Pelican Marina Residence Resort is another example of this expanding market!

Fractional residence resorts continue to expand in the Caribbean. Another one to check out is at Pelican Marina Residences on the Dutch side of St. Maarten the shores of Simpson Bay.  St. Maarten / St. Martin is the smallest island in the world shared by two nations with a melting pot of French, Dutch and Caribbean traditions. Right in the middle of the action is the Pelican Marina Residences. The Caribbean fractional condos at Pelican Marina Residences offer 83 two-bedroom villas sleeping up to six people. All condos can be locked off into a one-bedroom suite for four and a junior suite for two.

This fractional ownership project is located in one of the best beach locations on the island, within walking distance of all the water sports, bars, restaurants, casinos, and shopping you would ever want in the Caribbean. St. Maarten is also the location of one of the premier IYM marinas in the islands. If you remember, this is the marina company that has developed Yacht Haven Grande in St. Tomas, USVI.

Pelican Marina Residences are just a 10 minute drive to St. Maarten’s capital, Philipsburg, and is only a 20 minute drive to Marigot Bay in St. Martin. The residence villas are fully furnished and include all the amenities for a Caribbean stay. They have a state of the art fitness center and Spa, and with a luxurious pool in the center of the ocean front residences. As an owner you are also able to use all of the facilities connected to the Pelican Resort that is right next door.

Remember, fractional ownership is an exciting and fast growing concept in resort luxury vacation home ownership. Think of it as you and three friends buying a vacation home together. Each owner has the ability to own there very own vacation home, but they do not have enough time to use it as much as they’d like. So, with a fractional ownership each owner enjoys the benefit and convenience of having access to the vacation home for a fraction of the year. Their investment and ownership is matched to the expected use, and the costs are kept lower by paying only for the portion that actually used. This allows a fractional owner to have all of the luxury associated with spending time in the Caribbean, without the hassles normally associated with owning and maintaining a vacation home. Most all of the fractional vacation homes in the Caribbean are professionally managed and maintained for you by the fractional resort development company.

I love this two-nation island. It has all three aspects of the Dutch, French and Caribbean flavors all mixed into one. It is an easy island to get around on, and the beaches are over the top! I enjoy spending an afternoon at the world famous Orient Beach on the French side because it always feels as if I am in St. Tropez. Let me know when you check out St.Maarten / St.Martin, in the Paradise called the Caribbean chain of islands. Until next time…

The chic Caribbean fractional ownership destination is now the DR!

So, will you be surprised if I tell you that the Ritz-Carlton is one of the KEY players in the fractional ownership 5-star resorts in the Dominican Republic? Well, hang on to your bathing suits, it’s TRUE! You have probably never heard of Cap Cana either, have you? Cap Cana is one of the best kept secrets in the beach community of the Caribbean. That is where the Ritz is building their next deeded fractional ownership residence resort! What a location – five miles just south of the eastern tip of the DR, with three of the top beaches in the Caribbean!

Cap Cana is also going to be the site of THREE Jack Nicklaus signature golf courses! Cap Cana is expected to be one of the real jewels of the Caribbean! In addition, there is one of the largest marinas in the Caribbean being built right next to one of the most beautiful white sand beaches in the Dominican Republic. How in the world did I miss this one? The Ritz-Carlton Residence Club is to open in 2010 with a two phase $1 billion project. If the Ritz has committed to the DR, more are right behind.

J. W. Marriott Jr., chairman and chief executive officer of Marriott International recently said, “Cap Cana has envisioned a bold luxury tourism and real estate development project that promises to be one of the most exciting new destinations in the Caribbean. We are excited that our Ritz-Carlton brand will be represented at Cap Cana and are hopeful that one or more
of our other hotel brands will also fit in with Cap Cana’s plans for this world class destination.”

Other international resort players who are rushing to Cap Cana are;

• Westin Resorts: beach club, spa, aquatic center, and a Nick Faldo-designed golf course. The 360 varied private residences include beachfront homes, jungle bungalows, and “EcoDream” villas with spa-appointed roof decks. Properties here range from $400,000 to $4 million.
• Trump Faralon Estates: Trump Farallon Estates will include 68 estates with at least 1.5 acres each, all within a gated community high on a bluff overlooking the ocean. But… you’re SOL if you want in on this action; all 68 homes, ranging in price from $3 million to $12 million, sold in a single day in May 2007. Can you believe it? Where have we been?
• The Estates At Punta Cana Resort & Club: Julio Inglesias is one of the key investors that are developing three luxury communities called The Estates which includes La Cana golf course and four miles of unbelievable beaches! “Corales” is the most exclusive of the three communities with 140 home sites at $1.8 million each! Yikes!

This is all happening RIGHT NOW in the Dominican Republic. Where have you been hanging out in the Caribbean? You better hurry up and get to the DR before it gets out of reach as St. Barts has already done to most of the world. I will keep you posted as to the latest developments as I explore other parts of the Dominican Republic. There are still some GREAT bargains left, but not many. Until next time….

The reason “Fractional” is in quotes is because of how property ownership works in Aruba.

Aruba is now listed as one of the “hot” islands for the further development of fractional resort and second home properties.  Hotels Magazine says that there are over 2,000 units already planned for Aruba!  The other “hot spot” is St. Maarten with Pelican Bay Marina as a specific example of what is happening on St. Maarten.  And, the fractional properties “market of tomorrow” is the Dominican Republic.

Aruba is just off the coast of Venezuela, at the bottom of the Caribbean islands chain.  Dutch is the still the official language since the island is still a part of the “Kingdom of the Netherlands”, with an American influence, too.  The official name is “Aruba and the Netherlands Antilles”.  The BIG draw to Aruba is the spectacular beaches that surround the island.  As you know, this is one of my top three criteria for the islands we visit – great beaches!

Speaking of Aruba beaches, you need to meet Gabriel when you are on-island.  He is the beach detective for Aruba.  He even has a website set up to introduce you to his latest discoveries and experiences related to the island’s beach scene – ArubaBeaches.com.  His site is invaluable for also finding things to do when on-island.  He is very accessible and will even answer your email inquiries and questions.

Because Aruba is still connected to Europe, the major portion of the people buying up “fractionals” in Aruba are from England and mainland Europe. The beaches, the price of property and the currency are critical factors to Aruba being one of the true bargains for Europeans and Brits looking for a slice of Paradise. As for the Americans, their reasons for buying in Aruba are because it has the most consisten t weather in the Caribbean (generally no hurricanes) and the wonderful and friendly people.

I am doing more homework on the way Property ownership is structured. The easiest way to explain it is that property purchased by non-citizens is done as a co-op partnership. So, be careful when the word “fractional” is used to market any properties in the Caribbean. The actual use of the property is structured as a true deeded fractional ownership. It is just a different legal ownership of the land. More to come, as I sort the details out further.

 For your first visit to Aruba you may want to stay at DIVI All-Inclusive resort.  It is an amazing place to stay as you are introduced to your unforgettable experience on Aruba.  While you are staying at DIVI you can check out Aruba Palace. This is a beautiful villa on the northern side of the island, just five minutes from the white coral sand beaches and world class golf resorts.  For $200,000US you can purchase an equal share of four weeks a year to enjoy the exclusively use of your villa. It is completely furnished and includes two Jaguars waiting for you in your own parking lot.  Aruba Paradise also has a management and rental program if there are times you are not visiting your villa.  This “fractional” villa has four bedrooms and four baths with a pool and fenced property. (While speaking with the owners I found there are only a few ownership shares left.)  As always, I am on the hunt for the best lifestyle and real estate opportunities in the Caribbean. Until next time….

South Beach-Belize is THE art deco destination resort community on Ambergris Cay!
WOW! I just discovered the southern tip of Ambergris Cay, and what is unfolding on this Caribbean island paradise!  Have you ever walked down South Beach, Miami and soaked in the art deco experience of years gone by?  Well, get ready for a 2008 “déjà vu all over again” experience at South Beach, Belize.  This is a 700 acre planned community that recreates the character and lifestyle of its Miami counterpart with a very distinctive art deco style.

South Beach-Belize features art deco architecture with pristine landscaping and canals winding throughout the entire community. The community is entirely gated with 24 hour security personnel. There are even art deco life guard towers on the beach!  The prices are amazing!  Two bedroom villas start at $225,900 up to four bedroom villas for $375,000. The condos start at $139,900! The word on the street is that this will be one of the top five Caribbean destinations when it is completed – hotels, casinos, miles of beaches, world class restaurants and shopping, and all of the water adventures connected to the Caribbean!

Some background information for those that don’t have any idea where Belize and Ambergris Cay are located…  Belize is on the Caribbean side of Central America – about 200 miles south of Mexico’s Yucatan Peninsula.  The Caribbean reef that borders Belize is the world’s second largest reef – 190 miles long. The Great Barrier Reef in Australia is number one. Ambergris Cay is the name of Belize’s largest island of the 200 cays off its coast. The island is only 25 miles long and just one mile wide. The history of the island goes way back to the Mayans, European Pirates, and Mexican Refugees who fled during the Caste War. The descendants from Mexico make up most of the island’s population today. The economy of the island was once dependent on the coconut industry, followed by the fishing industry. Today the economy is based on tourism, and is a very tax friendly country for all those connected to the country.

Belize is the only officially English speaking country in Latin America. It was a British Crown Colony for more than 100 years – British Honduras, and became an independent country in 1981. It is now a key destination for expats from all over the world because of demographics of the country, and its beautiful location in one of the most sought after Caribbean destinations. Email me if you want more information about Belize, and/or South Beach-Belize. Until next time…your Caribbean lifestyle report remains on the hunt!

This past year a significant increase in Brits and Boomers bought Caribbean real estate!

An interesting phenomenon has occured in the 2007 real estate activity in the Caribbean. There was a BIG increase in the real estate sales of full ownership and deeded fractional ownership from Brits and Boomers! The two geographic focuses of these groups were the British Crown Colonies for the Brits -  The Turks & Caicos, Anguilla, the BVI, Montserrat and the Cayman Islands. And the U.S. Virgin Islands for the Boomers.  There are several factors that drove the increase in purchases from these two groups in 2007;

The Brits Top Choices In 2007: The Turks & Caicos, Anguilla, the BVI, and the Cayman Islands  ( Monterrat is still in a recovery mode because of the devastation of the eruption of the volcano several years ago. It is still a very challenging place to live given this sad event.)

• The value of the British pound creating an increased buying power for any economy with the U.S. dollar as their currency.
• An expansion of the Brits vision for places outside of England to live part-time or full-/time that are considered safe, a tax favored environment for banking and insurance, unforgettable tropical experiences, wonderful local citizens, and a tranquil quality of life.
• The ease for them to manage through the banking and finance hurdles which are effortless for them when making a purchase in a British Crown Colony.

 And, as Suzie Egan, our dear friend from England, mentioned to me today, “I have never seen such an attitude among the citizens of my country of the need in finding a safe haven to live other than the British Isles.” Actually, her comments were a surprise for me to hear. I have more “detective work” to do in order to fully understand her statement.

The Boomers Top Choices In 2007:  U.S. Virgin Islands – St. Thomas, St. John, and St. Croix

• They are concerned about their buying power with the U.S. dollar, so they are typically staying with U.S. Territories for their “foreign” purchases. It is odd for me to think that most of this group wants to have a “tropical experience” without the thought of dealing with some of the peculiar aspects of a “foreign country”. It is like going to Hawaii for them, but they feel as if they are out of the country. ( This is a small editorial comment on my part.)
• A very large portion of this group has lots of money. In 2007 over 42% of their Caribbean purchases were ALL cash!
• The deeded fractional ownership markets are focused in the United States resort communities of the U.S. Virgin Islands, the high end U.S. ski resorts, and Hawaii. The major players are Marriott/Ritz Carlton, and Starwood Resorts. ( A key factor hindering the deeded fractional ownership markets in the non-U.S. Territories in the Caribbean is the way ownership of land is structured for non-citizens of the individual countries or Crown Colonies.)
•  The safety and infrastructure regulations required by a U.S. Territory compared to the varied infrastructure regulations throughout the rest of the Caribbean seems to set their minds at ease. The Boomers want to get off the plane or boat and not have to think about what they eat or drink.

There are three other populations that have increased their sales and focus in the Caribbean – Europeans, Canadians, and several of the South American countries. Stay tuned! I am sure you can imagine that I have some opinions as why this is also occurring. The Caribbean is where the action is for 2008 real estate sales! Until next time…your Caribbean lifestyle detective is on duty.

The latest greatest products are being constructed on Anguilla!

WOW! Viceroy Anguilla is creating one of the most amazing residence opportunities in the Caribbean – full ownership in a 5-star resort community! They launched the final phase of their exclusive resort this past winter with 45 residences still available! The residences that are purchased at full price have the option to enter their unit into the hotel management rental program while owners aren’t staying there. The Viceroy development purchased 3,200 feet of beach front property near the western end of Anguilla occupying most of Barnes Bay and Meads Bay. The 35-acre project is part of the expanding Viceroy brand which includes luxury resort projects in Southern California, Mexico, Florida and Colorado.

All of the “resort residences” are situated on the bluff or the beach! They are all sold furnished with the interior designed by the world acclaimed designer – Kelly Wearstler. The free-standing villas, from 4,335 to 6,100 square feet, and the 3,300- to 4,300-square-foot, two-level town houses also have private infinity pools; the studio to three-bedroom condos will be in 16-unit buildings with their own private infinity pools. The projects include five restaurants offering casual and fine dining, access to a 78-foot yacht, a club with activities for children and three tennis courts. There will also be a 20,000-square-foot Asian-inspired spa with a fitness center.
The ground breaking of this project was hosted by Alex Samek, KOR’s Director of Acquisitions & Development. “I now like to welcome everyone to the site of the next great resort in the Caribbean – Viceroy, Anguilla,” he said, attracting much applause. “Anguilla has long been a standard bearer for low volume, high value, upscale tourism – first with the opening of Malliouhana, Cap Juluca and CuinsinArt. Anguilla has established itself as one of the premier destinations not only in the Caribbean, but in the world. Viceroy Anguilla plans to build on the foundation established by the predecessors and to raise the bar of five-star luxury development in the Caribbean.”
My experience is Viceroy Anguilla is an over-the-top “10-star resort”. The residences range in price from $1 million to $10 million! Holy Moly! It has already been rated as one of the top 20 resorts in the world! Until next time…your Caribbean lifestyle reporter continues his work.

Fractional ownership of Caribbean real estate continues to SKYROCKET!

January puts Caribbean real estate smack dab in the most active real estate time of the year – both for buyers and sellers. And, deeded fractional ownership of 5-star resort properties continues the momentum of 2007 into 2008. It is impacting the Virgin Islands and Caribbean re-sale of homes, town homes, and condos. The real estate developers of fractional ownership properties are getting into their “groove” regarding what the worldwide consumer is looking for in second homes that will be occupied for a month or less a year.

Some of the BIG players hitting the bullseye are The Marriott Corporation – which includes the Ritz Carlton fractional products from the Caribbean to Hawaii, The Westin Hotel Group – with properties from the Caribbean to Hawaii, and Harlequin Property – with the most choices of 5-star resorts in the Caribbean, from St. Vincent to the Dominican Republic. ( You may recall from past postings, Harlequin Property even has 100% financing available for all of their resorts.)

In 2007 80% of the buyers for Virgin Islands real estate came from the Eastern half of the U.S.  European buyers made up almost 20% of the purchases – a HUGE increase from any past year.  This increase in European buyers is because the Euro continues to kick the heck out of the U.S. dollar – $1.48 for one Euro today!  We expect Europeans to flock to the Virgin Islands even more in 2008 because all real estate connected to the dollar is on sale for those who own Euros. Of the 2007 real estate purchases, over 40% of them were ALL CASH!

What does all this mean for the sellers and buyers of Virgin Island and Caribbean real estate?  If you are a seller, get your home on the market NOW!  As sellers you want to be right in the middle of the hottest part of the real estate market year. Again, that is NOW!  Sellers need to contract with the most experienced Realtor they can find, and present their home in turn-key condition. When contracting with a Realtor find out what their international marketing plan is to the U.S. and to European buyers. It is critical for a Realtor serving the Caribbean real estate market to have an internet based marketing system, and have them demonstrate to you how it works. You want to confirm how they are reaching the potential buyers for your home.

As a buyer in 2008 of Virgin Island and Caribbean real estate, you are going to have your pick of some great bargains. Some have huge appreciation potential, if you know where the values are.  Some of the real estate “hot spots” are;  St. Kitts, St. Vincent, Anguilla, Dominic, and the Dominican Republic.  If you are up for some risk, there are even some great values on the Caribbean side of Central America.

The outlook for buyers and sellers in the Virgin Islands and the Caribbean is “bullish” for 2008!  Deeded fractional ownerships of resort properties will continue to gain market share away from the fully owned homes and town homes/condos. Those who have Euros will have the biggest buying power for any real estate connected to the U.S. dollar.  Find the best Realtor you can to represent you. Contact me anytime with questions.  No one knows the Caribbean real estate market like I do!

Harlequin Property from London, England is building five 5-star resorts in the Caribbean

 Sometimes the hurdle that slows down a person thinking of purchasing their second or third vacation home is MONEY!  As I mentioned last week, deeded fractional ownership of vacation resort living is sweeping the Caribbean – from the Dominican Republic to the Grenadines.  A London company, Harlequin Property, is in the midst of developing five very high end deeded fractional ownership and full ownership Caribbean resorts.  The “hook” that they are using to promote the purchase of their properties is 100% financing!

Over 40% of the properties purchased in the Caribbean are done with all cash.  However, that leaves 60% of the properties purchased with some type of financing.  Caribbean properties purchased by Europeans are increasing dramatically because of the value of the Euro and the British pound.  Today it takes $1.47 to purchase one Euro!  So, if someone with Euros is considering purchasing property in the U.S. Virgin Islands, it would be a “fire sale” for them because of the HUGE discount they are getting because of the value of their currency.

So, what do Americans do regarding their Caribbean resort property purchases when many of these resorts are outside of the U.S. domain?  Harlequin Property has designed a way for almost ANYONE who currently owns real estate to purchase their properties for almost no money down.  Here is a simple explanation of their financing proposal.

•  The resort property purchaser borrows money from the equity of their current real estate for the down payment of the resort property.
• Harlequin Property signs an agreement with the purchaser that they will pay the interest payments on their equity line debt for three years, and provide them a loan for the remainder of the purchase.
•  Harlequin Property will refinance the entire property in three years, adding into the principle the amount they paid for the interest only loan payments.  The appreciation of the real estate in those three years will allow the borrower the ability to take out equity from the Caribbean resort property and repay their equity line loan.
• Final result…the purchaser has bought a Caribbean resort property for no money down!

There are obviously restrictions as to who can qualify for this financing program with Harlequin Property, but because of this purchase option the Harlequin Property Caribbean resorts are selling like hotcakes!  Please contact me if you would like more detailed information about how their program works.  Until next time…

This form of real estate ownership continues to be impacting all Caribbean real estate. 

What is becoming evident is that the Baby Boomer second home purchases are moving towards fractional, deeded ownership as opposed to full ownership of a second home or townhome. The realities of how the Baby Boomer customer is making real estate decisions regarding second and third homes has created a brand new focus of real estate development – not just in the Caribbean, but all over the U.S. and the world.

 

We now have fifteen marketing agreements with fractional ownership opportunities, in the

Caribbean alone!  They range in price from $145,000 to $600,000!  The ownership offered ranges from 21 days to 30 days.  With a deeded fractional ownership you own a tropical second home with typically eleven other people.  Your time schedule at your tropical home is arranged so all of the owners have prime time opportunities to visit the resort property.  You are also sharing in any rental income when you are not there and someone rents it from the management company.

When a fractional ownership is purchased through the Ritz Carlton, the Westin Resorts, Raffles Resorts, and other international 5-star resorts, you are able to follow the snow or the sun since the opportunities are all over the world.  The Ritz is currently the leader with the most fractional deeded options for consumers, however Weston Resorts is coming on strong.  The Ritz has fractional opportunities from Hawaii to the Caribbean, with Aspen, Colorado as part of the choices.  The Westin Resorts is currently only in Hawaii and the

Caribbean. However, they have BIG plans to add many more location options soon.  This has become one of the most profitable division of these companies.

 

One of the best bargains in the fractional deeded ownership opportunities is in the Dominican Republic – Jardine de Coson!  As I have mentioned in past writings the Dominican Republic has generally been ignored because of the misconception that they are just like Haiti.  Those with that opinion are dead wrong.  What a wonderful tropical experience is awaiting those who venture to the DR.

For more of the details of how fractional deeded ownership resort properties might be a part of your personal real estate portfolio, contact me.  It is a fascinating choice to consider.

The second home resort real estate market is being dramatically changed!

OK! So, I did my homework last week and visited two more fractional ownership opportunities for people who want deeded ownership of their resort home, but not all the hassles of the financial outlay and the maintenance responsibility.

The Residence Clubs of the Ritz Carlton, the Weston Resorts and Harlequin Property are examples of three companies at the top of this niche market. Remember,

• You actually own a portion of the property along with several other fractional owners. 
•  You enjoy the typical appreciation that occurs with deeded resort property.  ( Timeshares decrease in value the moment you purchase them because it is for a specific period of time as opposed to you owning the property with a deed.
•  You decide how much of the ownership you would like to have.  Fractional ownership costs millions of dollars less than owning a traditional “second home”, whether it is on the slopes of Aspen, on a tropical beach in the Caribbean, Hawaii, the South Seas, or even Phuket, Thailand.

 Our company represents over 15 fractional and full ownership 5-star resort properties from the Caribbean, to Tuscany, to Thailand! The cost of a fractional ownership of 5-star resort properties ranges from $145,000 to $1,000,000 and more.  Some of these resort home developers even offer 100% financing.  Let me know if we can be of assistance.  Until next time…your luxury lifestyle detective is back to work for you.