Luxury Real Estate

Jim Walberg of Caribbean Islands Realty.  

Diageo’s Captain Morgan Rum’s distillery in the U.S. Virgin Islands is finally scheduled to produce rum by the end of the year. Diageo, the parent company of Captain Morgan Rum, and a United Kingdom-based company that is the largest distilled spirits maker in the world, expects the construction of their new St. Croix location to be completed by October and have rum in the aging barrels by December. This week’s simple announcement is packed with controversy that has been boiling for over a year. The rest of the complicated “story” is worth the read.

For many years, a third party distiller in Puerto Rico has been producing Captain Morgan Rum and selling it to Seagram’s. Diageo bought the Captain Morgan Rum label in 2001 inheriting this third party manufacturing agreement. They have looking for years how to arrange a way for them to produce their own rum under the Captain Morgan Rum label. With the manufacturing plant now being built for Diageo to produce the rum themselves, Puerto Rico will be losing millions of dollars that were coming to their territory from the rum excise tax. Since they will not be getting any of these taxes, they are protesting to the Congress that the U.S. Virgin Islands should not get any of them either, because the USVI is going to use these taxes in order to finance the construction of the new distillery on St. Croix.

Here is a brief description of the rum excise tax program. Rum produced in the U.S. territories and sold in the U.S. is taxed at $13.50 per proof gallon, and $10.50 per proof gallon is then returned to the territory where the rum is produced. In 1986 the amount was extended to $13.25, but that extension must be reauthorized periodically and that reauthorization was due by the end of 2009.

Not only is Puerto Rico protesting to Congress they are lobbying to have Congress change the rules related to the remittance of the rum excise tax to be paid to the USVI. Puerto Rico is not just mad about the loss of millions of dollars of the rum excise taxes, they are FURIOUS! They have secured a member of Congress with Puerto Rican heritage, Rep. Luis Gutierrez (D-Ill.) to co-sponsor HR 2122 to eliminate the rum excise tax. He said, “It is preferable for the whole program to be dismantled than to have it used like this. If one is going to use the program to enrich companies, it doesn’t have to exist at all.”

Puerto Rico and Rep. Gutierrez are claiming the USVI have enticed (bribed) Diageo to sign the agreement to produce their own rum on St. Croix by financing the construction of the manufacturing facility using the rum excise tax. And, when the cost of the plant has been recovered, the USVI will also share a portion of the rum excise tax with Diageo. Virgin Island Gov. John deJongh Jr. has stated to Congress that Puerto Rico’s case is completely wrong. The USVI’s never entice an established Puerto Rican business to leave their island.

Since 2001 when Diageo purchased the Captain Morgan Rum label they have looking for alternatives to end the arrangement it had inherited with Puerto Rico. Number One: Diageo has never has produced rum in Puerto Rico so how could they be lured away. Number Two: Since 2001 Diageo has been searching for a site where it could produce its own rum. Number Three: Diageo concluded very quickly it could not make a satisfactory arrangement with Puerto Rico. Number Four: Diageo had investigated sites in Jamaica, Guyana and Guatemala before they ever entered discussions with the USVI Virgin Islands.

This is a BIG deal for the USVI and their financial future. It will create about 120 new jobs, and generate almost $3 billion in rum excise taxes to the USVI over the 30 term of the agreement. We believe this is a significant Win/Win for the USVI and Diageo, and it is anticipated there will be no change in the laws regarding the rum excise tax rules currently in place in Congress. What are your thoughts about this drama between Puerto Rico and the USVI? Until next time…fair winds!

Jim Walberg of Keller Williams - The Bay Area Team.

As you have discovered over the years, Jim Walberg is one of the most positive people around. So, this report is not about positive or negative, it is about reality. There are still some significant hurdles for Buyers and Sellers to climb over in 2010 in the East Bay real estate markets. The past two years the biggest price corrections have been focused on the under $1 million price ranges. The “sweet spot” of our real estate micro-markets has been in the $500,000 to $700,000 price range. Mortgage companies and the Federal government have designed most of their home loans to motivate sales below $700,000 – at least until the end of April. At that time the focus will then be under $600,000. The biggest challenge for Sellers and Buyers of East Bay real estate is still in the price point above $1 million.

The lower priced houses in our region will not get much cheaper in 2010. However, there is still room in the higher priced homes for more corrections downward in 2010. Please don’t shoot the messenger (me), but Sellers of $1 million+ homes in the East Bay who will be selling their homes in 2010 may want to consider preparing their home for sale NOW. The further we get into 2010 the more downward price pressures will be in play. The Standard & Poor’s / Case-Shiller home-price indexes are ones I recommend all of us watch to alert us to further price trends in million dollar range. 

For example, in the greater San Francisco Bay Area, high end prices are down just 25% in the high-end homes, compared to 39% in the lower priced homes in our regional markets. Several factors are in play when it comes to the further downward pressure on the higher end home prices;

• The resetting of adjustable mortgages that allowed Buyers to purchase higher priced homes resetting increasing their monthly payments.
• The increase in defaults of East Bay homes that are $1 million+ in value causing lower appraised values of this slice of the market.
• Lender making it more difficult for Buyers to secure loans for this price point because the banks would rather have their mortgage money risked in the lower priced homes than add to their portfolio $1 million+ home loans.
• Climbing home loan interest rates that are already happening within the first few weeks of 2010.

In the greater San Francisco Bay Area, the percentage of foreclosed or short sale homes in the $1 million+ range in January of 2009 was just above 9%. That number today is over 50%! It is not an anomaly any more for foreclosures in this price point, so appraisers are now using these sold homes as comparable sales when they do their appraisal reports to the lenders. The questions that the Sellers of million dollar homes are facing today are;

• If I do have equity in my home and I need to sell it this year, do I realize the pricing pressures that are currently in play that will affect its sales price?
• If I have no equity in my home and if my mortgage is higher than what the home is worth, am I willing to walk away?
• If I am willing to walk away, am I willing to rent for at least three to five years while waiting to qualify for a home loan again?
• If I do walk away from my home, am I willing to have a lowering of my credit scores (about 160 point drop for a foreclosure), that will make any future loan I need much more expensive?
• Home much will my foreclosure hurt my community and neighbors? 

I am not the “chief economist” of any financial institution. However, I am in the trenches everyday of our real estate markets. My prediction is that we are realistically two or more years away for any sustainable turn around for the $1 million+ real estate markets in the East Bay. What are your thoughts about things you are noticing in your neighborhood? Let me know.

Our member Jim Walberg of Caribbean Islands Realty was featured today on CNN and FOX News regarding the miraculous plane crash in the New York. He owns a home in San Francisco and is a friend and neighbor of the pilot, Chesley B. "Sully" Sullenberger III.

Click here to watch the video

By Jim Walberg

From his blog: The Bahama Fractionals Are Still One Of The Top Five Hot Spots In Paradise!

Even though The Bahamas are not the Caribbean, most people still think they are! And…they are one of the easiest islands to get to from the U.S.

You remember one of my last articles about The Bahamas and how they are rated one of the Top Five islands in Paradise. Well, the outer island of Exuma in The Bahamas may be the top pick to check out for fractional ownership today. One of my latest articles was about the challenge that will show up in September to travel to the Caribbean because of the cutbacks of American and Continental Airlines. Well, The Bahamas, Bermuda, Cayman Islands, Belize, and The Turks & Caicos will not be affected by these flight cutbacks because of all the direct flights from the U.S., Canada, and Europe that don’t go through San Juan, Puerto Rico. Plus, the ownership of property is even more advantageous because of the favorable tax haven of these islands nations.

The reason why I am featuring the island of Exuma as an option for fractional ownership is because of what is being offered at the February Point Resort. They have fractional ownership opportunities starting at $350,000 and up for a month or more of a second home in Paradise. The specific aspect of February Point that I want you to know about is the fractional-ownership opportunities in BIG villas; 4 bedrooms; 4 baths; 3,400 square feet with air conditioning; 2,100+ square feet of verandas around the villa; an infinity pool; and 360-degree views of The Bahamas. Plus, the villa has a dock on the azure blue water! Are you ready for this? It also includes an SUV; a 26-foot power boat; a BIG golf cart; membership in The Club at Emerald Bay, which includes the use of a Greg Norman-designed oceanfront golf course; and you can have access to over 150 properties all over the world to visit through the Resort To Resort membership!

And…there are still a few aspects of fractional ownership to pay attention to. The fractional model at February Point is designed to have each owner purchase specific sections of the year. The first one in gets the prime times. So, if you own a piece of February and you want to visit in August you will need to work that out with the other owners or the management company. Also, how do you manage your personal possessions that you want to enjoy when you are at your fractional-ownership villa? There are storage facilities available, and the management company unpacks your stuff before you arrive. But you only have a limited amount of “stuff” to pack into your storage space, so you definitely know your piece of Paradise is not just yours.

What do I know? But I believe that there is still an upside appreciation waiting for those that jump into the fractional-ownership opportunities at February Point! Great Exuma is linked by a narrow bridge to Little Exuma, which used to be a “Caribbean” backwater. Today it still has fewer than 4,000 inhabitants, but all that is changing. With February Point’s oceanfront settings, the luxury amenities of the resort, the furnishings that come with the fractional ownership of the villas, and the tax advantages of The Bahamas, it is a very appealing option for those wanting to own a piece of Paradise. Until next time…your Caribbean detective remains on duty!


Editor’s Note:
Jim Walberg is the co-Broker/Owner of The Bay Area Team, the most-successful team at Keller Williams Realty-Danville. He is also a member of the global LuxuryRealEstate.com network. Jim is an exceptional blogger, as you can see by visiting his blog, Caribbean Islands Realty and reading great blog entries like the one above. Jim’s contributions to the Luxury Real Estate Blog are simply amazing and we are always happy to hear his expert insights. Feel free to submit your blog entries and comments to the Luxury Real Estate Blog.

By Robert Lockard

“Photography is not about cameras, gadgets and gismos. Photography is about photographers. A camera didn't make a great picture any more than a typewriter wrote a great novel.”

So says Ilya Moshenskiy, the Principal Photographer of Ilya’s Photography in Washington state. I love that quote because, as a writer, I can definitely relate to his point about great works being written by people and not by keyboards or computers.

Ilya is an amazing photographer in a variety of fields, including luxury homes, weddings, events and cuisine. He has been the Official Photographer of the past nine Luxury Real Estate conferences and he always produces the finest photographic masterpieces. Just ask Jim Walberg, a LuxuryRealEstate.com member in the Caribbean.

Check out these amazing photos that Ilya took at this year’s Seafair, Seattle’s big summer festival.

To see more of Ilya’s photos from Seafair 2008, click here!

I’ll end with one more quote from Ilya. He uses only the finest photographic tools in his work, but he also notes, “It doesn’t matter what kind of camera you are shooting with; the real issue is who is behind the camera. Great photography requires perfect lighting and composition. It will always be a human behind the viewfinder. High-end photography demands exceptional skill and not every photographer is up to the task.”

Ilya certainly is up to the task. Contact him at ilya at ilyaestate.com or 425.883.2246 today!


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. All of the photos above are the copyright of Ilya’s Photography.

By Robert Lockard

Thanks in large part to all of the wonderful contributors within the global Who’s Who in Luxury Real Estate network, the Luxury Real Estate Blog is making a tremendous ascent in its ranking on major search engines, including Google, Yahoo and MSN.

www.LuxuryRealEstate.com is the most-viewed luxury real estate Web site in the world and it comes up first on most searches for luxury properties, luxury homes and luxury real estate. But the Luxury Real Estate Blog is fairly new and we’re building it up to the heights of our main Web site. We owe much of our success to Jim Walberg, John Brian Losh and many other bloggers who consistently contribute their fun work

Like my personal written works, I take pride in the writing found on the Luxury Real Estate Blog. As this blog’s editor, I feel particularly responsible for its quality and success. So it pleases me to no end to add so much great content almost daily and to find more comments from our fantastic readers. I also like seeing our blog climb in popularity with a number of search terms.

I’ve thought a lot about how best to organize the information on the Luxury Real Estate Blog’s ranking in the big three search engines. I’ve finally decided to simply put the same search terms in each row for easy comparison purposes and to roughly put them in order, from highest to lowest, in terms of their placement on search engines.

The following search terms and rankings were recorded on the morning of Thursday, July 31, 2008, and they’ll surely change in the coming days and weeks. At least this will give us a good reference for future searches so we can see how they improve, hopefully.

By Robert Lockard

For the past several months I’ve had the pleasure of posting content to the LuxuryRealEstate.com Blog from Jim Walberg, an experienced blogger and the co-Broker/Owner of The Bay Area Team, the most-successful team at Keller Williams Realty-Danville, Calif. Jim’s Caribbean Islands Realty Blog is very well-established and fun to read so I’m always glad to include his work on our blog, with his permission, of course.

Jim took the time to point out something awesome to me in an email on June 11, 2008. I have read about blogs helping with search-engine optimization, but Jim’s message really drove this idea home to me (The links weren’t in his message originally. I added them):

”You may notice when you use my blog postings that LuxuryRealEstate.com jumps up on the Google search engine. I have “owned” Aruba Fractionals on Google for months! LuxuryRealEstate.com just jumped to the top of page one with the posting of my article on your blog site. It is so fun to see how this blogging game works. It is my pleasure to support LuxuryRealEstate.com in any way I can.”

One other comment Jim made also impressed me: “The power of blogging is based on one’s understanding the ‘rules’ that Google and Yahoo have set up for search-engine optimization. The next is to understand the ‘strategies’. Don’t forget, strategies always beat out rules. What I have found among the blogging world is that all of us are constantly sharing strategies. We all want each other to ‘win’. That is one of the fun cultural experiences you will find in the blogosphere. I am always available to share.”

Thanks for the great message and for all of your help, Jim.

I still feel like I'm learning the ropes when it comes to blogs, trackbacks and all of these inventive ways to provide great content and be rewarded by search engines. I think it’s very important to write about important topics first and worry about good placement and all that other stuff second. It’s nice to know that Jim Walberg, who has found a great balance between the two, is on our side!


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. You can contact Jim Walberg at jim at jimwalberg.com. I sure put a lot of links in this blog entry. I guess I just had a lot of information to cram into a couple of paragraphs, plus I’m learning how to provide more links for the search engines to find us.

By Jim Walberg

From his blog: Caribbean Real Estate Photos Instantly Take You There Wherever Your Computer Is!

Ilya Moshensky is one of the finest real-estate photographers that I have met!

I first met Ilya at the Luxury Real Estate conference in Del Mar, Calif. several months ago. He seemed to be everywhere during the conference taking photos of the participants and various events. I final asked one of the Luxury Real Estate staff people who was this guy! She smiled and said that he is the finest photographer they had found for capturing the essence of luxury real estate homes and estates. I began some homework after the conference to see some examples of this work since we always need a top photographer’s services for the luxury properties we represent - both in the Caribbean and the San Francisco Bay Area. Boy, was I impressed with what I discovered.

My experience is that Ilya’s Photography sets one of the highest standards for quality in the industry with over 30 years of experience. Ilya is the principal photographer of Ilya’s Photography, and he has enjoyed a lifelong passion his work with the camera. His reputation for excellence has spread both in the U.S. and internationally. Ilya has shot luxury estates in France, Spain, Switzerland, Costa Rica, Miami, Chicago, the Seattle area, plus many other locations in the States and the world. After checking out his work, my next question was, “How much does this type of quality photography cost for shooting a luxury home or estate?” Well, I discovered that he has VERY competitive rates that are negotiated flat-rate prices for any project. He is even willing to offer long-term budgeted photo-shoot contracts. His flat-rate policy is greatly appreciated within our industry because it is THE rate no matter how much time it takes to complete the project. Again, I don’t think you will find a better value for your marketing dollar if you decide on Ilya’s photo services.

In further discussions with the staff at Luxury Real Estate their consensus was that Ilya consistently produces quality work and can make a home or an estate look amazing. They said he has the ability to capture on digital film the best aspects of the luxury property. As promised, I am always on the look out for the best professional services I can find, whether it is a photographer or a painter. It takes a “village” to sell and buy a home - from the preparation of the marketing program to the signing of the closing documents, hiring a professional real-estate company is critical. Until next time….fair winds!


Editor’s Note:
Jim Walberg is the co-Broker/Owner of The Bay Area Team, the most-successful team at Keller Williams Realty-Danville. He is also a member of the global LuxuryRealEstate.com network. Jim is an experienced blogger, as you can see by visiting his blog, Caribbean Islands Realty. Feel free to submit your blog entries and comments to the LuxuryRealEstate.com Blog. Also, you can contact Ilya Moshenskiy to take advantage of his amazing photographic services at ilya at ilyaphoto.com. I highly recommend him, as well.

By Jim Walberg

From his blog: Tierra del Sol Expands Aruba’s Fractionals In The Caribbean Real Estate World!

NEWS FLASH: The most beautifully planned development in Aruba is about to offer fractionals!

Tierra del Sol – the only planned community in the Caribbean, with the Trent Jones champion golf course – is launching a fractional project to go along with their beautiful development that includes homes, villas, condominiums, golf, spa & fitness, fine dining and much more. At the northwest tip of Aruba, has emerged a gorgeous 600-acre community offering a lifestyle to satisfy even the most discriminating of owners and world travelers. With today’s planned lifestyle, Tierra del Sol gives you the opportunity to purchase the home of your dreams just a chip shot away from the green, even if you are not an avid golfer.

This private community offers a remarkable experience within a meticulously planned and highly acclaimed environment. Homeowners and vacationers experience world-class amenities, including fine and casual dining, a full-service spa, fitness and full-care beauty salon, lighted tennis complex and unlimited greens at a championship golf course, displaying its own challenging version of Robert Trent Jones II – the only professional golf course on Aruba.

The tranquil setting provides a gracious lifestyle amid some of the most beautiful views of the Caribbean. Custom homes, villas, casitas and home sites accommodate a wide variety of expectations for your personal lifestyle. Homes at Tierra del Sol incorporate distinctive design features, tailored to the desert surroundings and complementing the natural beauty of the landscape, creating an inspiring and peaceful environment within this beautiful private community.

Body & Soul is a sanctuary amidst the finest displays of nature. Nourish your body, revitalize your mind and enhance your well being with a journey to vitality. Pamper yourself from head to toe. Their spa treatments are designed to ease tension and restore balance to your body and spirit. The spa’s professional staff offers a variety of therapies, including massages, body wraps, skin and body treatments, aromatherapies, hydrotherapy, manicure and pedicure and a newly opened full-service hair salon.

As you know, each time I get off a plane in the Caribbean, no matter what island it is, the words that go through my brain are, “Welcome Home!” That is the experience you will have when you arrive at Tierra del Sol. For more information about pricing, contact me! Until next time…fair winds.


Editor’s Note:
Jim Walberg is the co-Broker/Owner of The Bay Area Team, the most-successful team at Keller Williams Realty-Danville. He is also a member of the global LuxuryRealEstate.com network. Jim is an experienced blogger, as you can see by visiting his blog, Caribbean Islands Realty. Feel free to submit your blog entries and comments to the LuxuryRealEstate.com Blog.

By Jim Walberg

From his blog: Caribbean Islands Real Estate Developments Continues to Focus on Belize!

The Placencia Peninsula, an 11-mile strip of land sandwiched between the Caribbean Sea and the Placencia Lagoon in Belize, has beautiful white sandy beaches and – because of its distance from the reef – it also has “real” surf. The water is clean and clear; the trade winds gentle and cooling.

Remember that Belize has a stirring and lively history beginning in 200 B.C. with the ancient Mayans. In the 17th century Spain settled the country. It then survived war, piracy and slavery until being declared a British colony – British Honduras – in 1871. It gained self-government in 1964, chose the name Belize in 1973 and became an independent member of the British Commonwealth in 1981.

The beaches along the Placencia Peninsula are dotted with small resorts that can easily arrange dive and snorkel trips to the reef, which is about 17 miles away. They can also arrange day trips to many small, idyllic cayes, such as Laughing Bird Caye, a mini-atoll that offers protected snorkeling and swimming, a white sand beach and many cooling palm trees (it even has hammocks!) Laughing Bird Caye is also a favorite camping site for reek kayakers who base their expeditions in Placencia. A hotel can also arrange deep-sea or reef fishing trips, or day sailing on a 57-foot catamaran.

Placencia, along with Ambergris Caye, are now two of the country’s main tourist destinations, and they are also well-visited by Belizeans from across the country on local holidays. You can get a delicious plate heaped with stewed chicken, rice and beans for about $4 USD. There are also several small gift shops, a post office and some night life. Nearby Mango Creek/Independence Village also has a disco and weekend activities.

Another new resort is planned for Belize – The Palmetto Bay Resort at Maya Beach being developed by Dave Bowman and his exceptional team. It is located on Placencia Peninsula it will offer beachfront real estate and Four-Star amenities and will be the first development in the Caribbean designed “green” from inception to completion.

The first phase of the gated resort, which is currently under construction, will be comprised of 36 whole-ownership, luxury beachfront condominiums ranging from approximately 1,100 to 4,500 square feet, each with open views of the Caribbean. (In a perfect world, I would be talking with Dave about offering some of their units as fractionals.) Prices will start in the low $300,000s. The turnkey one- two- and three-bedroom residences are spread through two low-rise buildings. Designer Julieanne Dobson also worked on Francis Ford Coppola’s Turtle Inn in Belize. He is creating the interiors using warm woods and natural stone, vibrant contemporary textiles, and niche-lit Mayan and African-inspired art.

Ownership at Palmetto Bay Resort will include access to fitness facilities, conference rooms with wireless Internet; 24-hour reception and security; fully equipped luxury kitchens with gourmet utensils and stainless steel appliances; balcony barbecues; and lush, mature landscaping with use of indigenous fruit trees and plants. The property will feature a 300-foot oceanfront infinity pool, a 400-foot private beach, beach boardwalk, and private dock.

We have been telling you about Belize and the many awesome opportunities for second and third home ownership for months! It is now time to act. Let me know if you are ready!


Editor’s Note:
Jim Walberg is the co-Broker/Owner of The Bay Area Team, the most-successful team at Keller Williams Realty-Danville. He is also a member of the global LuxuryRealEstate.com network. Jim is an experienced blogger, as you can see by visiting his blog, Caribbean Islands Realty. We welcome your blog entries and comments in the LuxuryRealEstate.com Blog.