Luxury Real Estate

By Robert Lockard

I recently finished writing an interesting article for the winter 2009 issue of LuxuryRealEstate.com Magazine. The article is on “green” homes, and it was a challenge to write, mainly because I have a number of concerns about the current global-warming scare. I was able to find a lot of good in “green” homes, especially their energy savings and positive health effects on residents. I shied away from discussing their environmental effects, since I am unconvinced that they will have any real ones, and saying that they will might give people a false sense of security.

To be sure, I am all for conservation and avoiding the waste or misuse of our resources. But something is very wrong with the current debate, or lack thereof, on global warming. I bring this up, not only because of my magazine article, but also because I read a very informative article entitled “Hot air over global warming” by Jerome Delvin in The Seattle Post-Intelligencer this morning. I highly recommend checking it out.

As I noted in the Editor’s Note of a July 31, 2008 post to the Luxury Real Estate Blog by Jean-Yves Piton entitled “Green luxury real estate,” many climatologists and other scientists are speaking out about the fallacy of manmade global warming. You can find a great deal of accurate information from top scientists who spoke at the 2008 International Conference on Climate Change. It is clear that the Earth’s atmosphere is warming, but there is actually little evidence to suggest that human activity is the main cause.

The data simply does not support the idea that the Earth’s temperature has increased at a steady pace along with the increase in carbon emissions during the past century or so. In fact, in the 1970s global cooling was touted as a major problem facing the world, not global warming. The fact that there was cooling going on during a period of steadily increasing carbon emissions seems to point to the fact that the relationship between manmade greenhouse gases and the temperature of the atmosphere is much more complex than we’re being told.

I believe that regular people can make a difference in the world, often by raising strong families and focusing on the most important things in life. However, it seems to me like this good idea (one person being able to have a positive effect on the world) has been twisted and used inappropriately when it comes to global warming in order to take advantage of well-intentioned people.

I often feel barraged with messages saying that I need to be more responsible and consume less in order to lessen my “carbon footprint” on the environment. I am wary of the rationale behind this argument for a number of reasons. There is little evidence that paying money to plant trees or somehow offset our emissions has a significant effect on the environment. In fact, an interesting study in Reportonbusiness.com found that our return on investment from putting money into the fight against global warming is so low that it’s really not even worth it. The fact is that, despite good intentions, one person, or even 6 billion people, can’t make much of a difference when it comes to global warming.

Returning to the “green” article I wrote, I tried to focus on “green” homes from the perspective of why a person would choose to purchase one. After all, they are more expensive to build, so there must be a promise of future rewards rather than a vague promise of being better for the environment. “Green” homes appear to be very sound investments because they cost less to maintain, contain fewer toxic materials and thus promote the financial and physical health of their inhabitants. I believe that “green” homes can be very good. But I do not think that they are good simply because they have some sort of positive effect on the environment that is, in reality, overrated and insignificant.

I have much more to say on this topic, but I’m afraid I just don’t have time to cover everything. I apologize if I have offended you. I am very passionate when I see injustice, and I wish to put an end to it. I think we need much more information before making changes that might have little or no effect on the problem we think we’re solving.


Editor’s Note:
Robert Lockard is the Public Relations & Media Specialist with Luxury Real Estate. I am Robert. I create all of Luxury Real Estate’s newsletters, write the editorials in LuxuryRealEstate.com Magazine and much more. If you disagree with me, I encourage you to look closely at the data before posting comments. I enjoy healthy discussions in search of truth, but I do not approve of name calling or unkindness. I just posted a blog entry by Simon Turner on Google Maps and “green” luxury homes. I don’t mean any disrespect to him by posting this blog entry. As I mentioned above, I think that there is a lot of good in “green” homes, but I just don’t think that they will make any difference on the environment. Update: This blog entry has been updated to remove two paragraphs.

By Jean-Yves Piton

Unsurprisingly, international real estate investments firms, worldwide real estate brokers/agents and wealthy global buyers are capitalizing on investment opportunities around the globe at this present time.

As expressed in the news article “Sunny side of the street: America’s wealthy see buying opportunities in sluggish real-estate market,” published by MarketWatch.com (WSJ.com), 70 percent of the wealthiest (over $500,000 in investable assets) surveyed believe that the true opportunity in real estate is now. The survey discloses that precisely 40 percent of the wealthiest are presently shopping around to acquire properties this year.

Agreeably, PNC Wealth Management demonstrated in a recent Wealth and Values Survey that 69 percent of the affluent accumulated most of their wealth through work, business ownership and/or investments.

Clearly, such values about wealth help support the reason why the number of millionaires is expected to grow by an additional 6 percent this year.


Editor’s Note:
Jean-Yves Piton is the Global Services Membership Manager for LuxuryRealEstate.com. He assists Bente Madtsen, the Director of Global Services, in expanding the LuxuryRealEstate.com brand into even more countries around the world. These are some fantastic statistics! This shows that there is hope in today’s marketplace because the wealthiest members of society are noticing great opportunities to buy with prices declining. Simply marvelous.

By Allyson Metters

Daylight Saving Time begins this weekend. That means that some of us may lose an hour of sleep, and those of us who get to work early may actually see some daylight when returning home in the evening. While I am looking forward to more daytime after what has been a long winter in the Pacific Northwest, some of us will not be participating. For the United States and its territories, Daylight Saving Time is NOT observed in Arizona, Hawaii, American Samoa, Guam, Puerto Rico, the Virgin Islands or the Commonwealth of Northern Mariana Islands.

Daylight Saving Time has been used in the United States and in many European countries since World War I. It was adopted in an effort to conserve fuel needed to produce electrical power. Observance of Daylight Saving Time elsewhere in the world varies with approximately 70 countries observing it in at least a portion of their borders. Japan, India and China are the only major industrialized nations that do not observe some form of Daylight Saving.

Going from 2007 forward, Daylight Saving Time in the United States begins at 2:00 a.m. on the second Sunday of March and ends at 2:00 a.m. on the first Sunday of November. In most of the countries of Western Europe, including the countries that are members of the European Union, Daylight Saving Time begins at 1:00 a.m. GMT on the last Sunday of March and ends at 1:00 a.m. GMT on the last Sunday of October.

So, for those of us observing, remember to set your clocks ahead. And if you have any meetings scheduled, be sure to double check if that area is observing or not.


Editor’s Note:
Allyson Metters is the Relocation Manager for LuxuryRealEstate.com. She helps people who are moving to find a perfect broker to meet their needs in their new area. This is a very informative blog entry. Although the reasons behind the earlier start of Daylight Savings might be a bit technical, I’m just glad that we get to enjoy the sun longer in the afternoon thanks to this shift. Be sure to set your clocks ahead or you might just be surprised on Monday morning.

By Kimberly Fulwyler

There is nothing like taking a tour of a house that’s for sale – seeing the beautifully decorated rooms, the remarkably clutter-free spaces, and even the faint smell of freshly baked cookies. These perks usually are all signs of an imaginatively staged home, except for maybe the smell of freshly baked cookies. That was just wishful thinking.

I know that it’s extra work for both the real-estate agent and the home owner, but staging really allows the consumer to see the potential of the house. Plus the extra work will pay for itself because statistics show that staged homes sell faster and for more money than homes that aren’t staged. This is definitely an investment worth making!


Editor’s Note:
Kimberly Fulwyler is an Account Manager with LuxuryRealEstate.com, so she provides customer service and marketing materials to a variety of LuxuryRealEstate.com members. Sometimes extra work can just seem like a hassle, but, in this case, a little additional effort can lead to great results.

By Scott Rudolph

According to a Merrill Lynch Economic Report in mid-January, U.S. real-estate prices have increased 60 percent since 2000. Real estate is one of the few investments that can be purchased using leverage. For instance, you put 20 percent down, yet your return is based on the full market value of your home. If prices do depreciate, real-estate investors that have owned since 2000 are still way ahead.

Let’s compare this to the Stock Market. Since 1999, the S&P market index has had an annual total return of about 1 percent per year! Most people think in the short-term by noting that American Stocks doubled from October 2002 to the end of 2007 but a look at the market since 1999 shows that stocks were crushed by Treasuries, Foreign Markets and cash. Lastly, real estate is a tangible asset that is often enjoyed, unlike stocks and bonds, where there is no use benefit. Remember, it’s a great time to minimize your risk and maximize your wealth by getting back into real estate at a remarkable price.

Despite continued news of a looming recession, 80.3 percent of the "Super Rich" (consumers with net worth of $30 million+) say they will increase their spending on luxury goods and services. This is according to the Elite Traveler/Prince & Associates 2008 Affluent Consumer Spending Survey conducted January 10-18, 2008. Eighty-four percent of the Super Rich said the current economic environment represents an investment opportunity, and they will continue to spend more on luxury products and services and increase donations to charitable organizations more than ever before.

Does cost matter? As expected, the Super Rich are not price-sensitive, as only 7.4 percent report an increase in the cost of luxury products as playing a role in their purchasing decisions.


Editor’s Note:
Scott Rudolph is the Director of Business Development for LuxuryRealEstate.com. He works with companies in a variety of luxury industries to expand the LuxuryRealEstate.com influence. As Scott noted, real estate, and especially luxury real estate, is almost always an excellent investment. Homes easily outperform the stock market in terms of rate of return on investment, and they provide tangible benefits. As I noted in an earlier blog entry, entitled “Why you shouldn’t fear drops in home prices,” people are wise to think of their homes as where they live first, and their investment second. Having that perspective should help people prioritize and avoid unnecessary risks for the sake of speculation. The fact that where you live appreciates in value is simply a pleasant side-effect.

By Robert Lockard

Similar to yesterday’s post, I would like to focus on some issues that I hope will show that current real-estate worries shouldn’t frighten buyers, sellers and agents too much. It seems like everything is going wrong right now because that is what we have been hearing over and over in the media. However, according to the RISMedia article entitled “Give Your Clients the Real Facts,” the National Association of REALTORS® is beginning a bold campaign to stem the tide of bad publicity with ads and a new Web site: www.housingmarketfacts.com. Basically, they stress the fact that real estate, and especially luxury real estate, has always been a good investment.

I definitely like this development because it’s good to alleviate some of the fears being spread in real-estate markets around the country. Other bloggers have pointed out to me that real estate is driven by emotions as well as numbers, so simply saying that everything is okay and that the numbers show growth isn’t enough to turn the tide against negativity. But it’s a good start. I hope that people will calm down soon and start focusing on solutions to the real and perceived problems plaguing many real-estate markets. I hope I can be more positive and share some solutions instead of just focusing on problems, as well!


Editor’s Note:
Robert Lockard is the Public Relations & Media Specialist with LuxuryRealEstate.com. I am Robert. I create all of Luxury Real Estate’s newsletters, write the editorials in LuxuryRealEstate.com Magazine and much more.

By Robert Lockard

RISMedia’s article entitled “Where the Truth about Today’s Market Really Lies” continues to interest me. It begs the question: Are media sources being fair in their coverage of the current U.S. real-estate market or are they being overly negative? To answer this question, I suggest that there is a stigma against covering positive stories in the news. I hope that this will not offend members of the press, but I really do think that negativity is far too rampant in the news.

Feature stories, or “soft news,” as they’re often called in the industry, are often where you find positive stories on good people, places and trends. But the real “hard news” is where you find all of the problems in the world. When I was a reporter, I noticed that “hard news” stories were almost always more coveted and interesting to my fellow reporters than “soft news” stories. I think that is part of the reason why we don’t hear more stories about positive and unchanged real-estate markets, though sometimes we do find them buried in an article.

It is perfectly fair to raise concerns about current real-estate markets because this can lead to positive changes. I would simply like to suggest that reporters should not just “dig deeper” into stories, but also broaden their search to include a variety of voices, positive and negative, in stories. Burying quotes on positive aspects of the industry beneath negative statements doesn’t count. I can empathize with the difficulty in getting both sides of a story because of time restraints and other pressures. But simply focusing on the negative side, because that is more popular or interesting than covering the positive side, isn’t fair to readers, viewers or listeners. I hope to receive some interesting challenges and comments from this post. Hopefully, we can change the way luxury real estate and other markets are being portrayed in the media.


Editor’s Note:
Robert Lockard is the Public Relations & Media Specialist with LuxuryRealEstate.com. I am Robert. I create all of Luxury Real Estate’s newsletters, write the editorials in LuxuryRealEstate.com Magazine and much more.

By Robert Lockard

Quick, guess which of these two stories you’re more likely to read in the news: A family that dutifully makes its mortgage payments each month or a family that misses several payments and is unable to keep its home. Let’s face it, conflict is inherently dramatic and interesting. It grabs our attention and inspires exciting emotions in us that we sometimes don’t experience in regular life. With this in mind, I’d like to talk a bit about an article in RISMedia, entitled “Where the Truth about Today’s Market Really Lies.” This article discusses the media’s current habit of reporting negative real-estate news while missing many positive stories.

Let’s remember not to blame reporters or make hasty complaints against them. I used to be a reporter, actually, so I can share some of what I learned about people in this profession with you. Reporters have a limited amount of time to research and write their stories, they usually contact previously established sources and they zealously guard their independence and neutrality on issues. Let’s be honest, though. Everyone has a bias and opinion on issues they’ve studied and many they know little about but pretend to be experts on.

I’m just getting warmed up on this issue. I’ll hopefully dig far deeper into this complex and extremely important topic soon. Here’s hoping for a strong luxury real estate market in 2008.


Editor’s Note:
Robert Lockard is the Public Relations & Media Specialist with LuxuryRealEstate.com. I am Robert. I create all of Luxury Real Estate’s newsletters, write the editorials in LuxuryRealEstate.com Magazine and much more.

By Robert Lockard

Thank you, Bernice Ross, for your profound and eye-opening article entitled "Real Estate hurt by media spin" in Inman News. Sometimes one person can give the rest of us permission to speak up, inspiring us to combat half-truths with positive, accurate information. Ms. Ross focused her remarks on the fact that media outlets are not giving readers and viewers the whole view of the real-estate industry - they are simply shining their spotlight on a few bad markets.

I was amazed to learn that the "Mortgage crisis" is only really affecting seven states. The other 43 states have actually recorded fewer foreclosures this year than in 2006, according to Ms. Ross. This is the kind of information we need to hear. Yes, bad things are happening because of overbuilding, speculation and a loss of jobs in some markets, but let’s not let these overshadow all of the good markets and developments.

I would like to share just a few of the positive stories that I have the pleasure of reading every week from members of LuxuryRealEstate.com:

Atlanta, Georgia’s Beacham & Company, Realtors sold its 14th $2.5 million+ luxury property so far this year in October. Read about Beacham & Company’s strong performance here.

Terri Healey, a sales associate with Michael Saunders & Company® in Sarasota, Florida, sold nearly $13 million of properties in the traditionally slow months between late June and early September. Read about Ms. Healey’s success here.

I have much more to share, but I’ll keep this brief for now. I hope we can all share our good news so that we can keep the bad news in perspective and not lose hope. Thank you, again, Ms. Ross.


Editor’s Note:
Robert Lockard is the Public Relations & Media Specialist with LuxuryRealEstate.com. I am Robert. I create all of Luxury Real Estate’s newsletters, write the editorials in LuxuryRealEstate.com Magazine and much more.