Investments
Why a Condominium? Why Not?
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Not only will you feel tied to your second home once you own it ("Why spend all that money to go somewhere else, when we can go to our own place for nothing?" is the usual reasoning), but it is imperative that you check over the place from time to time—say at least three times a year. Since every unit is different and reflects each owner's taste, no matter how efficient the management, how frequently they take inventory (and many places never do), only the owner in residence can spot what's missing and what's malfunctioning. Routine maid services provided by the resort keep things tidy and renters will complain about big obvious problems, but 100 per cent absentee ownership rarely works out.
According to common practice, once a specified complex of condominium units has been sold, the common property is deeded to all the property owners who form a property owners association. This association is thereafter responsible for outside maintenance, landscape upkeep and beautification, and for assessing its members to pay for same. It's worth mentioning that such a system has a few built-in risks for an individual owner. For example, which owner is going to take the responsibility for seeing that the place does in fact keep looking attractive? What if everyone wants to be absentee? Or what happens if you have a majority of penny-pinchers who don't rent and don't much care about upkeep—who instead vote for low assessments and let the exterior go to pot?
All right, Let's say you've listened to all the warnings and you've still got the inclination and the cash. Where do you start looking?
Plenty of Texans were investing in condominiums as far away as California, Colorado and Arizona before any were available in the state. So-called condominium fever has hit resorts in Hawaii, the Caribbean, Acapulco and Spain, to name but four.
But the final selection of where to buy depends on the buyer's budget (for buying and for travel), time and athletic preferences. If you're a skier, Colorado has literally hundreds of condominium complexes, one of the best known being Snowmass at Aspen. Both Aspen and Vail have successfully moved from being just winter resorts to year-round resorts now, what with golf courses, golf schools, music festivals and convention business.
Tennis and golf enthusiasts can find condominiums from California (at Pebble Beach or La Costa, for example) to South Carolina (at Sea Pines Plantation, Palmetto Dunes or Shipyard Plantation at Hilton Head Island, S.C., for example).
Most of the aforementioned resorts have hit the big time in popularity, so much so that condominiums that were bought for $32,000 and $65,000 in Sea Pines a few years ago now sell for $65,000 and $100,000 today. Sounds astronomical, but don't forget buyers in such resorts are in a position to judge the efficiency of rental management and aesthetic controls over nearby property.
That means that those of you with tight purse strings and mini-budgets might better look in your own backyard—Texas, that is—where the newness of the condominium concept probably spells lower costs (and possibly higher risks).
There are so many Texas resorts with condominiums under construction or on the drawing boards that a complete run-down is simply impossible. But to give the reader a taste of what's available, we'll mention just a few of the existing and projected complexes, with apologies to the many resorts which are not included.
The name of the game at tennis-oriented condominium complexes is just that: big names in the game. At least four different resorts here have picked up an idea used by Sea Pines Plantation in S.C. (Stan Smith, touring pro) and Shipyard Plantation (Billie Jean King, touring pro) whereby a top tennis star acts as tennis consultant, visits from time to time and gives tennis instruction, usually under "tennis week" or "tennis weekend" packages.
John Newcombe's T Bar M Guest Ranch and Tennis Resort in New Braunfels has been a going year-round tennis resort for five years, with John Newcombe and Tony Roche conducting Ladies Clinic Weeks, Husband and Wife Clinic Weekends and a children's camp. As of this July, T Bar M Tennis Ranch will be offering for the first time 32 one to four bedroom condominium villas ranging from $26,000 to $47,000. A total of 240 villas and 23 single family homes are planned eventually at T Bar M, as well as 44 new tennis courts in addition to the 24 (four of which are covered) already there.
Just 18 miles west of Austin on Lake Travis, Lakeway is a ten-year old, 6000-acre, recreational community consisting of homesites (500 homes are already built), the Lakeway Inn, full marina, and, more recently, of condominiums. The first 50 patio homes at Lakeway, built in 1970-71 (all pre-sold at $30-46,000, now at resale $50-65,000) and a new group of 34 (when completed, selling at $56-64,000) clustered around the fifth tee of the Lakeway golfcourse, were designed primarily for the golf enthusiast.
A much more ambitious l00-acre project—a joint venture between Lakeway (recently bought by Alpert investment Corporation) and World Championship Tennis (Lamar Hunt and Al Hill, Jr.)—will be the Lakeway World of Tennis. This will have Jean and Cliff Drysdale as resident touring pros, but eventually it will get the entire WCT stable of tennis superstars playing on their stadium court now under construction.
In Lakeway World of Tennis' first phase, 103 two, three and four bedroom townhouses (around $65-85,000) will be arranged in clusters of 12 to 30, each group surrounding two tennis courts and a stone's throw from the posh new Racquet Club (dining rooms, bar, shops, etc.) which prospective owners must first join. What does it take to get in? According to Keith Abell, vice president, "all you need is money."
Lakeway has another condominium complex planned on the lake, to be known as Rock Cove. This one will feature one to three story luxury ($76-125,000), "Mediterranean type" villas. All these high prices have not scared off buyers apparently—already 50 of the tennis villas and 15 of the Rock Cove villas are pre-sold.
Almost every good-sized lake in Texas is spawning recreational communities with condominiums and homesites for sale. National Resort Communities, Inc. a subsidiary of mammoth National Homes Corporation, has two condominium developments under construction on Lake Travis (Lago Vista and Highland Lakes Estates) and one on Lake LBJ (Horseshoe Bay).
Point Venture on Lake Travis is building its second l00 two and three story townhouses this summer ($35-45,000). These have been designed in such a way that owners may, if they wish, rent each floor separately. For example, a two story, two bedroom unit could be rented in its entirety for $60 a day or for $22 a night for a bedroom and bath and $40 for living-dining-kitchen-bath-bedroom.
Southwestern Savings Association and Bruce Belin, the developer of Elkins Lake, hope to complete construction of their tennis-oriented April Sound resort on Lake Conroe in a matter of weeks. Though prices and plans are still undetermined, April Sound will include 40 or 50 tennis villas near the tennis center and plans now call for a series of tennis weeks this fall, featuring Rod Laver and Roy Emerson.
There are a number of recreational developments on the 500-mile shoreline of Lake Livingston, the largest lake inside Texas. There the developers of Memorial Point (25 homes and 45 townhouses so far), where fishing, sailing and water skiing are big, have tennis on their plans now. Their 340-acre Woodharbor project will have Cliff Richey and his sister, Nancy Richey Gunter, and their spouses as touring pros. Long term plans for WoodHarbor include homesites (1000), townhouses (400-500), and a new concept to get things started, known as cabanas.
The first cabanas, to be completed this summer, will be built around the initial 15 courts and will be small (250 square feet), resembling a motel room with bath, pullman kitchen and patio. They are projected to sell furnished for about $12,000. Second and third phase of building will be larger units—450 square feet, with sleeping loft (projected price $15,000) and some with two bedrooms, 650 square feet (projected price $19,000)—until there are two or three hundred cabanas. WoodHarbor, like Lakeway, will have a large clubhouse with restaurant, pro shop, teen center, pools, ect.
Just across Livingston from WoodHarbor is Cape Royale, a resort project of Mitchell Energy and Development Corporation, where a second 20 two and three bedroom townhouses ($37,500-$38,900) will be built this summer. Cape Royale, which has four tennis courts, full marina, golf course and clubhouse is also the big-name-in-tennis route, having had Margaret Court there on exhibition for the opening of the courts and featuring Texas tennis champ Daryl Gralka as a teaching pro this summer.
Mitchell has a well advertised program already set up whereby vacationers are encouraged to spend a "Mini-vacation" (three days and two nights) at either the Cape Royale resort on Lake Livingston or at their Galveston project on West Bay, called Pirates' Beach.
Pirates' Beach gets the golfers (owners join the Galveston Country Club) and fishermen, but especially beach lovers. Their two bedroom cabana units to be built on the beach this summer will sell for around $20,000.
For beach freaks who will settle only for the likes of Padre Island, Padre Island Investment Co., which originally owned 5000 acres of land there, has built and sold out three high rise (two, three and six story) condominium complexes since 1969. Ranging from $25-32,000 in price originally, these units are now reselling for $39,000 and up, possibly because of their high rental occupancy.
Of late, most resorts in Texas and elsewhere (with the obvious exceptions of Florida, Honolulu, and Acapulco) eschew high rise condominium design. Instead the order of the day seems to be condominiums which blend in with the natural topography—buildings which are hidden in trees or which hug the side of hills. Perhaps that's all part of the recent back to nature zeitgeist.
But whether horizontal or vertical, condominium complexes are not only here to stay but are fast replacing the little cottage at the beach or the old farm in the country as the ideal second home to many Americans.
What's that? You say they're all too expensive? And besides, you hate tennis golf and fishing and just want to get away from it all? You distrust people and you're writing your first novel?
Anyone for camping?
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