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 Robert Lockard

A while ago I stepped back from writing about luxury real estate to discuss a terribly destructive force that threatens to destroy families and make people miserable: debt. I would like to discuss something that I find to be just as dangerous as addiction to debt – the illogically high cost of earning a college degree.

I read a potentially explosive story on CNN yesterday about a bubble in the cost of higher education that makes the real-estate bubble or the tech crash in 2000 look tame in comparison.

I’d like to start by talking about my experience in college. When I attended college not too long ago, tuition and book costs were already getting out of hand, although they were manageable. I attended a community college in Washington state for my first two years to obtain my Associate’s degree. I had hoped to transfer to the University of Washington to complete my Bachelor of Arts in Communications, but the cost was prohibitive and, even though I graduated with honors and on the Dean’s list, I still had to wait a long time to enter that college.

Instead, I decided to accept a scholarship at Brigham Young University in Provo, Utah and that turned out to be a very smart decision. In addition to the positive environment that beautiful campus offered, the cost of attending there was relatively low compared to my other options and I was able to pay for my entire education without going into hardly any debt. I am one of nine children, and my parents wisely told me that I would have to find a way to pay for my education by myself. Through a great deal of hard work and tight budgeting, I made it through without having to burden my family members.

During my time in college, I kept my mind focused on why I was there. I wasn’t there to waste time or take frivolous classes; I was there to finish my degree as quickly and as meaningfully as possible so that I could put my skills to use. I am grateful for the opportunities my college degree has opened for me. However, education costs are rising so fast that there might not be much reason for people to attend college in the future.

I would probably be sympathetic to colleges if the reason for the rise in education costs was because they were improving their education techniques or doing other things that would warrant such cost increases. But the truth is that this is not the case. Many colleges are increasing tuition costs for no other reason than because they want more students to apply. It seems to defy logic, but it’s true. Colleges appear to be playing a game that they will eventually lose. When they raise prices, people assume that they must have done so because they are more prestigious or offer better learning opportunities and so the colleges usually receive an increase in applications. This pattern cannot last forever.


Education is extremely important. It allows people to rise from humble circumstances and it also helps them make informed decisions about where they want to go in life. By making education worthless, colleges are doing a great disservice to their students. By worthless, I mean that the cost far exceeds the rewards. Greater cost does not always mean greater return on investment.

Increases in healthcare, energy and real-estate costs don’t even come close to touching the rise in education costs, as you can see in the graph in the CNN article. Knowledge is power, and if the cost of education becomes so high that that the benefits of earning it become small in comparison then we will be in big trouble. I am not suggesting that college degrees be easier to obtain or that unqualified people should receive an education without working hard. I am suggesting that colleges are in danger. They spend much of their increasing amount of money on frivolous amenities that do not improve their educational services or make their students’ diplomas any more valuable. Posh restaurants, nicer dorms and other foolish perks are unimportant for students who are simply hoping to receive the education they need to progress in life.

At some point people are going to realize that an education is not worth living under such an extreme amount of debt to obtain. When that day comes and colleges must cut their tuitions drastically, many cherished institutions will most certainly be unable to cope with this dramatic shift and they will come crashing down. Destroyed by their own pride and haughtiness. They will discover that they have spent their money on things that have no value and they are unable to offer students what they promised: an honest education.

I dislike focusing on something so negative as this, but I think it deserves special attention. Thank you very much for your comments. Feel free to let me know what you think of the state of higher education.


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. I apologize again for sounding so negative. I am a very hopeful person and I trust that things will turn out right in the end. The photo of the bleeding wallet is from www.flickr.com/photos/adobemac/161319144 and it is the copyright of adobemac. The photo of the door is from www.flickr.com/photos/ben-zvan-photography/468487548 and it is the copyright of Ben Zvan.

By Robert Lockard

Nick Antonicello, Director of Sales for Unique Homes, pointed out an interesting story to me last week in the Los Angeles Times Blog. You might have already heard about it, but I just want to put in my two cents about the whole affair.

Peter Viles, Senior Producer for Real Estate at LATimes.com, wrote in his blog entry that Donald Trump, possibly the best-known real-estate developer in the world, is seeking to buy Ed McMahon’s mansion to save him from foreclosure.

In an even more bizarre turn of events, Mr. Trump now might be having some competition for buying Mr. McMahon’s luxury home. That’s according to a new blog post today by Ann Brenoff, author of the Los Angeles Times’ weekly “Hot Property” feature.

As Mr. Spock would say, “Fascinating.”

To be honest, I’m not sure what to make of this story. I mean, Mr. McMahon certainly seems like a good man who simply let his finances get out of control until he went from delivering oversized million-dollar checks to being unable to pay for his multimillion-dollar luxury property. His story just seems remarkable and bitterly ironic.

Since he went public with his mortgage troubles, it appears that Mr. McMahon will now be able to make it through this difficult experience fairly well. Competing offers on a house that’s about to be short sold is pretty impressive, I think.

I guess, in the end, my point is: Is this justice? I mean, not everyone can be helped like this. Is Ed McMahon’s celebrity status the main reason why he is receiving this attention and assistance? I’m uncertain of the answer to these questions. I hate to see anyone suffer, but is some suffering just while other suffering should be alleviated, and how do we judge that?

I believe that life is generally good, although it is difficult and filled with perils. Mr. McMahon seems to have had a very good life, gaining much more success and fame than most people will ever know. I feel bad that he is facing failure near the end of his life, but perhaps that is a lesson he needed to learn. I am sure we all must face failure and seek to succeed afterwards. Hopefully we will learn to be better people in the process.


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. I was really tempted to call this blog entry “Wake up with the King” Luckily, I refrained. You can share your blog entries on the Luxury Real Estate Blog by emailing them to me. By the way, ordinarily I would link to the two blog entries above via their TrackBack links, but they don’t appear to be working, so I just used their regular links. The photo of Mr. Spock is from www.flickr.com/photos/cultureculte/2306916969 and it is the copyright of culture.culte.

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 Dr. Carl Peralta

Giorgio Armani, together with his super yacht “Main”, spent a lovely holiday in Malta. For more information on his visit, read the article in the Times of Malta.



Although Malta is not like the Greek islands, St. Tropez, Sardinia & Monte Carlo, it is a unique, picturesque place set right bang in the middle of the clean Mediterranean Sea.

Other famous personalities come along together with their super yachts, such as Roman Abramovich (Chelsea FC owner) with his 114-metre “Pelorus” and Tom Perkins (Danielle Steele’s ex-husband) with his 88-metre “Maltese Falcon” built by Perini Navi!


Editor’s Note:
Dr. Carl Peralta founded 77 Great Estates in 2003. He is a member of the global Luxury Real Estate network. Business being his chief interest, Dr. Peralta has successfully co-organized many large-scale entertainment events since 1995. It sounds like Giorgio Armani couldn’t stay away from Malta. Actually, I wrote an editorial on luxury yachting communities in the spring 2008 issue of LuxuryRealEstate.com Magazine. Very cool! The size of these yachts Carl mentions in this blog entry is incredible. You’d need a huge dock at your luxury home or a nice luxury marina to park them.

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 Courtney Jackson

Make sure to check out our latest Wall Street Journal ad. It hit newsstands on Friday, Aug. 1, 2008! If you weren't able to pick up a copy you can view it online.

Editor’s Note:
Courtney Jackson is the Print Director for LuxuryRealEstate.com. She works closely with The Wall Street Journal, Unique Homes and a variety of other publications to help luxury brokers gain domestic and international exposure for their properties. Print and online advertising go great together. They both have certain weaknesses and strengths that can be overcome by using both in moderation. Keep taking advantage of this great offer through LuxuryRealEstate.com!

By Yvonne Harvey

I was surprised to see a copy of US Airways Magazine on my desk this week with a sticky note on it saying “Info for Conference.” I was perplexed on what that would have to do with our conference in Philadelphia. Then I saw it. In the top right-hand corner in small letters are the words “Philly’s Best-Kept Secrets.” Well, hello!

I thought I would list them out for you, and maybe you can guess which one really jumped out at me.

1) Center City – It’s dynamic and diverse, but also compact and walkable – offering something for everyone.

2) America’s Most Historic Square Mile – The Liberty Bell, Independence Hall, The National Constitution Center.

3) A Lively Arts Scene – Music, dance, theater – whatever calls to you, Philadelphia has it.

4) Tax-Free Shopping for Apparel and Shoes – Enough said.

5) Entertainment & Nightlife – With dozens of trendy nightclubs and other up-to-the-minute hot spots, you’ll be able to party ‘til the wee hours.

6) Great Eats – From cheese steaks to five-star dining, Philadelphia has culinary offerings to satisfy every palette.

7) Room to Roam – Even though Philadelphia is a big city, it also has some great outdoors. Run wild in one of America’s largest urban parks.

8) Easy Access – Philadelphia is a quick Amtrak train ride from Washington, D.C. and New York. The airport offers 1,600 daily departures and arrivals to 122 domestic and international destinations.

9) Rooms for Everyone – We have lots of hotel rooms, meeting spaces, and the Convention Center all in the heart of Center City.

10) Historic Service – The Philadelphia Convention & Visitors Bureau sales and service team is one of the most critically acclaimed in the industry.

So, did you guess which one jumped out at me? Wait for it …. TAX-FREE SHOPPING! Can we say Neiman Marcus, Coach, Tommy Hilfiger, Michael Kors and Juicy Couture!

As it says above… enough said.

See you in Philly!


Editor’s Note:
Yvonne Harvey is the Events Coordinator for LuxuryRealEstate.com. So when you come and enjoy the wonderful presentations, discussions and networking opportunities at Luxury Real Estate conferences, you know who to thank. It looks like there are now 13 great reasons to attend the Fall Conference in Philadelphia – besides, of course, the networking opportunities, knowledge waiting to be shared, etc. The photo above is from www.flickr.com/photos/vic15/15082596 and it is the copyright of vic15.

By Robert Lockard

Malta, a lovely island just south of Italy in the Mediterranean, was the site of the Malta International Fashion Show on July 5, 2008. This impressive show attracted top Italian designers who submitted their work for display by top models. These high-profile designers included Giorgio Armani, Versace, Salvatore Ferragamo, Enrico Coveri and many others.

You can read the full article by Fiona Galea Debono entitled “Gozo on the catwalk in international fashion show” in the Times of Malta. Dr. Carl Peralta, founder and President of 77 Great Estates, pointed this story out to me. 77 Great Estates is a member of the global LuxuryRealEstate.com network.

Malta is becoming known as a great getaway for luxury seekers. Its world-class events and luxury properties bring a diverse crowd of vacationers and new residents. Opportunities abound on this pleasant island!


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. Dr. Carl Peralta founded 77 Great Estates in 2003. Business being his chief interest, Dr. Peralta has successfully co-organized many large-scale entertainment events since 1995. Feel free to share your ideas and blog entries for inclusion on the LuxuryRealEstate.com Blog. The photo above is from www.timesofmalta.com/articles/view/20080523/local/international-fashion-goes-to-gozo and it is the copyright of Darrin Zammit Lupi.

By Robert Lockard

Monica Duff, the Vice President of Operations for John Daugherty, Realtors appeared on the June 18, 2008 episode of Great Day Houston.

Click here to watch the nine-minute video. She discussed great ways to sell homes, the current real-estate market and many other topics concerning real estate in Texas. John Daugherty, Realtors is a member of the Luxury Real Estate Board of Regents.

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 the way, John Daugherty, Realtors recently recorded their best June in the company’s 41-year history. All members of Who’s Who in Luxury Real Estate are welcome to share their good news on the Luxury Real Estate Blog and in the Week in Review.