Beautiful, easy-going and still considered a bargain, the Texas Hill Country draws second-home buyers

by Amy E. Lemen

LONE STARS

Take a drive through the Texas Hill Country, and it's obvious that it really is a "whole other country." Forget the flat, tumbleweed-strewn windblown prairies and vast expanses of land that many people imagine when they think of Texas. A 14,000-square-mile area in the heart of the state, the Hill Country stretches roughly from Austin to San Antonio, includes 51 cities, and attracts more than 5 million visitors each year. And once they see it, they're hooked.

"The quality of life is spectacular-it's laid-back yet close to larger metropolitan cities like Austin and San Antonio with luxury shopping, fine dining and more-and it's not as pricey as other parts of the country," says Kathryn Scarborough Bechtol, a luxury Realtor with Turnquist Partners in Austin. "It's also why there's a big celebrity pull-they can relax here without being mobbed, because no one really cares."

Indeed, Tommy Lee Jones, Dennis Quaid, Lance Armstrong, Matthew McConaughey, Sandra Bullock and Robert Rodriguez are just a few famous folks who have homes in the midst of Hill Country beauty.

"People are just amazed at the scenery, and at what they can get here for the price," says John Rosshirt, past chair of the Austin Board of Realtors and vice president of Stanberry & Associates in Austin, which specializes in Hill Country and Austin-area real estate. "A lot of people come here on business, especially with the influx of technology in the Austin area, and once they see it, they love it."

What's the attraction? It's Colorado without the steep peaks and the snow, Portland without as much rain, and more things to do than most people imagine. Small towns like Fredericksburg, Stonewall, Marble Falls, Horseshoe Bay, Lakeway, New Braunfels, Gruene (pronounced "green"), Dripping Springs, Wimberley, Bandera and Llano are attracting those with considerable wealth and time who simply want a little slice of heaven where they can relax, enjoy exquisite dining, maybe visit a dude ranch, shop in exclusive boutiques and explore Texas wine country.

It's also a relative bargain. As the area is being discovered, visitors are buying land in droves, especially for second homes. Land costs are still reasonable in comparison to the screeching halt of the real estate boom across the rest of the country, and million-dollar-plus homes are considerably more luxurious for that reason.

"There's no one coming here thinking they're going to lose money investing in real estate," says Rosshirt. "Many buyers have winter homes in the middle of the Hill Country, or condos in downtown Austin so they can easily travel back and forth when they want."

In fact, Houston-based Metrostudy, a residential market research group, has found that nearly 60 percent of all new homes in the Lake Travis submarket have been priced above $400,000 for the last three years-and are only projected to rise. For many people, now is the time to buy as the residential real estate market is getting a boost from high-end amenities such as concierge service, exclusive clubs, golf courses designed by some of the most prestigious names in the business (Jack Nicklaus, Tom Fazio, Hal Sutton and Tom Kite, to name a few), and new medical facilities. Even the city of Horsehoe Bay plans to convert its airport into a first-class jet center.

"We're getting a lot more inquiries for second and even third homes," says Rick Grimes of Cordillera Ranch, a private high-end community located just 20 minutes from San Antonio. "Buyers want the ultimate luxury in Hill Country living, and they're finding it here."

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