. (According to the US post office, I live about 200 feet from the boundary line of Schertz, in Cibolo, to the east.)

Since I had my camera with me, I thought I'd try to capture some of the contrasts between the old city of Schertz and just a small portion of the rapid development that has been taking place in the last few years.

Last year, Schertz was ranked one of the best places to live in Texas by Money magazine. So far, it's been good to me. Many people stationed at Randolph Air Force Base live in Schertz or the nearby cities of Universal City, Live Oak, Converse, and Cibolo. I'll be driving around there soon, too.

Click the Details button after viewing the shows for more information.

Market statistics and sales prices per square foot by ZIP code - useful?

2008-02-02T19:11:24Z

I had an e-mail from some clients overseas asking about the average price per square foot in ZIP code 78249 to help them decide whether to make an offer on a second home and for how much. They saw the Board of Realtor statistics published from December and were wondering if the average price per square foot would fall to $75 to $78 in this neighborhood. Here's the gist of my reply, recycled for the blog in case it's interesting to others:

The problem with ZIP codes is they are funny shapes and 78249 goes all over the place-I know because I used to live in it and I still have a rental property in it! The two are wildly different. The average price per SF is not a meaningful number, because the ZIP code contains a variety of homes. San Antonio is now the eighth-largest US city, so we are talking about a lot of homes, too.

According to the local Board of Realtors, sales prices are projected to stay level and even rise into the spring and most of the new-home inventory is expected to be sold by the end of the year. Because San Antonio has reasonably priced real estate that has not shot up in value, it is not expected to go down much either. There was a slowdown last fall, in the lower price ranges especially, because of the subprime mortgage industry trouble, but homes in good condition and well priced continued to sell. There is a six-month inventory (last time I checked anyway), which is skewed towards a buyer's market, but nothing like Las Vegas, Miami, San Diego, or Tampa.

When I do a search on the MLS of single-family homes that have sold to date since September 1 in 78249, I get the following results: the lowest priced were 10 homes under $100,000. Two homes sold for over $1.2 and $1 million respectively; followed by three over $500,000 and three in the mid- to high-$400,000s. Of the rest, 44 sold for $200,000 to $300,000; 110 sold for $150,000 to $200,000; and 91 sold for $100,000 to $150,000.

With these figures the average sold price for all of 78249 was $178,057; the median was $159,853; and the average sold price per square foot was $85.

However, the sales price per square foot also varies a lot with the size of the home. There is a certain "base" price per square foot that it takes to build any house. Then as you increase the size, you reach efficiencies of scale. On top of that, of course, you add the features and finish-out: a mansion will obviously cost more per square foot because of the marble floors and gold faucets than a regular tract home. But different-sized tract homes in the same subdivision, by the same builder, even with the same degree of finish-out, will have a different price per square foot. You'd have to know exactly how many homes sold and for what size, and what features they had, for the average price per square foot to be useful in a large area such as a ZIP code.

This concludes the broadcast portion of my message to my clients.

Now I'm a big-picture person myself, and I love to look for trends and patterns, but sometimes you have to zoom in a bit to see the trees in the forest.

Or in this case, zooming in even further to see the daffodils among the trees! This was taken in 2004, and the squirrels have probably eaten all the tasty flowers by now. But if we get some nice new tenants who want to plant some more, I'll buy the bulbs!

San Antonio's healthcare industry grows and adds jobs

2008-01-27T10:03:31Z

San Antonio has a diversified, growing economy and continues to add jobs. One of my favorite sectors as it relates to investment properties is the medical/biotech industry. Until recently, hospitals were located mainly downtown and biotech, research, schools, and other medical facilities were concentrated on the northwest part of the city at the South Texas Medical Center.

In my opinion, the Medical Center area has long been one of the best areas for investment properties because it attracts prospective tenants with well-paying jobs as well as students and interns the University of Texas Health Science Center. Methodist Hospital, Christus Santa Rosa, and ancillary clinics and doctors' offices are clustered in the area, which continues to expand north. The South Texas Oncology and Hematology and South Texas Accelerated Research Therapeutics are working together on the construction of a cancer treatment and research facility, with the planned opening at the end of this year. Other major employers, such as USAA and Valero Oil, are located nearby, as is the University of Texas at San Antonio, the second-largest UT campus.

But the gigantic planned community of Stone Oak is rapidly adding to its offerings of medical facilities, too. The new Methodist Stone Oak Hospital, set to open in the spring of 2009, will serve an area with a higher-income demographic in general than the Medical Center. Tenants are filling up the 81,000-square-foot Plaza at Concord Park in Stone Oak. In addition, construction on the first medical office building in Agora Palms, a 69-acre mixed-use development next to Methodist Stone Oak Hospital, is under way.

The major difference between the two areas is in price. Many of the neighborhoods around the Medical Center are made up of older (than 20 years) and/or smaller (than 1500 square feet) homes that are priced at or under San Antonio's median price of $150,000. They are in Northside Independent School District, a well-regarded school district, as well as the fourth-largest in Texas. Over the last few months, single-family homes in the area of the Medical Center/UTSA/USAA have ranged in price from $100,000 to 7 times as much for homes near the prestigious Oak Hills Country Club. The average sold price is $160,000, and the median sold price is bang-on San Antonio's median of $150,000.

(5702 Charlie Chan, a 4-bedroom near the Medical Center available for rent by yours truly for $1,149/month)

The Stone Oak community is in North East Independent School District. The property tax rate in North East is a little higher, and (possibly as a consequence) there are more schools rated exemplary by the Texas Education Agency here than any other school district in San Antonio. In the last few months, the homes in Stone Oak (a much smaller market area than those around the Medical Center) ranged in price from $140,000 to the $600,000s, with an average sold price of $258,000 and a median of $249,000, and were brand-new to 20 years old.

An alterative to the high prices in Stone Oak, but still close to the medical facilities, is the Encino Park group neighborhoods located just on the other side of the east boundary of Stone Oak. Sold prices range from $140,000 to the high $300,000s, with the average being $221,000 and the median sold price $201,000. They are also located in North East school district, and range in age from new to the mid-20s, with most being under 10 years. Growth is continuing north along Highway 281 and new-home prices per square foot are naturally higher than those for resales, making these homes in an established neighborhood attractive.

(2831 Sierra Salinas, a 4-bedroom home I sold in 2006, located in Woods of Encino Park, which recently rented for $1,425)

Single-family homes tend to be located along a spectrum from income at one end to capital gains at the other. If you're strictly interested in cash flow, you may want to stay with the Medical Center area. In the middle of the spectrum, you could head farther west into the general area of Northwest Crossing and Braun Station, the attractive established neighborhoods that can also appeal to military residents from Lackland AFB to the west. If you want more high-income tenants or future buyers, growth, and future appreciation, Stone Oak might be what you're looking for, with Encino Park being in the middle of the spectrum.

Fort Sam just gets bigger and better

2008-01-15T09:47:57Z

One of San Antonio's largest employers, Fort Sam Houston, will be getting even bigger in the next few years: $1.5 billion bigger. Fort Sam (as it's known here) has 19 new buildings on the way, and another 4 buildings scheduled for renovation under the 2005 Defense Base Closure and Realignment Commission--somewhat ironically, since many San Antonians vividly remember the closure of Kelly AFB, another huge employer in the military city.

Fort Sam has a long history of caring for wounded soldiers. It is home to the Brooke Army Medical Center (BAMC), which is a Level 1 trauma center with a world-renowned Burn Ward. The Joint Center of Excellence for Battlefield Health and Trauma Research is the next project on the books. It broke ground last week and is scheduled to be completed by the end of 2009. The 150,000-square-foot facility is costing $92 million, and is only one of the new construction projects to support health training and battlefield care.

When all the dust has settled, 10,500 more people will be added to Fort Sam's payrolls, both military and civilian personnel. This means that San Antonio's need for housing in the north-central and northeast area of the city, both for rentals and primary homes for military personnel and their families relocating here, will continue to grow in the near future.

I collect old postcards from places I've lived and visited. Here's a nice one of the Fort Sam Quadrangle. I used to go there all the time to pet the deer and rabbits. The ducks and peacocks were harder to get close to.

Our outdoor pet, or is it pest?

2008-01-08T19:00:50Z

We knew he lived under the deck and liked to dig holes in the mulch, looking for squirmy or crunchy meals, but we didn't know how BIG he was!

He (I say he, but it could be a she, I suppose) appeared the other day about 5:00 in the afternoon. He didn't seem too concerned about me creeping up on him with my camera until I got about 8 feet away. Then he took off at surprisingly high speed to another part of the yard close to the deck. I got even closer to him this time, shooting around the side of the deck. That's when I got this shot of him sitting up on his hind legs like a squirrel.

His name is Cisco. I think he's kinda cute.

What should investors expect from their buyer's agent?

2008-01-08T18:51:37Z

A question asked recently by a new real-estate investor on a real-estate forum got me thinking. Should you expect your agent to send you the hottest deals the instant they appear? What about lowering their commission as your buyer's agent, since you may be buying (and possibly selling) several properties?

I disagree with many investors who think that there are no deals to be found on the MLS, that they are all FSBOs, wholesales, or REOs (which are also on the MLS). I've found plenty of deals on the MLS. The asking price is not the final sales price. Some sellers will negotiate. You have to read between the lines on the MLS listings to discern seller motivation. I could send out deals to various clients every day, but I honestly don't have the time to troll through all the listings (San Antonio is a big market) looking for possibilities and matching them to my various clients' requirements. So I set them up with an automatic notification of new/changed listings, and if they see one they're interested in, they let me know. Maybe that's lazy, but I preview listings on a regular basis, too. However, whenever I have sent out "blanket" e-mails of listings I have previewed, I have not gotten much response because my various investors were not ready to buy at that time. So my previews turn out to be in the nature of market research, not selling individual listings.

However, if you are looking for a specific kind of "hot deal" and are ready to make a move, I am certainly not going to slow you down. I'll spring into action and do the hands-on research, including previewing and taking photos if you're an out-of-town client. Some of my clients have never seen the properties they've purchased. Some of my clients have never seen ME.

Another fear that investors have is that agents are beating them to all the hot deals and scooping them up. This is very unlikely. The "average" real estate agent does 3-4 deals a year, and/or nets about $30,000. The really successful ones are too busy to be jumping on many properties. I see deals coming up all the time, as I said, but I can't buy everything I see. I average one or two rental properties a year. Like many investors, I got a real estate license partly in order to buy houses, not sell them; but I ended up becoming a Realtor to support myself and feed my habit!

As far as the customary 3% commission being negotiable, of course that's up to the individual agent and the circumstances. What can you give the agent in exchange for working with you at a lower pay rate than they could get working for someone else? What is the alternative--FSBOs? Foreclosures, REOs, and HUD homes? With many FSBOs, you're going to have to find the properties yourself and negotiate the price with the seller, who will likely overvalue the property based on numbers from Zillow. The FSBO seller is not going to instantly knock 6% off the price for you--they are selling the house themselves to avoid paying that commission.

Most REOs and HUD homes are sold by listing agents. If you represent yourself and avoid using a buyer's agent, the listing agent gets the buyer's agent commission as well, which can be up to 5% for HUD homes. Again, the seller is unlikely to reduce the price since they're paying the full commission one way or the other, just like a builder or lender would (so don't go there expecting a freebie either if you don't use an agent). And lender-owned properties are usually advertised at full market value--another reason to read between the lines on the MLS.

While many sellers aren't going to accept lowball offers (yet), especially from investors, who have gotten a bad name in many markets, don't give up on searching MLS listings for good deals. A professional buyer's agent will present your offer in the best possible light to the seller and do their best to make good deals that work for you.

What services should a real-estate investor expect from a Realtor?

2007-12-31T11:38:14Z

I recently answered some questions on a forum from a beginning real-estate investor. He was wondering if he should try to find an experienced agent (possibly unwilling to cut commissions or even work with an investor) or someone new and "hungry." I thought my opinion might be interesting to other agents and investors, so here it is...

...after the obligatory photo* of the San Antonio River Walk's cypress trees and bridges all lit up for Christmas. On Saturday night, I went to dinner at Biga on the Banks, in what used to be the San Antonio public library across from the Granada apartments. My grandmother lived there for 20 years and that was "our" library. For a few years, she was the official Mrs. Santa Claus and rode on a river float every Christmas, throwing candy to the kids on the River Walk. God bless Granny Mary.

If you're a new real-estate investor, I believe you need an experienced Realtor, not one who is also new and "hungry."

I would look for a Realtor, not just an agent--someone who has subscribed to the code of ethics of the NAR and more importantly can afford to pay the dues to belong to that organization, as well as the local MLS dues. In addition, I'd look for someone who has some certifications, those acronyms after their name that indicate they have invested in some extra education beyond the mandatory courses they have to take every year to keep their license.

Depending on the size of the market--try to find someone who is full-time and has a few years of experience. All agents make mistakes in their first year or two; hopefully, they work with a broker who can correct or prevent the mistakes. Don't let them make their mistakes on you when you're just learning, too.

And it would be nice to work with a Realtor who is familiar with investment properties and who can call on contractors and property managers to help come up with the numbers you need to make good decisions.

As far as the services the Realtor should perform for you, they should include giving you information about the neighborhoods and properties that would work best for your investment goals. This includes bad news as well as good news. If they know what they're doing, you should listen to them. You may want to rehab and flip a $100,000 house in a run-down neighborhood, but you may be better off renting it for a while. The market doesn't care what you want, so you need to work with the market or find another one.

Many Realtors don't like to work with investors because they think it involves a lot of running around showing cheap little fixer-uppers that the investor will be too hesitant to buy in the end. (And sometimes, it does. I have been there a few times.) So try to be efficient and only pick out the properties you really think you'd be interested in and schedule a viewing trip in one day.

Other services a good Realtor will provide besides market research/knowledge and driving you around (not insignificant considering the price of gas!) include helping you evaluate properties, preparing an offer with terms that are beneficial to you, negotiating the contract, dealing with inspections and due diligence, obtaining rent rolls and leases, and following up with all the details and tasks during the transaction to make sure it closes. The Realtor should give you a list of recommended service providers you can contact for inspections, repairs, insurance, and property management so you don't have to go through the phone book.

It goes without saying to have your financing strategy in place before you start looking to invest. It will make your life simpler, and will make a Realtor happy to work with you!

*Photo from About.com, City-data, and Travel-Watch websites, among others

Hummingbird moth

2007-12-12T17:04:09Z

I love all kinds of flying things: birds, bats, dragonflies, damselflies, hummingbirds, butterflies, and moths. This one is a beauty:

At first, we thought it was a superfast bumble bee or small hummingbird when it zoomed past us. It is a hummingbird moth, or Nessus Sphinx, Amphion nessus. These photos were the best of a dozen I took; most of them were too blurry for the wing markings to be visible.

And just like the butterflies, it LOVES lantana flowers!

Christmas in San Antonio

2007-12-12T15:33:15Z

It has been warm, rainy, and muggy in San Antonio the last few days, but blue skies and sunshine will return soon. Winter in San Antonio is great, since bad weather never sticks around for more than a couple of days before the sun comes out again. It can be cold or rainy, but seldom both for long, and I have spent many a Christmas Day at a barbecue or picnic.

As far as investment real estate is concerned, the holidays are traditionally slow, a good time for bargain hunting. There are a lot of properties on the market. Those in good condition, or well-priced, and/or with good flip potential are still selling. The financing panic has subsided and even though there are a lot of lender-owned and HUD homes on the market, their prices haven't been slashed--in fact, they are at or only slightly below market. Sellers are willing to take lower offers, but don't seem to have reached the point of dropping their asking prices significantly.

Since San Antonio never experienced the unusual appreciation of other markets, it has not had the severe drop in price either. Homes are staying on the market longer, but the supply still puts the market slightly into the buyers side. The subprime mortgage problems has hit hard in the price ranges under $160,000, which is approximately San Antonio's median price. This translates into good news for investors, since this is the "sweet spot" for single-family homes that will attract good tenants who can afford to pay $1,000 to $1,300, but who can no longer qualify for mortgages. And rents have started to rise accordingly.

Back to the weather--today it has been quite chilly and grey, reminding me of the British weather I never got used to in England. I am beginning to get worried about the hummingbird:

She came around to the feeder again, when she really should have left for Mexico by now. I hope she has someplace warm to spend the holidays.

Investors, come do your holiday shopping in San Antonio

2007-11-14T18:16:29Z

According to an October 1 Forbes.com article, San Antonio ranks 8^th on the list of most stable housing markets, nothing new for a city that has placidly resisted the ups and downs of other Texas cities such as Houston, Dallas, and especially Austin. While those cities are also doing well compared to other, more expensive or more depressed markets, San Antonio continues to chug along its usual unexciting way. The median home price of $154,300 is 6.6% higher than last year's. Forbes projects it to increase another 5.35% to 2008, and expects the sales rate per capita to rank sixth in the nation next year.

The foreclosure rate is high, at 4.5%, mostly affecting homes under $150,000 (of which there are a lot), but not as high as one might expect. The evaporation of subprime mortgage financing has hit first-time homebuyers and buyers with poor credit the hardest. These people add to the pool of potential renters, and rents are indeed expected to increase in coming months.

Following are statistics from the local MLS showing the trend of residential sales from September to date:

Sep 30: sold 1,747 - avg list price $189,885 - avg sold price $183,145 - DOM 68

Oct 31: sold 1,476 - avg list price $184,745 - avg sold price $178,091 - DOM 74

Nov 14: sold 296 - avg list price $184,731 - avg sold price $177,368 - DOM 75

Total single-family currently active: 12,441 - avg asking price $252,861 - DOM 95 all

Notice the unsold time on market is a little over 3 months, not the 10 months of homes that need to be cleared in other markets. However, many builders don't put their inventory on the MLS, so only a portion of new homes are represented in MLS statistics.

Condos and some townhomes are excluded from these figures, too, since they are a smaller, specialty market in San Antonio.

Multifamily (under 8 units) sales from September to date:

Sep 30: sold 20 - avg list price $163,490 - avg sold price $158,475 - DOM 46

Oct 31: sold 27 - avg list price $220,460 - avg sold price $213,951 - DOM 58

Nov 14: sold 6 - avg list price $144,541 - avg sold price $139,350 - DOM 54

Total multifamily currently active: 587 - avg asking price $203,921 - DOM 120 all

North Star Mall used to be the place for families from Mexico to come for their Christmas shopping. I suspect the Rivercenter Mall may have taken over the number-one spot, with its downtown location on the River Walk. But it's hard to beat the surprising sight of the trademark North Star Mall boots, visible from Loop 410 near the airport, all twinkling with stars.

Historic Sunday (for the NFL)

2007-10-28T12:03:36Z

And if only the Cowboys were playing, my joy would be complete:

http://news.bbc.co.uk/sport2/hi/other_sports/american_football/7062729.stm

I predicted to my (British) husband that Miami would have a tougher time with the conditions, i.e., damp and chilly, than the Giants. And so far, that seems to be the case.

At the final two-minute warning, I found myself really hoping Miami could pull a rabbit out of a hat. Jesse Chatman has been a blast to watch, and I think his place on the team is now assured. But the Giants wisely ran out the clock, to the disgust of the spectators who didn't expect that anticlimactic ending.

This is my first sports-related post ever and thus a bit off-topic. To try to relate it to real estate, I'll just mention that although I was unable to afford any real estate in London when I lived there, I did purchase a home in Horsham and a rental property in Worthing in 2001. It took me six months of research, since most estate agents don't list properties on their websites, if they had one, and there is no MLS. I'm very familiar with the process throughout most of the UK, which is very different from in the US (the system in Scotland closely resembles the American one). Since housing prices went crazy through most of Britain and Ireland 3-4 years sooner than they did in parts of the US, the US must be looking good for investment and second/vacation homes. And the exchange rate is awesome/horrifying, depending on which side of the water you're on.

It's my hope that British investors will consider investing in a variety of Texas properties rather than the usual condo in Orlando.

Thanks for a great game, guys!

And cheers, mates!

Robin

Qualities of a good rental property

2007-10-14T12:57:09Z

Once again, the slow-down in new-home sales in San Antonio is being blamed on those mean old investors who are dumping properties on the market (from the San Antonio Express-News, October 12, 2007):

"The Texas economy is outpacing the national economy, and the biggest problem in San Antonio real estate was an invasion of out-of-town investors in 2005 and 2006, most of whom have since left the market. Those investor-buyers helped fuel a run-up in building, then backed out of contracts when it was clear San Antonio wasn't the kind of market where double-digit returns can be had."

But real estate agents who will sell an investor anything-whatever the age or price range-should share some of the blame. Then the home sits on the market vacant, finally being rented at well below "market rent" after several months.

If you're relying on the advice and experience of an agent to help you find a good investment property, here are some questions to ask:

Have you ever rented before, preferably a house?
Have you ever been a landlord/landlady?
Have you ever done property management?
Have you showed or leased rental properties?

Naturally, I have the right answers to these questions! :)

I have been a tenant of innumerable apartments and four single-family homes. By the way, I always got my security deposit back and a good reference.
I have been a landlady in Hawaii, Texas, and in England. I currently own and manage three rental properties in Texas.
I have managed several properties, both single- and multi-family, and still manage one property for clients.
When I first started out in real estate, I showed rental properties "for practice." I currently specialize in selling as well as marketing, but not managing, rental properties for lease.

Here's a tougher question: What's the most important aspect of a good rental property?

Answer: The tenants you'll get for it.

Just like the tenants I market rental properties to, I wanted more than just shelter. I wanted a neighborhood that seemed safe and quiet, and was not too far from work or school. I wanted enough room for my furniture plus some storage space. I wanted a nice yard to look at and relax in, because I was tired of living in an apartment. I wanted to be able to park my car close to the front door. I wanted a feeling of privacy-again, something you don't always get in an apartment. I wanted a comfortable, clean home that didn't gross me out thinking of the people who had lived there before me. It didn't have to be new, just nice and clean. Fresh paint, unstained carpet, no smells, no bugs.

The same holds true to some extent for duplexes and fourplexes, but I have never liked them much. They are a compromise between apartments and homes in the size, storage, and privacy features. Accordingly, they should rent out for a rate between an apartment and a single-family home, and should be priced that way, too (but they often aren't). The good ones at least offer a fenced, private yard and a garage.

I had a certain amount of money to spend on rent every month, and I wanted as much as possible for my money-especially since I was going to have to commit to living somewhere for a whole year. So if the home had a bonus room (fourth bedroom, study, or game room), nice kitchen, fireplace, garden tub, or covered patio, it would be at the top of my list-and I might even be able to come up with another $25 or $50 for something really fabulous.

Do you want tenants who will trash your property and/or not pay their rent on time? Offer them a home in a neighborhood where there are mattresses out on the sidewalk and trash blowing on the streets. Or one where the flooring is different in every room and the walls have not been painted in years. Or one with no grass in the yard. Or one that is just plain dirty. You have to give to get.

Real estate is a people business, not just a numbers game. Somebody has to actually want to live in the property, whether a tenant or a buyer, for you to make money.

So buy a home that somebody wants to live in.