The impact of American and Continental cutting back their flights to San Juan, Puerto Rico in September is already causing ripples all over the Caribbean!

My last posting addressed the impact that the American and Continental Airlines 40% cutbacks in flights to San Juan, Pureto Rico - the gateway to the Caribbean Islands!  Well, I have received feedback from the USVI Hotel Association, the Virgin Island Charter League, and several BIG developers - all of whom are VERY concerned about what is unfolding with transportation to the Caribbean.

The USVI Hotel Association has formed an Airlines Task Force this week to create ideas that can address the loss of the flights by American and Continental.  One of the radical suggestions I am making is to have Southwest  Airlines be considered to take over the abandoned flights to San Juan.  Southwest Airlines made a brilliant move several years ago that was almost laughed at by other airlines when they purchase oil futures at somewhere around $50 a barrel.  They are flying with fuel at a price that is almost three times less than other airlines.  You will also note that Southwest has not created a per baggage charge for bags that are checked.  Let’s have the brilliance of Southwest benefit by having them fly the record numbers of tourists who want to visit the Caribbean.

The charter yacht industry is moving into two separate camps at the moment - those who are going to wait and see how the transportation issue of getting people to the Caribbean is solved, and those who have put their charter yachts up for sale because they don’t believe that they will be able to continue a profitable business with the various factors impacting the Caribbean charter businesses - fuel costs and less flights to the Caribbean.

Some of the developers have been ambushed with this latest development of how do willing buyers of both whole ownership and fractional ownership get to the Caribbean.  Many of them have either land banked a significant amount of Caribbean real estate, or they have already broken ground and committed millions of dollars to build out the luxury resorts that have been approved for years.  There is a significant amount of concern by the Caribbean developers - cost of material caused by increased shipping costs, fuel costs for their equipment and vehicles, and increased costs of the land in the prime tourist areas they believe will be the next “it” spot in the Caribbean.

Again, there are island nations that are going to benefit from this upcoming “hurricane” because they are not relying on San Juan as their hub of getting people to their destinations.  Turks & Caicos, Belize, Cayman Islands, Bermuda, and Bahamas have direct flights from many U.S. cities.  As the next few months unfold we may even see a new airline hub for the Caribbean evolve.  How about Miami, Dallas, Atlanta, New York, and Chicago - just a few that come to mind.  I promise you that the BIG interest in Caribbean real estate will cause solutions to be discovered!

We have more inquiries out to several of the government leaders in the Caribbean to get their input.  As soon as I receive their suggestions I will forward them to you for your input.  I am still looking at the glass half full, so let’s focus on this as a time of opportunity.  Change is not easy, but I believe we have entered into a significant era requiring change - in many aspects of our lives.  I welcome your opinions as to what is going on regarding access to the Caribbean.  Until next time….

In spite of the double-digit growth of U.S. visitors in 2007 to the Caribbean the airlines are cutting back flights!

I am not an alarmist, nor do I ever look at my glass “half empty”.  But, there are a series of SERIOUS decisions being made by the major airlines serving the Caribbean!  The past year has seen on of the largest levels of visitors to the Caribbean in history - over 15 million people enjoying the most beautiful resorts and beaches in the world!!!  As I have written many times, the Caribbean is THE place to be for second, third and fourth homes - whether fractionals or full ownership real estate. 

During my 30+ years of traveling to the Caribbean I have NEVER thought about not being able to get there.  My only concern is planning my monthly and yearly schedules to fit in the hundreds of adventures I have enjoyed over the years - from the BVI to Trinadad/Tobago.  BUT, today, with the monumental impact the oil prices are having on all aspects of our lives, the ONLY method to get to the Caribbean - airlines, are cutting back or canceling their flights to Puerto Rico, the visitor’s hub to all the Caribbean islands.

Allen Castanet, the chairman of the Caribbean Tourism Organization said last week, “Billions of dollars of investment are being exposed, and thousands of jobs are being exposed.”  The weak link in access to the Caribbean is American Airlines.  They are in a mess and are struggling to stay in business.  Here is the rub…they currently control more that 60% of the passengers traveling through Puerto Rico as they connect to smaller airplanes servicing each of the Caribbean islands.  American Airlines has just announced that they are cutting back their daily flights to Puerto Rico this September from 93 to 51!!!  Holy Moly!!!  If you owned any tourist oriented business in the Caribbean, wouldn’t this news put shivers up your spine?  This is a BIG issue that will need to be addressed by anyone who has an interest in the tourist economy of this very special region of the world.

The flights that are being cut to Puerto Rico will also greatly impact the cruise line business.  San Juan is the city where most cruise line passengers meet their ships.  Over ten cruise lines use San Juan as their destination port.  Continental Airlines is another big player in flights to San Juan, and they are now expected to announce flight cuts because of the price of jet fuel and the soft American economy.   Last week Spirit Airlines has closed their Puerto Rico hub entirely!

Again, in past articles I have highlighted the amazing opportunities in the Dominican Republic -fractional and full ownership real estate opportunities.  Get this…from January through April of this year more than 407,000 tourists visited the DR - a 6% increase over the same period last year!  The question now is how will you get there?  Peter Muller who owns the Hotel Coyamar in Samana, Dominican Republic said, “This is just the beginning.  We’re going to reach a point where it’s no longer worth keeping the airport open.”  In spite of this latest blow to those wanting to travel to the Caribbean, solutions will be found.  Those travel solutions will cost a lot more, but they may be the only options we have.  One thought may be that Cancun becomes the airline hub to the Caribbean.  It would make traveling there much more difficult for those U.S. travelers from the East Coast, but it would be about the same travel time for those going to the Caribbean from the West Coast.  It would also immediately put the focus on Belize, Turks & Caicos, Bermuda, Bahamas, and the Cayman Islands as places to consider for your next Caribbean home.  I am absolutely sure viable solutions will be discovered.  But, for the short term, we will all need to make flight plans months in advance in order to make sure we get a seat.  Let me know your thoughts on these latest developments impacting traveling to the Caribbean.  Until next time…your Caribbean lifestyle detective is on duty.

Ilya Moshenskiy is one of the finest real estate photographers that I have met!

 I first met Ilya at the Luxury Real Estate conference in Del Mar, California several months ago.  He seemed to be everywhere during the conference taking photos of the participants and various events.  I final asked one of the Luxury Real Estate staff people who was this guy!  She smiled and said that he is the finest photographer they had found for capturing the essence of luxury real estate homes and estates.  I began some homework after the conference to see some examples of this work since we always need a top photographer’s services for the luxury properties we represent - both in the Caribbean and the San Francisco Bay Area.  Boy, was I impressed with what I discovered.

 My experience is that Ilya’s Photography sets one of the highest standards for quality in the industry with over 30 years of experience. Ilya is the principal photographer of Ilya’s Photography, and he has enjoyed a lifelong passion his work with the camera.  His reputation for excellence has spread both in the U.S. and internationally.  Ilya has shot luxury estates in France, Spain, Switzerland, Costa Rica, Miami, Chicago, the Seattle area, plus many other locations in the States and the world.  After checking out his work, my next question was, “How much does this type of quality photography cost for shooting a luxury home or estate?”  Well, I discovered that he has VERY competitive rates that are negotiated flat-rate prices for any project.  He is even willing to offer long-term budgeted photo-shoot contracts.  His flat-rate policy is greatly appreciated within our industry because it is THE rate no matter how much time it takes to complete the project.  Again, I don’t think you will find a better value for your marketing dollar if you decide on Ilya’s photo services.

 In further discussions with the staff at Luxury Real Estate their consensus was that Ilya consistently produces quality work and can make a home or an estate look amazing.  They said he has the ability to capture on digital film the best aspects of the luxury property.  As promised, I am always on the look out for the best professional services I can find, whether it is a photographer or a painter.  It takes a “village” to sell and buy a home - from the preparation of the marketing program to the signing of the closing documents, hiring a professional real estate company is critical.  Until next time….fair winds!

NEWS FLASH: The most beautifully planned development in Aruba is about to offer Fractionals!

Tierra del Sol - the only planned community in the Caribbean, with the Trent Jones champion golf course is launching a fractional project to go along with their beautiful development that includes homes, villas, condominiums, golf, spa & fitness, fine dining, and much more.  At the northwest tip of Aruba, has emerged a gorgeous 600 acre community offering a lifestyle to satisfy even the most discriminating of owners and world travelers. With today’s planned lifestyle, Tierra del Sol gives you the opportunity to purchase the home of your dreams just a chip shot away from the green, even if you are not an avid golfer.

This private community offers a remarkable experience within a meticulously planned and highly acclaimed environment. Homeowners and vacationers experience world-class amenities, including fine and casual dining, a full service spa, fitness and full care beauty salon, lighted tennis complex and unlimited greens at a championship golf course, displaying its own challenging version of Robert Trent Jones II - the only professional golf course on Aruba.

The tranquil setting provides a gracious lifestyle amid some of the most beautiful Caribbean views. Custom homes, villas, casitas and home sites accommodate a wide variety of expectations for your personal lifestyle. A homes at Tierra del Sol incorporate distinctive design features, tailored to the desert surroundings and complementing the natural beauty of the landscape, creating an inspiring and tranquil environment within this beautiful private community.

 Body &  Soul is a sanctuary amidst the finest displays of nature. Nourish your body, revitalize your mind and enhance your well being with a journey to vitality.  Pamper yourself from head to toe.  Their spa treatments are designed to ease tension and restore balance to your body and spirit. The spa’s professional staff offers a variety of therapies, including massages, body wraps, skin and body treatments, aromatherapies, hydrotherapy, manicure and pedicure and a newly opened full service hair salon.

 As you know, each time I get off a plane in the Caribbean, no matter what island it is,  the words that go through my brain are, “Welcome Home!”  That is the experience you will have when you arrive at Tierra del Sol.  For more information about pricing, contact me!  Until next time…fair winds.

Placencia Peninsula is the latest location for Belize’s newest luxury resort!

The Placencia Peninsula - an 11 mile strip of land sandwiched between the Caribbean Sea and the Placencia Lagoon in Belize, has beautiful white sandy beaches and - because of its distance from the reef - it also has “real” surf. The water is clean and clear; the trade winds gentle and cooling.

Remember that Belize has a stirring and lively history beginning in 200 BC with the ancient Mayans. In the 17th century Spain settled the country. It then survived war, piracy and slavery until being declared a British colony - British Honduras - in 1871. It gained self-government in 1964, chose the name Belize in 1973 and became an independent member of the British Commonwealth in 1981.

 The beaches along the Placencia Peninsula are dotted with small resorts that can easily arrange dive and snorkel trips to the reef, which is about 17 miles away. They can also arrange day trips to many small, idyllic cayes, such as Laughing Bird Caye, a mini-atoll that offers protected snorkeling and swimming, a white sand beach and many cooling palm trees (it even has hammocks!) Laughing Bird Caye is also a favorite camping site for reek kayakers who base their expeditions in Placencia. A hotel can also arrange deep sea or reef fishing trips, or day sailing on a 57-foot catamaran.

 Placencia along with Ambergris Caye are now two of the country’s main tourist destinations, and they are also well visited by Belizeans from across the country on local holidays. You can get a delicious plate heaped with stewed chicken, rice and beans for about US$4. There are also several small gift shops, a post office and some night life. Nearby Mango Creek/Independence Village also has a disco and weekend activities.

 Another new resort is planned for Belize - The Palmetto Bay Resort at Maya Beach being developed by Dave Bowman and his exceptional team.  It is located on Placencia Peninsula it will offer beachfront real estate and four star amenities and will be the first development in the Caribbean designed ‘green’ from inception to completion.

The first phase of the gated resort, which is currently under construction, will be comprised of 36 whole-ownership, luxury beachfront condominiums ranging from approximately 1,100 to 4,500 square feet, each with open views of the Caribbean. ( In a perfect world, I will be talking with Dave about offering some of their units as fractionals.) Prices will start in the low $300,000s. The turnkey one- two- and three-bedroom residences are spread through two low-rise buildings. Designer Julieanne Dobson who also worked on Francis Ford Coppola’s Turtle Inn in Belize.  He is creating the interiors using warm woods and natural stone, vibrant contemporary textiles, and niche lit Mayan and African inspired art.

Ownership at Palmetto Bay Resort will include access to fitness facilities, conference rooms with wireless internet; 24-hour reception and security; fully equipped luxury kitchens with gourmet utensils and stainless steel appliances; balcony barbecues; and lush, mature landscaping with use of indigenous fruit trees and plants. The property will feature a 300-foot oceanfront infinity pool, a 400′ private beach, beach boardwalk, and private dock.

We have been telling you about Belize and the many awesome opportunities for second and third home ownership for months!  It is now time to act.  Let me know if you are ready!

A white Caribbean Realtor / Community activist, and a white graduating college senior continue to blur the color lines of our world.

History was made last week as Jim Walberg - a Caribbean Realtor was inducted into the Diablo Black Men’s Group, and Joshua Packwood - a U-Tube Link, was chosen as the Valedictorian of Moorehouse College - the all-black men’s college outside of Atlanta, Georgia.  Both of these men are white and both realize that color lines are drawn by everyone, and they hoped that it would not prevent them from making a difference in worlds in which they live and serve.  Both of these men live by the value statement that Martin Luther King, Jr. gave us years ago,   “We are prone to judge success by the index of our salary or the size of our automobile,  rather than by the quality of our service to others and our relationship to humanity.”  

The Diablo Black Men’s Group

The Diablo Black Men’s Group began in the mid 1990’s as an outlet for Diablo Valley African American men. By 1999, the group had evolved into an organization of men who wanted to see their collective influence to enhance the lives of their members and families as well as make significant contributions to the community in which they live. They encourage each member to appreciate liberty and all that it encompasses, including embracing community involvement.

DBMG is committed to support activities with the goal of improving the health and welfare of their citizenry. In addition, DBMG is actively involved in promoting the education of the impact on heart disease, prostate cancer awareness, and health screening of African American men in collaboration with the Alta Bates Summit Ethnic Health Institute, Kaiser Permanente Hospitals, and the American Cancer Society with support from the ChevronTexaco Corporation. Additionally, DBMG helps socially and economically challenged Bay Area youth pursue cultural and educational opportunities through their college scholarship programs.

Moorehouse College 2008 Valedictorian

Founded over 144 years ago in Atlanta, Georgia, Moorehouse College has focused on the mission to develop men with disciplined minds who will lead lives of leadership and service. A private historically black liberal arts college for men, Morehouse realizes this mission by emphasizing the intellectual and character development of its students. In addition, the College assumes special responsibility for teaching the history and culture of black people.  Founded in 1867 and located in Atlanta, Georgia, Morehouse is an academic community dedicated to teaching, scholarship, and service, and the continuing search for truth as a liberating force.

Editors Note: Some of the Moorehouse College graduates who have made a significant difference in our lives and the world:  Martin Luther King Jr. led the country through one of its most transforming civic movements; David Satcher resuscitated the issues of health care disparity and access; Maynard Jackson taught the world the value of diversity and equal access as the first African American mayor of Atlanta; Donn Clenendon scored in the history annals and was part of a miracle when he was named a World Series MVP; and Shelton “Spike” Lee continues to challenge how the world views blacks in life with critically acclaimed films.  These are just some of the Moorehouse Men.

In 2004 Joshua Packwood became one of the “Moorehouse Men”.   The 22-year-old from Kansas City, Mo., graduated on May 18^th with a perfect 4.0 GPA and a degree in economics.  He could have gone elsewhere, to a school like Columbia, Stanford or Yale, but his four-year journey through Morehouse has taught him a few things that they could not have learned at any other university, and he makes it clear that he has no regrets.  The Moorehouse College professors chose the Valedictorian, and he was their candidate of choice because of his academic accomplishments and his contribution to the college.  He graduated as a Rhodes Scholar finalist, and will be joining Goldman Sachs in New York City. “I’ve been forced to see the world in a different perspective, that I don’t think I could’ve gotten anywhere else,” he said. “None of the ‘Ivies’, no matter how large their enrollment is, no matter how many Nobel laureates they have on their faculty … none of them could’ve provided me with the perspective I have now.”  

It is important for all of us to make a positive difference in worlds we live in everyday.  Now it is your turn.  Let us know what you are doing with the legacy you are leaving behind…

In spite of the real estate challenges in the U.S. markets the world is still flocking to the Caribbean for values and lifestyle!

It has been amazing to participate in such an exciting real estate market as is happening in the Caribbean Islands!  The stars are aligned regarding the world currency markets plus the experience that people who want a tropical life style are able to find from the Dominican Republic, to the British Virgin Islands, to Aruba, to Belize!  Because of the strength of the Euro, Pound, and the Canadian dollar, Caribbean real estate is looked upon as a real bargain.  And, it is one of the safest places for people to have a second, third or fourth home given the chaos that is in much of the world at this time.  In addition there are direct flights from Chicago eastward, Canada, England and Europe.  These factors are creating a “perfect storm” for real estate purchases.  And…the sellers are loving it, too!  Here is an article I pulled from Internatinal Living written by Don Ediger a month or so ago.  It will tell the “story” of what we are experiencing even better.  His focus is Belize.  Enjoy, and contact me if you want more inforamtion about the exciting Caribbean real estate markets.

By Don Ediger - International Living 

Real Estate prices in Belize are rising, thanks to a surge in demand from Canadians and Europeans, especially the Irish. The phenomenon is apparent all around the country. In Corozal you’re likely to see real estate agents showing property to European clients, and in San Pedro on Ambergris Caye, new Irish residents regularly meet at a local restaurant where they would have been a rare sight only a year ago.

It’s mostly a result of the soaring value of the euro and the Canadian dollar. The euro is currently worth about $1.54, and the Canadian dollar-for many years worth much less than the American dollar-is now trading at just about an even rate. The Belizean currency is tied to the U.S. dollar so that two Belizean dollars are worth one greenback.

A few Canadians and Europeans have always shopped for property here, but their interest and presence in Belize has increased dramatically this past year. It’s easy to see why: the tropical climate and lifestyle in a stable country where English is the official language is attractive. Moreover, Belizean real estate prices are lower than prices in many other English-speaking parts of the Caribbean, such as the Bahamas.

The bargains aren’t hard to find if you know where to look. Some of the best values are in the Corozal area of northern Belize, which is near Mexico and the beautiful Corozal Bay. A three-bedroom house with a view of the water was recently listed at $125,000.

The Cayo District, in the rainforest to the west, is another haunt of bargain-hunters. A new three-bedroom house there was recently for sale for $75,000.

That’s a big contrast from the $150,000 to $350,000 that you could expect to pay for a condo in San Pedro on Ambergris Caye, the elegant island off Belize’s northern coast, or in Placencia, the seaside resort to the south. (South Beach Belize is the exception, where pre-construction Condos start at $139,900 and Private Villas - INCLUDING LOT, at $199,900!) 

Plus, foreign buyers now pay less “stamp tax.” Until recently, Belizeans paid 5% of the price of a property purchase in stamp tax…but most foreigners had to fork over 15% (on all but the first $10,000). Today, the stamp tax is 5% for foreigners and Belizeans alike.

This is the right time to look for real estate in Belize. If you wait, the demand from foreign buyers may continue to push prices up.  Your Caribbean lifestyle reporter remains on duty!  Until next time…Fair Winds!   Comments are always welcome!

This is one of the best articles I have read regarding why the doom and gloom of the U.S. housing market has come to an end - Wall Street Journal.  This will only assist with more real estate sales in the Caribbean in the upcoming months!

By CYRIL MOULLE-BERTEAUX - 
May 6, 2008; Page A23

The dire headlines coming fast and furious in the financial and popular press suggest that the housing crisis is intensifying. Yet it is very likely that April 2008 will mark the bottom of the U.S. housing market. Yes, the housing market is bottoming right now.

How can this be? For starters, a bottom does not mean that prices are about to return to the heady days of 2005. That probably won’t happen for another 15 years. It just means that the trend is no longer getting worse, which is the critical factor.

Most people forget that the current housing bust is nearly three years old. Home sales peaked in July 2005. New home sales are down a staggering 63% from peak levels of 1.4 million. Housing starts have fallen more than 50% and, adjusted for population growth, are back to the trough levels of 1982.

Furthermore, residential construction is close to 15-year lows at 3.8% of GDP; by the fourth quarter of this year, it will probably hit the lowest level ever. So what’s going to stop the housing decline? Very simply, the same thing that caused the bust: affordability.

The boom made housing unaffordable for many American families, especially first-time home buyers. During the 1990s and early 2000s, it took 19% of average monthly income to service a conforming mortgage on the average home purchased. By 2005 and 2006, it was absorbing 25% of monthly income. For first time buyers, it went from 29% of income to 37%. That just proved to be too much.

Prices got so high that people who intended to actually live in the houses they purchased (as opposed to speculators) stopped buying. This caused the bubble to burst.

Since then, house prices have fallen 10%-15%, while incomes have kept growing (albeit more slowly recently) and mortgage rates have come down 70 basis points from their highs. As a result, it now takes 19% of monthly income for the average home buyer, and 31% of monthly income for the first-time home buyer, to purchase a house. In other words, homes on average are back to being as affordable as during the best of times in the 1990s. Numerous households that had been priced out of the market can now afford to get in.

The next question is: Even if home sales pick up, how can home prices stop falling with so many houses vacant and unsold? The flip but true answer: because they always do.

In the past five major housing market corrections (and there were some big ones, such as in the early 1980s when home sales also fell by 50%-60% and prices fell 12%-15% in real terms), every time home sales bottomed, the pace of house-price declines halved within one or two months.

The explanation is that by the time home sales stop declining, inventories of unsold homes have usually already started falling in absolute terms and begin to peak out in “months of supply” terms. That’s the case right now: New home inventories peaked at 598,000 homes in July 2006, and stand at 482,000 homes as of the end of March. This inventory is equivalent to 11 months of supply, a 25-year high - but it is similar to 1974, 1982 and 1991 levels, which saw a subsequent slowing in home-price declines within the next six months.

Inventories are declining because construction activity has been falling for such a long time that home completions are now just about undershooting new home sales. In a few months, completions of new homes for sale could be undershooting new home sales by 50,000-100,000 annually.

Inventories will drop even faster to 400,000 - or seven months of supply - by the end of 2008. This shift in inventories will have a significant impact on prices, although house prices won’t stop falling entirely until inventories reach five months of supply sometime in 2009. A five-month supply has historically signaled tightness in the housing market.

Many pundits claim that house prices need to fall another 30% to bring them back in line with where they’ve been historically. This is usually based on an analysis of house prices adjusted for inflation: Real house prices are 30% above their 40-year, inflation-adjusted average, so they must fall 30%. This simplistic analysis is appealing on the surface, but is flawed for a variety of reasons.

Most importantly, it neglects the fact that a great majority of Americans buy their houses with mortgages. And if one buys a house with a mortgage, the most important factor in deciding what to pay for the house is how much of one’s income is required to be able to make the mortgage payments on the house. Today the rate on a 30-year, fixed-rate mortgage is 5.7%. Back in 1981, the rate hit 18.5%. Comparing today’s house prices to the 1970s or 1980s, when mortgage rates were stratospheric, is misguided and misleading.

This is all good news for the broader economy. The housing bust has been subtracting a full percentage point from GDP for almost two years now, which is very large for a sector that represents less than 5% of economic activity.

When the rate of house-price declines halves, there will be a wholesale shift in markets’ perceptions. All of a sudden, the expected value of the collateral (i.e. houses) for much of the lending that went on for the past decade will change. Right now, when valuing the collateral, market participants including banks are extrapolating the current pace of house price declines for another two to three years; this has a significant impact on the amount of delinquencies, foreclosures and credit losses that lenders are expected to face.

More home sales and smaller price declines means fewer homeowners will be underwater on their mortgages. They will thus have less incentive to walk away and opt for foreclosure.

A milder house-price decline scenario could lead to increases in the market value of a lot of the securitized mortgages that have been responsible for $300 billion of write-downs in the past year. Even if write-backs do not occur, stabilizing collateral values will have a huge impact on the markets’ perception of risk related to housing, the financial system, and the economy.

We are of course experiencing a serious housing bust, with serious economic consequences that are still unfolding. The odds are that the reverberations will lead to sub-trend growth for a couple of years. Nonetheless, housing led us into this credit crisis and this recession. It is likely to lead us out. And that process is underway, right now.  I welcome your comments about the article and how you believe it will impact Caribbean real estate sales!  Until next time…Fair Winds!

Viva Resorts has just launched three locations in the DR and more to come!

Last month Viva Resorts announced the launch of Viva Residences, a fractional deeded ownership aimed at the worldwide “baby boomer” tourism market starting in the Dominican Republic - Play Dorada, Puerto Plata, and Las Terrenas at the Samana peninsula.  You recall some of my past postings regarding viewing the Dominican Republic as one of the best values in the Caribbean for fractional and full ownership vacation resort living.

The launch of this venture was highlighted in DominicanToday, and Viva Resorts will also include Mexico, Bahamas and Brazil, besides the Caribbean.  Their architect, Antonio Imbert has designed Viva Residences in Las Terrenas, with about 70 villas and apartments in front of the sea, clubhouse, gym area. The construction is scheduled to begin this month - May.At Santo Domingo’s Hotel Embajador, Viva Wyndham Resorts president Ettore Colussi said the offer will also include several restaurants, a modern spa, and a swimming pool which wraps internally around the project. 

He said all the units have balcony or terrace, water heating system and a modern kitchen totally equipped with household appliances. Some of the properties have Jacuzzi or swimming pool and a private gazebo.Mr. Colussi said these properties have swimming pools and Jacuzzis, discothèque, spa and gym, boutique, stores, casino, the complex’s golf course and the hotel’s services.  In all developments buyers will get deed of property, ordinary and extra maintenance for gardens and other areas, security services, private beach club, receptionist and manager, 24 hour water and electric, the possibility of renting and/or interchanging the units through a specialized rental network.  

The Viva Resort management at Las Terrenas said, “We don’t know if it’s the perfect white sand beaches, the crystal clear waters, the palm trees or the fun atmosphere, but guests keep telling us that the Viva Residences embodies their lifelong vision of a Caribbean vacation spot.” Prices will be announced in the next month.  As soon as I get the info I will pass it on.  And, if you find out more info let me know.  I look forward to having all of us learn more about these Caribbean residence opportunities.  Until next time…I remain your Caribbean lifestyle detective.

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!