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It’s another monumental week in the real estate world. Once again, Taking ’stock supplies you with some interesting tidbits to keep you up to date on various world developments (no pun intended). If you read anything in the news that you think should be in next week’s blog, feel free to comment on the posting. Alternatively, if you want to comment on any of the stories listed here, let us know what you think!

Luxury Real Estate News/Views

Neighbor says Golf is a Sport Too Close (New York Times)

A lot of people want to be near to their favourite golf course…but how near is too near? A resident whose house is next to the 6th hole (a par 3) at the Winged Foot Golf Club is sick of golf balls hitting his property, breaking his windows, scaring his children, and making his dog sick. The hole is currently closed due to a restraining order brought against the club. You know it has to be serious when Donald Trump is offering to mediate.

It’s not Easy Being Green - If You are Buying a Luxury Home…

This week’s Realestock blog entry looks at how many luxury buyers are not concerned about their homes being environmentally sound. However, some developments are managing to combine good living with good style.

America’s Luxury Homes, Downsized (Forbes)

On a similar theme, Forbes.com has written this interesting article about how many popular luxury properties are smaller than traditional ‘luxury’ housing. This is partially due to the lack of space, growth of environmentalism, worries about reselling the property in this less than buoyant market, and, more importantly, because it isn’t 1987, and big doesn’t necessarily mean classy. After all, is it better to have Foie Gras, or a Big Mac?

Worldwide Property News/Views

China’s Homeowners Feeling Little Pain (Newsweek)

Here in North America, we are all on tenterhooks, fearful to hear what will happen to the property market next. However, in China, people are not feeling the pinch as we are. According to Newsweek, the cost of an average home has increased fourfold in the past eight years, and China’s 80-million strong middle class are clambering to get on to the property ladder. Whether the market will eventually deteriorate like ours is still uncertain, but for the moment, things are looking sunny for the Chinese market.

Have I Got the Candidate For You! How the Real-Estate Market Could Turn Florida for Obama (Slate.com)

We are all now acutely aware how politics can affect house prices. However, in Florida, the real estate market could affect the choice of candidate. Voters are looking at which candidate will save them from getting into negative equity. This choice could be crucial as to who becomes the next president: because as Al Gore knows, Florida can change an election.

Rise in Property Re-structuring, Recovery and Debt Business Expected (PropertyWire.com)

According to PropertyWire.com, many international real estate groups are moving into the restructuring and recovery business - due to the large amount of real estate developments and projects that are falling through due to a lack of funding, in addition to the large amount of foreclosures and other loan difficulties that are occurring.

 

Originally I was going to write all about the latest developments in green living. I read a number of articles on and offline about how developers are adding green features, how some real estate agents are biking to viewings and open houses (How do they transport clients? Do they sit on the crossbar? In the basket?), and how many buyers are asking about energy efficient appliances and baulk at the idea of marble counter tops.

However, a couple of weeks ago I read an interesting article in Canada’s Globe and Mail (www.globeandmail.com), where writer Terrence Belford illustrated that in Toronto, despite the fact there are more homes being built to LEED (Leadership in Energy and Environmental Design - the Green Building Rating System) standards, there are very few in the ‘luxury market’ (which the Globe and Mail describe as being anything that sells in Toronto for over $600 a square foot). It appears that while the mid to low-range buyers are interested in energy star appliances and recycled materials, luxury buyers are not. In fact, luxury buyers are going in the exact opposite direction – buying huge energy-zapping fridges, asking for counter tops made from nonrenewable stones, gas-fueled stoves and hardwood floors made from rare woods. The writer of this article suspects that “…environmental concerns are not on their list of priorities”.

This, to me, is rather worrisome. We are at a time in history where how we deal with environmental concerns is critical. Everyone, irrespective of their income, should be doing their part – even if it is just recycling their bottles and using reusable shopping bags to buy groceries. The writer of this article comments that most luxury buyers are in their 40s and 50s, and that it is younger buyers and developers who are interested in saving energy, not those who to whom utility bills are something that you ‘don’t pay much attention to”.

I don’t believe that this generalization is entirely the case. Many luxury condo buyers downsize from larger houses, and so there must be an element of that choice that relates to the fact that condos are easier and cheaper to maintain than houses are. Also, ask anyone on the street about their opinions on the environment, and most people will tell you we need to become more energy efficient in our general lives.

However, someone must still be buying those fridges that are bigger than my bathroom – but can’t energy efficiency and luxury go hand in hand? Can’t you have the counter top you’ve always wanted without decimating a small forest? Some developments have the answer.

The Dockside Green Development in Victoria, British Columbia (www.docksidegreen.com) combines luxury with green living. Prices range from a mid range $289,900 to a luxury $1,233,900 for one to two bedroom (plus den) townhouses and condos. This popular development combines high end products with environmentally friendly additions, including:

- 100% fresh air through central or individual heat recovery ventilators

- Low, or no volatile organic compounds, paints, sealants, adhesives, and avoidance of the use of urea-formaldehyde composite wood products

- High-end energy efficient appliances (they do exist!)

- Sewage Treatment: 100% of the sewage is treated on site – and the treated water will be used for flushing toilets, landscape irrigation and water features

- Alternative transportation, which will be readily available through: A car share program, upgraded bike trails, bike racks in the building, harbor ferry dock, transit, and a mini-transit shuttle bus – the point of this being the elimination of a car, or at least of a second car

- Bamboo flooring and kitchen cabinets (there is also an option for cork flooring)

- Salvaged wood products will be used

- Biomass heating, with a back up natural gas fueled boiler – which will make the building greenhouse gas neutral

One look at the interior and exterior shots of this building will show you that this is definitely geared for the high medium to luxury market, and it is paying off – already many units have been sold, including the commercial spaces for a restaurant/pub, a café and a bakery.

At the end of the Globe and Mail article, a developer is quoted as saying that it doesn’t matter what changes are made now, as the changes that are slowing coming through will eventually become the standard, and possibly even law. Therefore anyone who is resistant to these transformations will be left behind. This is an interesting point, but I feel that legal changes may not be as influential as social ones. By this I mean that being environmentally unaware is almost regarded as a stigma, and those who drive SUVs, don’t recycle, and have a freezer as big as a horse may find themselves being scorned by their peers, which is much more damning than any law could every be.

Whatever the reason – social or legal – environmental building is here to stay. And what to say of those changes that I wanted to mention earlier on? Here are some green changes and events that are happening around the world:

- At the University of Wisconsin-Madison, The Wisconsin School of Business Graaskamp Center for Real Estate will host a conference on Sustainable Real Estate Development

- Ecobroker (the first and largest provider of green real estate training for realtors and other licensed real estate professionals) celebrated its 4,000^th member this August

- In Chicago Agent Magazine, K.K.Snyder Reports that in Chicago, the amount of clients who want environmentally friendly homes dramatically outweighs the number of energy efficient houses and condos. People are taking an interest because these houses are not drafty, don’t have ‘hot’ or ‘cold spots’, and are more comfortable for owners, in addition to helping the environment

- Green building rules are to come into effect in Abu Dhabi, in January, 2009. According to Propertywire.com, Abu Dhabi’s Urban Planning Council aims to set new standards for sustainable development, and hopes that this will encourage similar plans throughout the Middle East region

So whatever your budget, consider going green, particularly when choosing your appliances. Being efficient doesn’t mean being cheap. Yes, you may think that people will love your top-of-the-range stainless steel 20ft fridge, with 6 water dispensers, but secretly they’ll be thinking that you’re as bad as those people who drive their Hummers ten meters to mail a letter. There are a number of stores and designers who specialize in creating high-end, environmentally friendly products, so while you may have to search a little harder, it’ll be well worth it in the end.

The views expressed on the blog portion of this site represent only the opinions of the author and may not necessarily be the opinions of Realestock.com

Do you have a view on green building? Do you think that luxury buyers shouldn’t care about the environment? Let us know by posting below! 

Concierge Auctions Pleased With Results of Luxury Real Estate Auction

Source: Concierge Auctions www.PR-Canada.net

Monday, 06 October 2008

Today Concierge Auctions hosted a luxury real estate sale of two bay front estates on Siesta Key, Florida. The auction was located at the Sarasota Ritz-Carlton Hotel, with over 100 attendees.

“It was a very well organized, transparent event,” said Marisa Marino of Horizon Realty. “A client of mine participated, but unfortunately he was outbid. He and I look forward to participating again in the next sale.”

This was the debut of Concierge Auctions’ innovative Guaranty Program. The program benefits both buyers and sellers, as they can participate with confidence knowing the properties will sell on Auction Day regardless of the high bid.

“In the context of the current economic climate, I am thrilled that we were able to aggregate a strong crowd, including 26 qualified bidders willing to spend millions of dollars for these exceptional properties,” said Stuart Mattison, Director of Sales. “The fact that they not only attended the event but also actively participated was encouraging.”

AUCTION RESULTS (high bid plus premium)

1356 Point Crisp Road: $2,772,750

850 Mangrove Point Road: $2,200,000

“We are pleased with the results and have received outstanding feedback from the real estate community. Our format has resonated, and we believe we are on our way to bringing the auction process to the mainstream,” said Laura Brady, President.

Concierge Auctions has made the determination that it is in the best interest of the seller and registered buyers of 850 Mangrove Point Road to re-offer the property in the next Sarasota auction in December. The decision was reached after the firm was notified that at least two buyers were precluded from placing their highest bid on the property.

Sellers interested in the Sarasota December sale should contact Concierge Auctions immediately. Availability will be limited to a maximum of five properties, which will be selected within the next four weeks. As always, Concierge Auctions fully protects listing and buying brokers. For further details and registration, visit www.conciergeauctions.com or call 888-966-4759.

PR-CANADA.net

Source: Concierge Auctions

Originally, the concept of suburbia was to create a place of community and safety. People moved their families out of the city so that their children would be safe from crime, drug problems, and so that they could be brought up somewhere where everyone knew their neighbors, and where there was a real sense of community.

However, times have changed. Suburban areas are no longer immune to these kinds of problems – a day doesn’t go by where we don’t hear about shootings and other crimes going on in suburbs of any major city. The community element has changed too. People know their neighbors, but many people work long hours in the city, and spend most of their evenings gridlocked in the daily commute, leaving little time for socializing. And I’m not even touching on the effect that rising gas prices have had on the suburban lifestyle, because there’s enough material there for another ten blog posts!

An article in last week’s Globe and Mail Newspaper looked at the growing number of families who are moving from large suburban houses to smaller places in the city. This is becoming a widespread trend all over the world. The families mentioned in the article citied a range of reasons for leaving their suburban houses, including shorter commuting times, more activities for their children, exposure to a more diverse mix of cultures, and close proximity to restaurants, shops and bars.

However, there are a number of plus points to staying in suburbia. If you work from home, it can have many advantages. There are lots of community events and groups, and if you’re not spending your evenings gridlocked somewhere on the 401, then you have the opportunity to really get to know your community. Also, even though crime is rising in the suburbs it very rarely compares to the city, so your kids are still safer in suburbia. Not just that, you get much more space, in terms of indoor square footage, and outdoor acreage, which is tempting when looking at a new home.

It’s an interesting situation. Do you sacrifice the space and tranquility of the suburbs for being five seconds walk from your nearest Starbucks? It’s a hard one. As an ex-English major, I love a good compare/contrast piece, so I had a look at the prices in Bloor West Village (a community in Downtown Toronto) and Caledon, Ontario, a town which is part of the GTA (Greater Toronto Area). I chose these places because they were examples given in the article, and also they are both desirable ‘luxury’ areas of the GTA. I looked at detached houses on MLS.ca priced between $650,000 and $800,000 (average spend for a single detached family house in Bloor West Village seems to be in the high $500,000s) in both areas, and then looked at what you could get for a cool million. The differences were very interesting, although not entirely unexpected:

Caledon, Ontario

In Caledon, $650,000 buys you a three bedroom, four bathroom, two storey detached house, with a saltwater pool in the back yard, and a games room. Said back yard? About five acres

For just over $650,000 you can get a five bed, five bath detached Victorian/Heritage house, which includes a suite to rent out, and has a range of period features, such as vaulted ceilings

For just over a million You can get a four bed, 2.5 bath Victorian house set on 25 acres. Unique features include a stone fireplace, and your own private waterfall(!)

For just under $1,100,000 you can get a hundred acres of land – and a six bedroom, six bathroom house with a workshop and heated stone floors

Toronto (Bloor West Village)

For over $650,000, you can get a four bedroom, two bathroom detached house with features such as a finished basement, and a renovated kitchen

For over $650,000, There is a work/live house which has two offices, one bedroom and three bathrooms. Features include a ‘loft like’ setting, and a renovated basement with a separate entrance

For just over a million you can get a three bed, three bath detached property, with a landscaped yard

For just under $1,100,000 you can get a five bed, five bath ‘Georgian-style’ house with a family rec room, and a nanny suite(!)

While the differences do not seem that monumental, it is worth noting that MLS doesn’t list the acreage on the Toronto properties, which indicates that you get little to no land.

To sum up, it depends entirely on your lifestyle, and how much you have to spend. If you can spend upwards of $600,000, then in either place, you’ll be living in a beautiful and quality house. However, the difference will be the space inside and outside – if you want all the conveniences of living in the city, you have to give up the space and privacy that comes with living in a small town. Granted, the lower costs to keep up a smaller place, plus the lack (or reduced use) of a car, will save you money, but the cost of groceries and house maintenance is much more expensive in the city, compared to a small suburban town.

The views expressed on the blog portion of this site represent only the opinions of the author and may not necessarily be the opinions of Realestock.com

Are you thinking of moving to the city? Or have you already done it? Let us know by posting below!

 

 

Welcome to our newest Realestock feature. Every week, Taking ’stock will give you a roundup of the news and views that have arisen in the past week.

Luxury News

What’s on the market: While new record looks unlikely, Palm Beach primed for big deals (The Real Deal, NY)

Looks like luxury homes in Palm Beach are still doing well. Multi million dollar homes are still on the market, and are selling!

Young guns driving enviro-condo push (Globe and Mail)

The Green Movement is growing…but is the luxury market lagging behind? Why aren’t luxury buyers going green?

General North American Real Estate News

Economist debate whether US property market plunge will cross into Canada (Property Wire)

Housing market could soften more but not crash: CIBC (Globe and Mail)

Prudent Canada won’t experience a U.S.-style housing collapse (Vancouver Sun)

There’s been a couple of articles on this in the last week. The bad news? House prices will go down. The very good news? Most economists, including those at CIBC, BMO, and Desjardins, assure us that Canada will not suffer the same crash that the US is currently experiencing.

Loonies find a second home in U.S. real estate (National Post)

Many Canadians are taking advantage of the US property market…by buying vacation homes in the States. But is this a wise buy?

Bailout plan offers vague help to homeowners (Associated Press)

It looks like the bailout may not help those US home owners who are currently losing their houses, but may help to stop a rapid drop in house prices…

Miscellaneous and Fun News

A Million Reasons to Look Globally?

This week on our Realestock Blog: What does your million buy around the world? Will it go further in Paris, London or New York?

Sex and the City’ Writer Bushnell Probes Real Estate (Bloomberg)

Candice Bushnell, famed writer of “Sex and the City” has set her newest novel in the backdrop of Manhattan’s booming real estate market. OK, so she’s a little out of date…but it sounds like a fun read…maybe something to take your mind off the current real estate woes?

The Barenaked Ladies may once have sung “If I had a million dollars”, but since the rise of “Who wants to be a Millionaire” or “Deal or No Deal”, the once giant amount of a million dollars has really begun to lose its meaning. If hanging out with Howie Mandel for an hour can make you a million - I’m in (however, two hours – might be too much).

Recently on Forbes.com, I read an article on what kind of real estate you can get for a million US dollars. Considering Realestock has luxury developments listed in various countries, I rushed to read it.

The differences are astonishing:

In Cape Town, you can get a five bedroom house with amazing views, a tennis court, pool and pool house, and a computerized irrigation system to water your extensive grounds

In Namibia, you can get a four bedroom, three bathroom ranch, with an additional one bedroom apartment to rent out, if you so wish

In Beijing, $1million gets you a four bedroom serviced apartment, with access to two pools and a gym

Your money does well in Toronto – You can get a three bedroom house, with beautiful bay windows and a pool

In Paris, you can get a two-bed duplex! However, you might want to stop jumping for joy – because that’s a 230 square foot duplex

What does $1 million buy in Tokyo? A 600-square foot, one bedroom apartment

A million dollars doesn’t go far in London, England, which is hardly a surprise. Forbes discovered a three bedroom flat in Maida Vale (a relatively upscale part of London), which they described as ‘drab’. Hey! In England we’d call that a ‘character’ apartment!

As for New York, prices are dropping, so your million goes a little further than it did a few months ago– you can now afford a one bedroom, 670 square foot apartment in Chelsea, with dramatic city views, a doorman, and various other amenities.

So what does this mean for luxury real estate? Possibly this indicates that the boundaries have changed, and that depending where you are buying, a million dollars doesn’t necessarily indicate luxury. If you spend $12 million, chances are you’ll still get that luxury home, - irrespective of where you shop, but in many of the most desirable cities, that sole million won’t go very far.

It also indicates the strength (or not) of the US Dollar – which is important for most sellers and developers, particularly for those selling their properties in the current ‘buyer’s market’. If you have properties in the US, you may find that British, Japanese or European customers may be interested in purchasing property in the States where their £500,000, €700,000 or ¥106,000,000 will go much further (Would you rather have a three bedroom house in the Hollywood Hills, or that ‘character’ flat in London?). Conversely, if you are selling a development in Costa Rica, Mexico, or somewhere else where US buyers will be able to stretch their dollars a little further, you may find that you’ll have more inquiries stateside.

Either way, what you need is international exposure, and knowledge of where to base your marketing and promotional dollars. Listing your property on Realestock is one way to do this. We have visitors from all over the world, so potential clients looking for the bigger bang for their buck, whether they’re in Berlin, Germany, or New Berlin, Wisconsin, will be able to view your property, and see what they can get for $500,000, $12 million, or indeed a million dollars. If you are really looking for that $1 million price tag, we have a range of condos, townhouses, and yes, even estates that are priced around the million mark. And look, you didn’t even need to phone a friend, or challenge the banker!

 

The views expressed on the blog portion of this site represent only the opinions of the author and may not necessarily be the opinions of Realestock.com