Luxury Real Estate

By Barbara Waugh

Cuernavaca’s perfect climate and proximity to Mexico City make it a favorite weekend retreat and the destination of choice for a large expatriate community.

If you’ve ever dreamed of owning (foreigners can own luxury property in their own name) or renting your own Mexican villa, this is the place, whether you’re looking for a winter retreat, summer vacation home, weekend getaway or year-round residence.

A strong buyer’s market exists for luxury homes in all styles, sizes and price ranges, usually including a pool and garden. But as prices rise, many of the real bargains are being snapped up, from the cool, tree-shaded heights of Rancho Cortes and Vista Hermosa to the warm, tropical gardens of Palmira and Acapantzingo, all fashionable Cuernavaca neighborhoods.

Both Travel & Leisure and The Robb Report, two popular U.S. luxury lifestyle publications, have ranked Cuernavaca as among the best communities in the world in which to live. Forbes magazine has on several occasions featured a luxury Cuernavaca property on its website as its Property of the Week.

Mexico City is an hour’s drive via a modern six-lane highway, and its international airport is a half-hour farther. The Cuernavaca airport, located on the outskirts of the city, offers limited commercial service within Mexico, charter flights and service for private planes.

At a lower cost than they would be charged at other world-class resorts, residents and visitors can enjoy golf, tennis and horseback riding, as well as holistic spas, fine international restaurants, cultural events, U.S. and international television programming, recreational parks and much more.

Many foreigners prefer Cuernavaca proper over life in the suburbs or countryside, citing privacy, security, convenience and cultural diversity.

Other resort destinations in the region, such as Tepoztlan, a charming village with a lively crafts market, and Cocoyoc, home to a popular golf course and equestrian events, have their admirers, but no outlying destination offers those four important qualities to the extent that Cuernavaca does.

Rental prices are higher during the high season, Thanksgiving to Easter, when it’s freezing up north. A house with all services, garden, pool and staff, rents from $250 a day, or about $7,500 a month, depending on size. Yearly rentals cost less proportionately, but offer fewer services.

Good neighborhoods in all areas offer a choice of property locations. Unlike other Mexican towns popular with expatriates, Cuernavaca’s international community is not concentrated in one place. You can choose to be in the Historic Center, near the impressive 16th-century Cathedral and the Cortes Palace, or in a quiet gated community, on a golf course or near equestrian facilities, at the Racquet Club, on a broad avenue or a cobblestone street – the choices are numerous.

Many residents live in a privada, a private street a block or two long with controlled access, security and no through traffic. A house built by a well-known architect in a privada with a lovely terrace, pool and garden is priced from about $475,000.

One key factor in deciding where to buy or rent is temperature: southern Cuernavaca is 1,000 feet lower than its northern counterpart, and can be as much as 10 degrees Fahrenheit warmer.

Building in a foreign country, and therefore in a foreign language, shouldn’t be an obstacle: English-speaking architects can help. It is cheaper and easier, however, to buy a property than build, and prices are negotiable. Besides, most of the best sites have already been built on.

As an owner, you may rent your property during the seasonal months for enough to cover the yearly maintenance. Absentee ownership will require a good administrator, which is easy to find. Time-shares are almost nonexistent, except among groups of friends or relatives who make their own arrangements; there are more condominiums every day.

Title insurance for Mexican real estate (TIMR) protects against risks involved in the transfer of property rights. The price of the policy may vary between 0.5 percent and 1 percent of the property value, according to an attorney familiar with the insurance. But most buyers do not need title insurance because Mexican notaries are civil servants responsible for ensuring that titles are clear and there are no liens or debts on the properties.


Editor’s Note:
Barbara Waugh is the Broker/Owner of Barbara Waugh Properties Cuernavaca. A real estate broker in Mexico for more than 35 years, Waugh has for the past 10 years been an affiliate of Who’s Who in Luxury Real Estate. For more information, visit www.barbarawaugh.com or www.cuernavacaproperties.com, or e-mail bw (at) barbarawaugh.com. These sound like some wonderful opportunities in Mexico. By the way, "Cuernavaca" means cow's horn in English. The photo above is from www.flickr.com/photos/kafka4prez/82996937 and it is the copyright of kafka4prez.

By Michael Marquette
From his blog: Luxury Homes Fail to Sell at Auction

It has always astonished me how many real estate agents advise everyone they meet to auction their home home. In Regional cities like Newcastle this happens all too often with the inevitable result of the property passing in, and in most cases not even receiving one bid from a potential buyer.

The process is horrendous for vendors who quite often have their hopes set high only to have them come crashing down on auction day. Potential purchasers use the fact that the property passed in to show that there is little if any interest in the home and accordingly offer much less for the property or just wait for the price to continue falling in the hope of snapping it up for a bargain price.

This is even truer when looking at luxury homes in sort after suburbs in Newcastle like The Hill, Bar Beach and Merewether. Twenty-seven homes were put to auction in the Hunter yesterday with only eight selling, for a clearance rate of just 30 percent. Even more interesting is that the highest price paid for a property sold at auction yesterday was just $452,000!

It is more important than ever to choose an agent with the experience, qualifications and knowledge of the luxury market when selling your home. The one-size-fits-all approach simply doesn’t work when selling luxury properties and is even more important when selling property in Regional cities.


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. Very interesting. An inexperienced real-estate agent might not know the best way to sell a home in the current market, so it’s important to choose wisely. Otherwise, buyers might not bother to pay attention to sellers’ efforts. The photo above is from www.flickr.com/photos/rickmccharles/2269842297 and it is the copyright of Rick McCharles.

By Scott Rudolph

I have a quick question for you… How do you feel when you see “Price Reduced” signs? They may be a sign of the times… get it? “Sign” of the times. But in my humble opinion they create a perception of desperation. I say, lose the signs for a number of reasons.

First, signs are not as significant a factor in the Internet age – many buyers have already been online and therefore have an abundant amount of information on the properties they’re going to visit. Second, fewer in-your-face reminders of reductions will only help push the thinking from top of mind. What’s the saying? Those who focus all energy on missing the rock in the road are the very ones who hit the rock in the road.

Third, and most importantly, “Reduced” imparts a sense that you are not setting a realistic price in the first place. Do everyone a favor and price the home properly based upon current inventory and market conditions, which in most cases has already been reduced drastically, and let’s move this market (and the world market along with us) forward.


Editor’s Note:
Scott Rudolph is the Director of Business Development for LuxuryRealEstate.com. He works with a variety of luxury-focused companies to expand the LuxuryRealEstate.com influence. So true. If we always focus on what we shouldn’t do we’ll run the risk of forgetting what we should do. Let us think positively and try our best be fair and forward-thinking in our efforts to make it through hard times. The above photo is from the following Web address: www.holisticeducator.com/neurosis.htm.

By Jean-Yves Piton

Are you presently intensifying your global promotional and advertising campaigns regarding your most-prestigious properties to ensure your presence amongst the upper-class segment?

Despite a weakening global economy, wealthy investors and property buyers are not affected by slowdowns and market volatility. As communicated in the recent IBNLive.com/CNN video “Despite weak economy, super rich continue to splurge,” the wealthy clientele “doesn’t usually look at the price tag, despite what's happening to the global economy” while making purchasing decisions.

While planning your upcoming sales and marketing strategies/initiatives, keep in mind that promoting and showcasing your luxury properties in the best light possible will provide you with a much higher level of success to reach out to this niche market. Equally important, your wealthy international client might be aware of Who’s Who in Luxury Real Estate (LuxuryRealEstate.com) and looking to indulge himself/herself with a one-of-a-kind property.


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. One good idea for marketing your luxury properties is to have great photos that showcase their impressive features. Ilya’s Photography, the official photographer of the 6^th Annual Luxury Real Estate Spring Retreat, is an excellent resource for you, and I highly recommend him.

By Meghan Barry

As a Seattleite and lover of the bean, it is hard to ignore the recent changes at the Starbucks Coffee Company. In January, with their stock price in a freefall, Starbucks fired the current CEO and put Howard Schultz back at the helm. Starbucks is poised to take on another challenge. In a shot across the bow, McDonald’s will start offering lattes (Note the blatant nautical references… I read Moby Dick). McDonald’s is even offering free small lattes during breakfast hours in the Seattle market this month.

Although this has nothing to do with “luxury real estate,” it has everything to do with a concept everyone in the real-estate world is familiar with – cost vs. value and what boutique services are really worth.

Starbucks is the boutique brokerage firm, McDonald’s is the commission-cutting broker. Starbucks charges $3-$4 for an espresso drink, McDonald’s charges $2-$3. Is the Starbucks experience really worth more? Are the green-apron-clad (and usually well-educated and overqualified) neighborhood baristas better than the minimum-wage-earning, polyester-donning McDonald’s staffers?

For more, visit www.unsnobbycoffee.com, and consider the fact that, no matter what, you usually get what you pay for.


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. Now here are some very interesting insights into the luxury real estate market or any market, really. Are consumers mainly interested in the best deal or do they care more about quality? Very interesting questions. What’s your answer to this conundrum?

By Robert Lockard

“The drop in house prices is a good thing.” So says a recent editorial, entitled “Relief for home buyers,” in The Seattle Times. Exactly. Thank you, Seattle Times editors, for succinctly stating a fact that cuts to the heart of this matter. If prices are always rising, then that is certainly not a good thing for buyers, who have to pay more for the same home. Trends that are good for sellers will not be so good for buyers, and vice versa. Prices have been reaching all-time highs in the past few years, so the price dip that is occurring in several markets is by no means a catastrophe. In fact, it is probably a good thing since it will allow buyers, seeking first homes or luxury homes, to receive more property for their money.

This editorial reminds us of an important fact that is sometimes lost in these endless debates of dollars and deals. The truth is that the housing market primarily exists to provide houses to individuals and families, not to give them money. Certainly, there are numerous advantages to homeownership, including the personal equity and stability they can offer over the long term. But that is not what houses are designed to do. Prices have historically always risen on properties across the United States, but that doesn’t mean that they can never fall in the short term. If people would think of their homes as where they live first, and an investment second, a lot of unforeseen troubles probably would have been averted.


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. Let me know your thoughts on this topic.

By Robert Lockard

Check out this excellent article from Forbes.com, entitled “Priciest home sales of 2007.” After conducting extensive research, Forbes.com discovered that the top five most expensive U.S. home sales this past year were in Manhattan. In fact, two real-estate sales records were broken in New York City: the priciest apartment with the $60 million purchase of almost an entire floor of the renowned Plaza Hotel, and the highest price per square foot ($6,287) at another property in Central Park West. It’s safe to say that the luxury real estate market is alive and well in New York and other places.

It seems difficult to explain luxury real estate’s strength at the moment. However, in his Forbes.com article, author Matt Woolsey makes an astute point about high-end real estate markets: “Prices in the top sector are not affected by general market trends because, quite simply, they exist outside the general market.” In fact, luxury homes are so different from regular homes that they can only be compared to priceless pieces of art. They are seldom sold and are mainly considered second homes, assuring only sporadic use. Feel free to let me know your thoughts on this. Are luxury homes so distinct from other homes as to mark them as outside the regular real estate market? Perhaps this should have been an entirely different blog entry, but I hope you don’t mind.


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.