Retiring From California? Comparing Hudson Bend, Lakeway, Bee Cave and Lago Vista

It really depends on what matters most to you.

Lakeway may be the best fit if healthcare is a top priority.
Bee Cave is great if you want shopping and everyday convenience nearby.
Hudson Bend is a strong choice if you want to be close to the lake.
Lago Vista may appeal to you if you want a slower pace and more of a small-town feel.

When people start thinking about retiring near Lake Travis, lake views are usually one of the first things they look at.

And I get it. The lake is a big part of why people move here.

But I would also think a little further ahead.

Will the area still work for you when you're 75 or 80?

How close is the hospital? How far will you need to drive for groceries? What about trips back to California to visit family? And how will Texas property taxes affect your monthly budget?

Hudson Bend, Lakeway, Bee Cave and Lago Vista may look close together on a map, but everyday life can feel very different in each one.

I made the move from California to Texas myself, so here's how I would compare them if retirement is part of your plan.

First, Let's Talk About Texas Property Taxes

One of the biggest differences California homeowners notice when moving to Texas is property taxes.

Texas does not have a state income tax, but property taxes can be higher than what many California homeowners are used to.

There is some good news once you turn 65.

Qualifying Texas homeowners age 65 and older can receive additional property tax exemptions.

For school district taxes, qualifying homeowners may be able to exempt up to $200,000 of their home's taxable value.

There is also a school tax ceiling.

Once you qualify for the over-65 exemption, the school district portion of your property tax bill is generally capped at that amount. Your home value may increase, but the school tax portion does not automatically keep rising with it.

There are a couple of important things to understand.

The freeze applies mainly to school district taxes. Other parts of your tax bill, such as county, city, emergency service district or MUD taxes, may still change.

Your exact property tax bill will also depend on the specific home and where it is located.

That's why I always recommend looking at the actual taxing districts for a home before making an offer.

This is general information and not tax advice. Always speak with a tax professional about your specific situation.

Lakeway, Bee Cave, Hudson Bend and Lago Vista at a Glance

Lakeway

Best for: Healthcare access and convenience

Lakeway is usually the first place I would look if easy access to healthcare is high on your list.

Baylor Scott & White Medical Center – Lakeway is located right in the area, which can make a big difference if you want a hospital nearby as you get older.

Lakeway also gives you plenty of everyday conveniences, restaurants and services without having to drive into Austin.

There are a variety of housing options, including lake-area neighborhoods, golf communities and 55+ options.

One example is Tuscan Village, which is designed around a lower-maintenance, lock-and-leave lifestyle.

There is also Jovie Lakeway, a newer 55+ rental option that may be worth considering if you want to rent before buying.

That can actually be a smart move if you're coming from California and want to experience the area first.

One thing to watch for in Lakeway

Lakeway can be hilly.

Some homes have stairs, split-level layouts or steep driveways.

If you want a one-story home with little or no steps, make that a priority from the beginning. It can narrow the search pretty quickly.

HOA rules can also vary from one neighborhood to another, so you'll want to review those before buying.

Bee Cave

Best for: Shopping, restaurants and everyday convenience

Bee Cave may be the easiest transition if you're coming from a busy Southern California suburb.

You'll find plenty of shopping, restaurants and services nearby.

It's also closer to Austin than some of the other Lake Travis communities, which can make trips to the airport, doctors or specialists easier.

Healthcare is still close because the Lakeway hospital is only a short drive away.

Bee Cave also has a very low city property tax rate compared with many surrounding areas.

One thing to watch for in Bee Cave

Bee Cave isn't really a lake town.

You'll be close to Lake Travis, but you're usually driving to the water rather than living right along it.

Some neighborhoods may also be located in a MUD, or Municipal Utility District, which can add another line to your property tax bill.

And yes, Highway 71 can get busy during peak traffic times.

If convenience is more important to you than being right on the lake, Bee Cave can still make a lot of sense.

Hudson Bend

Best for: Lake living and a more relaxed feel

Hudson Bend is one of my favorite options for someone who really wants the lake to be part of everyday life.

It's a peninsula on Lake Travis just north of Lakeway.

If your retirement dream includes coffee near the water, boating during the week or simply being close to the lake, Hudson Bend deserves a serious look.

Hudson Bend is also unincorporated, which means there is no city property tax.

You will still have other property taxes, including county, school and emergency service district taxes.

Healthcare is also fairly convenient because Baylor Scott & White Medical Center – Lakeway is just across the area.

One thing to watch for in Hudson Bend

Homes here can vary a lot.

You'll find older lake homes, remodeled homes and newer construction.

Some properties are on septic systems, which is something California buyers don't always think about.

Lake levels can also affect docks and waterfront access.

And because Hudson Bend is outside city limits, rules can be different from what you may be used to in California.

Before buying, I would always review the property's deed restrictions, septic information and any lake-access details carefully.

Lago Vista

Best for: A slower pace, lake access and more space for your money

Lago Vista sits on the north side of Lake Travis and has a completely different feel from Bee Cave or Lakeway.

It feels quieter and a little more removed from Austin.

Depending on the neighborhood, you may also get more home or a better lake view for your budget.

Property owners who are part of the Lago Vista POA may have access to private waterfront parks, boat ramps, a marina and other community amenities.

There are also golf options in the area.

If you enjoy a slower pace and don't need to be close to Austin every day, Lago Vista may be worth considering.

One thing to watch for in Lago Vista

The biggest trade-off is the drive.

There is no full-service hospital in town.

For some medical appointments, specialists or emergency care, you may need to travel toward Cedar Park or Lakeway.

Austin-Bergstrom International Airport is also farther away compared with the other areas on this list.

At 65, that drive may not bother you at all.

At 80, if you're going to regular medical appointments, it may feel very different.

That doesn't mean Lago Vista is a bad choice.

It just means it's something you should think about before you move.

Before You Sell Your California Home

Choosing your new Texas community is the fun part.

But before selling your California home, there are a few things I would look at first.

I started my career in finance and retirement planning, so this is something I encourage my clients to think about carefully.

1. Are you giving up a low California property tax base?

If you've owned your California home for a long time, you may have a very low property tax bill because of Proposition 13.

Once you sell that home and move to Texas, you don't take that California tax base with you.

If keeping a low property tax bill is one of your biggest concerns, it may also be worth comparing your options under California's Proposition 19 before making a final decision.

Don't just compare home prices.

Compare the full monthly cost.

2. What happens to your retirement income after you move?

If you are no longer a California resident, California generally cannot tax many types of qualified retirement income simply because you previously lived there.

But your situation may be different depending on your income and residency.

This is something to review with your CPA or financial advisor before moving.

3. What happens when you sell your California home?

If your California home has gone up significantly in value, there may be tax questions around your gain when you sell.

Your home may qualify for the federal home-sale exclusion, but that depends on your individual situation.

If you're planning to sell and relocate around the same time, talk with your CPA before listing the home.

It is much easier to plan ahead than try to fix tax issues after the sale.

One More Thing: Get Insurance Quotes Early

When you're looking at Texas homes, don't wait until the last minute to check homeowners insurance.

Insurance costs can vary by location because of things like hail, wind, wildfire exposure and the age of the home.

Sometimes two homes with similar prices can have very different monthly costs once you include taxes and insurance.

I like to look at those numbers early so there are fewer surprises later.

Frequently Asked Questions

Is Lakeway or Bee Cave better for retirees?

Lakeway may be the better fit if having a hospital nearby and staying close to the lake are important to you.

Bee Cave may be better if shopping, restaurants and everyday convenience are higher on your list.

For many buyers, the final decision comes down to the specific neighborhood or even the specific street.

Do retirees still pay school property taxes in Texas?

Yes.

However, qualifying homeowners age 65 and older may receive additional exemptions and a school tax ceiling that can help reduce future increases.

Other parts of the property tax bill may still change.

Are there 55+ communities near Lake Travis?

Yes.

Lakeway has options such as Tuscan Village, and there are also 55+ rental choices in the area.

If you're open to being farther from Lake Travis, Sun City Texas in Georgetown is another well-known active adult community.

Which Lake Travis Area Is Right for You?

There really isn't one "best" community for retirement.

It depends on how you want to live.

Do you want to be close to doctors and a hospital?

Do you want to walk out your door and be near the lake?

Do you want restaurants and shopping nearby?

Would you rather have a quieter neighborhood and more space?

And how often do you plan to fly back to California?

Once we put those priorities in order, the right area usually becomes much easier to see.

If you're thinking about retiring from California and moving to the Lake Travis area, I can help you compare Hudson Bend, Lakeway, Bee Cave and Lago Vista based on your lifestyle, budget and long-term plans.

Sometimes the right decision isn't about choosing the best town.

It's about finding the home and location that will still make sense years from now.

Amanda Zito, REALTOR®
Real Broker, LLC
TX TREC #840088 | CA DRE #01740063
Call or text: 949-484-9486
SoldByZito.com