Archive for the 'Luxury Products' Category
Real Estate Exchanges: Banter and Barter
by Roberta Murphy
Yesterday afternoon and evening were devoted to Leaving Las Vegas. I was tired of long lines at the airport, anxious to get back to San Diego, and was dismayed to hear the Southwest flight had been delayed two hours.
I spent much of the time catching up on email, reading about Costa Rica and near the end of the wait, met David Greenberger, a real estate attorney and San Diego 1031 exchange specialist. We discussed real estate exchanges at length. Some tidbits from San Diego’s real estate exchange master:
1. The first government-challenged exchange occurred when two farmers agreed to exchange horses. One owned six white horses; the other, six black ones. After the amicable swap, the federal government claimed that a taxable event or sale had occurred. Not so, claimed the farmers. They challenged the government and won. In 1921, like-for-like property exchanges emerged as legally recognized income tax shelters.
2. Real estate 1031 exchanges no longer require that the exchanged properties be “like for like.” Someone can now trade their La Jolla duplex for a La Costa vacation rental–or an avocado grove in Fallbrook. 1031 exchanges allow for any U.S. real estate to be traded for any other U.S. real estate.
3. Real estate agents in the San Diego and other resort markets tend to be more generally familiar with 1031 exchanges than agents in the Midwest or the East Coast.
4. Though 1031 real estate exchanges are certainly tax deferred, they can also result in facilitating a tax free gain under current law. You’ve got to love David’s motto: œDeath and Taxes are Certain Unless You Exchange!
It also turns out the we had each spent a couple of days in Las Vegas attending the National Association of Realtors (NAR) Convention. He had 1031 real estate Exchange classes to teach, and I–along with several other real estate brokers–had a meeting with the developers of a five star luxury resort in coastal Costa Rica.
And that explains my overwhelming curiosity about 1031 exchanges–and how they might somehow be utilized by investors seeking to exchange U.S. real estate investment equity for offshore real estate investment in a luxurious Costa Rica development….
read comments (3)Interactive Luxury Home Surfaces?
Much has been written and said about Microsoft’s new surface computing technology.
It is the WOW technology of the year. Sooner than many of us thought possible, this technology will first become a defining feature in luxury homes, and as adoption increases and prices drop, it will likely appear as a builder option in many tract subdivisions.
Imagine interactive coffee tables that wirelessly download photos from your digital camera. Or how about kitchen counters that come to life with not only recipes and schedules–but may also allow you to order groceries, pizzas or Chinese carry-out and pay for it all by laying your credit card on the counter.
Expect to see early adoption of this technology not in luxury homes, but in bars and restaurants.
The possibilities will stagger the imagination.
Luxe Rocks for Luxury Homes
Leave it to Italian designers to create the ultimate in luxury rocks for exterior lightscaping.
These remarkable lighted rocks by Oluce look as if they might have been swiped from the lawn of a distant planet. In reality, though, they were created by Italian designers Marta Laudani and Marco Romanelli with Massimo Noceto. Made from weather-tested polyethelene, these lighted Oluce stones glow with the aid of a screw-in fluorescent bulb.
Dont expect to find these luxe rocks in your local hardware or lighting store though. They are available by special order and then only in œlarge quantities whatever that means. The good news? The price has just been reduced from $513.50 to just $316.00 each. Such a deal!
I hope to seem some of these luminous beauties in San Diego’s luxury homes before too long.
For additional information, you may call ylighting at 866.428.9289 (This is an unpaid, unexpected and unsolicited commercial
)
I wonder if these lighted rocks would attract bugs???
Other fun and imaginative luxuries for the luxury home:
D. Porthault Sheets and Linens
As well as other recent luxury reads:
The Snoring Room
The Self Service Spa (Do it at home?)
Long-Lasting Roses
Induction-Cooktop for the Luxury Kitchen
Ultimate Phone for the Luxury Bath
How to Hide the Bedroom TV
Switchable Mirror Glass Windows
SONOS: The Ultimate Sound System
Haute Refrigerators for Cool Kitchens?
The Overflowing Infinity Tub
Wine Storage for Oenophiles
The Illuminated Bathtub
Wireless Home of the Future?
Imagine a world uplugged!
That future has quietly arrived with the first successful resonant transfer of wireless power over a span of seven feet and carrying enough power to brighten a 60W light bulb.
This humble beginning leads ambitious minds to think of a luxurious home where cell phones, laptop computers, lamps, Roombas and even hair dryers would need no cords to operate.
The Genius behind this exciting development is a wizardy team of scientists from MITs Department of Physics, Department of Electrical Engineering and Computer Science, and the Institute for Soldier Nanotechnologies.
They call this concept œWiTricity, which should not be confused with radio waves, which transmits information wirelessly and in all directions. WiTricity, on the other hand, involves using coupled resonant objects. In other words (and as I understand it), the transmitter and the receiver would be operating on the same resonant frequency which would not interfere with other wireless devices.
This might also be what separates it from the Tesla Effect, which allows farmers, for example, to gather electricity via coils of wire laid beneath power transmission lines on their property.
Sometimes astounding discoveries have simple beginnings. The initial inspiration for this development came several years ago when MIT Professor Marin Soljacic grew tired of hearing his phone beeping to let him know he had forgotten to charge it and began to wonder about the possibility of a self-charging cell phone.
And isnt that a frustration we have all experienced?
It is fun to imagine the wireless possibilities in homes of the future–and the technology would likely be seen first in the top end luxury home market (Bill Gates or Larry Ellison’s homes perhaps?)
A tip of the top hat to Bob Nagel for the find and to PhysOrg for the reporting.
The Luxury Blingdex
Luxury is booming and Wall Street is keeping a keen eye on how the rich are spending their wealth. And what better way to measure that hedonism than by creating a variety of indexes that track the shopping of the ultra-rich? The demand for four-figure handbags, five-figure baubles, six-figure cars, luxury resorts and travel, insurable art and heady wines has created a new and trackable economy for the very wealthy.
What intrigues investors is how well the carriage trade merchants are faring. This is mostly due to the fact that the rich are getting richer and their numbers on a global basis are growing along with their spending habits. A look at some of these uber-wealth tracking indexes reveals more than a little about the favored products and shopping stops of the rich. For example, sales at Saks Fifth Avenue and Barneys New York are increasing at twice the level of the retail sector as a whole. Some of the indexes and the luxury companies they track include:
- Merrill Lynch tracks a basket of companies including BMW, Porsche, Bulgari, Coach, Tiffany Jewelers, auctioneer Sothebys and the private banking firm Julius Baer. The performance? Up 23 percent in 2005 and 12.5 percent in 2006. This compares to the respective 14 and 7 percent for global consumer stock during the same periods.
- Citibanks Plutonomy Index tracks world spending of the worlds growing class of plutocrats. This index mirrors much of Merrills, but also includes Japans highly regarded Shinwa Art Auction and Hong Kongs Mandarin Oriental Hotel Group. We might call this one the œruler of wealth.
- Deutsche Borse introduced its own World Luxury Index earlier this year. It tracks Bulgari, Sothebys, Hermes International and requires that the companies it tracks generate at least 50 percent of its income from luxury spending.
What is the appeal of these indexes? Some surmise that those who cant afford the lifestyle of the ultra-wealthy can still be œin the money by investing in so-called luxury stocks. Finding true luxury stocks can be a difficult task, though. Many of these high end brands are now part of larger conglomerates. And because publicly-traded pure luxe companies are becoming so rare, many of the indexes are including brands such as Nike, Puma, Gap Stores, Harley Davidson and other popular products in their mix.
The reason for this interest is obvious. The rich are getting richer and are far more numerous. The number of millionaires in the US has more than doubled since 1995 and total wealth held by the top 1 percent has increased by more than 50 percent since 1998 (much due to real estate appreciation, Im sure). It should come as no surprise that luxury spending has kept pace with the soaring incomes and wealth at the top rung of of the economic ladder. And according to a Citigroup study, the top 20 percent of American earners are responsible for between 37 and 70 percent of total consumption.
And what is fueling this consumption? Its the desire to have the finest in homes, travel, dining, dress, art and social connections, according to Margaret Mager with Goldman Sachs High-End Consumer Index. œToday the good life is defines by the assets you have, she said.
Tip of the top hat to Robert Frank and The Wall Street Journal Wealth Report
