Luxury Real Estate

By Michael Marquette
From his blog: View from the Bridge: Michael Marquette’s comments to the Australian Financial Review

Homeowners and investors have welcomed suggestions that the Reserve Bank of Australia will cut interest rates this year, but will the banks pass the rate cuts onto borrowers?

Prime Minister Kevin Rudd has told Australians to change banks if they fail to pass on rate reductions. The banks have had no problem increasing rates to levels higher than official rate increases and have even increased rates despite the Reserve Bank keeping them on hold.

In an interview with The Australian Financial Review last week I was asked what it would take to restore confidence in the market. I expect buyers to remain cautious until the banks show that any rate reductions will be passed on. I believe a rate cut of around 1 percent is needed to restore buyer confidence as I’m hearing increasingly that buyers and vendors are skeptical that banks will pass on the rate cuts. A reduction of 100 basis points will result in the market reacting in a positive way, even half a percent will be looked on cautiously.

So the question is buy now or wait? The answer is simple. There are some fantastic buys in the luxury market at the moment and this will continue for the foreseeable future. As the stock market wobbles, dividends decrease and share prices drop bricks and mortar will become a major focus for many investors.

If you find the right luxury property at the right price and choose the right lender, your decision is an easy one to make. My only advice is to ensure sure that you keep your lender honest, and if “changing banks,” as PM Rudd suggests, make sure you are aware of all fees and costs that may apply.


Editor’s Note:
Michael Marquette is the co-Founder and Director of Marquette Turner Luxury Homes in East Sydney, New South Wales, Australia. Founded on Australia Day 2007 by Marquette and Simon Turner, Marquette Turner is a property consultancy company covering the Australian states of New South Wales and Victoria. Marquette has a background in medicine and a large retail and wholesale business. When banks charge unfair fees for their services, they are not building good relationships of trust with potential clients. I prefer kindness and openness when working with people. Thanks for the insightful blog entry, Michael! The photo of the Australian dollar coins is from www.flickr.com/photos/astro-dudes/913087028 and it is the copyright of Claire L. Evans.

By Michael Marquette

From his blog: Australian Auction Clearance Rates Crash!

Auction Clearance rates for the week ending July 27, 2008 indicate a property market in crisis. Sydney’s Clearance rate of just 36.5 percent is indicative of the disparity between vendors and buyers, with some real-estate agents caught in the middle.

Luxury real estate agents’ skills in both marketing and negotiating homes are being put to the test and many are being found short. Agents with reputations for overpricing properties (the practice of overpricing is used by some agents to win listings) are struggling to match the prices offered by buyers with the price expectations of vendors. Agents with the ability to communicate the best strategy at the time of listing are best placed to negotiate the highest price for vendors in the current market – well before a property is seen to become “stale.”

Getting the right agent is the key to successfully selling your home. Given that the total number of sales is down and the list of unsold properties is increasing, it is more important than ever to ensure that your luxury home is in safe hands. Given that spring, and the usual seasonal increase in the number of listings, is beckoning I stress the importance of making the right decisions the first time!



Editor’s Note:
Michael Marquette is the co-Founder and Director of Marquette Turner Luxury Homes in East Sydney, New South Wales, Australia. Founded on Australia Day 2007 by Marquette and Simon Turner, Marquette Turner is a property consultancy company covering the Australian states of New South Wales and Victoria. Marquette has a background in medicine and a large retail and wholesale business. Some markets are facing tough times, and it’s good to be aware of potential issues as well as opportunities. The photo of the crashing wave is from www.flickr.com/photos/victorgeere/24539591 and it is the copyright of Victor Geere.

By Jean-Yves Piton

While luxury properties are part of the conspicuous consumption group, unlike several other goods, their proposed premium prices are not a function of the premium brands they are attached to. Instead, factors such as location, amenities, space, architecture and historical value justify their premium prices around the world.

So, what type of luxury homes would you acquire in major metropolitan cites worldwide for $1 million USD in 2008?

According to “What $1 Million Buys in Homes Worldwide” by Matt Woosley, Friday, January 11, 2008, provided by Forbes.com, in New York, you can expect a 647-square-foot Turtle Bay condo with 45-square-foot balcony, white oak floors, and 11-and-a-half-foot ceilings. In London, you can purchase a one-bedroom, one-bathroom flat in Primrose Gardens. In Hong Kong, you can acquire a three-bedroom, 825-square-foot apartment in a high-rise between the residential areas of Aberdeen and Pokfulam.

While $1 million USD grants an invitation to the millionaire's club, it clearly does not buy the most spacious and astonishing luxury property in most top metropolitan cities worldwide in 2008. Based on the figures discussed earlier, such properties might just work as a pied-a-terre during a business trip or a short vacation.



This also explains why more buyers are currently opting for luxury fractional ownership, the trend ahead. This being said, keep in mind that this rapidly increasing trend applies to everything luxury in 2008 (from designer handbags to the finest properties).

So, how do you market a luxury fractional property? Evidently, it is easy to assume the same way you would promote a luxurious property. Partly due to the traditional premium variables like location, amenities, space, architecture and historical value. Also, though a fractional ownership, you could insist on the long-term investment, just as for any other luxurious property.

Nevertheless, there is another element, which must not be omitted to successfully advertise a luxury fractional property. That is promoting the dream to potential buyers and investors. There must be a fine balance of both emotional and rational communications to connect potential buyers to the properties through careful advertising. Where the rational communication focuses on owning a luxurious property (one of a kind), promoting the dream (the emotional communication) helps foster a sense of emotional connection (a state of being and/or sense of being).


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. Fractional ownership is a great tool for vacationers and other people looking for flexibility and great investment opportunities. I actually wrote an editorial on Private Residence Clubs, also known as fractionals, in the spring 2008 issue of LuxuryRealEstate.com Magazine. Check it out! The photos of the front and back of the “$1 million” bill are the copyright of Simon Davison.

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 Jean-Yves Piton

With a devalued U.S. dollar against many other foreign currencies (i.e. Euro, Pound Sterling, etc.), now is the best time to invest in luxury real estate in the United States.

Whether this initiative is part of your diversification strategy or not, your property investment(s) in the United States will pay off in both the short and long term. Namely, your purchasing power is greater today in the United States and your ability to create greater returns in the future is increased tremendously.

To further exemplify present investment trends, I recently came across the following article “U.S. Real Estate Tops Foreign Investors’ List, Interest in Asia Grows” posted in the July 7, 2008 issue of www.Bostonsf.com.

The commentary reveals that, based on the results of the recent 16th Annual AFIRE Foreign Investment Survey, the U.S. real-estate market is at the top of global investors’ list.

Furthermore, “with 56% of the votes, the U.S. again emerged as the most stable and secure country for real-estate investment. No other country has ever come close to this number-one position. The second-ranking country has historically been the U.K., but this year Germany, with 10.5% of the votes, took that honor; Australia and the U.K., with nearly 9% of the votes, tied for third place.”

Agreeably, “this year, New York City and Washington, D.C. were named foreign investors’ top global cities. New York City leaped ahead by a substantial margin to be named the top global city, followed by Washington, D.C. and London in a tie for second place. Last year, New York City was ranked second globally and Washington was ranked fourth. Paris fell from second to fourth rank.”

Directly involved with global real estate on a day-to-day basis, I find such figures and trend eye-opening.


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. There are some wonderful opportunities available for U.S. buyers and sellers. One person’s downturn is another person’s bargain, so be sure to look for the good out there. The photo of the U.S. flag is from www.flickr.com/photos/tomsaint/2525886032 and it is the copyright of tomsaint11.

By Robert Lockard

On Friday, June 13, 2008, Ewing & Clark, Inc. closed on the sale of a Lake Washington waterfront home in Seattle for $13,300,000, marking the second-highest Seattle real-estate sale in the past eight years. John Brian Losh, Betsy Terry and Jane Powers were the listing agents of the property. This home includes 6,000 square feet of living space, a tennis court and boathouse on a 20,000-square-foot lot with 146 feet of shoreline.

In February, they closed on a home at 1620 Washington Blvd. on Lake Washington for $15,800,000. These are the second- and third-highest sales in Seattle history and the two highest sales in Seattle in eight years. Congratulations!


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. Ewing & Clark is a member of the Board of Regents.

By Robert Lockard

Great news from Florida! The state's real-estate market is well on its way to recovery, according to Jim Cramer in an excellent video from TheStreet.com. Click the link to check it out.
 

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. Rob Thomson, the Co-Owner of Waterfront Properties & Club Communities and a member of the Board of Regents, pointed out this excellent story to me. Thanks for sharing the good news, Rob! The picture above is from www.flickr.com/photos/kowax09/127385974 and is the copyright of Olivier Bareau.

By Robert Lockard

I have some good news and some even better news. The good news is that RE/MAX Cayman Islands just joined LuxuryRealEstate.com, expanding our global network even further into the Caribbean. The even better news is that Kass Canada Coleman, the Broker/Owner of Beachcastles and an agent with RE/MAX Cayman Islands is No. 6 on the list of top international RE/MAX brokers, based on residential commissions paid from January through April 2008.

It’s always nice to hear good news like this. Apparently the Cayman Islands are enjoying a very healthy real-estate market right now. Check out Kass’ website www.beachcastles.com for some in-depth information about the Cayman Islands, in case you’d like to go visit.


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. Good job, Kass, and welcome to the network! I’d like to include the actual list to back up this claim, but I’m not sure if I’m allowed to yet. I hope you don’t mind. The above picture is from: www.beachcastles.com/home/team.php?id=0.

By Meghan Barry

Today I spoke with Jon Larrance of Perry and Co. in Denver, Colo., a member of the Board of Regents. I had called to thank Jon for completing a recent membership survey that we sent to our entire membership. Jon had a lot of great ideas and constructive feedback.

It is very important for us to receive honest input from members. We take this feedback very seriously, using it to refine our programs and products. Particularly in a challenging market, service is key. Communication with your customers can help you to provide top-quality service.

Just for fun, I took a look at some of the Perry & Co. listings on LuxuryRealEstate.com. If I ever move to Denver, I think I want this one: www.luxuryrealestate.com/850804



Editor’s Note:
Meghan Barry is the Executive Vice President of LuxuryRealEstate.com. She works closely with CEO/Publisher John Brian Losh to organize a variety of Luxury Real Estate programs, events and services. Like Meghan said, we really appreciate your feedback about our conferences and other services. Feel free to contact your Account Manager to let us know how we can better serve you.

By Robert Lockard

As a follow-up to my last blog entry, I’d like to report on the interview LuxuryRealEstate.com Publisher/CEO John Brian Losh enjoyed on Lakefront Radio on Friday, June 20, 2008. It went very well, and I have to give a lot of credit to hosts Mary Thompson, Chuck Thompson and Lee Kantor for asking great questions and being a lot of fun on air. They sound like they really enjoy their work.

You can listen to the full 38-minute radio show online.

Mr. Losh discussed the recent sale of Donald Trump’s $100 million estate and some other great news items. He also went into great detail about LuxuryRealEstate.com, the most-viewed luxury real estate website in the world, and several aspects of the Who’s Who in Luxury Real Estate network, including membership requirements. He specifically focused on Atlanta, naming Harry Norman, Realtors, the Board of Regents member in Atlanta, and Jenny Pruitt & Associates, REALTORS® as two prominent members in the area.

As I mentioned earlier, I was really impressed by Lakefront Radio hosts Mary, Chuck and Lee. They were all so easygoing and patient in their approach at the microphone, something I found very refreshing in talk radio. Some shows sound like the speakers are constantly interrupting each other, but these hosts found a great balance in their style. Great job!

Mr. Losh said that some of the finest luxury locations in the world are in South America and East Europe. He also mentioned that his favorite city in the world is Venice, Italy because it’s so quiet, with no cars or motorbikes to disrupt the peace. His favorite city in the United States (besides his hometown of Seattle, of course) is Carmel, Calif., near Pebble Beach, because it’s “popular, but not too popular” and very relaxing.

All in all, it was a great radio show. I hope you’ll enjoy listening to it if you have the time. Be sure to check it out every Friday because the hosts are dedicated to talking about positive real-estate news that can sometimes fall by the way when large media outlets focus so much on negative news. Truly an admirable endeavor!


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. Be sure to visit the Lakefront Radio website to hear the whole program. It was very nice.