In spite of the credit woes of major world markets, the Caribbean condo / fractional ownership markets continue to expand!

The news last Friday from the Wall Street Journal and the National Association of Realtors is the second home purchases last year represented almost a third of all home puchases, and the focus on those purchases were in the condo / fractional markets!  If you have been following my postings, you know my belief that the trend in Caribbean real estate is in the fractional deeded ownership world.  And, the great majority of those purchases are in the condo products.  There are seveal factors leading to this thriving segment of the real estate markets in the Caribbean.

1. Easy access of the purchase because of pricing and financing.  Many of the homes and villas in the Caribbean have priced themselves out of the reach of most consumers.
2. Location, location, location!!!  Developer of the condos and fractionals realize the intense interest in owning something in Paradise, so they are building them on a beach setting in the most beautiful part of the world.
3. NO maintenance other than making sure you care for the interior of the condo.  All outside maintenance and management is included in the price.
4. With the fractional condos, the product has created such an easy access appeal to consumers all over the world, that even the major luxury resort builders are recognizing the profitability for them to create and expand the product.
5. The incredible value of the world currency compared to the U.S. dollar.  Wouldn’t like to have your currency in Euros today – $1.61 per Euro?

If you are in the shoes of the developers, they are able to leverage their investment in the development and buildout of the condo / fractional markets because they are able to sell them at a higher per square foot price than with a single home.  For example the fractional market pricing allows developers to sometimes be able to triple their square foot price because the purchaser is willing to pay a premium so they do not have to own the condo by themselves.

Check out what the Ritz Carlton Residence Club is doing in the Dominican Republic if you want to notice the health of this aspect of the real estate markets in the Caribbean.  They announced last month THE largest Residence Club in their history of resort development in the Cana beach region.  From all reports, it appears to be their most luxurious project so far.  I have not reviewed the annual financial reports of the Marriott Corporation, but I would venture to guess the Residence Club division of the company is their #1 profit center.  So, where are the DEALS?  Here are just a few that I am very excited about for those who ask me this question from time to time;

1. Turks & Caicos – L’Emeraude Resort
2. Belize – South Beach Belize
3. Dominican Republic – Los Altos Residence Club
4. St. Lucia – Le Paradise Beach Resort
5. Bermuda – The Reef Club
6. St. Maarten – Pelican Marina Residence Resort
7. Cayman Islands – The Waterford Private Residence Club
8. St. Thomas, USVI – Ritz Carlton Residence Club

There are several other favorites, too.  If you want my expanded list, contact me and I will share it with you.  For those who are interested in condo / fractional real estate ownership, this is the time to purchase!  I have never seen anything like it in the Caribbean before.  Until next time…your Caribbean lifestyle detective remains on duty!

The Westin St. John has announced its newest phase of fractional villas, and the Ritz continues it’s gorgeous expansion, too!

Our offices are just across the bay from St. John, at Red Hook, St. Thomas. So, we are fortunate to be able to catch the St. John Ferry from American Yacht Harbor any day we want to visit this treasure of a National Park.  On St. John, the Westin St. John Resort & Villas is opening their newest opportunity of fractional ownership with the Bay Vista phase overlooking Great Cruz Bay, and is expanding the ownership opportunities at one of the most popular resorts in the Caribbean. ( You do remember my other top Caribbean Islands from past postings, don’t you? )

This newest phase includes 54 units – 22 two-bedroom, eight two-bedroom lofts, and 24 three-bedrooms. Some of the highlights of the Westin – St. John are; a beautiful pool overlooking the Caribbean with a really fun pool bar; waterslide and Jacuzzi; a fabulous spa facility; a kids club; grocery store/market; tennis facilities; plus, several great restaurants. The actual condos have; stunning views of the Caribbean; a washer/dryer; balcony; flat screen TV, DVD, Hi-speed wireless internet; oven; microwave; and a dishwasher.

“St. John is one of our most popular destinations in the Caribbean, and this resort is considered one of the most beautiful mixed-use resorts in the region,” said Sergio Rivera, president, real estate development, Starwood Hotels & Resorts Worldwide. “This resort has among the strongest demand for owners, and we are excited to add another 54 luxury villas in this spectacular setting.”  The plan is for them to add an additional 1,600 new villas at their U.S., Hawaii, Mexico, and the Caribbean. Starwood Vacation Ownership will have more than 6,000 villas in total upon the final completion of the announced resorts.In addition to what the Westin St. John is doing with their expansion, the Ritz Carlton Residence Club at Red Hook, St. Thomas is also in the midst of expanding their 5-star Residence resort on one of the many beautiful Caribbean beaches.  Remember, deeded fractional ownership of a Club Residence can cost millions of dollars less than owning a traditional second home directly on the beach.

Ritz-Carlton Club Membership prices currently range from $144,000 to $530,000 per interest, based on location and residence type. The Ritz Residence Clubs truly deliver one of the best second home experiences you could ever imagine. We have stayed at the one on St. Thomas many times and we always feel very pampered before or after a sailing adventure.  Also, they have Clubs in the U.S., and Hawaii.  So, contact us regarding either of these fractional deeded ownership opportunities – St. John Westin, and St. Thomas Ritz Carlton.  And, don’t forget your sun screen.  It is around 85 degrees down here everyday. Until next time… I am off to Barbados to check out the Crane Resort.  I will report back.

  Le Paradise Beach Resort – St. Lucia, and Los Altos Residence Club – Dominican Republic are awesome fractional residence choices!!!

So, I am back on the road looking for more fractional ownership and real estate opportunities in the Caribbean.  Two that just showed up on the radar are Le Paradise Beach Resort in St. Lucia and the Los Altos Residence Club in the Dominican Republic.  If you recall from past postings, St. Lucia was named as one of the “Top Five Places To See In Your Life Time” by O Magazine.

The Le Paradise Beach Resort is a ¼ fractional ownership condominium opportunity.  WOW! They are creating a five-star luxury community on St. Lucia with a completion date of this $1 billion development in December 2008 for Phase One.  It will also include a Greg Norman Signature Golf course, a yacht marina – which I obviously will love.  In addition they are building an International shopping village, a gorgeous European spa and fitness center.  Le Paradis Resort has miles of private beaches, great diving spots, plus sport fishing – all as part of this luxury community.

Each quarter-share fractional condo is a spacious 2-bedroom / 2-bath residence including a gourmet kitchen, designer interiors, plasma televisions, high speed internet, central security and life safety systems and Westin beds. The architecture will be reminiscent of the island’s colonial past with a mix of Anglo-French Caribbean tones.  Those that are wise enough to purchase any of the condos in Phase One will also have their golf initiation membership cost waived, plus they will receive two years of golf dues paid.  Amazingly, the St. Lucia government has issued a 10-year property tax waiver for this project’s Buyers!!!  The developers are pulling out all the stops to entice you to check it out.  The prices are yet to be published but full ownership of these luxury condos ranges from $450,000 to $1,300,000!

Los Altos Private Residence Club is a part of the Casa de Campo ocean front 7,000 acre, world class resort.  Casa de Campo won the “#1 Family Friendly Resort In The Caribbean” from Travel & Leisure, and “#1 Golf Course In The Caribbean” from the same magazine. The residence club consists of 116 2-bedroom and 3-bedroom luxury condominiums. I discovered that it has already become the fastest selling Private Residence Club in the Dominican Republic! They have been open for business since December 2007! Don’t wait to check it out.

Los Altos Private Residence Club enjoys the amenities of this world class resort; beaches, sailing, golf, tennis, equestrian facilities, spa and massage facilities, poolside lounges, deep sea fishing, and much more! Each of the residences are decorated with an Asian-style influence with wood, stone, metal and water treatments.  They have soaring 10 foot ceilings, and 20 foot vaulted ceilings in the penthouses, plus the oversized terraces with breathtaking views.  These fractional condos start at around $200,000 for a 1/8 fractional ownership! So, these are the two latest discoveries I am bringing to you.  For more information, email me or leave a comment. I will get back to you.  Until next time…I continue to be on duty as I comb the Caribbean for the best real estate opportunities in Paradise.

The Reefs Club is one of the latest fractional 5-star resorts in Bermuda!

Guest contributor:  Sherman Potvin is recognized throughout the fractional industry as one of the most experienced consultants in the field. He has worked with leading companies such as Intrawest, Four Seasons, and the Ritz Carlton, as well as many individual developers around the world.  Mr. Potvin founded the world’s most respected Website for fractional real estate – Luxury Fractional Guide. And he has recently completed a book designed to aid vacation homeowners in fractionalizing their personal homes. He has served on numerous boards and panels at fractional symposiums throughout North America. Mr. Potvin has been involved with real estate as a broker for more than thirty-five years and, for the past seventeen years, has helped shape the fractional industry and bring it to its accepted prominence today.  Below are a summary of his comments about The Reef’s Club in Bermuda now offering fractional ownership.

The challenge with fractional ownership properties in Bermuda are the laws requiring that most of the land needs to be owned by residents of Bermuda. The structure of the purchase of fractional ownership at The Reef’s Club allows a person interested in ownership of a luxury resort residence to circumvent this restriction.  One of the real draws to Bermuda is its location – approximately two hours by plane from most of the East Coast airports to this small island with a “big island” feel. Bermuda is actually a collection of 180 islands linked by bridges and divided into “parishes”. All of the “parishes” enjoy spectacular pink sand, tropical coral reefs, lush vegetation and 80 degree weather most of the year.

The Reef’s Club is a collection of spectacular two and three bedroom residences with nothing but ocean views in front of all of them. The Reef’s Club is designed to combine fractional ownership of new beachfront homes with the Reef Hotel Resort’s world class hospitality. The amenities are all that you would expect from such an exclusive resort community; infinity pool with pool-side services, fitness center, roof top putting green, and full access to all of the hotel’s factilities – restaurants, tennis courts, and the award winning day spa.Scheduled for a completion in 2009, you are still able to buy at the pre-completion sales prices.  A 1/10^th deeded interest starts in the mid-$300,000. Ownership also allows you to exchange your vacation home for other luxurious residences in the Elite Alliance.  This collection of premium residence clubs includes properties in some of the world’s most coveted resort locations; beaches, golf mountains, and European destinations! For more details on fractional ownership at The Reef’s Club, contact me today!  Until next time, your Caribbean lifestyle detective is on duty!

The Fairmont Hotel in San Francisco was the host of this years conference ending March 20^th.

Ragatz Associates is an international consulting and marketing research firm that serves the worldwide resort industry.  It was founded in the 1974 by Dr. Richard Ragatz which has now conducted over 2,000 studies for resort developments in over 70 countries and across the United States.  The company provides two core services to the resort industry – feasibility analyses for resort projects and market research for the potential resort project.  Ragatz Associates focuses on consumer shared-ownership of the resort industry, which includes fractional interests, private residence clubs, destination clubs, and resort timeshares.

For the past eight years, Dr. Ragatz and his team host the annual conference which further explores the world of fractional ownership of resort properties.  This year’s conference was in San Francisco from March 18^th – 20^th.  The “whos who” of the resort property world were attending.  It was my pleasure to spend time at the conference and even have the opportunity to interview two of the conference presenters – Sherman Potvin, president of Luxury Fractional Guide, and Bob Waun, the CEO of Vacation Finance.  The conference agenda covered all aspects of the evolving world of fractional ownership for those seeking part time second homes around the world. A sample of the conference agenda follows;

• Today’s Affluent Consumer
• The developers’ view of the upcoming trends – from the Brand developers, Private Residence Club, and Independent fractional ownership developers.
• Fractionalizing “One-Off” homes – creating a fractional ownership for one residence.
• The external exchange companies
• Structuring the most proper offering of the fractional ownership product.
• The owners benefits and the required ancillary services.
• Critical legal issues in the fractional ownership industry.
• Financing fractionals in today’s wild financial market place.

For a copy of Dr. Ragatz 2008 report click here.  I believe the cost for those who did not attend the conference is $175. Please contact me if you like more information about what Fractional Ownership is about, or, if you are a developer, how you can maximize your return by creating a fractional ownership structure for your resort projects.  Until next time…

Most everyone I know thinks the Bahamas are in the Caribbean – they are not, but you will think they are when you arrive!

For the past year or more, we have been getting inquiries from Buyers who want information about buying in The Bahamas since they believe these islands are in the Caribbean.  Up until about six weeks ago I told all of those inquiring that the Bahamas are not in the Caribbean. Starting about six weeks ago there has been non-stop inquiries about real estate opportunities in the Bahamas. If you remember my “Brits & Boomers” blog posting, most of these inquiries are coming from Brittan, Europe and Eastern U.S. With this type of interest I had better pay attention to what the consumers are looking for.

One of the BIG benefits is that the Bahamas are so darn convenient for visitors to get there – direct flights from England and the Eastern coast of the U.S. It is definitely a British experience when you arrive. The uniforms of the police and driving on the left side of the road are just the first two clues of the British influence on this 100,000 square mile cluster of 700 islands that include an estimated land area of 5,382 square miles, and the highest land elevation is only 206 feet!

The diving is over the top as one of the many draws since The Bahamas have the third largest barrier reef next to Australia being #1, and Belize being #2!  It also has 14+% of the world’s coral. There are just over 305,000 Bahamians living on the islands with the majority of them on Nassau and Paradise Islands. There are actually only 14 main islands that serve the remaining 686 islands – either by boat or plane. The boat anchorages available throughout the Bahamas allows a sailor to never have another boat anchored next them if they plan their sailing adventure properly.

The African culture has created the flavor and texture of The Bahamas.  There is definitely a British influence , but the culture is West African.  One of the amazing festivals in the Bahamas is Junkonoo. This would be a close cousin of the Caribbean Carnivals, but it is held twice a year on Bay Street in Nassau, so the typical tourist does not get a chance to experience it.  But if you venture down the Prince George Dock in Nassau, you can check out the Junkanoo Expo. 

If sailing is your deal, as it is mine, then you need to show up at Montagu Bay for The Valentine’s Day Sailing Regatta. This regatta is part of the Caribbean regattas that are some of the most competitive in the world.  Remember Ondeck Ocean Racing charters?  They will be entered in 2009 and they are always competitive. It is truly a championship race that has all the fun of Race Week in Antigua. I have finally accepted the fact that the world embraces The Bahamas as part of the Caribbean scene.  So, if you would like to check some of the real estate opportunities in this “paradise” that is only 600 miles off the coast of the U.S., email me and I will send you some fun stuff.  Until next time…

  The fractional ownership trend is finally spreading onto the Cayman Islands!

When most of you think of the Caribbean you forget about the Cayman Islands, Jamaica, and the Turks & Caicos.  Also, many of you still think that the Bahamas and Bermuda are part of the Caribbean.  So, for those of you who have not yet experienced the outer islands of the Caribbean, here is some info to peak your interest.  The Cayman Islands consists of three small islands: Grand Cayman, Cayman Brac and Little Cayman. Cayman Brac can be reached through a weekly one-hour direct flight from Miami or through daily connecting flights from Grand Cayman. Residents enjoy freedom from taxation, a stable democratic government (British Territory), and the highest standard of living in the Caribbean.

Cayman Brac, the middle sized island, is about the same size as Manhattan (12 miles long, 2 miles wide) but the skyline that gives it its name is natural: a sheer rock bluff (“Brac” is Gaelic for bluff) that runs the center of the island and sets it apart from its two low-lying sister isles. The island is home to about 1,800 residents and has a number of caves dotting the island that are rumored to still hold hidden pirate treasure.

It is no secret that Cayman Brac has some of the world’s finest diving and its greatest attraction is its surrounding waters. Virtually every major dive magazine has ranked the island among the World’s Top Ten Destinations. That’s because just offshore you’ll find more than 100 species of coral, more than 500 kinds of fish and some of the most dramatic and unique geological formations on the planet. Cayman Brac offers some of the best diving in the Caribbean and most sites are just a few minutes boat ride from the resorts.

Crystal Azure Beach Resort is now offering fractional ownership at preconstruction prices. This is an opportunity to purchase an outright share of ownership in one of our luxury, beachfront villas supported by full service amenities and a comprehensive rental management program. This means you can use, rent, lend, trade, will or sell your fractional ownership as you see fit without restriction. The prices for a ¼ ownership start at $110,000US!  There are an additional $260 in monthly maintenance and management fees.

The Waterford Private Residence Club is another fractional ownership opportunity on Grand Cayman. It will be a five-star resort and spa. It will contain 50 two- and three-bedroom villas and four estate homes spread over 11 buildings and 10.5 lushly landscaped acres. As a fractional, buyers can purchase a 1/8 share which entitles them to six weeks of usage and additional time based on availability, at no additional cost. The prices for preconstruction start at $297,900US! The Waterford will be completed by May 2010.

All villas and homes will be delivered fully furnished and equipped with designer furniture and top quality appliances. When in residence, owners will have access to a Land Rover, BMW, Mercedes or Audi for their personal use. They’ll also be able to use a Boston Whaler boat, complete with captain. Owners at The Waterford will receive five-star quality care when visiting. From a 24-hour concierge to make golf and dinner reservations to pre-arrival grocery shopping service, every need will be attended to. With two pools, a community Great House with a cigar room, fine dining restaurant and bar, plus a full service spa and health club, it will be the choice of many discerning owners who can’t wait for the a home in Paradise.  I will keep you posted as to how the build out goes for both of these new fractional ownership opportunities that have now come to the Cayman Islands.  Until next time…

Grand Turks is the location of the newest beach resort

in Turks & Caicos –  L’Emeraude

I’m sure you remember my past blog about what is happening in the Turks & Caicos.  Well, it hasn’t slowed down a bit!   L’Emeraude has just broken ground on their beach front resort on Grand Turk.  The owner, Mr. Erwin Jones stated today, “L’Emeraude has been designed to offer a select few owners an oasis of peace and tranquility.  Plus, the floor plans feature thoughtful amenities such as living rooms that open to the broad covered terraces, spacious and well proportioned bedrooms, with views of the beach and the turquoise waters of the Caribbean.”

Mr. Jones’ vision has created a boutique resort that is limited to only 8 two-bedroom, two- bathroom oceanfront suites, 12 one-bedroom, one-bathroom suites, and 12 studios with lockout poolside suites.  The resort has been elegantly arranged around a stunning signature pool designed in the shape of Grand Turk.

The layouts feature an open plan living room/dining room with a fully equipped and well laid out kitchen. Suites on the upper floors boast 18′ high vaulted ceilings. Each of the beachfront suites is a corner unit, maximizing the dramatic ocean views and allowing the gentle sea breezes to flow through.  For the owners comfort each unit is also fully air-conditioned.

The beautifully designed garden features walkways to the beach, a central signature swimming pool that includes a small palm island and gazebos in which to relax and dream the day away. L’ Emeraude will offer a Game Room, Fitness Centre, Restaurant and Bar, Lounge Area and Gift Shop.

All the condo suites will be professionally designed and furnished with an attractive tropical furniture package. However, the real beauty of L’ Emeraude is it’s location on Pillory Beach, with the breath-taking Caribbean waters, and the charm and small town feel of Grand Turk. Grand Turk is just a short 25 minute flight from Providenciales and is well served by local scheduled airlines whose time-tables are conveniently coordinated with those of the major international airlines serving Providenciales. Grand Turk is a world unto itself. I know you will fall in love with it as we have. Prices range from $280,000 to $675,000 for presales. Contact me today for more information.

Harliquin Property just announced this morning that they are now offering fractional ownership in their residences at Buccament Bay Resort!

 London, England:  Hot off the presses…I just received confirmation this morning from London that Harlequin Property has just announced that they will be offering fractional owernship purchases for their residences at Buccament Bay Resort.  You will recall that I discovered this 5-star resort last September while sailing around St. Vincent. It is a spectacular resort right on the beach with all of the amenities one would expect. You will also recall that Harlequin Property is developing 5-star resorts in five other locations in the Caribbean. We are now a part of their worldwide marketing groups that represent all of their resort projects, from the Caribbean to Thailand.

In addition to the fractional ownership opportunities at Buccament Bay, Harlequin is offering their 100% financing package to those who qualify. It is a brilliantly simple financing structure that Harlequin Property has created that allows for a much broader group of buyers to participate in resort property ownership.

The developers of Buccament Bay have also created one of the biggest water gardens in the Caribbean within the resort.  They have contracted the services of Mr. Peter May, garden designer, author and water-landscaper, and editor of Water Gardener Magazine.  His January 23rd article was about this project. Mr. May flew to St. Vincent last November to preview the project and see if it was one that his firm would be willing to take on.  It has just been announced that Mr. May’s firm is going to take the lead on this project.

Mr. May says, “There should be a mass of material created from this adventure to show readers how to build water gardens in the tropics. Part of the excitment is that I don’t know what the challenges really are until I get started. One of them will undoubtedly be the weather, plus the exrtremes from one season to another, the sun and the heat are going to make water gardens become swampy lagoons in no time unless there is a plenty of oxygenation and a good balance of plants. Resorting to technology will also be imperative rather than an option with a project of this magnitude.”

St Vincent is the location for many of the scenes in “Pirates of the Caribbean” and the bay next along from where many of those scenes were shot is the site of a new pretigious holiday resort that has been is sensitively designed to blend in with the beautiful landscape. If you want to get an idea od what may be involved, take a trip to Buccament Bay and check out the site plan and the artist’s renditions of what is in store for those special few that purchase full ownership or fractional ownership residences in this 5-star resort on St. Vincent.  Your Caribbean lifestyle detective remains on duty.

In the past six months the impact of fractional ownerships in the Caribbean is impacting the resale of homes and condos!

The smart developers saw it coming and they are building the product for the demand – fractional ownership of resort properties!  Up until just two years ago if you were going to purchase a home, villa, or condo in the Caribbean, that would have been your choices.  In 2004 the Ritz Carlton at Red Hook, St. Thomas started seeing their gamble of selling just a portion of a residence start to pay off.  What is happening today is a BIG parade of world wide developers joining the game. And, what they are delivering to the Boomers, Brits, Europeans, Canadians, and Latin Americans are a multitude of choices of part time living in Paradise. ( Check out one of my past postings on fractional ownership.)

Just last week I was on St. Thomas speaking with one of the key real estate Brokers in the USVI.  He and his company are the foundation of the resale market in the Virgin Islands. During our discussion I asked him some very pointed questions regarding the impact that fractional ownerships were having on the resale market for homes, villas and condos. He said it has been dramatic! Todays buyers for Caribbean properties are generally not going to be living here year-round.  They are typically on-island in the Caribbean about a month a year, and then they are either back to their home country, or they have another fractional ownership in some other part of the world – following the snow or the sun. 

The fractional ownership model allows for the developer to maximize the value of the property because they are selling it to the buyers for a premium price since there is a management company as part of the package, plus the developer has each villa or condo completely furnished. So, typically there are twelve owners of each property, each of them purchasing a month of the ownership. The buyers are willing to pay much more per square foot for a fractional property than they would for an individual home or condo because of the amenities and the management contract.  Just for example, I did some homework with my calculator and discovered that I could purchase a villa for about $350 per square foot.  Hang on to your hats…the developers of a fractional ownership resort are able to sell each unit for close to $1,000 per square foot, and the buyers are standing in line to buy them!

The appeal is no hassles of management, they arrive to a fully furnished home or condo, they have ownership that can be sold or transferred to their heirs as is the case for any other real estate they own, and the property is in an ultra-luxurious resort setting on the beach or the ski slopes of the most sought after locations in the world! Now do you see why the fractional ownerships are the hottest real estate opportunities happening right now! Remember, the blog posting I wrote about Aruba’s fractional developments that are waiting to be built numbered in the thousands!!! If you want more information about the many fractional ownership resort opportunities in the Caribbean, email me.  I will send you lots of information that will allow assist you in making a purchase decision. Until next time…your Caribbean lifestyle detective remains on duty.