Archive for December, 2007
Rooms and More Rooms in Luxury Homes
What kinds of rooms might go into a luxury home? The possibilities are as varied as lifestyles.
I recall a luxurious mansion in Houston’s lovely River Oaks that had, in addition to every other conceivable room, a luggage room. It was a sensible space that accommodated the traveling owner’s large collection of leather suitcases, trunks and garment bags. When a trip was planned, the butler would retrieve the appropriate luggage and assist with the packing.
When expense and space are not restrictive issues, the floor plan of a luxury home can truly reflect the lifestyle of its owner.
Some of the more common possibilities might include:
- A large morning room off the kitchen for casual family dining. This is simply an expansion of the traditional breakfast room.
- Large formal dining rooms still prevail and are a must for indoor formal entertaining.
- A butler’s pantry between the kitchen and formal dining area that may be equipped with china cabinets, lined flatware drawers, crystal storage and wine refrigeration.
- An oversized and well-organized pantry in the kitchen that has room for a freezer.
- A temperature-controlled wine room that might even accommodate a tasting table or two.
- A game room that might hold a pool table, arcade games and even a karaoke stage.
- A high-ceilinged music room for the grand piano and other musical enjoyment.
- Forget strip closets. Luxury homes demand oversized and highly organized walk-in dressing rooms.
- Personal gyms are a common requirement in luxury homes. They are typically located off the master bedroom or near outdoor amenities.
- The plush home theater with cushy seats, popcorn machine and huge screen have become very popular.
- A home library offers a quiet room for books, reading and reflection.
- A conservatory provides a glass-walled transition between the luxury residence and its natural surroundings–and is a lovely spot for casual entertaining.
- A sunroom may be located anywhere in the home, but provides a casual place to enjoy sunshine and views.
- Home offices are often a requirement for busy owners and their staff.
- A large laundry and project room may have multiple washers and dryers, a steam closet, and cabinets for project storage. It should also have space for a large, multi-purpose table.
- A snoring room off the master bedroom. Enough said….
Common to luxury homes in San Diego are loggias and fully-equipped outdoor kitchens, which allow for year round outdoor dining and entertaining. It is also not uncommon to find poolside cabanas, dressing rooms and steam rooms. In mountain communities, luxury chalets will likely have mud rooms and ski lockers.
As suggested earlier, it is the lifestyle and taste of the affluent that will ultimately determine the configuration of their luxury homes.
read comments (12)Dreaming of Costa Rica Luxury Real Estate….
More and more people from around the world are choosing to spend at least part of their lives in coastal Costa Rica–and more than a few decide there just might be no better place to spend the rest of their lives.
Why?
1. A warm climate, beaches, mountains, jungles–and breathtaking biodiversity. The people and government of Costa Rica are committed to preserving Costa Rica’s clean air, beautiful beaches and precious flora and fauna.
2. Costa Rica has one of the oldest and most stable democratic governments in the Americas. In fact, this peace loving nation has twice won the Nobel Prize for its peacekeeping efforts.
3. Costa Rica is a peaceful nation and has no standing army; it was disbanded in 1949.
4. The people are generally fond of foreigners and welcome them to Costa Rica. American’s included.
5. The cost of living is very reasonable–especially once one owns a home in Costa Rica. Taxes on a $500,000 home, for example, may run only $500 per year.
6. Good medical and dental care is not only widely available, but are also very reasonable. Many travel here for cosmetic procedures that cost a fraction of what might be charged in Europe or the U.S. And what a lovely place in which to recover!
7. Costa Rica has a highly educated population. The government currently spends around 27 percent of its budget on education. The literacy rate in Costa Rica is at 93 percent.
8. Costa Rica is only about the size of West Virginia, but has wonderful coastlines with 132 miles along the Atlantic, and 631 miles of prime Pacific beaches (especially in Guanacaste) and coastline. The interior is graced with farmland, mountains and jungles.
The reason for my recent keen interest in Costa Rica is that we will have been selected to help represent the Azulera developers in the sale of the long-awaited and luxurious Hyatt condos and resort village that are being developed along the breathtaking Guanacaste coast.
But details of that venture will come–sooner rather than later. Say tuned!
Luxury Builder Says 2007 Worst in 40 Years
If real estate investors are looking for blood in the streets, they had better be wearing galoshes.
Even the books of venerable Toll Brothers, America’s largest builder of luxury tract homes, are in the red. For the first time in 21 years, the company is suffering its first quarterly loss (Oct. 31) in the amount of $81.8 million. Much of this loss can be attributed to $314.9 million in pretax writedowns for homes it could no longer sell at a profit. Even Robert Toll, the company’s founder, concedes that 2007 has been the most challenging year in the company’s 40 year history.
But every loss also registers a gain–somewhere and somehow.
It has been evident that newer tract home subdivisions have been hit especially hard the past couple of years. Many homeowners needing to sell had bought during market highs and more than a few a have been forced to sell at a loss. Funds spent on landscaping, hardscaping, flooring/ surface upgrades, and window coverings (and perhaps even the down payment) have gone down the drain.
It is a tough time to be a home seller.
This has forced a number of builders with standing inventory to offer costly upgrades as an incentive for potential home buyers. Those buyers, who once had to budget for many of these improvements, are now getting them for free–sometimes packaged with interest rate buydowns and other incentives. It is a spiral that has forced builders and their prior home buyers to compete.
Many shrewd real estate buyers have been renting and waiting for opportunities such as these–and are coming out of hiding. Real estate investors who sold at or near the top of the market a couple of years ago are also back into buying mode. And so are foreign investors, who benefit not only from depressed real estate prices in prime US markets, but also the strength of their Euros and Canadian dollars against the US dollar.
This may explain the recent phenomenon in the beaten-down San Diego real estate market, where multiple offers are being made on properties that are priced under market. It’s something we haven’t seen in a long time, and just may be the beginning of a market bottom.
If you have any questions (or need to borrow a pair of rubber boots), just give us a call at 877-818-8197 or 760-402-9101.
Mortgage Rate Freeze: Who Wins and Who Loses
This months hot real estate question:
Which homeowners will benefit from President Bushs recent interest rate freeze for subprime loans? And who will be left out in the cold?
Drumroll.
The winners, who may receive a five-year extension (and possibly even longer) on their low introductory mortgage rates, are those:
- Whose mortgage loans are truly subprime. Traditional ARM mortgagees apparently need not apply.
- With FICO scores at or somewhat below 660.
- Who originated their home loan between 2005 and this past July 30.
- Who are relatively current in their mortgage payments.
- Who cannot afford higher monthly payments.
- Who have less than 3 percent equity in their homes.
- Who actually live in the mortgaged property. Investors need not apply.
- Whose mortgage rates are due to reset in the next two years.
- Who call their loan servicers, and begin the application process. Dont expect them to call you.
The losers appear to be everyone else in San Diego, but most particularly those:
- Who are already facing foreclosure of their San Diego home.
- Who have already refinanced their homes.
- Who are more than than 60 days delinquent on more than one payment in the past year.
- Who have high FICO scores (above 660, it appears).
- Who have prime adjustable rate loans.
- Who can afford the mortgage rate reset.
Nationally, it appears that around 1.2 million borrowers may be considered for this introductory rate freeze. Some will be offered the opportunity to refinance, particularly if there is sufficient equity in the home to do so. It is widely expected that around 600,000 will actually qualify for the rate freeze.
How many homeowners will fall into this total is unknown; however, we are reaching out to our clients and readers and advising them to contact their lenders to see what options might be available. We will be following those results with great interest and would appreciate hearing from anyone who has gone through the application process.
Luxury Home Sales to Climb with Bonuses
by Scott Murphy
Many top executives at large investment banking firms will be depositing some jumbo bonuses by the end of this month.
Despite an overall bonus decrease of 10% due to months of multibillion-dollar bank write-downs and a spreading credit crisis, many will be pocketing some still-sizeable sums.
Depending on which firm they work for and the position held, bonuses can range anywhere from up to $2 million to $50 million.
Real estate prices this year have dropped–and where else should these high earners invest their bonuses?
According to Forbes, some of these bonus recipients may also be rookies– as well as first time homebuyers–looking in the $5 to 6 million range. For top executives, the bonuses will be substantially more and potentially leading them towards the $20,000,000 home range.
Some rich real estate markets such as Manhatten, San Diego, the Silicon Valley area, Los Angeles and other top markets, just might see an increase of sales come the end of the year. Interest is already brewing in a number of these luxury markets.
In the coastal San Diego area, for example, Rancho Santa Fe, Del Mar, La Jolla, Carmel Valley, Coronado, Solana Beach, Cardiff, Encinitas, Carlbad and downtown San Diego (all coastal) offer some of the finest luxury homes in San Diego County. Inventory levels are also attractive for these flush buyers, which makes the home shopping experience even more fun.
At the other end of the country, many bonus-rich buyers will be shopping properties in Manhattan– including townhomes overlooking Central Park, which have asking prices at $50,000,000 or more. These executives might not be able to pay cash for one of these properties, but can rest assured that large down paymens will be coming from a secure source.
Of course the purchase of one of these homes will depend on the size of the bonus. But for some just starting out in the business, a nice condo in a great location would work very nicely.
Here’s wishing fat bonuses to all!
