Castle Terrace is Cottonwood Shores’s established, deed-restricted subdivision, the one named neighborhood in this small Burnet County city with recorded covenants rather than the informal, HOA-free layout you’ll find across most of the rest of town. It sits off Castle Terrace Drive and Kings Way.
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What You’ll Find Here
Homes in Castle Terrace typically run in the 1,700–1,900 square foot range, mostly three-bedroom, two-bath layouts. Listings here have varied widely, from older homes priced under $300,000 up to more recently updated or newly built homes listed around $560,000, and new construction has continued to fill in vacant lots over the past several years. It’s not a uniform, single-builder subdivision, so expect a mix of decades and finish levels rather than a cookie-cutter streetscape.
Deed Restrictions
Castle Terrace carries deed restrictions and an HOA structure, which is genuinely the exception in Cottonwood Shores rather than the rule. If a recorded HOA and some baseline of enforced standards matter to you, this is the subdivision in town built around that. Confirm current covenants and any association dues directly with the title company or HOA before you’re under contract. That detail can change and isn’t something to take secondhand.
Location
Like the rest of Cottonwood Shores, Castle Terrace is within a couple of miles of the city’s public boat ramps, which give residents access to both Lake Marble Falls and Lake LBJ, a real advantage over towns that only sit on one lake. Marble Falls itself, with its shops, restaurants, and grocery stores, is a short drive away.
For comparison, Scarlet Oaks is an older, more informally governed neighborhood of smaller homes on wooded lots, while Castle Mountain Estates is a hilltop, larger-acreage area on the opposite end of the price spectrum.
Work With Robbie English
Robbie English, Broker and REALTOR® with Uncommon Highland Lakes Realty, works across Cottonwood Shores and the rest of the Highland Lakes. Reach out or call 830-953-5571 to talk through whether this is the right fit.
Sources
Property and subdivision details referenced from HAR.com, Redfin, and current MLS-sourced listing data for Castle Terrace, Cottonwood Shores, TX.


