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….

Ms. Hamilton is the current sales and marketing director at Frenchman’s Reef Resort

What an opportunity for a dynamic champion of the territory to make a significant economic difference in the Virgin Islands by expanding the tourism economy. Lisa has had a distinguished career in the hospitality business for the last 20 years. She started by making beds at the Montauk Yacht Club on Long Island. Her next stop was the Virgin Islands because a friend convinced her in 1991 to vacation with her. She fell in love with the islands and got a job at Frenchman’s Reef Resort. She rose through the ranks and became their sales and marketing director - what a success story!

For the past years she has been very active in the Virgin Island Hotel Association as a member of their board of directors and spent the last four years serving as the chairwoman of their marketing committee.  Her “fingerprints” are all over their current marketing plan to gain national awareness of the vacation opportunities in the Virgin Islands. The Hotel Association’s public relations firm, Fareed, Zapala and Koepke, hired bikini-clad models to bounce beach balls on the cold streets of New York.

Last Wednesday morning, they were outside of “The Today Show” when the camera focused in on the crowd. The “Today Show” mentioned the campaign during their show confirming the results of a stealth campaign that supports awareness of vacation opportunities in the Virgin Islands. The campaign is to also hit the streets of Chicago, Washington, D.C. and Atlanta. The Big Beach Ball “stealth” marketing campaign offers viewers a $100 resort credit if they book at the listed hotels on St. Thomas and St. Croix.

Lisa sees the Internet as a critical marketing tool for the Hotel Association and they will be allocating 60 to 70 percent of its budget towards Internet marketing. Ms. Hamilton said, “Customers are making their buying decisions online,” ( With the results of our blog site, we have confirmed to Lisa that they are hitting a bulls-eye with this strategy. I will do my best to have Ms. Hamilton as a guest writer regarding the vision/mission that she will be bringing to the Hotel Association.)

Lisa also understands the effect of synergy on affiliate hotel associations and is a supporter of joining forces with the St. Croix Hotel Association to form strategic alliances with them to maximize both of their association marketing plans. The results of these types of alliances will greatly benefit the real estate opportunities for both sellers and buyers.

Those of you involved in the promoting the benefits and paradise experience of the Virgin Islands will give Lisa a standing ovation as she steps into the leadership role of this very important association. We look forward to engaging her in a dialogue as to her views on how to expand the tourist experience in this magical, tropical playground. Until next time…your Caribbean lifestyle and real estate reporter remains on duty.

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….

What criteria are Caribbean resort/fractional developers considering when buying Caribbean real estate?

With the boomers from the U.S., the Brits and the Europeans, the Canadians, and the buyers from South America flocking to buy up Caribbean properties, developers are getting much more picky with the islands and the properties they are considering for their resort developments. It doesn’t matter if it is full ownership properties or fractional ownerships, at some level the price point becomes out of reach for their target market buyers within the above geographic groups.

One of the invaluable resources we have discovered to assist with evaluating Caribbean property development is Tom McPeak, Ph.D., out of Florida. Dr. McPeak is a “land economist” whose focus is on the responsible development of the Caribbean islands. Dr. McPeak has created a list of sixteen criteria he uses with his developer-clients when they are considering what island and property they are going to purchase and develop next. Below are his criteria;

• Naturally beautiful, and where the beauty is protected.
• No standing army (consequently, no junta).
• A stable and progressive government.
• Very low crime rates.
• Low government social costs (not a welfare state).
• A favorable tax environment.
• Direct flights from major U.S. airports - primarily from Dallas eastward.
• Small local population relative to the land mass of the island/country.
• Economy based primarily on tourism, banking and insurance.
• Good wireless telecommunication coverage and high-speed internet services.
• The currency is tied to the U.S. dollar.
• The primary language is English.
• A warm and friendly population.
• A traditional values-based culture.
• Primarily a resort experience rather than a cultural experience.
• A feeling of privacy, safety, and exclusivity.

Some of the destination/islands that currently fit these criteria, from Dr. McPeak’s perspective, are; Belize; Turks & Caicos, St. Kitts, Barbados, St. Vincent & The Grenadines, and St. Lucia. Please contact Dr. McPeak if you would like to further discuss his views on profitable Caribbean development criteria. You may remember from some of my past blog postings that I would also consider Dominica, The Dominican Republic and Aruba.

I will keep you posted as to my latest real estate and lifestyle discoveries. Until then…I remain your dedicated detective!

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!

Not only are they full-steam ahead at Raffles Tortola, but they are now on Anguilla!

You remember when I solved the mystery last September of what was happening at Lambert Bay, Tortola?  Raffles Tortola is full-steam ahead in its progress to complete the 250 Raffles Residences of luxury villas, casitas, condominiums and estate lots available for ownership on 50 acres of beach front property. 

What I learned last week from my friend, Jason Kumpf - one of the marketing guys for their project, they are about to launch another BIG project on Anguilla in partnership with the Fairmont Resort group.  The Fairmont luxury residence clubs and resorts is one of the key world players in 5-star Residence Clubs, and the one they have planned for Anguilla is an amazing example of their commitment to excellence.

A side note about Jason…remember, he joined me for a few days at the Virgin Island Charter League Boat Show last November when I was doing the internet reporting for the event.  He had only been in the Caribbean for a few months and it was a great opportunity for him to see the Caribbean that I know and love. During our conversation last week he said;

“Well, after living in the BVIs for the past few months I have had many FIRSTS; sailing on a catamaran; visiting my first Caribbean charter boat show with you in St. Thomas; Foxy’s  for New Years; and, waking up each day and taking a walk on a soft coral sand secluded beach. I now realize that the Caribbean really IS paradise.  The land that so many people have written about for thousands of years, that so many have searched for, it is here, where the air is so clean and refreshing it is nurturing for the body, and where the water is so clear and inviting, its nourishing for the soul.

I have found the character of BVI is my favorite Caribbean spot, with an understated elegance that attracts the few discerning people fortunate enough to visit here. It is populated with professionals, the fasted growing off-shore trust industry, and the second largest off-shore domicile in the world. And, of course, the green mountains that cover the interior that seem to flow right into the turquoise waters melting into the beautiful Caribbean sunsets! Yes, this IS truly paradise.” 

Anguilla has been defined as a “sanctuary”, Fairmont Anguilla takes it to a completely new level. Their marketing material for this new project states, “It’s a sanctuary within a sanctuary. Ease and sophistication. Refined adventure. And, an innate sense of well-being permeate the community. From beach visits and spa treatments to snorkeling and Jack Nicklaus Signature Golf, relaxation will be the order of the day with unpretentious client services.”                                                                                                                           
I will keep you posted as to more details about Fairmont Anguilla as they are available.  Until next time…

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.

One of THE Caribbean “hot spots” are The Turks & Caicos!

We are “beach people”, so we are always on the lookout for our favorite spots to plop down on the Caribbean mashed potato coral sand, soak in the sun, read a book, and swim in the turquoise waters of this magical part of the world.  Guess what, The Turks & Caicos offers 40 islands and cays with some of the BEST beaches we have ever felt squish through our toes!

Because of our addiction to exploring the world, we hang out with similar people with the same addictions. Our friends, Jay and Carol Rosenbaum are two of them. Just like us, they have traveled all over the Caribbean and their favorite beaches are on the island of Providenciales – Grace Bay Beach. You will be stunned when you arrive there because it is a 12 mile long beach with the softest white coral sand you will ever find!  However, it is not for those that are looking for the most chic action in the Caribbean. It is one laid back experience on The Turks and Caicos.

The Turks and Caicos Islands are just 550 miles southeast of Miami, Florida, just to the east of Cuba. The islands are technically in the Atlantic, not the Caribbean, however you didn’t hear that from me. The language is English, the currency is the U.S. dollar, and they are a British Crown Colony. Tourism is the economy, and the beaches, SCUBA diving, snorkeling, and fly fishing for bonefish are a big part of that. In addition, the Islands are BIG in off-shore financial services – one of the most appealing banking and tax havens in the world!  They also used to be the world headquarters for exporting salt, conches and lobsters!

If SCUBA diving is your deal, you must meet Wayne Hall who owns Ocean Vibes SCUBA & Watersports on the island of Providenciales. For over eight years, Wayne has created a spectacular business that is focused just on small group dives – eight to ten max. It is a very intimate experience to dive the diverse waters of The Turks and Caicos with Wayne and his team of professionals.  Check him out the next time you are on-island.

Here are two suggestions for your stay in The Turks and Caicos – remembering there are many other awesome choices depending on your interests.  The first is Paradise Inn just off Grace Bay Beach. It is a little boutique hotel with just 17 rooms – daily rates are under $200 $US.  Several steps up in luxury is the Sands Resort at Grace Bay. It has all of the typical amenities of a world class resort with over 100 rooms available – daily rates are typically in the $350+ $US range. Let me know what your favorite spots are.

The real estate opportunities are some of the best in the Caribbean. You remember from a past blog, some of the top values are Turks and Caicos, St. Kitts, Dominica and the Dominican Republic! On Turks and Caicos you have all of the real estate choices you could imagine – from multi-million dollar villas to beach front studios for $150,000 US!

Let us know your real estate needs and we will provide you with some fun choices to consider. I am off to review another project in Anguilla. Stay tuned for what I discover next as your Caribbean lifestyle reporter. Until then…

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.