For those who still haven’t made travel plans, there may be some surprising resort bargains to consider–while other large and super-luxurious resorts are stalled under construction and financing difficulties.

Crisis in Paradise via Breitbart shares some disturbing news:

• Cap Cana, a luxury resort under development in the Dominican Republic is now reportedly paralyzed. A mega resort with four luxury hotels, villas (with roof tiles on the ground), three golf courses and a large yacht marina, Cap Cana is just one of many luxury resort projects “affected by the economic tsunami that has paralyzed the global financial markets,” said Cap Cana President Ricardo Hazoury.

• Also stalled in the Ritz Carlton Molasses Reef Resort in West Caicos. This luxurious project with hotel, condos and marina is three-quarters complete.

• The massive Atlantis Resort in the Bahamas has laid off 800 workers, blaming low occupancy rates.

• The Wyndham Nassau Resort has laid off 40 employees–presumably for the same reasons.

• Puerto Rico’s Caribe Hilton is also laying off employees because of rising cost and those pesky occupancy issues.

If reasonable air fares can be snagged, this could be the year for luxury travel bargains!

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Wine Tasting Tip:
Always begin with a clean clear glass and pour less than an inch into your glass. Always begin with the lightest wines first (white, sparkling, rose’ etc) and then work your way up to the heavy ones (Zins, Cabs, etc). The reason for this is that it helps keep taste buds sensitive so you can enjoy and appreciate each wine you taste. Nibble on a cracker, snack on some cheese–or simply have a sip of water between tastes in order to help preserve your palate.
Na zdrowia!

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It seems that almost daily we hear about segments of the broad luxury market losing not only their luster, but even their footing. There are reports that luxury retailers are bracing for a crash slowdown, and that even real estate in super-rich Dubai is beginning to show signs of weakness.

In fact, says Tim Blixseth, It’s as if the whole world had a financial heart attack.

Wall Street’s credit crisis has not only invaded Main Street (and vice versa), but is crippling segments of the once-impervious luxury real estate market.

This morning, we hear that Blixseth’s Yellowstone Ski Resort has filed for Chapter 11 bankruptcy protection. This invitation-only ski and residence club for  340 uber-rich ($1.5 million buy in) is located in Montana’s Gallatin Mountains near Bozeman.  The club has 340 members including Bill Gates, former vice president Dan Quayle, Comcast’s Stephen Burke and cycling star Greg LeMond–and all have to be wondering if the resort will even open this season.

If Chapter 11 protection is granted and the club is able to get a $4.5 million loan, Yellowstone Resort will be able to open its powdery slopes this winter.  Looming on the other side of the mountain, though, is around $343 million in debt that is owed to creditors and contractors. Most of that debt, $307 million, is reportedly owed on a loan arranged by Credit Suisse in 2005.

Edra Blixseth took control of the resort last August, after her divorce from Tim Blixseth was finalized and has reportedly  been trying to sell some of the Blixseth’s other luxury properties located around the world. The Yellowstone Club is valued at $778 million, according to court filings–not including unsold memberships, which may be worth as much as $336 million.

Like other property holders and developers around the world, Yellowstone Club members and the Blixseths are hoping that recovery from this financial heart attack will quickly bring credit flowing through the world’s clogged financial arteries.

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Our shrinking global village is an abiding source of amazement, and I often marvel at the diversity of countries represented by the readers (or perusers) of this blog.

Just for fun, I decided to check the countries of origin for the past 30 hours.

Most visitors (or at least the internet service) hail from the United States. But the balance of the world, according to our SiteMeter account, is also well-represented.

Offered in the order of their visits are luxury readers and seekers hailing from Hong Kong, New Zealand, Republic of Korea, Bangladesh, American Samoa, Croatia, Pakistan, Malaysia, Spain, Egypt, China, Europe(?), Canada, Argentina, Ireland, India, Italy, Norway, United Arab Emirates, El Salvador, Czech Republic, Sweden, Germany, Denmark, Australia, Russian Federation, Hungary, Philippines, Syrian Arab Republic, Polant, Brazil, Georgia, Islamic Republic of Iran, Romania, Macedonia and Portugal.

There were several “unknowns” and one major surprise: No visitors from Mexico during the 30 hour period studied.

We are grateful to all visitors and readers at Luxury Home Digest, but most likely have Google and Yahoo to thank for their website translation capabilities. At the same time, we are humbled by the number of people from other countries who have taken the time to learn the English language.

To all our visitors

• Arabic - Ahlan Wa Sahlan
• Australia - G’day Mate
• China -  huan ying
• Czech Republic - Vitejte
• Denmark - Velkommen
• Dutch (Netherlands) - Welkom
• France - Bienvenue (the first ‘n’ is nasal)
• German - Willkommen
• India - Swaa-gat hai
• Indonesia - Selamat Datang
• Ireland - Failte romhat
• Italy - Benvenuto
• Japan - Yookoso (welcome to our city)
• Malaysia - Selamat Datang
• New Zealand - Kia Ora - Hello (”Key or ra”)
• Norway - Velkommen (”Welkommen”)
• Poland - Dzieñ dobry (daytime)
• Poland - Dobry wieczór (evening time)
• Portugal - Muito Bem Vindo (”MOO EEN toe bain VEENdoe”)
• Romania - Multumesc
• Tagalog (Philippines) - Mabuhay
• United States (South) - How Y’all Doin’?
• Yugoslavia (Serbia) - Dobrodosli

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Eve Sieminski (aka the Polish Contessa) is our guiding light for fine wine–especially for those premium wines that fit within most budgets.

And that may be one of the finest luxuries of all.

Eve’s latest oenophilic enthusiasm comes unedited (and I am headed to Costco tomorrow!):

Hi Roberta!

The nose is really nice. Swirl, swirl, swirl…. Sip, WOW!

The matter of wine glasses is important but way overstated at the present moment. A glass designed for a certain red can make those aromas more obvious, and prettier. But the same glass won’t ruin another wine.

In fact, just about any glass that has a tapered bowl can express the aromas in a wine. And while the high-end glasses can enhance an aroma, once you pour the wine in your mouth, one glass is pretty much the same as another.But most of the enjoyment of a wine comes from the aroma, so choose a glass that enhances the aroma.

Finally, make sure the wine glasses you use are clean. Glasses stored in cardboard probably smell like a cardboard. Glasses need to be rinsed and dried with a clean, cotton cloth.

Pour and enjoy!

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Every library should try to be complete on something, if it were only the history of pinheads.
–Oliver Wendell Holmes, Sr. (1809-1894)

The ultimate luxury home library

A home library, more than any room in a home, has the potential to reflect the essence of its owner. Here is a place to organize and keep those books that are both acquaintances and lifelong friends. The home library is also often where collections are kept, if only because they make such good companions for books.

Both collections and books record the passing and lasting interests and passions of its owner–and deserve a room of their own.

And though a home library would likely complement and merge with the design of the home, the quintessential home library would likely offer features such as:

• Rich wood shelving that may even reach ceiling height. A rolling ladder works well here.

• Wood or stone flooring covered with collectible area rug(s).

• At least two very comfortable reading chairs with lamp(s).

• A writing table or desk. The home library should be a perfect room for thinking and writing.

• A library fireplace would be favored by many–and provides a warm ambiance.

The home library is a logical place to store and display personal collections and passions–especially if there is abundant shelving and/or cabinets. A family friend in Houston had a library full of rich wood shelving that housed not only a massive collection of leather bound books, but also an impressive array of Native American wood carvings. The library also served as his home office–and was undoubtedly his favorite room in the home.

The ultimate home library (pictured), though, may belong to internet entrepeneur Jay Walker, who also founded Priceline.com.  In a recent Wired interview, Walker gave writer Steven Levy a tour of his 3600 square foot library that is primarily devoted to those things that change the way we think.  His New England home library houses not only a Russian sputnik, but jewel-encrusted books, a raptor skeleton, Civil War surgical tools and thousands of other books and collectibles.

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There’s no doubt that uber-wealthy Russians love luxurious homes–and are willing to pay billions of roubles for well-placed mansions, townhomes and luxurious estates.

In Moscow, where luxury buyers are enriched by petrodollars and enthused by strong consumer confidence, a young and wealthy businessman recently paid 2.5 billion roubles ($99 million) for a Moscow town home near the Kremlin. Setting a new Moscow record, this seven-story apartment boasts 1300 square meters of undisclosed luxury and sits near the Kursk railway station.

Russian luxury home buyers, though, invest without borders.

Donald Trump’s Palm Beach estate, was originally listed at $125 million, but Dmitry Rybolovlev, one of Russia’s wealthiest businessmen, closed on the estate at $95 billion. Forbes, by the way, pegs Ryobovlev at #59 with an approximate net worth of $12.8 billion on its list of world billionaires. The fate of Trump’s former mansion? It is reported that Dmitry Rybolovlev intends to tear it down and build another.

Another Russian waterfront buy recently occurred on Britain’s ultra-exclusive Sandbanks Peninsula. There, an unnamed Russian businessman paid almost $9 million for a 5-year-old Sandbanks mansion that he, too, intends to tear down. Replacing the existing home will be an ultra-contemporary glass-fronted home–with a helipad on the beach.

Sandbanks, by the way, is listed as the fourth most expensive place in the world for real estate.

I can’t help but wonder if any of these Russian real estate investors might be interested in some of San Diego’s prime real estate. There is an exquisite Del Mar estate on 5.5 acres pf oceanfront property priced at just $76 million–or 1,952,363,937.376 Russian Roubles.

And of course, if an investor should be interested in this wonderful investment opportunity, or any others for that matter, please feel free to give me a call at either 877-818-8197 or 760-402-9101.

HT:
Moscow super-rich pour millions into luxury homes | Oddly Enough | Reuters

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Insuring luxury homes can be a real challenge, especially when trying to calculate replacement value for things like architectural artifacts, beloved creaking stairs or even elephant hide wallpaper.

Luxury home insurance wasn’t of that much interest to me–until I read of an appraiser who tried to figure out the replacement value of elephant skin wall coverings in a Seattle manse. That appraiser, James King with the Chubb Group, makes it a practice to thoroughly investigate the luxe and unusual features in Chubb’s insured luxury homes to make sure a realistic replacement value can be assessed.

And sometimes that challenge requires more than a little research.

In the case of the elephant hide wall coverings, King was unable to determine replacement value, especially since the wall covering had been installed at the turn of the century, before elephant hunting restrictions were in existence.

His solution?

Value the replacement as leather wallpaper, a very, very expensive treatment and alternative.

After reading this story, I decided to call the Chubb Insurance Group directly to discover other challenges and solutions involved in insuring luxury homes. Mark Schussell, Chubb Vice President and Public Relations Manager, was kind enough to take my call–and patient enough to answer my many questions.

For starters, insuring luxury homes in the top market tier can be a tricky business because these homes boast not only fine luxury features and extraordinary craftsmanship, but are often finished with rare antique materials.

If a home has old stained glass windows, roof tiles from an antique Tuscan farmhouse, and 100-year-old carved wooden pillars, it might be difficult to settle with a normal insurance company in the event of a loss.

Drive-by appraisals and typical assessments just wouldnt work.

Insuring these properties at replacement value requires a finely-tune appraisal and an insurance company that understands this market. And though several companies work in this specialty, the Chubb Group of Insurance Companies was reported to be insuring 70 percent of the 400 wealthiest people on the Forbes magazine list.

Chubb’s Mark Schussel was more modest, estimating that the number would be at least half of the Forbes 400. Either way, it is an impressive market domination.

It is important for the luxury home to be insured at full replacement value, especially when fine craftsmanship and materials have been used in constructing or improving the home. Schussel said that when Chubb takes on the task of restoring the home to its original condition, they take the task very, very seriously. Restoration could involve flying plasterers in from Ireland to restore a mansionin San Diego or an estate in Connecticut.

And if special Old World tools are needed to complete the job and they are unavailable elsewhere, Chubb will generously pay to have the tools made.

The basis for determining exactly what needs to be replaced or restored within a luxury home in the event of a disaster begins with the initial appraisal. That is where Chubb stands above the rest.

Their experts take extensive photos both inside and out to create a detailed visual record of the home and its surroundings. The appraiser will take measurements, study all elements of the home, and prepare an extensive report outlining all features of the home, down to molding and landscape details. Then, should a calamity occur, there will be a complete record of what needs to be replaced. While assessing the home, the appraiser will also point out things the homeowner may wish to do to reduce the potential for loss.

When one of Chubbs 200 highly-trained appraiser is going through the home to be insured, he or she will additionally point out personal effects art and furnishings that might require separate professional appraisals and insurance. If the client wishes, Chubb will provide the needed separate expert appraisal for insuring those items.

Restoring a home to its original condition can only be done within the confines of current building codes. Chubb replacement coverage may provide not only for Old World craftsmanship, but also for bringing electrical, plumbing and other building defects up to local building codes. Additionally, during reconstruction, Chubb has their people on site to make sure the work is being done to their own strict standards.

And once the work is done, they make sure the owners are satisfied with the results. In one case, the owner missed the familiar creak in his old stairs. It was an idiosyncrasy he missed. Not wanting an unhappy client, Chubb sent their workers in to recreate the old creak.

Mark Schussel said most insurers have moved away from the luxury home replacement policy business. They key reason, he said, is that they do not have Chubbs finely-tuned appraisal services. œBecause of our accurate valuations, we are able to continue this coverage even if a home is insured at $2 million and it takes $4 million to replace, he said. Most of their policies, though, have a built-in replacement cost escalator.

Insuring a luxury home at market value is not an accurate way to insure the property. In a highly-appreciated market, a homeowner might end up paying way too much for the policy, when the home could be restored for less than market value. And in declining markets, the replacement cost for a luxury home could far exceed its market value.

For detailed information regarding the insurance of luxury homes, it might be helpful to explore Chubbs Personal Insurance site.

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Bradenton Florida Luxury Home

Once upon a time, we whispered about the “F” word creeping into luxury real estate. These days, it is common real estate talk.

The Wall Street Journal quotes Realty Trac reporting that the number of $1-plus million homes in some stage of foreclosure has ballooned to 7,968 between January and August this year. This compares to 4,214 during the same months last year.

Within these numbers, it is interesting to note the relative surge in the $2-plus million home market. This luxury group has grown the fastest: How about 499 in foreclosure process, compared to 201 for the same period last year.

These luxury foreclosures aren’t just the McMansions that proliferated in many upscale suburban communities. These homes are waterfront, behind exclusive gated communities, and in tony towns where these financial embarrassments rarely occur.

The bargains abound.