Austin Real Estate Blog

An innovative home builder in the Catskill Mountains in New York State brings new meaning to the adage “everything old is new again” by reusing salvaged building materials from old barns and homes in the area in his “brand new 100 year old farm houses.”

Charles Petersheim left the island of Manhattan shortly after the September 11^th disaster to relocate to a remote mountain region far off the beaten track in Sullivan County, New York. There, he began his new career by restoring old barns in the area. This is where the idea to use salvageable materials from barns and homes that were destined for razing in custom made new houses.

It’s the best of both worlds, as these houses echo the character and beauty of wide plank floors, cast iron radiators and old fireplace mantels while eliminating the constant need for sometimes extremely expensive repairs and maintenance associated with an original century old farm house.

The houses are being snapped up by city-dwelling New Yorkers weary of the cramped, dirty, and noisy city for vacation and weekend destinations.

It’s an interesting and innovative way to promote sustainable construction and the rustic beauty of older materials – some of which are prohibitively expensive and difficult to obtain – simply can’t be matched today. Hard woods such as mahogany, black cherry, or black walnut, were common building materials a hundred years ago, but have become a precious commodity in this day and age. Reusing old hardwoods not only protects today’s trees, but has the added bonus of a worn and polished beauty that newer materials can’t compete with.

What an ideal design for any rural community.

Federal Deposit Insurance Corporation (FDIC) Chairman Sheila Bair surprised Congress with a proposal bypassing the Federal Housing Administration to make use of the Treasury as a financial resource for cash strapped mortgagees. The low cost “gap” financing would help to reduce the principal balance on a loan as much as 20 percent over the next five years. Ms. Bair announced the plan at the end of April 2008, just as the House and Senate were negotiating with the FHA for a proposal that would assist the troubled homeowners with their unaffordable mortgages.

Ms. Bair’s plan would be limited to those borrowers who are determined to stay in their homes and avoid foreclosure proceedings and wouldn’t cost the Treasury anything as the five years worth of interest would be paid up front by participating lenders. The borrower would then begin to pay down the principal with no interest for five years. After five years, the borrower would begin to pay off the FDIC loan at the low Treasury rate for the rest of the mortgage. The mortgage would hold a lien on the property and it would be paid off first should the borrower sell or succumb to foreclosure.

The program would be limited to those borrowers who could qualify for a lower fixed rate mortgage. The home owner’s mortgage lender would apply for the gap loan on the home owner’s behalf.

The idea is to lower the borrower’s debt-to-income ration to a more manageable 35 percent and to take advantage of lower Treasury borrowing rates to assist homeowners into more affordable fixed-rate loans. This plan is not for everybody, but Ms. Bair thinks it could make a difference for up to a million homeowners who don’t qualify for any other relief plans. It’s certainly something worth looking into.

Home builders are searching for ways to lure the potential new home buyer off the fence and into a sale so they’re piling on incentives to sweeten the deal.

In the San Francisco area, like any good car salesmen, builders are offering to guarantee the price of their homes are the lowest in the neighborhood. If another home sells for less in the same neighborhood, they will lower their price to match. In Pleasanton, California, another home builder offers a two year guarantee on their prices. If the buyer sells their new home within two years for less than it cost them to purchase, the builder will pay them the difference.

Builders are offering to throw in appliances, window treatments, landscaping, built-in sound systems, even in-ground pools to lure in the reluctant buyer. Typically, the builder will offer upgrades on flooring and appliances, will agree to pay the closing costs, or will reduce the price drastically in order to move inventory off their books.

In the Dallas-Fort Worth area, builders are reducing the price of inventory by as much as 20 percent and throwing the swimming pool in for free. Some neighborhood residents aren’t happy with these drastic reductions in price, arguing – and rightly so – that it reduces the property value of the whole neighborhood.

For the most part, incentives like these are unnecessary in Austin, where home sales remain steady and inventory is still low. New homes in the Austin area typically attracting multiple offers; often homes are selling for the asking price and above, sometimes for cash. In the rest of the nation, however, home buyers are desperate to move inventory and avoid bankruptcy as the supply far exceeds demand in this buyer’s market.

Growth and development comes with a price and long time residents of the Hill Country are finding out how high a price they are willing to pay. As more people discover the charms of rural living, paradoxically, that rural living is fast disappearing. A higher population puts more stain on the infrastructure and resources and local governments have to accommodate the demand somehow. The trouble begins when the people of the counties absorbing this growth and development are not given a say in how the development is controlled.

On the edge of Bexar County simmers increasing resentment over the burgeoning population growth and inevitable development that follows such growth. While growth can be healthy for a region, unchecked and unregulated, it can destroy the land and character. The Hill Country folks are becoming increasingly concerned over land and water as developers are given carte blanche on where and how their construction is done.

Ranchers are battling developers and power companies as well as their own government representatives to protect their property and peace of mind. Blasting and land leveling equipment is a constant disruption and residents’ complaints and attempts at legislating the development have been largely ignored.

One concern is the state of Edwards Aquifer, the source of water for Bexar County. Edwards receives run off from just about everywhere in the county and natural filtering through the limestone that covers the area insures that the water is fairly pure and, after chlorination, is fit for use in homes and businesses. The worry is that run off would become contaminated with construction pollution and chemicals. Indeed, five wells in Leon Valley have been contaminated with industrial-strength solvents.

The residents of Bexar County aim to do something before it’s too late.

I was reading my email today and came across a discussion from one of the cohousing lists that I subscribe to. (Cohousing, if you’re not familiar, is an alternative way of living within a community of folks who are like minded and want to live more like people used to live, neighborly that is. Co housing also let’s the participants design, build, and run their community more freely than in the current trend of master planned communities.) Anyway, the discussion was about a family here in Austin that is giving away all their possessions to seek a simpler, healthier, happier, more fulfilling life as homesteaders in Vermont.

The Harris family had felt that the things that they owned had begun to own them. While I see the truth in that, I have never been able to make a decision like they did. I have to give them that. They are donating their possessions to charity and setting off to start a new life. I’m jealous. It would be interesting to make such a leap towards something I believed in, but the last time I did that I would up as a REALTOR! While I’m generally pleased with my decision, it it not what I thought it would be. It’s some of what I thought and some of what I didn’t think. If it were terrible, it would have been relatively easy to just go back to program management in hi-tech. Now look at the Harris’. If what they are doing isn’t what they think it is and they want to do something else, it could be very hard. I admire that they are willing to take that chance and go for their dreams.

I wish them and their family the best. I’ll be following along as long as they are writing their blogs. :)

You can follow along as well at the Cage Free Family Blog.

If you are interested in reading the full story you can get it and photos at the NYT.

Hope you had a great weekend.

Joe

Below is an excerpt from the NYT article.

May 17, 2008
Chasing Utopia, Family Imagines No Possessions
By RALPH BLUMENTHAL and RACHEL MOSTELLER

AUSTIN, Tex. — Like many other young couples, Aimee and Jeff Harris spent the first years of their marriage eagerly accumulating stuff: cars, furniture, clothes, appliances and, after a son and a daughter came along, toys, toys, toys.

Now they are trying to get rid of it all, down to their fancy wedding bands. Chasing a utopian vision of a self-sustaining life on the land as partisans of a movement some call voluntary simplicity, they are donating virtually all their possessions to charity and hitting the road at the end of May.

“It’s amazing the amount of things a family can acquire,” said Mrs. Harris, 28, attributing their good life to “the ridiculous amount of money” her husband earned as a computer network engineer in this early Wi-Fi mecca.

The Harrises now hope to end up as organic homesteaders in Vermont.

“We’re not attached to any outcome,” said Mrs. Harris, a would-be doctor before dropping out of college, who grew up poverty-stricken in a family that traces its lineage back through the Delanos and President Franklin D. Roosevelt to a Mayflower settler, Isaac Allerton.

Mr. Harris, 30, who dropped out of high school and “rode the Internet wave,” agreed, saying they were “letting the universe take us for a ride.”

They are not alone.

Matt and Sara Janssen, who traded down from their house in Iowa to a studio apartment in Montana and finally an R.V. powered by vegetable oil, now crisscross the country with their 4-year-old daughter, highway nomads living on $1,500 a month.

Not that simplicity need be that spartan. Cindy Wallach and her husband, Doug Vibbert, of Annapolis, Md., moved out of their apartment with an “everything must go” party and, along with their 3-year-old son, now sail and make their home on a 44-by-24-foot catamaran.

“We never wanted four walls and beige carpet,” Ms. Wallach said.

Though it may not be the stuff of the typical American dream, the voluntary simplicity movement, which traces its inception to 1980s Seattle, is drawing a great deal of renewed interest, some experts say.

“If you think about some of the shifts we’re having economically — shifts in oil and energy — it may be the right time,” said Mary E. Grigsby, associate professor of rural sociology at the University of Missouri and the author of “Buying Time and Getting By: The Voluntary Simplicity Movement.”

“The idea in the movement was ‘everything you own owns you,’ ” said Dr. Grigsby, who sees roots of the philosophy in the lives of the Puritans. “You have to care for it, store it. It becomes an appendage, I think. If it enhances your life and helps you do the things you want to do, great. If you are burdened by these things and they become the center of what you have to do to live, is that really positive?”

Juliet B. Schor, a sociology professor at Boston College and author of “The Overspent American,” said the modern “downshifters,” as she called them, owed debts to the hippies and the travel romance of Jack Kerouac.

“Their previous lives have become too stressful,” Dr. Schor said. “They have a lack of meaning because their jobs are too demanding.”

Mrs. Harris, who with her husband home-schools their son, Quinn, 5, and plans to do the same with their 15-month-old daughter, Nichola, agreed that there was something of the hippies in their quest: “the ideals, the peace and love, the giving and freedom.”

…

Getting a divorce is a trying time for all involved. Of course you, the spouses, suffer enormously as living and financial arrangements undergo an earthquake of changes all geared toward that final split of the legal marriage bond and all that it entails. But remember that family and friends suffer too. And often mistrust and increasing hostility pervades the relationship to its Court Ordered end.

I know it is a hard thing to accomplish, but if there is any way possible, you should make every effort ( and I mean every self effacing, deprecating, conciliatory effort known to mankind) to part as friends. Why??? The reasons are numerous.

One: for your own well being. Hate, revenge, retribution, disgust, despair and general enmity are as destructive to your physical and mental state as fast growing brain cancer cells. Whatever caused the divorce, whoever is at fault, whether you wanted it to happen or not, once the decision is made, even if it is not a joint decision, try to accept that this is an unexpected and unpleasant curve in the roadway of your life, but that your life will go on. And going down life’s path happy and reconciled with the past is way better than being sad, bitter, remorseful and angry. Also life is just easier when you’ve chosen dignity and respect over negativity.

Two: for your family (and I include friends in the definition of family here). While a marriage between two people can be dissolved and the finances and property split, a family created by the birth of children can never be split. The blood tie and usually the emotional connection are forever. So, remain friends with your ex because it is the best thing you can do for the betterment of the lives of your family – children, parents, grandparents, friends, pets, etc. Since a family unit cannot be split, don’t make people choose. And remember, you two can be an extraordinary example to your children of how to manage difficulties in life, if you remain strong, co-responsible, cooperating, loving parents to your children.

Three: for your business and financial aspects of life. Bank accounts, pension funds, investments, stocks, bonds, 401Ks, insurance, taxes, title to personal and real property. Rarely are all of these things effectively split or paid for and all paperwork resolved before the divorce is finalized. Therefore, some ongoing contact between former spouses is inevitable and cooperation between them absolutely necessary to tie up loose ends and protect the best interests of the finances of each.

Let’s focus on real estate. That is usually the largest investment people have in life, generally in the context of home ownership. A well handled divorce in Texas will result in a clear Divorce Decree or Property Settlement Agreement appended to the Decree that sets forth the legal description of the real estate and precise wording of awarding and vesting the title in one party and divesting the other of the title. Or the Decree or Agreement may leave them both in title, require a deed between the parties, or it may make requirements of sale with division of proceeds etc.

Unfortunately many divorces are not “well handled” when it comes to real estate. Some are incomplete and don’t cover all the property or make requirements for the future that are soon unrealistic because of change in market conditions or the health and circumstances of family members, etc. So having the cooperation of a former spouse to obtain a deed, or their signature on transaction documents, even many years after a divorce is a great benefit to facilitating real estate transactions.

Also the more acrimonious a divorce is, the more likely that mistakes will be made in proper submission of all necessary property or investments to the attorneys and/or the court, which of course won’t come up until one of the spouses is trying to sell or borrow money on the property in the future. Keeping it friendly during and after the divorce process is completed will result in a better outcome for everyone.

An old abandoned car lot alongside a shabby, garbage strewn creek was transformed into 14 floors of luxury apartments, a project completed in 2004 by CLB Partners. Austin City Lofts, located at 800 W. Fifth Street, brought much needed living and retail space to the Central Business District of downtown Austin and converted an eyesore into a beautiful and distinctive looking high-rise building.

The first four floors of the building contain parking, retail space, a residential lobby and management offices as well as eight apartments overlooking Shoal Creek. The next five floors feature 54 apartments with 12 foot ceilings, and the final floors contain the loft apartments, with 20 foot high ceilings, including 20 two story loft-style homes.

All told, the building houses 82 one, two, and three bedroom apartments, between 1009 and 3049 square feet, with prices running between $325,000 and $1,300,000. The features include balconies overlooking views of the city, hardwood and exposed concrete floors, granite counter tops, and whirlpool tubs. There is 24 hour security, a pool, a gym, and private parking.

The exterior was designed by Larry Speck of Page Sutherland Page Architects of Austin. It features copper shingles and native limestone. Outdoor entertainment areas include a lap pool and spa, a fire pit, and community cooking area. Inside, the kitchens feature Jenn-Air appliances and European style cabinetry, as well as Moen faucets. Bathrooms boast over-sized showers and granite counters, along with the whirlpool tubs.

Austin City Lofts is conveniently located near Austin’s vibrant night life on 6^th Street, and within two blocks of retail and restaurant establishments, clothing shops and boutiques. Just across the creek are more retail and restaurant places and a 12 screen movie theater.

…to move to Austin. This is a hard one; there are so many. Austin consistently ranks way up on most ‘Best Places’ lists, placing first among best big cities, best city for Hispanics (2004), second best large city for families, third among top growth cities, great places to live, and cool cities. High among the best reasons to live and work in Austin is it’s a “healthy place to live .”

In 2006, Austin was second best in fittest cities in Texas, its people get a decent night’s sleep, and Austin’s Sustainable City designation assures that the air, water, local foods, and buildings are also among the healthiest in the state and getting healthier. On average, Austin’s air quality ranks near the middle of the 50 cleanest and dirtiest cities in the nation.

Physically, the citizens of Austin are motivated by Mayor Will Wynn’s Austin in Motion challenge, issued in 2004, to make Austin the number one fittest city in the state of Texas. The city gets high marks for its large number of Fitness Centers and healthy restaurants. The mayor has called on Austinites to do more – changing their lifestyles to include more exercise, more healthy eating, and less couch sitting and fast food eating. Austin hosts more than 90 annual walks and runs. Children and their families are being encouraged, as well, in the hope a healthy lifestyle will start early and be sustained throughout life. About 30,000 children participate in 26.2 miles worth of runs every year.

Austin’s people are in good shape mentally, as well. Low unemployment, divorce, crime, and suicide rates contribute to a mentally healthy population. One of the bonuses supporting this health attiude and lifestyle is by the high number of sunny days.

Stay healthy, stay loose, and stay in Austin!

Tax rebates are in the mail, or they will be soon. Assuming you filed a tax return this year, have a valid social security number and fall within the boundaries created by the Economic Stimulus Act of 2008, you’ll be getting a check for $600 if you’re single, $1,200 if you’re married, and even more if you have kids. You could take this check and by the “toy” you’ve been dreaming about for months; you could splurge on a weekend getaway; or you could is use it wisely, allowing it to help you sell your home.

Your tax rebate can turn the house you’ve had on the market for months into a sold commodity. All you have to do is think, and you’ll realize the numerous opportunities the government has just given you. You could, for example, offer the cash to the buyer, giving him a little more incentive to sign the papers. Or, if you don’t have a buyer just yet, you could use the money to get a home inspection, find out what’s wrong with the house and fix it. Barring any major problems, you could also (or instead) boost your curb appeal, investing in exterior maintenance and decoration. You could have every inch of the interior scrubbed and polished. Or you could hire professionals to advertise your home in a way no buyer could resist. You could do almost anything.

Rather than wasting the bonus the government is sending you, put it to good use. Make an investment that will bring you more money in the end and enable you to live out your goals. You don’t need a weekend getaway, but you do need a new home. To get that, you have to sell yours first.

Construction began in February 2008 on two luxury apartment complexes in the North Austin area, both constructed by the Texas division of Alliance Residential Company: Alliance Communities. Broadstone Travesia will be a 396 unit, built next to Travesia Corporate Park and Broadstone Grand Avenue, a 280 unit complex, will be build near Round Rock on the Grand Avenue Parkway.

The Travesia complex is scheduled for completion by mid-2009. Rents on the one-, two-, and three-bedroom apartments will range from $785 to $1,465 per month. It will be located across from La Frontera, a mixed-use development containing retail and office space, residential areas, and financial institutions.

The Grand Avenue project is also expected to be completed in 2009, offering one-, two-, and three-bedroom units ranging in rent from $760 to $1,430 per month. The apartment complex will be located at the northeast area where Grand Avenue and Interstate Highway 35 intersect.

Construction financing for the Travesia apartments is being provided by Guaranty Bank, while Bank of America is providing the financing for the Grand Avenue project.

This new construction is indicative of the Austin area’s healthy and growing economy. Austin continues to attract major corporations to locate their headquarters in the area, and has been a leader in a new growth industry – “green” jobs and construction. As concerns over global climate change and warming grow, Austin stands ready to answer with alternative energy sources and sustainable landscaping, reusing waste water to irrigate lawns and plantings, designing new buildings with existing energy sources – natural sunlight and warmth, as well as cooling – in mind.

The new apartment complexes will provide housing for an expected influx of workers in the north Austin area.