Maybe it was the Money magazine article a few years ago that said the Texas Gulf Coast was a “beach bargain” compared to other surf-and-sand hotspots around the country. Or maybe it was one of the many articles in the media that tout Texas as a boon for investors and homeowners alike.

Whatever it was, it’s still true: Your very own place in the Lone Star State can still be had for a song, whether it’s beachfront property or ranchland.

Let’s consider that home on the range. According to a 2006 article in Tierra Grande, the magazine of the Real Estate Center at Texas A&M University, Texas land markets have “returned increasingly generous yields since 2001,” and capital gains for land investors during the 1990-2005 period have consistently outpaced both inflation and returns on Treasury securities.”

Room to move
Those kinds of statistics are hard to beat, especially considering that land prices across the country have skyrocketed in recent years. According to a 2006 Federal Reserve study on land prices in 46 metropolitan areas, land “appreciated at the fastest pace in cities along the East and West coasts, where land was in short supply” to begin with. Here in Texas, it’s a big state, and land prices are still reasonable.

Take the Texas Hill Country, where three to four acres with a view can be had for $100,000. Give up the view, and you can invest in those same three to four acres – a mini-ranch of your own – for about $25,000 to $30,000. In Wimberley, for example, local land values have appreciated more than 10% in the last year.

As a result, many people are choosing to buy now, while prices are still relatively reasonable, and build on it later. Some even turn part of their acreage into farmland, since many communities offer property tax breaks for agricultural use.

Lakeside living
Prefer the lake? You’re not alone, especially in Texas. For example, Horseshoe Bay, a sleepy community founded in 1971 by two cousins when they bought 2,700 acres of land on Lake LBJ, isn’t so sleepy anymore.

Today it’s a luxury residential and resort community with a private airport and a yacht club. Although it’s considered luxury living, it’s still possible to purchase a home in the area for about $150,000.

The home may not be on the water (homes that front the lake start at around $1 million), but with huge appreciation gains (prices on the lake have gone up about 70% in the last year), it’s an area worth looking into. And, with just about 2,500 homes in the area, the lake is still near enough to enjoy.

Sun, sand, and surf
With a median price of about $250,000 on South Padre Island, it’s no wonder that Money magazine article has attracted so much attention. And that home will be a lot closer to the water, whether you crave beach or bay.

In 2006, pre-construction pricing for a two-bedroom, two-bath condo in one of the many new developments on South Padre was about $175,000 – with the beach just about 100 yards away.

And in Corpus Christi, Galveston, and ever-popular Port Aransas, home prices are still reasonable, with median prices that range from the high $170s to the $300s.

No matter where you choose to buy property in Texas, especially if it’s a home, it’s likely to be a great value. According to the first quarter (January 2006) Housing Market Analysis conducted by National City Corp, 19 of the markets on the “undervalued” list were in Texas, from -1% in Sherman to a whopping -23% in College Station.