Archive for September, 2008
Insuring Luxury Homes
Insuring luxury homes can be a real challenge, especially when trying to calculate replacement value for things like architectural artifacts, beloved creaking stairs or even elephant hide wallpaper.
Luxury home insurance wasn’t of that much interest to me–until I read of an appraiser who tried to figure out the replacement value of elephant skin wall coverings in a Seattle manse. That appraiser, James King with the Chubb Group, makes it a practice to thoroughly investigate the luxe and unusual features in Chubb’s insured luxury homes to make sure a realistic replacement value can be assessed.
And sometimes that challenge requires more than a little research.
In the case of the elephant hide wall coverings, King was unable to determine replacement value, especially since the wall covering had been installed at the turn of the century, before elephant hunting restrictions were in existence.
His solution? Read the rest of this entry »
read comments (0)Luxury Foreclosures Becoming More Common
Bradenton Florida Luxury Home
Once upon a time, we whispered about the “F” word creeping into luxury real estate. These days, it is common real estate talk.
The Wall Street Journal quotes Realty Trac reporting that the number of $1-plus million homes in some stage of foreclosure has ballooned to 7,968 between January and August this year. This compares to 4,214 during the same months last year.
Within these numbers, it is interesting to note the relative surge in the $2-plus million home market. This luxury group has grown the fastest: How about 499 in foreclosure process, compared to 201 for the same period last year.
These luxury foreclosures aren’t just the McMansions that proliferated in many upscale suburban communities. These homes are waterfront, behind exclusive gated communities, and in tony towns where these financial embarrassments rarely occur.
The bargains abound. The luxurious Bradenton, FL home pictured above (and listed by Patricia Tan with Prudential Palms Realty), for example, was originally listed at $3.78 million and is now under contract for $1.1 million. There again, and according to DataQuick, more than 64,300 homes priced at $1million or more were sold in 2007–which is more than triple the number for 2002.
In our local San Diego luxury real estate market, we are seeing our own casualties. According to our stats, there are 34 homes in some state of the foreclosure process in exclusive Rancho Santa Fe–with one on Via De Santa Fe valued at over $12 million. In La Jolla real estate, where prices are equally high, but with more condos and a greater population, there are 118 properties in the throes of foreclosure.
What will be the consequences to the highest end of the luxury market? There will be some fallout–and perhaps a more robust luxury home rental market, but most of these owners are well-entrenched and funded–and can afford to wait out this market crisis.
And for luxury home buyers, the market hasn’t looked this good–or offered so many choices– in several decades.
For more, read:
The Finest Foreclosures - WSJ.com
Rise in Luxury Home Foreclosures, REO’s and Short Sales?
California Luxury Home Foreclosures
$53 Million Plaza Suite: An Attic-Like Space?
by Roberta Murphy
A pair of $53.5 million New York Plaza penthouses were sold to Russian hedge-fund manager Andrei Vavilov–which would have made it the second-highest residential sale in New York City history.
Andrei Vavilov, though, is one very upset buyer. He and his wife, Russian actress Maryana Tsaregradskaya, are outraged with low 9 foot ceilings, an unexpected and massive column in the living room, and an exterior drainage grate that blocks the view of Central Park from the middle floor.
He had been promised the epitome of luxury, but was instead, he says, was given an “attic-like space.”
Attorneys for the buyer have reportedly filed a $31 million lawsuit against the developer and its selling agent Stribling.
It is unclear to me whether the transaction has actually closed. The story (see link below) does not make that clear. There is a $10.6 million deposit from the buyer at stake, and real estate attorneys handle closings in New York. Unlike most California real estate transactions, I am told it can be very difficult for New York buyers to reclaim their deposits.
Which leads me to wonder: Is the lawsuit and resultant publicity about the buyer’s recovery of a $10.6 million deposit–or actual defects in the real estate delivered?
The Luxury of the Zolo Torrontes
As summer hurls to a close, I had to review one of the best white wines I have ever sipped. I stumbled upon the Zolo Torrontes one day at our local Costco. What caught my eye was the markdown. The week prior this wine was $8.99 a bottle–and now was only $4.97!
Even at that price I was sceptical, because I am not a fan of South American Wines– and I had never had or heard of a “Torrontes” white. Throwing caution and my own prejudices into the wind, I grabbed 3 bottles–and later wished it had been 3 cases.
Doing some research, I discovered that Torrontes grape is cultivated in Argentina–and that wine that made from this grape is considered to be the best of its kind in the world.
I now understand why!
The evening after my purchase, I opened this bottle of wine and immediately knew I was going to love it. The citrusy scent of this wine immediately escaped when the cork was popped. The glass I poured was pale yellow–and it looked like tiny bubbles were dancing around.
The nose of this wine is incredible. Not only is there crisp citrus–but hits of lush tropical fruit as well. This is unlike any white wine you have ever had! Once you take a sip, you will understand my gushing. This wine is nothing like any Chardonnay, Pinot Gris, or Sauvignon Blanc you’ve tasted. The Zolo Torrontes is refreshing, crisp, light, and bursting with amazing flavor–without any cloying sweetness.
I am a red wine gal. Usually I only drink white wine when either it is hot outside or there is no red wine. This wine has me singing (and sipping) to a different tune.
Unfortunately there are not many stores that carry this gem. You can find it online, but the best price (besides the Costco close-out) I have found was at BevMo. Right now it is priced at $9.99 and if you buy 6 you get $1 off per bottle, bringing it down to $8.99 each. This is a bargain for such a delicious wine……you will thank me!
White wine tip: If you serve white wine too cold it will not open up and will numb your palate and you will not be able to fully enjoy your wine. If it feels almost too cold to hold it is too cold to serve. Best temperature should be between 45 to 58 degrees.
Other Wine Articles and Reading:
Wine Storage for Oenophiles
Trash Journalism: US Weekly
by Roberta Murphy
Luxury Home Digest is neutral politically and generally focuses on luxury homes and real estate issues.
But with a journalism background, there are several things I abhor–including mean-spirited personal attacks, hackers, shoddy reporting, and abuse of publishing power.
Not that we expect great things from grocery store rags like US Weekly, National Enquirer and Star Magazines, but I think we expect more from the glossy mags than the cheapie newsrags.
It turns out that Jann Wenner, who also publishes Rolling Stone Magazine and has a decided political bent, approves of misleading headlines and the yellowest of journalism–as long as it targets those with whom he disagrees.
And US Weekly appears to be his latest yellow convertible.
Sure, Sarah Palin has a pregnant daughter–and had some issue with a former brother-in-law and his dismassal from Alaska law enforcement.–or some such thing.
But lies and scandals?
After intense questioning, the editor of US Weekly acknowledged today that the “Lies” they had headlined dealt with the lies being spread by Sarah Palin’s political opponents–not prevarications being spread by Palin, McCain or anyone close to her.
Shame on US Weekly.
And shame Wenner and Rolling Stone Magazine–a former favorite.
Better to protray the truth, that twist your own lies and purposes into attention-grabbing headline$.
