Ran across this article today and was very surprised.
I think it's more like the survey wasn't heard of enough.
I was in the tiniest Amish cities of Pennsylvania 3 weeks ago...Beavertown, Beaver Springs, Northumberland. Went to a Davy Jones concert at a dinner club..2 nights. I know I talked to at least 25 or 30 people. EVERYONE knew about Myrtle Beach and most of them had been here and come back frequently.
I got back from a week in Las Vegas yesterday, and every cab driver, every tourist I talked too, the casino employees, etc...ALL knew what and where Myrtle Beach was.
I work with realtors and real estate marketing all over the US, and with the exception of a couple in California that have never been on the east coast, they also know us.
Sorry, I don't quite believe this...
Myrtle Beach falls off map for many
A recent survey found more than half the people in states where Myrtle Beach is advertised the heaviest are only slightly familiar with Myrtle Beach, according to The Sun News.
That’s bad news for the various beach Chambers, who spend about $2 million a year to lure people to the Grand Strand.
The survey was taken in Georgia, Ohio, North Carolina, New Jersey, Pennsylvania and Virginia.
Awareness of Myrtle Beach is “embarrassingly low,” said the president of the Myrtle Beach Chamber of Commerce, which paid for the survey to guide its advertising.
People don’t know Myrtle Beach because the hospitality promoters do not spend as much to buy ads as its competitors. For three years, the Grand Strand has fallen behind other Southern destinations like Virginia Beach, Va., and Gatlinburg, Tenn..
About 14 million visitors come to Myrtle Beach each year, but the chamber wants to see record growth in tourism to catch up with the booming growth in the number of Myrtle Beach condos, hotels, and other lodging units. The beach could handle about 20 million visitors a year, officials said.
There was good news in the survey. The people who had heard of Myrtle Beach liked it, with more than half of the respondents finding it a good value with excellent entertainment and fine dining.
Sunday, November 19, 2006
Wednesday, October 18, 2006
Condo Insurance Crisis
The state of South Carolina, in its short-sightedness has allowed the insurance companies to put everyone that lives along the coast in jeopardy with homeowner's insurance. Nobody really knows right now what is going to happen...it's inconceivable that they will allow the companies to go up on our premiums 400-700%. But unless they can find a way to fix things, that's going to happen.
North Carolina has always had an elected Insurance Commissioner, and he could make the insurance companies jump and do tricks like trained dogs. If you called the commissioner's office with a complaint when you had problems collecting on an accident or something, you'd get a phone call several hours later from the offending company begging your forgiveness. I witnessed this twice myself, and it was amazing.
I was in Miami in June, and overheard CNN down there saying that the insurance companies had put in for a 100% increase on property insurance in Florida, and their insurance commission had granted them a 50% increase instead. That's how much pull they have, and the way it ought to be. South Carolina evidently has no such control, and they'd better get it, otherwise our condo insurance is going to ruin Myrtle Beach and the rest of the coast in South Carolina. Myrtle Beach Condo sales will be in deep trouble.
Here's the latest article about the condo insurance crisis...
Posted on Wed, Oct. 18, 2006
REAL ESTATE
Lawmaker airs plans to lower insuranceJENNY BURNS
State Sen. Dick Elliott, D-North Myrtle Beach, says he's working on legislation to keep insurance rate increases from driving Grand Strand residents from their homes.
As insurance costs continue to skyrocket, homeowners are finding their insurance bills are increasing as much as 600 percent to 700 percent, especially those living in condominiums.
Elliott said his insurance legislation will:
Require companies to operate in all parts of South Carolina, not just "cherry pick" certain areas.
Propose a move of the wind pool line to the Intracoastal Waterway from U.S. 17 Business.
Set up a statewide self-insurance pool where prices would be driven by losses within that pool.
Propose that the state insurance director become an elected position.
"In states where they have an elected insurance commissioner, insurance is cheaper, more available and there's a more stable insurance market," Elliott said.
Eleanor Kitzman, director of the S.C. Department of Insurance, said in late August she would move the wind pool line but no action has been taken, Elliott said.
Kitzman has the authority to move the line in an emergency.
Elliott is working with Senate President Pro Tem Glenn McConnell, R-Charleston, and Sen. David Thomas, chairman of the Banking and Insurance Committee, on preparing this package.
Elliott said all have agreed it's critical that insurance issues be a "front burner" item in January when the legislative session begins.
While these proposals may not immediately solve the problem, Elliott said they are a start towards a long-term stable insurance market.
Realtors say the insurance crisis is especially hurting the condominium market, forcing owners to sell and making it more difficult for buyers to afford to purchase the condos.
Elliott said the problem will also hurt the lending industry, which requires that a buyer have insurance before it can approve a mortgage loan.
The senator said he's seen "good times and bad times come and go" but he hasn't seen anything that could hurt the coastal economy as much as the current insurance crisis in the past 10 years.
Contact JENNY BURNS at 626-0305 or jeburns@thesunnews.com.
#################
Dick Elliott is the Elliott from Elliott Realty, which is one of the biggest companies that handles Myrtle Beach Condos - Rentals and Sales. He's got a big stake in the problem, so maybe that will make him even more likely to do something about it.
North Carolina has always had an elected Insurance Commissioner, and he could make the insurance companies jump and do tricks like trained dogs. If you called the commissioner's office with a complaint when you had problems collecting on an accident or something, you'd get a phone call several hours later from the offending company begging your forgiveness. I witnessed this twice myself, and it was amazing.
I was in Miami in June, and overheard CNN down there saying that the insurance companies had put in for a 100% increase on property insurance in Florida, and their insurance commission had granted them a 50% increase instead. That's how much pull they have, and the way it ought to be. South Carolina evidently has no such control, and they'd better get it, otherwise our condo insurance is going to ruin Myrtle Beach and the rest of the coast in South Carolina. Myrtle Beach Condo sales will be in deep trouble.
Here's the latest article about the condo insurance crisis...
Posted on Wed, Oct. 18, 2006
REAL ESTATE
Lawmaker airs plans to lower insuranceJENNY BURNS
State Sen. Dick Elliott, D-North Myrtle Beach, says he's working on legislation to keep insurance rate increases from driving Grand Strand residents from their homes.
As insurance costs continue to skyrocket, homeowners are finding their insurance bills are increasing as much as 600 percent to 700 percent, especially those living in condominiums.
Elliott said his insurance legislation will:
Require companies to operate in all parts of South Carolina, not just "cherry pick" certain areas.
Propose a move of the wind pool line to the Intracoastal Waterway from U.S. 17 Business.
Set up a statewide self-insurance pool where prices would be driven by losses within that pool.
Propose that the state insurance director become an elected position.
"In states where they have an elected insurance commissioner, insurance is cheaper, more available and there's a more stable insurance market," Elliott said.
Eleanor Kitzman, director of the S.C. Department of Insurance, said in late August she would move the wind pool line but no action has been taken, Elliott said.
Kitzman has the authority to move the line in an emergency.
Elliott is working with Senate President Pro Tem Glenn McConnell, R-Charleston, and Sen. David Thomas, chairman of the Banking and Insurance Committee, on preparing this package.
Elliott said all have agreed it's critical that insurance issues be a "front burner" item in January when the legislative session begins.
While these proposals may not immediately solve the problem, Elliott said they are a start towards a long-term stable insurance market.
Realtors say the insurance crisis is especially hurting the condominium market, forcing owners to sell and making it more difficult for buyers to afford to purchase the condos.
Elliott said the problem will also hurt the lending industry, which requires that a buyer have insurance before it can approve a mortgage loan.
The senator said he's seen "good times and bad times come and go" but he hasn't seen anything that could hurt the coastal economy as much as the current insurance crisis in the past 10 years.
Contact JENNY BURNS at 626-0305 or jeburns@thesunnews.com.
#################
Dick Elliott is the Elliott from Elliott Realty, which is one of the biggest companies that handles Myrtle Beach Condos - Rentals and Sales. He's got a big stake in the problem, so maybe that will make him even more likely to do something about it.
Thursday, October 5, 2006
Myrtle Beach condos in the news
Permits for new Myrtle Beach condos down sharply Resale market slow; single-family homes still sell
Associated Press
Myrtle Beach, S.C.
The softening real estate market in the Grand Strand has slowed condominium building.
The number of condo building permits in Horry County dropped 34 percent in the second quarter, from 1,105 last year to 724 this year.
New condo sales fell 31 percent and the resale of condos fell 26 percent, according to Market Opportunity Research Enterprises, a regional real estate market research firm in Rocky Mount, N.C.
But some analysts don't see the slowdown as a long-term problem."We don't see this as an extended downturn. Although it seems sharp right now, it is sharp only in the very short term as builders try to adjust from the excess of their starts late last year," said Bernard Helm, president of Market Opportunity Research Enterprises, which tracks real estate markets in the Southeast.
There are also a lot of condominiums on the market. A number of concerned developers have called Tom Maeser, market analyst and president of the Fortune Academy of Real Estate, because there are about three times as many condos on the market this year compared to the same time last year.
Developers are cutting back on what they build because they may have trouble meeting bank requirements that say they should sell 80 percent to 100 percent of the units before getting a construction loan.
Meanwhile, the market for single-family homes in still going strong in Horry County.
Single-family building increased 7 percent over last year to 1,535 homes, even though sales of new houses stayed flat and resale homes fell 6 percent.
This could be good for home buyers, some analysts say.
"Builders will have some excess inventory, and that will end up being good news for consumers. They have to work out that inventory and that means softening prices," Helm said.
"In Georgetown County, sales of existing homes have declined slightly, but new home sales are up 60 percent, to 104 homes this year."
Georgetown County is getting ready to do what Horry County has already done. It's good on new houses but has problems in resales," Helm said.
"The decline will happen in new home sales."
###
My thoughts:
We've got a HUGE amount of condos in Myrtle Beach that have to be consumed before they continue to build more. The land owners that got on the bandwagon too late need to hold off for a year or two and let the present glut sell before they take on yet another new development.
Myrtle Beach condos are still the best investment real estate on the east coast. Right now is probably the best time of all to BUY a condo...there are incentives everywhere and prices have dropped a bit since last year. You should be prepared to hold on to it for a year or so. But you can make so much on rentals that it's not a lot of out-of-pocket expense during that holding time. And you can use the condo yourself instead of shelling out $1000 everytime you want a beach vacation. The conversion condos like Sea Mist Resort and Patricia Grand may be some of the best deals anywhere for this kind of investment.
I also hear first hand that real estate in Charlotte real estate and Raleigh, North Carolina are hot as a firecracker right now. Looks like last year's hot spots are cooling down and sharing the wealth with the ones who were slack then.
The economy is strong and us baby boomers rule. If you can afford a vacation condo or home, go for it. This beach has never seen a long term downturn in real estate prices. We've got beautiful new developments like Prince Resort Myrtle Beach and great bargains like Coastal Villas at CCU. Give us another year or two and we'll be back in the sun again!
Associated Press
Myrtle Beach, S.C.
The softening real estate market in the Grand Strand has slowed condominium building.
The number of condo building permits in Horry County dropped 34 percent in the second quarter, from 1,105 last year to 724 this year.
New condo sales fell 31 percent and the resale of condos fell 26 percent, according to Market Opportunity Research Enterprises, a regional real estate market research firm in Rocky Mount, N.C.
But some analysts don't see the slowdown as a long-term problem."We don't see this as an extended downturn. Although it seems sharp right now, it is sharp only in the very short term as builders try to adjust from the excess of their starts late last year," said Bernard Helm, president of Market Opportunity Research Enterprises, which tracks real estate markets in the Southeast.
There are also a lot of condominiums on the market. A number of concerned developers have called Tom Maeser, market analyst and president of the Fortune Academy of Real Estate, because there are about three times as many condos on the market this year compared to the same time last year.
Developers are cutting back on what they build because they may have trouble meeting bank requirements that say they should sell 80 percent to 100 percent of the units before getting a construction loan.
Meanwhile, the market for single-family homes in still going strong in Horry County.
Single-family building increased 7 percent over last year to 1,535 homes, even though sales of new houses stayed flat and resale homes fell 6 percent.
This could be good for home buyers, some analysts say.
"Builders will have some excess inventory, and that will end up being good news for consumers. They have to work out that inventory and that means softening prices," Helm said.
"In Georgetown County, sales of existing homes have declined slightly, but new home sales are up 60 percent, to 104 homes this year."
Georgetown County is getting ready to do what Horry County has already done. It's good on new houses but has problems in resales," Helm said.
"The decline will happen in new home sales."
###
My thoughts:
We've got a HUGE amount of condos in Myrtle Beach that have to be consumed before they continue to build more. The land owners that got on the bandwagon too late need to hold off for a year or two and let the present glut sell before they take on yet another new development.
Myrtle Beach condos are still the best investment real estate on the east coast. Right now is probably the best time of all to BUY a condo...there are incentives everywhere and prices have dropped a bit since last year. You should be prepared to hold on to it for a year or so. But you can make so much on rentals that it's not a lot of out-of-pocket expense during that holding time. And you can use the condo yourself instead of shelling out $1000 everytime you want a beach vacation. The conversion condos like Sea Mist Resort and Patricia Grand may be some of the best deals anywhere for this kind of investment.
I also hear first hand that real estate in Charlotte real estate and Raleigh, North Carolina are hot as a firecracker right now. Looks like last year's hot spots are cooling down and sharing the wealth with the ones who were slack then.
The economy is strong and us baby boomers rule. If you can afford a vacation condo or home, go for it. This beach has never seen a long term downturn in real estate prices. We've got beautiful new developments like Prince Resort Myrtle Beach and great bargains like Coastal Villas at CCU. Give us another year or two and we'll be back in the sun again!
Wednesday, September 13, 2006
Developer announces plans for Bay Tree land
Sorry, this article is no longer relevant and has been removed.
Monday, September 11, 2006
The housing boom is over, but creative investors still make profits
Sorry, this entry has been removed from the blog.
Tuesday, September 5, 2006
Slowdown in Real Estate and Condo Sales Spurs Internet Marketing
While the present real estate climate helps buyers with incentives, and sellers are willing to lower prices, desperate real estate agents look for magic bullet from the net.
(PRWEB) September 5, 2006 -- Just a year ago, real estate and resort condos for sale were the hottest thing going. If you advertised one with a price even near appraised value, or offered a preconstruction condo loaded with amenities, investors couldn't buy it fast enough. Realtors were happily making huge commissions, and the investors happily anticipated huge profits from "flipping".
Prices increased in the resort areas like Florida and Las Vegas, while huge high-rise developments took over and carpeted the landscape with bulldozers and construction workers.
Then hurricanes came, the war progressed, interest rates and gas prices went up, and the so-called real estate "bubble" became a reality.In the summer of 2006, developers have more condos than they have buyers, prices on homes and condos are coming down, and realtors are suddenly hurting for sales.
One thing is obvious - the internet is the lifeline. But those fancy websites known as "flash sites" are dangling in cyberspace, and the money required to advertise with the search engines is hard to come by.
Real estate web designers that are skilled in search engine optimization are the answer, but they are a rare breed. Most web designers go for the most high-tech look, and have no idea what the search engines require to rank a site in the natural search results.
There are so many developments now that ranking for all may be impossible.And there are a few areas where real estate didn't top out last year. Prices remain affordable, and the hometown agents are now gearing up for their share of the pot.
"These developers and real estate marketing firms are looking for the fruit of their investments in internet advertising." says Bryan Pearl of Pearl Web Marketing.
Myrtle Beach Web Design, a real estate search engine optimization company owned by Jan Chilton, has teamed up with Pearl Web Marketing to offer the solution.
Websites specialized for realtors and property developers can be attractive to buyers and search engines alike. Between the two companies, Pearl and Chilton have a large number of clients who benefit from referrals, can provide press release services and advertising blogs, and have several real estate directories to provide a complete internet marketing experience.
Pearl modestly tells his prospective customers,
"Out of twenty-seven million results on the internet our website, CondosAndResorts.com, is in the top ten search engine results for the term 'condos for sale.'"
Chilton maintains several condo websites that are near the top for most Myrtle Beach search terms.
Angela Privett Treadway, Co-owner of Privett and Associates Realty in Sevierville, Tennessee has been with Pearl Web Marketing for three years.
"Internet advertising is a significant part of our marketing and it drives hundreds of leads per month to our office," Treadway explains. "The internet is certainly the best and most cost effective way to generate sales, providing you get with the right company."
Pearl Web Marketing and Myrtle Beach Web Design currently service realtors in South Carolina, Alabama, Tennessee, Hawaii, Kentucky, Arizona, California, and Florida. For ethical reasons, they will seldom work with more than one agent per city.
Although their primary focus is in real estate, they have together designed a mortgage company site, a condo insurance site, a lake front property site, and have customers in interior design, engineering services, construction, and resort rentals.
Pearl does website design primarily with developers and realtors for search engine placement especially geared towards selling the dream of owning vacation homes and condos. Myrtle Beach Web Design has been helping realtors and Myrtle Beach condo rental companies with search engine placement since 2003.
The merger of these two talents has been a perfect match, even though they are several states apart. Learning what each search engine expects, enticing prospective home buyers, and keeping up with the constant algorithim changes is what, together, they do best. Pearl and Chilton share their knowledge and confer daily to keep each other informed. Chilton is presently working on a Real Estate marketing tutorial site to help with Google placement, called EchoForum.com.
There are many other tools to use in driving traffic to websites. Online ads in the right places, trading links with other quality websites, and creating press releases which span the globe are just a few. All of these factor into your placement in the search engines. There are many things which can be done to generate traffic. It isn't rocket science, but requires time and constant monitoring of the trends.
For this reason, most realtors would prefer to have a professional handle this important aspect of their business.
If you would like more information, contact Bryan Pearl at (256)550-1333 or through his website, Pearl Web Marketing.
Jan Chilton can be reached by phone at (843)602-0000 or through her website, Myrtle Beach Web Design.
Pearl Web Marketing265
Irby CircleUnion Grove, AL 35175
www.pearlwebmarketing.com
Myrtle Beach Web Design
2423 Hwy 17 SouthNorth Myrtle Beach, SC 29582
www.myrtlebeachwebdesign.com
###
Press Contact: Janet Chilton-Bryan Pearl
Company Name: MYRTLE BEACH WEB DESIGN-PEARL WEB MARKETING
More Information: http://www.prweb.com/releases/2006/9/prweb432220.htm
real_estate
(PRWEB) September 5, 2006 -- Just a year ago, real estate and resort condos for sale were the hottest thing going. If you advertised one with a price even near appraised value, or offered a preconstruction condo loaded with amenities, investors couldn't buy it fast enough. Realtors were happily making huge commissions, and the investors happily anticipated huge profits from "flipping".
Prices increased in the resort areas like Florida and Las Vegas, while huge high-rise developments took over and carpeted the landscape with bulldozers and construction workers.
Then hurricanes came, the war progressed, interest rates and gas prices went up, and the so-called real estate "bubble" became a reality.In the summer of 2006, developers have more condos than they have buyers, prices on homes and condos are coming down, and realtors are suddenly hurting for sales.
One thing is obvious - the internet is the lifeline. But those fancy websites known as "flash sites" are dangling in cyberspace, and the money required to advertise with the search engines is hard to come by.
Real estate web designers that are skilled in search engine optimization are the answer, but they are a rare breed. Most web designers go for the most high-tech look, and have no idea what the search engines require to rank a site in the natural search results.
There are so many developments now that ranking for all may be impossible.And there are a few areas where real estate didn't top out last year. Prices remain affordable, and the hometown agents are now gearing up for their share of the pot.
"These developers and real estate marketing firms are looking for the fruit of their investments in internet advertising." says Bryan Pearl of Pearl Web Marketing.
Myrtle Beach Web Design, a real estate search engine optimization company owned by Jan Chilton, has teamed up with Pearl Web Marketing to offer the solution.
Websites specialized for realtors and property developers can be attractive to buyers and search engines alike. Between the two companies, Pearl and Chilton have a large number of clients who benefit from referrals, can provide press release services and advertising blogs, and have several real estate directories to provide a complete internet marketing experience.
Pearl modestly tells his prospective customers,
"Out of twenty-seven million results on the internet our website, CondosAndResorts.com, is in the top ten search engine results for the term 'condos for sale.'"
Chilton maintains several condo websites that are near the top for most Myrtle Beach search terms.
Angela Privett Treadway, Co-owner of Privett and Associates Realty in Sevierville, Tennessee has been with Pearl Web Marketing for three years.
"Internet advertising is a significant part of our marketing and it drives hundreds of leads per month to our office," Treadway explains. "The internet is certainly the best and most cost effective way to generate sales, providing you get with the right company."
Pearl Web Marketing and Myrtle Beach Web Design currently service realtors in South Carolina, Alabama, Tennessee, Hawaii, Kentucky, Arizona, California, and Florida. For ethical reasons, they will seldom work with more than one agent per city.
Although their primary focus is in real estate, they have together designed a mortgage company site, a condo insurance site, a lake front property site, and have customers in interior design, engineering services, construction, and resort rentals.
Pearl does website design primarily with developers and realtors for search engine placement especially geared towards selling the dream of owning vacation homes and condos. Myrtle Beach Web Design has been helping realtors and Myrtle Beach condo rental companies with search engine placement since 2003.
The merger of these two talents has been a perfect match, even though they are several states apart. Learning what each search engine expects, enticing prospective home buyers, and keeping up with the constant algorithim changes is what, together, they do best. Pearl and Chilton share their knowledge and confer daily to keep each other informed. Chilton is presently working on a Real Estate marketing tutorial site to help with Google placement, called EchoForum.com.
There are many other tools to use in driving traffic to websites. Online ads in the right places, trading links with other quality websites, and creating press releases which span the globe are just a few. All of these factor into your placement in the search engines. There are many things which can be done to generate traffic. It isn't rocket science, but requires time and constant monitoring of the trends.
For this reason, most realtors would prefer to have a professional handle this important aspect of their business.
If you would like more information, contact Bryan Pearl at (256)550-1333 or through his website, Pearl Web Marketing.
Jan Chilton can be reached by phone at (843)602-0000 or through her website, Myrtle Beach Web Design.
Pearl Web Marketing265
Irby CircleUnion Grove, AL 35175
www.pearlwebmarketing.com
Myrtle Beach Web Design
2423 Hwy 17 SouthNorth Myrtle Beach, SC 29582
www.myrtlebeachwebdesign.com
###
Press Contact: Janet Chilton-Bryan Pearl
Company Name: MYRTLE BEACH WEB DESIGN-PEARL WEB MARKETING
More Information: http://www.prweb.com/releases/2006/9/prweb432220.htm
real_estate
Capitol Hill Blue - Has Bush gone over the edge?
Totally off-topic and stictly the webmaster's opinion. I feel this is an important bit of news...
Capitol Hill Blue - Has Bush gone over the edge?
Capitol Hill Blue - Has Bush gone over the edge?
Has Bush gone over the edge
September 5, 2006 06:06 AM
Scarborough sounded the warning recently when he devoted an episode of his MSNBC talk show to the topic "Is Bush an Idiot?" Other published reports say Bush's own father is worried about his son's mental state. Psychiatrists who have observed Bush during his presidency share this concern.
Writes Jeffrey Steinberg in Executive Intelligence Review:
The word is circulating in high-level Republican Party circles that former President George H.W. Bush is profoundly worried about the mental state of his son, the current President. According to the sources, Bush has been communicating with his own intimate circle, including former National Security Advisor Brent Scowcroft, and former Secretary of State James Baker III, along with former President Bill Clinton, about G.W.'s over-the-top support for Israel's current self-destructive assault on Lebanon.
The ex-President has reportedly conveyed to his close associates that he fears that G.W. is in a messianic state and is "unreachable," even by such close advisors as Secretary of State Condoleezza Rice. Insight magazine, the online publication of the Washington Times, buttressed this account, reporting in early August that, for the first time, a rift has developed between Rice and President Bush, over the President's one-sided support for Israel, in the ongoing Israeli Defense Forces invasion of Lebanon.
Bush family insiders say the former President's concern over his son's mental state was a primary reason why the President made a rare appearance at the family home in Connecticut during August. Bush rarely visits his father. In fact, NBC news anchor Brian Williams recently reported that former President Bill Clinton, who defeated the elder Bush after one term, visits his former rival more often.
White House aides point to the President's increasingly bizarre behavior: an inpromptu "massage" of a foreign leader at the recent G8 conference, his penchant for farting in front of new West Wing aides and his rambling, often incoherent answers to reporters' questions.
John Dean, the White House counsel who helped bring down another deranged President: Richard M. Nixon, shares the concern.
In his book, Conservatives Without Conscience, Dean calls Republican-controlled Washington a bullying, manipulative, prejudiced leadership edging the nation toward a dark era.
"We have returned to the imperial presidency (that existed in the Nixon era)," Dean says. "We have an unchecked presidency."
"Are we on the road to fascism?" he adds. "Clearly, we are not on that road yet. But it would not take much more misguided authoritarian leadership, or thoughtless following of such leaders, to find ourselves there.
"I am not sure which is more frightening," he adds, "another major terror attack or the response of authoritarian conservatives to that attack."
Dr. Justin Frank, the prominent George Washington University psychiatrist who wrote Bush on the Couch: Inside the Mind of the President, says Bush has lost touch with reality:
With every passing week, President Bush marches deeper and deeper into a world of his own making. Central to Bush's world is an iron will which demands that external reality be changed to conform to his personal view of how things are.
As far as Bush is concerned, he is telling the truth; as Madeleine Albright recently said to Columbia Magazine: "the most serious problem is that George Bush now believes what he says." Like many of my hospitalized patients, Bush has created a vast, detailed but vague delusional system he feels compelled to maintain at all costs. This system helps him manage the terrifying anxiety that threatens to make his already endangered inner world more chaotic.
Psychoanalytic theory suggests that Bush's true enemy is an aspect of himself -- the overwhelming anxiety he works so hard to manage. For Bush, lying remains a central defense mechanism in managing his fears; he lies foremost to himself, altering his perception of external or internal reality to fulfill his psychic need to maintain order. His anxiety is so great that he cannot shift his thinking to account for new information --especially the fact that patriotic families of patriotic soldiers demand that he speak with them.
Taking responsibility has always been hard for George W. Bush. And taking responsibility for inflicting harm on others, a major step in the development of maturity, is a step President Bush has yet to make. Instead, he persists in lying to himself, surrounding himself with people who agree with him. And now he is not safe even inside his own closed circle.
Dr. Frank has studied Bush's actions and personality extensively and believes the President needs extensive analysis and help.
"It is not too late for President Bush to have the second half of his medical check-up: psychological testing," Dr. Frank says. "After his recent press conference in which he kept talking about finishing the job while attacking Democrats for wanting an exit strategy, Bush showed even more telltale signs of a particular kind of mental disturbance which medical professionals call thought disorder."
Writing in The Huffington Post, Dr. Frank continues:
I had always felt that his inability to respond to crisis, as seen in his response to 9/11 and Katrina and Israel's bombing of Lebanon, was because he suffered from something called affective flooding, where overwhelming anxiety paralyzes any ability to think or even function. Such a response is similar to denial.
Those who observe the president at such moments - thanks to smuggled film clips and his historic April 2004 press conference when he was asked if he had made any mistakes as president - see that he starts rapid blinking movements before his eyes glaze over and become almost fixed in a blank, mindless stare. This massive disconnection from inner self and outer world is called "splitting."
But a recent press conference (August 21, 2006) showed that when he is in control he is not flooded in this way. Rather, his splitting takes the form of hatred of reality. I use the term hatred purposefully. When he was pushed by a few increasingly frustrated reporters, he behaves like the untreated alcoholic he is - summarily dismissing material reality.
When offered a chance to re-think the Iraq war he becomes obstreperous, using sarcasm to both mask and express his internal rage at being challenged. When back in control he patronizes members of what he calls the "Democrat" party, saying that they are "good people" and that he doesn't question their patriotism. In control he is a poor man's Cicero, saying what he's not going to say anyway. Reading between the lines, he calls his critics quitters.
All of this behavior is in the service of defending himself against reality - something he actively hates. At times, his attempts to ward off reality make him appear stupid. He is not. Rather, internal and external realities are too threatening for him to face. When asked whether he had been surprised or frustrated by all the bad news from Baghdad he didn't even understand the question. This is because the very act of facing such questions threatens to destroy his tenaciously held preconceptions. This he cannot risk; he employs various coping mechanisms to attack such questions in any way he can. Instead of acknowledging personal frustration he said that the war must be frustrating for the national psyche. But his hatred of reality required a more violent approach - the day after his conference he sent more of those poor marines back into a world of horror.
His ability to dismiss reality is profound - more than the simple method used by his mother Barbara, who said she wasn't going to watch the TV news during the war because watching body bags would spoil her "beautiful mind". No, he has a rugged inner strength - unless confronted by surprise - that enables him to dismiss and destroy personal perception.
His mental pulse needs to be taken, not just his physical one. I think that what prevents his doctors from doing so is their fear of what they'd find. Without such an examination, we are left with no medical terms to describe his mental functioning, his private global war on terror which extends to attacks on his own capacity to perceive reality. I have not examined the President, so it is not proper for me to offer a diagnosis. However, my observations lead me to believe that he is psychotic.
Copyright © 2006 Capitol Hill Blue. All rights reserved
Saturday, August 19, 2006
Condo-hotels come to smaller cities
Posted on Sat, Aug. 19, 2006
By VINNEE TONG
The Associated Press
CHANGING SKYLINES
When urban dwellers think of condo-hotels, they usually imagine sky-high city apartments that come with daily maid service, mints on pillows and the option to order chilled champagne for delivery at any hour.
In New York perhaps, their fantasy would not be far from reality.
More often, though, condo-hotels are proliferating into midsize and smaller cities across the nation and, in some cases, transforming the places where they’re being built.
Condo-hotel projects can be found in different stages of development in cities such as Myrtle Beach; Berkeley, Calif.; Provo, Utah; Pittsburgh and Little Rock, Ark. And they’ve been proposed for towns as varied as Yankeetown, Fla.; Asheville, N.C.; and West Wendover, Nev.
The founder of the Phoenix-based hotel chain Inn Suites decided about a year ago that condo-hotels might work for his 11 properties. Since then, chief executive James Wirth has started converting the company’s Arizona properties in Yuma, Tempe, Tucson, Flagstaff and Phoenix, nearly half of the company’s total portfolio. The conversions should be completed in six to 12 months.
More condo-hotels are being built because they simply make financial sense, experts say:
• Hotel developers can spread risk to condo owners and earn income from condo sales at the time projects are finished.
By VINNEE TONG
The Associated Press
CHANGING SKYLINES
When urban dwellers think of condo-hotels, they usually imagine sky-high city apartments that come with daily maid service, mints on pillows and the option to order chilled champagne for delivery at any hour.
In New York perhaps, their fantasy would not be far from reality.
More often, though, condo-hotels are proliferating into midsize and smaller cities across the nation and, in some cases, transforming the places where they’re being built.
Condo-hotel projects can be found in different stages of development in cities such as Myrtle Beach; Berkeley, Calif.; Provo, Utah; Pittsburgh and Little Rock, Ark. And they’ve been proposed for towns as varied as Yankeetown, Fla.; Asheville, N.C.; and West Wendover, Nev.
The founder of the Phoenix-based hotel chain Inn Suites decided about a year ago that condo-hotels might work for his 11 properties. Since then, chief executive James Wirth has started converting the company’s Arizona properties in Yuma, Tempe, Tucson, Flagstaff and Phoenix, nearly half of the company’s total portfolio. The conversions should be completed in six to 12 months.
More condo-hotels are being built because they simply make financial sense, experts say:
• Hotel developers can spread risk to condo owners and earn income from condo sales at the time projects are finished.
• In some cases, developers can break even upon completion.
Further, condo-hotels by nature are better suited to surviving than hotels on its own, experts say.
“Condo-hotels earn like commercial hotels and appreciate like residential condominiums,” said Dante Alexander, the founder of the National Association of Condo Hotel Owners.
Condo buyers investing in condo-hotels buy the unit and allow the hotel management to rent it out when they’re not using it, sharing the revenue. This arrangement makes the most sense in cities that get more traffic from travelers.
In certain smaller cities, developers instead build hotels with residential units.
Projects of both types are in development in 31 states throughout the United States, said Jan Freitag of Smith Travel Research. This almost certainly is a rise, although industry watchers say it’s difficult to estimate by how much, since little historical data exists.
“That’s been a concept that’s worked in places like New York, San Francisco, Chicago for a long time, and that’s now filtered into other areas,” said Chris Meyer, director of the Milstein Center for Real Estate at Columbia University.
While resort and vacation destinations are getting their fair share of condo-hotels, developers proposing them for smaller towns meet greater resistance.
In McCall, Idaho, a group called Save Our Skyline opposes a $25 million plan to build a 50-foot-tall hotel with condos and retail space on the shore of nearby Payette Lake.
“My guess is that this is going to turn this town upside down,” a member of the group, Tuck Miller, told the Idaho Statesman.
The developer of a hotel with residences in Idaho Falls, Idaho, proposes a 13-story, 800-unit project that would be the tallest structure around, beating out a water tower.
And in Raleigh, N.C., a local developer plans to build two hotels with condos, 21 stories and 25 stories in height, at opposing ends of its downtown. A June 20 headline in the News & Observer of Raleigh read, “Builders want to lift the skyline,” and the story notes that the projects would change the face of the downtown area.
Proponents of smart growth — characterized by greater density and development that more closely integrates work and home life — say the popularity of condo-hotels validates the idea that more Americans want an urban lifestyle.
“We’re at a time right now of a great deal of change. ... I would say the traditional urban subdivision paradigm is breaking down,” said Adam Gordon, editor in chief of the magazine The Next American City. “We have much more complicated patterns of where people are moving.”
Condo-hotels are part of that changing landscape, and they are multiplying because they make market sense, said John Norquist, president of the Congress for New Urbanism and a smart-growth advocate.
“We’re kind of moving from an era where cities were building huge convention centers, and now they’re actually doing something that the market wants, blended with a hotel,” Norquist said.
“These are all things that are healthy. It shows common sense. Cities and consumers and developers are all getting something without having to subsidize each other.”
ABOUT CONDO-HOTELS
• Condo-hotel rooms make up 19.5 percent of the hotel rooms under development in the United States, according to Smith Travel Research.
• The top markets are Las Vegas Condo-Hotels, representing nearly one-third; followed by Miami/Fort Lauderdale; Orlando, Florida Condo-Hotels.; New York City; Chicago; Tampa/St. Petersburg, Fla.; Myrtle Beach Condo-Hotels; Boston; and San Diego.
NOTE: Data as of March 2006
Investing in Preconstruction Real Estate
Myrtle Beach Real Estate
Myrtle Beach Condos
Thursday, August 17, 2006
Myrtle Beach Real Estate
Myrtle Beach Condos and Investment Real Estate
I guess everyone is aware that the big real estate investing boom of last summer has subsided somewhat.
Last year reminded me of a twice a year happening we have in Myrtle Beach, when an unbelievably large school of fish makes a migration through here. In March and October, a small and "tasty" fish called "spots" come through the entire area in HUGE schools, close to the shore, and right under and around the piers. Pier fishermen (and women) bring huge garbage cans, coolers, barrels, and anything they can find to put ice in, and literally throw out a line and bring in 3 and 4 fish at a time, often without even baiting the hook. I did it myself one year, and while it's cool to catch 200 fish in 30 minutes, there was no sport or challenge to it, and then you're stuck cleaning all those fish!
That's the way it was with condos and any other kind of resort real estate last summer.
Myrtle Beach condos were so easy to sell that there weren't enough to go around for all the people looking for investment real estate. All you needed to do was talk about a new resort and there were buyers begging for the product.
Of course this was going on in Florida and many other areas, too. Developers went crazy everywhere, and the market became saturated. As the months passed, interest rates climbed with mortgage companies, all the investment gurus kept predicting doom and gloom in the press, and eventually it became somewhat of a self-fulfilled prophecy. Sales slowed, and investors got scared and backed off. The ones that got in on the condo boom in the beginning made gigantic profits, and the ones that waited either lost out, or may now be facing a choice of closing on the preconstruction or losing their deposits.
By no means has there been a real estate bubble or crash. I think every bit of this has been caused by the doom predicters. And the agents and people who know what they are talking about are all saying that this is only a slow-down, and another wave will hit in about a year and a half from now. My only other concern is how high condo insurance may end up going.
The good news is that now it's more of a "BUYER'S MARKET". For those who don't choose to believe all the pessimists and invest in condos and resort property now, they will get even bigger discounts and perks, and when it picks up again, they will be in the same boat with the ones who bought in the beginning of the other boom. Real Estate investing is not for the worriers or the wimps...I think you have to have the nerve to take a chance and get in early to reap the profits.
A guy who is near and dear to me never stops buying. It would terrify me to borrow and spend right and left on every kind of real estate in Myrtle Beach, but he is building so much wealth that I doubt even HE knows what he has. And in about 10 years he will be so rich that we will all be shaking our heads in disbelief. If you've got the money, the credit, the right intuition, and the nerve to commit everything you have, you'll come out on top. I see him doing this every day, and my admiration for him knows no end.
Myrtle Beach is still underpriced compared to Florida and the other hot vacation spots. The developers are offering incentives right and left. Anyone who is looking to invest in real estate and can hold their investment for a year or two will be smiling then.
Here's a recent article about the local market and some of the discounts and perks the developers are offering. If you are thinking about investing at all, you should read it and think hard about taking the plunge before it starts back hot and heavy and prices jump again...
Home builders offering incentives on S.C. coast
Special deals aim to pick up sales among wary buyers in shaky market
By JENNY BURNS
jeburns@thesunnews.com
MYRTLE BEACH — Big builders, taking cues from the auto industry to sell their oversupply of homes, are offering big incentives along the S.C. coast.
Buyers can get 4.25 percent financing, no payments until 2007 or free homeowners association fees for a year.
The deals are aimed at making cautious buyers during this real estate slowdown take the plunge and buy.
“(National builders) are seeing sales falling in general, seeing cancellation rates pick up, and they’re using the incentives to help drive sales and use it to sell inventory that they didn’t plan on having,” said Todd Vencil, analyst for BB&T Capital Markets, who covers eight publicly traded home builders.
For consumers, the payoff is in lower monthly payments and less upfront cash to get into a new home.
While incentives are normal, Vencil said this summer’s incentives go beyond the typical appliance upgrade and free closing.
“They’ve clearly picked up,” he said.
One example is Centex Homes, the Grand Strand’s largest builder. The company is offering 4.25 percent financing with an adjustable rate mortgage. On a $150,000 home, that would make monthly payments about $738 before insurance and taxes are figured in.
That rate is only on spec homes that close by Oct. 31 in most Centex neighborhoods, said Ken Balogh, Myrtle Beach division president.
For a 30-year fixed mortgage, that rate jumps to 6.5 percent.
Balogh said Centex wants to take rates down to last year’s level to help buyers fight rising rates.
The builder is seeing an uptick in cancellations compared with last year, especially in condos, he said.
Builders also are looking at ways to ease the pain of skyrocketing insurance rates along the Grand Strand.
For instance, Centex is paying homeowners association fees between $3,000 and $9,000 in most of its condo and town home projects.
Some Strand condo complexes have seen double and triple increases in their fees because of insurance hikes.
“We can’t fix the insurance challenges but we can help our customers to overcome a year or two of that increase,” Balogh said.
Builders aren’t saying how long they’ll be touting incentives, but analysts expect the enticements to stick around a while.
myrtle beach real estate
Jenny Burns is a reporter for The (Myrtle Beach) Sun News, a McClatchy newspaper.
I guess everyone is aware that the big real estate investing boom of last summer has subsided somewhat.
Last year reminded me of a twice a year happening we have in Myrtle Beach, when an unbelievably large school of fish makes a migration through here. In March and October, a small and "tasty" fish called "spots" come through the entire area in HUGE schools, close to the shore, and right under and around the piers. Pier fishermen (and women) bring huge garbage cans, coolers, barrels, and anything they can find to put ice in, and literally throw out a line and bring in 3 and 4 fish at a time, often without even baiting the hook. I did it myself one year, and while it's cool to catch 200 fish in 30 minutes, there was no sport or challenge to it, and then you're stuck cleaning all those fish!
That's the way it was with condos and any other kind of resort real estate last summer.
Myrtle Beach condos were so easy to sell that there weren't enough to go around for all the people looking for investment real estate. All you needed to do was talk about a new resort and there were buyers begging for the product.
Of course this was going on in Florida and many other areas, too. Developers went crazy everywhere, and the market became saturated. As the months passed, interest rates climbed with mortgage companies, all the investment gurus kept predicting doom and gloom in the press, and eventually it became somewhat of a self-fulfilled prophecy. Sales slowed, and investors got scared and backed off. The ones that got in on the condo boom in the beginning made gigantic profits, and the ones that waited either lost out, or may now be facing a choice of closing on the preconstruction or losing their deposits.
By no means has there been a real estate bubble or crash. I think every bit of this has been caused by the doom predicters. And the agents and people who know what they are talking about are all saying that this is only a slow-down, and another wave will hit in about a year and a half from now. My only other concern is how high condo insurance may end up going.
The good news is that now it's more of a "BUYER'S MARKET". For those who don't choose to believe all the pessimists and invest in condos and resort property now, they will get even bigger discounts and perks, and when it picks up again, they will be in the same boat with the ones who bought in the beginning of the other boom. Real Estate investing is not for the worriers or the wimps...I think you have to have the nerve to take a chance and get in early to reap the profits.
A guy who is near and dear to me never stops buying. It would terrify me to borrow and spend right and left on every kind of real estate in Myrtle Beach, but he is building so much wealth that I doubt even HE knows what he has. And in about 10 years he will be so rich that we will all be shaking our heads in disbelief. If you've got the money, the credit, the right intuition, and the nerve to commit everything you have, you'll come out on top. I see him doing this every day, and my admiration for him knows no end.
Myrtle Beach is still underpriced compared to Florida and the other hot vacation spots. The developers are offering incentives right and left. Anyone who is looking to invest in real estate and can hold their investment for a year or two will be smiling then.
Here's a recent article about the local market and some of the discounts and perks the developers are offering. If you are thinking about investing at all, you should read it and think hard about taking the plunge before it starts back hot and heavy and prices jump again...
Home builders offering incentives on S.C. coast
Special deals aim to pick up sales among wary buyers in shaky market
By JENNY BURNS
jeburns@thesunnews.com
MYRTLE BEACH — Big builders, taking cues from the auto industry to sell their oversupply of homes, are offering big incentives along the S.C. coast.
Buyers can get 4.25 percent financing, no payments until 2007 or free homeowners association fees for a year.
The deals are aimed at making cautious buyers during this real estate slowdown take the plunge and buy.
“(National builders) are seeing sales falling in general, seeing cancellation rates pick up, and they’re using the incentives to help drive sales and use it to sell inventory that they didn’t plan on having,” said Todd Vencil, analyst for BB&T Capital Markets, who covers eight publicly traded home builders.
For consumers, the payoff is in lower monthly payments and less upfront cash to get into a new home.
While incentives are normal, Vencil said this summer’s incentives go beyond the typical appliance upgrade and free closing.
“They’ve clearly picked up,” he said.
One example is Centex Homes, the Grand Strand’s largest builder. The company is offering 4.25 percent financing with an adjustable rate mortgage. On a $150,000 home, that would make monthly payments about $738 before insurance and taxes are figured in.
That rate is only on spec homes that close by Oct. 31 in most Centex neighborhoods, said Ken Balogh, Myrtle Beach division president.
For a 30-year fixed mortgage, that rate jumps to 6.5 percent.
Balogh said Centex wants to take rates down to last year’s level to help buyers fight rising rates.
The builder is seeing an uptick in cancellations compared with last year, especially in condos, he said.
Builders also are looking at ways to ease the pain of skyrocketing insurance rates along the Grand Strand.
For instance, Centex is paying homeowners association fees between $3,000 and $9,000 in most of its condo and town home projects.
Some Strand condo complexes have seen double and triple increases in their fees because of insurance hikes.
“We can’t fix the insurance challenges but we can help our customers to overcome a year or two of that increase,” Balogh said.
Builders aren’t saying how long they’ll be touting incentives, but analysts expect the enticements to stick around a while.
myrtle beach real estate
Jenny Burns is a reporter for The (Myrtle Beach) Sun News, a McClatchy newspaper.
Thursday, July 27, 2006
Sunday, July 16, 2006
Condo Hotels, the Ultimate 21st Century Vacation Home
MIAMI, FL -- (MARKET WIRE) -- July 13, 2006 -- If home ownership was once the tangible evidence of success in America, today a vacation home is the quintessential symbol of truly having arrived. But with limited time to spend using and maintaining a vacation home, the perfect solution has been elusive.
Along comes the condo hotel, a new twist on the family beach house. These hassle-free, amenity-rich properties could be the ultimate second home for today's well-to-do.
"Condo hotels are designer-furnished condominium suites located in luxury hotels," explained Joel Greene, president of Condo Hotel Center, a national real estate firm that specializes in the sale of condo hotels.
"Owners have access to all the wonderful amenities of the hotel like a pool, restaurant and spa. They also get all the hotel services like daily housekeeping, valet parking and a helpful on-site concierge, everything you could want when on vacation."
Owners of condo hotel units can use their vacation home when they'd like. When they're not there, an on-site hotel management company takes care of all operational issues, including finding hotel guests to rent the condos. Owners receive a share of the proceeds, usually about 50%.
"I hesitated to buy a second home in the past because I knew we'd only use it a few weeks each year," explained Mindy Sullivan, who recently purchased a condo hotel unit in Palazzo del Lago in Orlando. "A condo hotel is ideal because when we're not there, the condo will be rented out. The income it produces will help cover its costs."
Prices for condo hotel units range from $200,000 to upwards of $2,000,000. They usually include all furnishings and fully equipped kitchens.
Condo hotels are popping up in destinations like Miami, Orlando, Las Vegas, Myrtle Beach and the Caribbean. Most are operated by highly reputable hotel franchises like Hyatt, Hilton, Trump, Starwood and Ritz-Carlton that know how to cater to buyers with discerning tastes and demanding requirements.
"When I go on vacation, I want to relax and be pampered," explained Cherise Fuller who recently decided to purchase a unit at the W Las Vegas condo hotel. "A condo hotel is perfect. The kids can head to the pool. I'll go to the spa and fitness center. And my husband can hang out in the casino. There's something for everyone."
While having a home-away-from-home is the primary reason for purchasing condo hotels, some buyers say they like them for appreciation potential. When they sell their vacation homes, they're hoping to make a significant profit.
John Williams, who owns a condo hotel unit in Trump Fort Lauderdale, said, "A condo hotel gives you all the perks of ownership -- a beautiful place to vacation, rent revenue, and appreciation -- without any of the problems."
To learn more about condo hotels and see property listings, go to Condo Hotel Center, http://www.condohotelcenter.com/, or contact Condo Hotel Center at info@CondoHotelCenter,
305-944-3090
###
Another source for preconstruction investing can be found in the PreconstructionCondos.com directory. Our new website is growing slowly but surely to eventually have listings in the entire US for condos and resorts. For those interested in Myrtle Beach condo rentals, check out MyrtleBeachRestaurants.net.
Along comes the condo hotel, a new twist on the family beach house. These hassle-free, amenity-rich properties could be the ultimate second home for today's well-to-do.
"Condo hotels are designer-furnished condominium suites located in luxury hotels," explained Joel Greene, president of Condo Hotel Center, a national real estate firm that specializes in the sale of condo hotels.
"Owners have access to all the wonderful amenities of the hotel like a pool, restaurant and spa. They also get all the hotel services like daily housekeeping, valet parking and a helpful on-site concierge, everything you could want when on vacation."
Owners of condo hotel units can use their vacation home when they'd like. When they're not there, an on-site hotel management company takes care of all operational issues, including finding hotel guests to rent the condos. Owners receive a share of the proceeds, usually about 50%.
"I hesitated to buy a second home in the past because I knew we'd only use it a few weeks each year," explained Mindy Sullivan, who recently purchased a condo hotel unit in Palazzo del Lago in Orlando. "A condo hotel is ideal because when we're not there, the condo will be rented out. The income it produces will help cover its costs."
Prices for condo hotel units range from $200,000 to upwards of $2,000,000. They usually include all furnishings and fully equipped kitchens.
Condo hotels are popping up in destinations like Miami, Orlando, Las Vegas, Myrtle Beach and the Caribbean. Most are operated by highly reputable hotel franchises like Hyatt, Hilton, Trump, Starwood and Ritz-Carlton that know how to cater to buyers with discerning tastes and demanding requirements.
"When I go on vacation, I want to relax and be pampered," explained Cherise Fuller who recently decided to purchase a unit at the W Las Vegas condo hotel. "A condo hotel is perfect. The kids can head to the pool. I'll go to the spa and fitness center. And my husband can hang out in the casino. There's something for everyone."
While having a home-away-from-home is the primary reason for purchasing condo hotels, some buyers say they like them for appreciation potential. When they sell their vacation homes, they're hoping to make a significant profit.
John Williams, who owns a condo hotel unit in Trump Fort Lauderdale, said, "A condo hotel gives you all the perks of ownership -- a beautiful place to vacation, rent revenue, and appreciation -- without any of the problems."
To learn more about condo hotels and see property listings, go to Condo Hotel Center, http://www.condohotelcenter.com/, or contact Condo Hotel Center at info@CondoHotelCenter,
305-944-3090
###
Another source for preconstruction investing can be found in the PreconstructionCondos.com directory. Our new website is growing slowly but surely to eventually have listings in the entire US for condos and resorts. For those interested in Myrtle Beach condo rentals, check out MyrtleBeachRestaurants.net.
Tuesday, July 11, 2006
North Carolina Beaches
State gets tough on beaches' sandbags
By Gareth McGrathStaff writer
gareth.mcgrath@starnewsonline.com
Greenville They were supposed to be temporary measures, limited in size and duration on the beach, to buy time for development of more permanent solutions to protect imminently threatened oceanfront property.
But somewhere along the line, and sometimes aided by sympathetic officials, sandbags have morphed into de facto permanent structures - a supposed no-no in North Carolina where hardened erosion-control measures on beaches are illegal.
Case in point is The Riggings condominium complex in Kure Beach, where sandbags have helped hold back the Atlantic since the first Reagan administration.
Frustrated by the proliferation of the fabric walls along North Carolina's beaches that can affect public access, wash away beaches and simply move erosion farther up the shoreline, the state agency that regulates the coast is now getting tough on sandbags.
Earlier this year, the N.C. Coastal Resources Commission rejected an application by Ocean Isle Beach to "supersize" the sandbags protecting homes and infrastructure along the Brunswick County island's badly eroded east end.
The decision, which is being appealed by the town, came even though the commission previously had given Figure Eight Island and Bald Head Island permission to exceed the 6-foot-tall, 20-foot-wide limit for their sandbag walls.
Thursday, officials discussed the difficulties of enforcing existing rules on sandbags.Jim Gregson, head of the N.C. Division of Coastal Management's Wilmington office, said regulators are "struggling" with what to do about sandbag walls that are taller than their permitted maximum and perpendicular instead of parallel to the shoreline.
The 6-foot-height limit is supposed to be from the beach. But as the bags settle and sink into the sand, more sandbags are often added by worried property owners - causing enforcement problems if erosion exposes the sunken bags.
Coastal officials earlier this year toured some areas along the Outer Banks where sandbag walls were 14 feet high.Spencer Rogers, a coastal engineering expert with N.C. Sea Grant, recommended that sandbag walls be limited to 6 feet, even if they sink.
"The key to limiting the impact is size limits," he said, noting that the 6-foot limit without exceptions was what the commission's Science Panel had recommended years ago.
Commission member Melvin Shepard added his support for reining in sandbags, noting that they weren't designed to be a final solution.
"They were never intended to stop erosion, but just to buy some time until the property could be moved or nourishment could take place," said the Sneads Ferry resident.
Courtney Hackney, chairman of the CRC and a biologist at the University of North Carolina Wilmington, also noted the environmental problems caused by torn or damaged sandbags.
"That's the No. 1 debris in the salt marshes," he said. "It's not Coke bottles or other trash. It's pieces of these bags."But Harry Simmons, mayor of Caswell Beach and executive director of the N.C. Shore, Beach and Waterway Commission, cautioned officials against thinking all sandbag applications are bad. He noted most of the problems with the bags occur around inlets, which are erosion hot spots.
In Southeastern North Carolina, substantial sandbag walls several hundred feet long can be found near inlets in Ocean Isle Beach, Figure Eight Island and North Topsail Beach.
Bald Head Island had its long sandbag wall buried after the Brunswick County island's South Beach was nourished as part of the Wilmington Harbor deepening project.To help stabilize and rebuild the beach further, the island also has rebuilt its groin system.
The network of large perpendicular sand tubes, spaced several hundred feet apart, that extend into the ocean is the only one of its kind in the state.
It's allowed only because it pre-dates the state's ban on hardened beachfront structures.
A bill in the General Assembly would allow North Topsail Beach to build another groin system, although the legislation doesn't appear to have a lot of political support. But officials admit a bigger sandbag problem could be on the horizon.
May 2008 is the deadline for exposed sandbags installed prior to 2000 to come out.
According to state law, only sandbags that are buried and have vegetation on them can stay in the ground.
Gareth McGrath: 910-343-2384
gareth.mcgrath@starnewsonline.com
Real Estate Marketing
By Gareth McGrathStaff writer
gareth.mcgrath@starnewsonline.com
Greenville They were supposed to be temporary measures, limited in size and duration on the beach, to buy time for development of more permanent solutions to protect imminently threatened oceanfront property.
But somewhere along the line, and sometimes aided by sympathetic officials, sandbags have morphed into de facto permanent structures - a supposed no-no in North Carolina where hardened erosion-control measures on beaches are illegal.
Case in point is The Riggings condominium complex in Kure Beach, where sandbags have helped hold back the Atlantic since the first Reagan administration.
Frustrated by the proliferation of the fabric walls along North Carolina's beaches that can affect public access, wash away beaches and simply move erosion farther up the shoreline, the state agency that regulates the coast is now getting tough on sandbags.
Earlier this year, the N.C. Coastal Resources Commission rejected an application by Ocean Isle Beach to "supersize" the sandbags protecting homes and infrastructure along the Brunswick County island's badly eroded east end.
The decision, which is being appealed by the town, came even though the commission previously had given Figure Eight Island and Bald Head Island permission to exceed the 6-foot-tall, 20-foot-wide limit for their sandbag walls.
Thursday, officials discussed the difficulties of enforcing existing rules on sandbags.Jim Gregson, head of the N.C. Division of Coastal Management's Wilmington office, said regulators are "struggling" with what to do about sandbag walls that are taller than their permitted maximum and perpendicular instead of parallel to the shoreline.
The 6-foot-height limit is supposed to be from the beach. But as the bags settle and sink into the sand, more sandbags are often added by worried property owners - causing enforcement problems if erosion exposes the sunken bags.
Coastal officials earlier this year toured some areas along the Outer Banks where sandbag walls were 14 feet high.Spencer Rogers, a coastal engineering expert with N.C. Sea Grant, recommended that sandbag walls be limited to 6 feet, even if they sink.
"The key to limiting the impact is size limits," he said, noting that the 6-foot limit without exceptions was what the commission's Science Panel had recommended years ago.
Commission member Melvin Shepard added his support for reining in sandbags, noting that they weren't designed to be a final solution.
"They were never intended to stop erosion, but just to buy some time until the property could be moved or nourishment could take place," said the Sneads Ferry resident.
Courtney Hackney, chairman of the CRC and a biologist at the University of North Carolina Wilmington, also noted the environmental problems caused by torn or damaged sandbags.
"That's the No. 1 debris in the salt marshes," he said. "It's not Coke bottles or other trash. It's pieces of these bags."But Harry Simmons, mayor of Caswell Beach and executive director of the N.C. Shore, Beach and Waterway Commission, cautioned officials against thinking all sandbag applications are bad. He noted most of the problems with the bags occur around inlets, which are erosion hot spots.
In Southeastern North Carolina, substantial sandbag walls several hundred feet long can be found near inlets in Ocean Isle Beach, Figure Eight Island and North Topsail Beach.
Bald Head Island had its long sandbag wall buried after the Brunswick County island's South Beach was nourished as part of the Wilmington Harbor deepening project.To help stabilize and rebuild the beach further, the island also has rebuilt its groin system.
The network of large perpendicular sand tubes, spaced several hundred feet apart, that extend into the ocean is the only one of its kind in the state.
It's allowed only because it pre-dates the state's ban on hardened beachfront structures.
A bill in the General Assembly would allow North Topsail Beach to build another groin system, although the legislation doesn't appear to have a lot of political support. But officials admit a bigger sandbag problem could be on the horizon.
May 2008 is the deadline for exposed sandbags installed prior to 2000 to come out.
According to state law, only sandbags that are buried and have vegetation on them can stay in the ground.
Gareth McGrath: 910-343-2384
gareth.mcgrath@starnewsonline.com
Real Estate Marketing
Monday, July 10, 2006
Real Estate Marketing?
This is an old article from the Union Tribune that I just ran across, but it was so funny I wanted to share, and it didn't appear to be in the search engines.
I went to Florida recently and visited all the main beaches from Boca Raton on up, back to Jacksonville...trying to decide if I'd like to live there. One of the odd things I noticed was the signage on their conversions and preconstruction condos.
All the condo-hotels in Daytona had these huge things like sheets...sort of like what you see at a rock concert when a group of groupies holds up a sheet that says "WE LOVE YOU DAVY JONES!" or similar. These "sheets" were really really big...stretched across 5 or 10 balconies, and they all said CONDOS FOR SALE!
So this city, wherever El Cajun is, (near San Diego?) has LIVE signs for selling condos. I just think it's a hoot....
Developers challenge ban on spinning ads
By Liz NeelyUNION-TRIBUNE STAFF WRITER
April 13, 2006
EL CAJON – City leaders have rolled out the welcome mat for condominium converters, but they draw the line at plunking a person on the sidewalk with a giant arrow to advertise the properties. Sign spinners, logo flags, banners and similar attention-grabbing tactics fall into the category of temporary signs. They're illegal here, outlawed decades ago along with inflatable objects, streamers and bunting as a way to control the myriad signs cluttering up the city.
El Cajon's condominium conversion task force, made up almost entirely of people connected to the business, is asking the City Council to ease the restrictions. There's a glut of conversions on the market and converters say they need sign spinners, or “human directionals” as they like to call them, to help draw potential buyers.
The spinners wouldn't be so popular among converters and other businesses if they weren't effective, said Greg Neville, president of Pacific Land Group and a member of the task force.
Rules under review El Cajon bans the use of temporary signs with some exceptions.
Condominium converters are asking the city to change the rules to allow for sign spinners, logo flags and other advertising methods. The City Council will discuss the issue April 25. The council meets at 3 p.m. at City Hall, 200 E. Main St. Neville's company is involved in three conversion projects in El Cajon as well as others around the county. He said potential buyers often say the sign spinners lured them in.
Spinners like those who work for San Diego-based Aarrow Advertising wear uniforms and are encouraged to smile and make eye contact with passersby, said Max Durovic, who started the sign-spinning company in 2002.
“Our goal is to really work with towns and cities to make sure this doesn't become a visual nuisance,” Durovic said.
His company pays sign spinners $8 to $20 an hour to work tricks they've learned from “spinstructors.” Despite El Cajon's ban on spinners, Durovic's people still hold practice sessions in the city, perfecting moves like the “helicopter spin” or the “Bruce Lee spin.”
Durovic said El Cajon's limits are hurting his business.
The council will discuss the issue April 25. But there's wariness among some city officials who remember the contentious debate surrounding the city's overhaul of its sign ordinance in the late 1970s.
“What most people don't understand is if you change the sign ordinance you can't restrict (the changes) to one group,” Councilman Dick Ramos said.
Before the sign ordinance was changed, there were no limits on temporary or permanent signs in El Cajon. Businesses were required to get permits for permanent signs, but there were no rules about the size, height or number of signs allowed. There were neon signs, rooftop signs and rotating signs, some trimmed with flashing lights.
“It was terrible, absolutely terrible,” Ramos said.
Limits were proposed by the local chamber of commerce and city officials because the city “was starting to look like Las Vegas,” said Community Development Director Jim Griffin.
The issue was contentious among business owners, who didn't like the new restrictions. As a compromise, businesses with the most expensive signs were given more than a decade to comply, Griffin said. But temporary signs were no longer allowed.
There are some exceptions. Newly opened businesses can display temporary signs for up to 30 days. And within the past eight years, the city has allowed temporary signs for about two weeks around certain holidays. Businesses can also get permission to display them for two weeks twice a year for a sale or other event, Griffin said.
These days a number of converters and other businesses want a little leeway. They complain that several businesses break the rules, often planting sign spinners on busy streets, and that the city selectively enforces the law.
Griffin said the city has received several complaints about spinners. It has been difficult for the city to crack down on them because the spinners work weekends, when there's no code enforcement officer on duty. A part-time person is expected to start patrolling on weekends this month, he said.
Converters say they want the city to immediately suspend the rules about temporary signs for at least six months and then consider a permanent change, specifically for real estate signs. The changes are especially needed now, they say, as sales of condo conversions have slowed throughout San Diego County.
“Six months ago to a year ago all you had to do was put a sign up on a project and (condos) would sell,” said Ron Pennock, chairman of the East County Construction Council and head of the task force.
But now there's a larger inventory of conversions and the market is flattening, Pennock said, “so we need to focus our attention on putting buyers into these units.” Elected leaders here have encouraged converters to bring their projects to El Cajon, approving more than 2,946 units as of April 1. Council members say they help boost property tax revenue and will eventually help change the demographics here, where apartments outnumber houses.
The officials say they have some concerns about changing the sign ordinance, but they want to be business-friendly.
“We have a mutual interest in bringing homeowners to the valley,” Mayor Mark Lewis said, adding that he would support a pilot program to monitor the use of temporary signs and whether they make a difference in sales.
“We need to do what we can to work with them to help them succeed,” Councilwoman Jillian Hanson-Cox said.
But she and others are concerned about sign spinners distracting drivers, dropping signs or blocking the path of pedestrians. If the ordinance changes, they acknowledge, the city won't be able to limit which companies spin here or which businesses are allowed to employ them.
“In my opinion, once you open the door it's going to be very difficult to return to where we are today,” Griffin said.
--------------------------------------------------------------------------------
Liz Neely: (619) 593-4961; liz.neely@uniontrib.com
Sunday, July 2, 2006
Preconstruction Condo Projects in the Gulf Coast
Realtors optimistic about beach market prospects
Closings on Gulf-front condo projects are being closely watched
Sunday, July 02, 2006
The Alabama Press-Register
By KATHY JUMPER
Real Estate Editor
The buyers of the 251 condominium units at The Lighthouse in Gulf Shores started closing on their units two weeks ago, and everybody's watching.
In today's sluggish condo market, how many will buy and how many will bail?
The project presold within 24 hours in August 2003 at prices from $215,000 to $485,000. Some units flipped, or were sold several times at ever-increasing prices, with totals reaching the high $600,000s and into $700,000s, according to agents.
So far, 50 units have closed, according to Rick Phillips, one of the developers of The Lighthouse.
"We're overwhelmed with our buyers trying to come to close," he said, noting that scheduling the 251 closings is difficult since so many owners want to use their units this summer.
"We have not had a single person say they are not going to close," Phillips said. "We've had a couple of buyers say they would not like to close, but they plan to close unless they find a buyer."
Phillips said he gets calls from investors looking for a good deal on a unit, and puts them on a list. So far, he added, he hasn't had to use it.
Watching the Lighthouse and other preconstruction projects close "gives me a whole lot of optimism that everything will close," said Paul Wesch of The Mitchell Company. "Most of the people are buying the unit, will furnish it and not flip it."
"The flippers have gone away," said Frank Malone of ERA Class.com in Gulf Shores. "It was a fun game, though. But we have to remember that flipping is not real estate, that's securities. We're in the real estate business."
Real estate sales at the Gulf have been sluggish since Hurricane Katrina hit last August, though this summer is finally seeing more tourists at the beach, according to agents.
Realtors are hoping buyers will follow and knock out some of the inventory. There were 3,488 condo units listed for sale in Baldwin County as of June 1, according to the Baldwin County Association of Realtors. The average sales prices was $453,312.
"It's difficult selling existing inventory when there are good deals on preconstruction projects that are closing out," said Patrick Daily of REMAX of Orange Beach. "There are seven or more projects closing out their units, and investors are getting some awesome deals. They are picking units up at prices of two to three years ago. You can't build condos at those prices."
A two-bedroom, two-bath unit directly on the Gulf that is in good condition used to sell for $650,000 to $750,000, he said. Today, it's $550,000 to $625,000, according to agents.
Other condo projects scheduled to close this summer or by the end of the year include Caribe Resort's phase 3 in Orange Beach, 200 units; Bella Luna, 132 units on Old River in Perdido Key; and Crystal Tower, 170 units, and San Carlos, 150 units, both in Gulf Shores.
'Buyer's market'
"The people that had been priced out of the market are now coming back," said Chuck Norwood of REMAX of Gulf Shores. "They see it as a buyer's market."
Sales have picked up a bit, Norwood said. "But most of the people want to see us go through a season without a big hurricane."
"I can remember 10 or 11 years ago you would put something on the market and it would take eight or 10 months to sell," Norwood said. "In the last three years we've gotten very spoiled. The time on the market was short and it was a huge seller's market."
This market always creates its own opportunities, Daily said. "Now it's picking up a deal because of excess inventory."
Overpriced inventory
At least half of the current inventory is overpriced, according to Phillips.
"There are sellers that have their units priced at what was going on a year ago," he said. "We aren't there. It's giving a distorted view of what's truly available for sale. Those that want to sell are meeting the prices that buyers want."
###
Much is the case here with Myrtle Beach condos.
Closings on Gulf-front condo projects are being closely watched
Sunday, July 02, 2006
The Alabama Press-Register
By KATHY JUMPER
Real Estate Editor
The buyers of the 251 condominium units at The Lighthouse in Gulf Shores started closing on their units two weeks ago, and everybody's watching.
In today's sluggish condo market, how many will buy and how many will bail?
The project presold within 24 hours in August 2003 at prices from $215,000 to $485,000. Some units flipped, or were sold several times at ever-increasing prices, with totals reaching the high $600,000s and into $700,000s, according to agents.
So far, 50 units have closed, according to Rick Phillips, one of the developers of The Lighthouse.
"We're overwhelmed with our buyers trying to come to close," he said, noting that scheduling the 251 closings is difficult since so many owners want to use their units this summer.
"We have not had a single person say they are not going to close," Phillips said. "We've had a couple of buyers say they would not like to close, but they plan to close unless they find a buyer."
Phillips said he gets calls from investors looking for a good deal on a unit, and puts them on a list. So far, he added, he hasn't had to use it.
Watching the Lighthouse and other preconstruction projects close "gives me a whole lot of optimism that everything will close," said Paul Wesch of The Mitchell Company. "Most of the people are buying the unit, will furnish it and not flip it."
"The flippers have gone away," said Frank Malone of ERA Class.com in Gulf Shores. "It was a fun game, though. But we have to remember that flipping is not real estate, that's securities. We're in the real estate business."
Real estate sales at the Gulf have been sluggish since Hurricane Katrina hit last August, though this summer is finally seeing more tourists at the beach, according to agents.
Realtors are hoping buyers will follow and knock out some of the inventory. There were 3,488 condo units listed for sale in Baldwin County as of June 1, according to the Baldwin County Association of Realtors. The average sales prices was $453,312.
"It's difficult selling existing inventory when there are good deals on preconstruction projects that are closing out," said Patrick Daily of REMAX of Orange Beach. "There are seven or more projects closing out their units, and investors are getting some awesome deals. They are picking units up at prices of two to three years ago. You can't build condos at those prices."
A two-bedroom, two-bath unit directly on the Gulf that is in good condition used to sell for $650,000 to $750,000, he said. Today, it's $550,000 to $625,000, according to agents.
Other condo projects scheduled to close this summer or by the end of the year include Caribe Resort's phase 3 in Orange Beach, 200 units; Bella Luna, 132 units on Old River in Perdido Key; and Crystal Tower, 170 units, and San Carlos, 150 units, both in Gulf Shores.
'Buyer's market'
"The people that had been priced out of the market are now coming back," said Chuck Norwood of REMAX of Gulf Shores. "They see it as a buyer's market."
Sales have picked up a bit, Norwood said. "But most of the people want to see us go through a season without a big hurricane."
"I can remember 10 or 11 years ago you would put something on the market and it would take eight or 10 months to sell," Norwood said. "In the last three years we've gotten very spoiled. The time on the market was short and it was a huge seller's market."
This market always creates its own opportunities, Daily said. "Now it's picking up a deal because of excess inventory."
Overpriced inventory
At least half of the current inventory is overpriced, according to Phillips.
"There are sellers that have their units priced at what was going on a year ago," he said. "We aren't there. It's giving a distorted view of what's truly available for sale. Those that want to sell are meeting the prices that buyers want."
###
Much is the case here with Myrtle Beach condos.
Tuesday, June 20, 2006
5 Key Ways to Avoid Buying a Bad Condo
Here is a great article about condo buying and what to think about.
I did not write this, although I could tell some tales myself. I also own a condo in Myrtle Beach, or right outside of it, about 4 miles from the ocean in Little River, SC.
I bought my condo in 2002, I think. At the time I was working a retail job, making about $10 an hour. I had lived in North Myrtle Beach about 10 years, renting several apartments as I managed to raise my income to where I was at least able to pay my monthly bills without getting into a panic to meet them. My mother passed away and I inherited a small amount of money... enough to buy a replacement for my eleven year old Pontiac Fiero, and for a down payment on a place to live.
No way could I afford a house. At the time, my apartment rental was $400 a month, and I was terrified to end up with anything that would require a higher monthly payment. I lucked up and found a one bedroom condo in Little River for $45,000, and with the low interest rates and after looking at 25-30 condos all over the area, I managed to keep the payments and the HOA fees close to where I wanted.
Living in a resort area, our situation with mortgages is a bit different than it might be in another state or another town. Almost every condo complex here has a high amount of rental units, so what Mr. Bruss says about the higher interest rate for this is not really true here. However, because our complex had a 60% rental rate, I was required to purchase PMI insurance, which added a little bit of extra money to the payment.
Personally, if I had the choice now, I would try to buy a condo in the preconstruction stage.
If you are buying as an investment condo, there is no question that the new and upcoming complexes command a higher rental amount, and vacationers definately prefer them.
Obviously if you are looking to live there, are anxious to move, or want a more residential environment, then a vacation resort or beachfront condo IN Myrtle or North Myrtle Beach may not be your best bet either. Either way, I think buying a condo in a resort area is a great investment. Our condos have increased in price a little more than 100% since I bought mine then. Most of them are now selling for around $90,000. Pretty good equity for someone buying a place to live on such a limited budget, isn't it? :-)
Pretty much the rest of what Mr. Bruss says is "spot on". Here's a great article for prospective buyers...
5 Key Ways to Avoid Buying a Bad Condo
By Bob Bruss
Whether you are a first-time home buyer, or a retiree planning to "down-size" your residence, condominiums are "hot" during the 2006 peak home-buying season. In most communities, condos are still affordable for home buyers. Condominiums are no longer the "ugly ducklings" of real estate. Now they appreciate in market value almost as fast as single-family houses.As a longtime condo owner, I've witnessed their ups and downs in both popularity and desirability. Most condo owners are very satisfied. However, some condo complexes are poorly managed. Others have high monthly fees with sub-standard maintenance quality. Worst of all, some condo complexes have become occupied mostly by renters, rather than owner-occupants, where there is little pride of ownership. Buying a condo is not as simple as buying a house. However, if you know the right questions to ask, buying a condominium can be a profitable experience.
WHY BUY A CONDO INSTEAD OF A HOUSE?
In addition to the affordability of condos, the primary reason many condo buyers purchase is lack of maintenance concern. Condo owners don't worry about repairs outside their condo units because that is the responsibility of the condo homeowner's association.
Legally, a condo purchase involves very expensive air. Known as a "vertical subdivision," each condo owner purchases the airspace to the inner walls, ceiling, and floor surfaces of a specific residence unit. The building structure such as the walls, foundation, elevators, parking area, and roof, including outdoor grounds areas, is known as a "common area," which is owned by, and the maintenance responsibility of, the homeowner's association, which is owned by all the members.
In addition to affordability issues, the majority of condo buyers purchase for lifestyle reasons, such as recreational facilities, freedom from exterior maintenance, ability to lock the door and be away for extended periods, and enjoyment of luxury facilities at modest cost.
NEW OR RESALE CONDO -- WHICH IS BEST?
Being the current owner of a second-home condominium, and having owned several previous condos, I am quite familiar with the many pros and cons of new and resale condominiums.
Owners of older resale condos usually have greater predictability of maintenance expenses and monthly fees because the construction defects of new units have been repaired. However, older condo associations often have gradually increasing maintenance costs as the property ages. But a well-managed condo association will budget for such expenses and set aside adequate reserves so special assessments won't be necessary.
Buyers of brand-new condominiums usually enjoy the latest up-to-date facilities and amenities. However, construction defects are a frequent problem unless the builder takes care of them without trying to dodge legal liability. For example, reportedly over 80 percent of California condo homeowner associations have sued their builder for construction defects.
Lawsuits by a condo association against its builder, or involving any other defendant, can greatly hurt the resale of condos in that complex. Mortgage lenders often refuse to make loans to buyers where there is any litigation involving the condo association. Another unexpected problem with brand-new condos is the developer often sets the monthly maintenance fees too low to adequately fund reserves for repairs. After all the units are sold, the unpleasant result is the homeowner's association has to raise monthly fee assessments to provide sufficient funds for expenses and replacement reserves.
THE FIVE KEY QUESTIONS CONDO BUYERS SHOULD ASK
To avoid buying a "bad condo," whether it is brand-new or a resale unit, smart condo buyers ask at least these five key questions:
1.) HOW DO THE MONTHLY CONDO FEES COMPARE WITH COMPETITIVE NEARBY CONDO COMPLEXES?
Smart prospective condo buyers first ask, "What is included in the monthly assessment fee?" and then compare it with the fees charged at nearby competitive condo complexes. However, be sure to compare apples with apples. To illustrate, the condo that I own includes winter heat in the monthly fee, but not summer air conditioning. Similar nearby condos include these major expenses, but some include neither because their condo units have individual heat and cooling units.Closely related is the issue of adequate replacement reserves. Wise condo buyers carefully review the latest financial reports of the condo homeowner's association. If it is an older complex, the reserves should be relatively high per unit to provide for unexpected repairs. However, newer complexes usually don't need high maintenance reserves.
2.) WHAT IS THE FINANCIAL CONDITION OF THE HOMEOWNER'S ASSOCIATION? ARE THERE ANY EXPECTED SPECIAL ASSESSMENTS?
Before purchase, condo buyers must be given a copy of the CC&Rs (conditions, covenants, and restrictions), by-laws, rules, and latest financial reports of the homeowner's association. In addition, smart buyers ask for and read the board of director's minutes for the last six meetings.
A key question prospective buyers should ask is, "Are any special assessments under discussion or planned?" For example, I recently had lunch with a very successful real estate broker who told me about a condo he recently sold for an elderly seller. He explained that only after the sale was almost ready to close, it was discovered the condo owner's association planned to levy a $20,000 special assessment on each owner to pay for deferred maintenance. There is no specific maintenance reserve guideline. But two general rules are a) $2,000 to $3,000 per unit, and b) 25 percent of the annual gross income of the association should be in the reserve account.
3.) IS THE CONDO ASSOCIATION PROFESSIONALLY MANAGED?
Except for very small condo associations up to six units, every condo association needs a professional property manager. Prospective buyers should be wary of buying a condo in a complex that is self-managed, often by the owners or directors living in the property.
A related question is, "How long has the complex been managed by the same company?"
The longer the better. The condo association where I own my condo has had the same professional management firm for 30 years. The property manager assigned to our property has managed our property over 20 years. Needless to say, we are very satisfied.
Professional managers usually "earn" their fees from expense savings. For example, our condo insurance policy recently came up for renewal. The professional manager shopped among many insurers. Since he also manages other condo complexes, he controls lots of potential business for insurers. Not only did he negotiate a big reduction in our premiums with the same coverage, but he also got the insurer to lock-in the same rate for up to three years, and we are free to shop among other insurers at each annual renewal.
4.) WHAT IS THE PERCENTAGE OF RENTERS IN THE CONDO COMPLEX?
If the answer is more than 10 percent, buyers should be cautious. If there are more than 20 to 30 percent renters, that's a very bad sign because mortgage lenders will either refuse to make loans in that complex or they will charge higher interest rates. Too many renters can hurt future condo sales.
A key reason to avoid condo complexes with more than a few renters is absentee owners often don't care about maintenance of the property. The result can be declining quality of maintenance. Complexes with anti-renter rules are considered very desirable and often bring premium resale prices.
5.) ASK SEVERAL CURRENT RESIDENTS, "WHAT DO YOU LIKE BEST AND LEAST ABOUT LIVING HERE?"
A closely related question to ask is, "Would you buy a condo here again?" Most condo owner-occupants are very friendly and willing to share their good and bad experiences. While you are asking questions, don't hesitate to inquire, "How is the soundproofing here?" Poor soundproofing between condo units, upstairs and downstairs, as well as adjacent, is the number one complaint of condo owners.
Lastly, when making a condo purchase offer, be certain it contains a contingency clause for a professional property inspection. After the condo seller accepts your offer, be sure to accompany your professional inspector to determine if there are any undisclosed defects in the unit or the complex that might cause you to reject the inspection report.
By Bob Bruss
I did not write this, although I could tell some tales myself. I also own a condo in Myrtle Beach, or right outside of it, about 4 miles from the ocean in Little River, SC.
I bought my condo in 2002, I think. At the time I was working a retail job, making about $10 an hour. I had lived in North Myrtle Beach about 10 years, renting several apartments as I managed to raise my income to where I was at least able to pay my monthly bills without getting into a panic to meet them. My mother passed away and I inherited a small amount of money... enough to buy a replacement for my eleven year old Pontiac Fiero, and for a down payment on a place to live.
No way could I afford a house. At the time, my apartment rental was $400 a month, and I was terrified to end up with anything that would require a higher monthly payment. I lucked up and found a one bedroom condo in Little River for $45,000, and with the low interest rates and after looking at 25-30 condos all over the area, I managed to keep the payments and the HOA fees close to where I wanted.
Living in a resort area, our situation with mortgages is a bit different than it might be in another state or another town. Almost every condo complex here has a high amount of rental units, so what Mr. Bruss says about the higher interest rate for this is not really true here. However, because our complex had a 60% rental rate, I was required to purchase PMI insurance, which added a little bit of extra money to the payment.
Personally, if I had the choice now, I would try to buy a condo in the preconstruction stage.
If you are buying as an investment condo, there is no question that the new and upcoming complexes command a higher rental amount, and vacationers definately prefer them.
Obviously if you are looking to live there, are anxious to move, or want a more residential environment, then a vacation resort or beachfront condo IN Myrtle or North Myrtle Beach may not be your best bet either. Either way, I think buying a condo in a resort area is a great investment. Our condos have increased in price a little more than 100% since I bought mine then. Most of them are now selling for around $90,000. Pretty good equity for someone buying a place to live on such a limited budget, isn't it? :-)
Pretty much the rest of what Mr. Bruss says is "spot on". Here's a great article for prospective buyers...
5 Key Ways to Avoid Buying a Bad Condo
By Bob Bruss
Whether you are a first-time home buyer, or a retiree planning to "down-size" your residence, condominiums are "hot" during the 2006 peak home-buying season. In most communities, condos are still affordable for home buyers. Condominiums are no longer the "ugly ducklings" of real estate. Now they appreciate in market value almost as fast as single-family houses.As a longtime condo owner, I've witnessed their ups and downs in both popularity and desirability. Most condo owners are very satisfied. However, some condo complexes are poorly managed. Others have high monthly fees with sub-standard maintenance quality. Worst of all, some condo complexes have become occupied mostly by renters, rather than owner-occupants, where there is little pride of ownership. Buying a condo is not as simple as buying a house. However, if you know the right questions to ask, buying a condominium can be a profitable experience.
WHY BUY A CONDO INSTEAD OF A HOUSE?
In addition to the affordability of condos, the primary reason many condo buyers purchase is lack of maintenance concern. Condo owners don't worry about repairs outside their condo units because that is the responsibility of the condo homeowner's association.
Legally, a condo purchase involves very expensive air. Known as a "vertical subdivision," each condo owner purchases the airspace to the inner walls, ceiling, and floor surfaces of a specific residence unit. The building structure such as the walls, foundation, elevators, parking area, and roof, including outdoor grounds areas, is known as a "common area," which is owned by, and the maintenance responsibility of, the homeowner's association, which is owned by all the members.
In addition to affordability issues, the majority of condo buyers purchase for lifestyle reasons, such as recreational facilities, freedom from exterior maintenance, ability to lock the door and be away for extended periods, and enjoyment of luxury facilities at modest cost.
NEW OR RESALE CONDO -- WHICH IS BEST?
Being the current owner of a second-home condominium, and having owned several previous condos, I am quite familiar with the many pros and cons of new and resale condominiums.
Owners of older resale condos usually have greater predictability of maintenance expenses and monthly fees because the construction defects of new units have been repaired. However, older condo associations often have gradually increasing maintenance costs as the property ages. But a well-managed condo association will budget for such expenses and set aside adequate reserves so special assessments won't be necessary.
Buyers of brand-new condominiums usually enjoy the latest up-to-date facilities and amenities. However, construction defects are a frequent problem unless the builder takes care of them without trying to dodge legal liability. For example, reportedly over 80 percent of California condo homeowner associations have sued their builder for construction defects.
Lawsuits by a condo association against its builder, or involving any other defendant, can greatly hurt the resale of condos in that complex. Mortgage lenders often refuse to make loans to buyers where there is any litigation involving the condo association. Another unexpected problem with brand-new condos is the developer often sets the monthly maintenance fees too low to adequately fund reserves for repairs. After all the units are sold, the unpleasant result is the homeowner's association has to raise monthly fee assessments to provide sufficient funds for expenses and replacement reserves.
THE FIVE KEY QUESTIONS CONDO BUYERS SHOULD ASK
To avoid buying a "bad condo," whether it is brand-new or a resale unit, smart condo buyers ask at least these five key questions:
1.) HOW DO THE MONTHLY CONDO FEES COMPARE WITH COMPETITIVE NEARBY CONDO COMPLEXES?
Smart prospective condo buyers first ask, "What is included in the monthly assessment fee?" and then compare it with the fees charged at nearby competitive condo complexes. However, be sure to compare apples with apples. To illustrate, the condo that I own includes winter heat in the monthly fee, but not summer air conditioning. Similar nearby condos include these major expenses, but some include neither because their condo units have individual heat and cooling units.Closely related is the issue of adequate replacement reserves. Wise condo buyers carefully review the latest financial reports of the condo homeowner's association. If it is an older complex, the reserves should be relatively high per unit to provide for unexpected repairs. However, newer complexes usually don't need high maintenance reserves.
2.) WHAT IS THE FINANCIAL CONDITION OF THE HOMEOWNER'S ASSOCIATION? ARE THERE ANY EXPECTED SPECIAL ASSESSMENTS?
Before purchase, condo buyers must be given a copy of the CC&Rs (conditions, covenants, and restrictions), by-laws, rules, and latest financial reports of the homeowner's association. In addition, smart buyers ask for and read the board of director's minutes for the last six meetings.
A key question prospective buyers should ask is, "Are any special assessments under discussion or planned?" For example, I recently had lunch with a very successful real estate broker who told me about a condo he recently sold for an elderly seller. He explained that only after the sale was almost ready to close, it was discovered the condo owner's association planned to levy a $20,000 special assessment on each owner to pay for deferred maintenance. There is no specific maintenance reserve guideline. But two general rules are a) $2,000 to $3,000 per unit, and b) 25 percent of the annual gross income of the association should be in the reserve account.
3.) IS THE CONDO ASSOCIATION PROFESSIONALLY MANAGED?
Except for very small condo associations up to six units, every condo association needs a professional property manager. Prospective buyers should be wary of buying a condo in a complex that is self-managed, often by the owners or directors living in the property.
A related question is, "How long has the complex been managed by the same company?"
The longer the better. The condo association where I own my condo has had the same professional management firm for 30 years. The property manager assigned to our property has managed our property over 20 years. Needless to say, we are very satisfied.
Professional managers usually "earn" their fees from expense savings. For example, our condo insurance policy recently came up for renewal. The professional manager shopped among many insurers. Since he also manages other condo complexes, he controls lots of potential business for insurers. Not only did he negotiate a big reduction in our premiums with the same coverage, but he also got the insurer to lock-in the same rate for up to three years, and we are free to shop among other insurers at each annual renewal.
4.) WHAT IS THE PERCENTAGE OF RENTERS IN THE CONDO COMPLEX?
If the answer is more than 10 percent, buyers should be cautious. If there are more than 20 to 30 percent renters, that's a very bad sign because mortgage lenders will either refuse to make loans in that complex or they will charge higher interest rates. Too many renters can hurt future condo sales.
A key reason to avoid condo complexes with more than a few renters is absentee owners often don't care about maintenance of the property. The result can be declining quality of maintenance. Complexes with anti-renter rules are considered very desirable and often bring premium resale prices.
5.) ASK SEVERAL CURRENT RESIDENTS, "WHAT DO YOU LIKE BEST AND LEAST ABOUT LIVING HERE?"
A closely related question to ask is, "Would you buy a condo here again?" Most condo owner-occupants are very friendly and willing to share their good and bad experiences. While you are asking questions, don't hesitate to inquire, "How is the soundproofing here?" Poor soundproofing between condo units, upstairs and downstairs, as well as adjacent, is the number one complaint of condo owners.
Lastly, when making a condo purchase offer, be certain it contains a contingency clause for a professional property inspection. After the condo seller accepts your offer, be sure to accompany your professional inspector to determine if there are any undisclosed defects in the unit or the complex that might cause you to reject the inspection report.
By Bob Bruss
Friday, June 9, 2006
Coastal boom moves inland
The new waterfront:
(Excerpts from this article pertaining to Brunswick County Real Estate)
North Carolina's beaches have been heavily developed for years. But along the state's 3,000-plus miles of mainland waterfront, a second land rush is on, with sleepy river towns awakening to dense development. What will it mean?
Lotteries for lots
In some cases, coastal land is too valuable to be used for golf.
Big-time development on the Brunswick mainland has been going on a decade or more. Roads are lined with billboards promoting developments, and since 1999 the county has approved subdivisions with nearly 60,000 home sites on the mainland coast. A fourth of those came just in the past year.
Development on the mainland near Brunswick's beaches has been so vigorous for so long that well-located large tracts are difficult to find. So developer Mark Saunders bought two golf courses to convert most of the property into subdivisions. Another developer is planning to do the same to a third course.
On two weekends in May, Saunders staged three-day events at two of his projects to sell lots. Customers flew in from as far away as San Diego, enjoyed catered meals and chair massages, and toured the area in two helicopters chartered by Saunders.
The first event was at a former course near Ocean Isle Beach, the project he has named Ocean Isle Palms. The company had to conduct a lottery -- as it also did at its other May event -- to determine the order in which buyers could pick lots, which cost $230,000 to $350,000. The first phase, nearly 200 lots, sold out by the second day, so the company offered lots it had planned to sell later.
The day after the event, the sales director for the project, a soft-voiced Scotsman named Donald Howarth, sat at a table in his office behind a foot-high stack of sales contracts, signing them as if he were a professional athlete giving autographs.
"Had we had more property ready, we would have sold more," he said.
Still, some developers acknowledge that many sales are speculation, a phenomenon that helped drive up prices on the beach. And with tens of thousands more mainland lots on the way, some are wondering whether all the expected retirees will come.
"I hope we're not all chasing the same few thousand people," said Larry Gwaltney, a real estate agent in Oriental on the Neuse River.
Developer Fred Fletcher is a former Raleigh resident who's a partner in building Moss Landing, a condominium and townhouse project in downtown Washington with units selling from $425,000 to $1.2 million. He thinks 20 to 30 percent of buyers at most projects plan to resell quickly.
"I'm hopeful that the speculation and flipping will wane so we can get to the true customers," he said.
One of Howarth's customers during the wild sales weekend at Ocean Isle was Paul Lofgren, 57, a retired health care administrator. He and his wife, Jane, 56, run an inn on Martha's Vineyard, the New England getaway island.
They first visited Brunswick County in 2004 and fell in love with it. They bought property in another of Saunders' projects and eventually hope to make it their primary home. The new lot is an investment. Given the boom, they figure it's a solid bet.
Back in Massachusetts, they have become missionaries for the Carolina mainland coast, persuading seven couples to buy here.
"Ten years ago, all you heard was Florida," Paul Lofgren said. "Now everyone seems to be talking about North Carolina."
Staff writer Jay Price can be reached at 829-4526 or mailto:jprice@newsobserver.com
(Excerpts from this article pertaining to Brunswick County Real Estate)
North Carolina's beaches have been heavily developed for years. But along the state's 3,000-plus miles of mainland waterfront, a second land rush is on, with sleepy river towns awakening to dense development. What will it mean?
Lotteries for lots
In some cases, coastal land is too valuable to be used for golf.
Big-time development on the Brunswick mainland has been going on a decade or more. Roads are lined with billboards promoting developments, and since 1999 the county has approved subdivisions with nearly 60,000 home sites on the mainland coast. A fourth of those came just in the past year.
Development on the mainland near Brunswick's beaches has been so vigorous for so long that well-located large tracts are difficult to find. So developer Mark Saunders bought two golf courses to convert most of the property into subdivisions. Another developer is planning to do the same to a third course.
On two weekends in May, Saunders staged three-day events at two of his projects to sell lots. Customers flew in from as far away as San Diego, enjoyed catered meals and chair massages, and toured the area in two helicopters chartered by Saunders.
The first event was at a former course near Ocean Isle Beach, the project he has named Ocean Isle Palms. The company had to conduct a lottery -- as it also did at its other May event -- to determine the order in which buyers could pick lots, which cost $230,000 to $350,000. The first phase, nearly 200 lots, sold out by the second day, so the company offered lots it had planned to sell later.
The day after the event, the sales director for the project, a soft-voiced Scotsman named Donald Howarth, sat at a table in his office behind a foot-high stack of sales contracts, signing them as if he were a professional athlete giving autographs.
"Had we had more property ready, we would have sold more," he said.
Still, some developers acknowledge that many sales are speculation, a phenomenon that helped drive up prices on the beach. And with tens of thousands more mainland lots on the way, some are wondering whether all the expected retirees will come.
"I hope we're not all chasing the same few thousand people," said Larry Gwaltney, a real estate agent in Oriental on the Neuse River.
Developer Fred Fletcher is a former Raleigh resident who's a partner in building Moss Landing, a condominium and townhouse project in downtown Washington with units selling from $425,000 to $1.2 million. He thinks 20 to 30 percent of buyers at most projects plan to resell quickly.
"I'm hopeful that the speculation and flipping will wane so we can get to the true customers," he said.
One of Howarth's customers during the wild sales weekend at Ocean Isle was Paul Lofgren, 57, a retired health care administrator. He and his wife, Jane, 56, run an inn on Martha's Vineyard, the New England getaway island.
They first visited Brunswick County in 2004 and fell in love with it. They bought property in another of Saunders' projects and eventually hope to make it their primary home. The new lot is an investment. Given the boom, they figure it's a solid bet.
Back in Massachusetts, they have become missionaries for the Carolina mainland coast, persuading seven couples to buy here.
"Ten years ago, all you heard was Florida," Paul Lofgren said. "Now everyone seems to be talking about North Carolina."
Staff writer Jay Price can be reached at 829-4526 or mailto:jprice@newsobserver.com
Wednesday, May 17, 2006
Smith Lake is Rapidly Becoming the Premier Lakefront Property
Smith Lake is Rapidly Becoming the Premier Lakefront Property, Anticipated by So Many People for Years
In north western Alabama is a sleepy little area called Smith Lake. Largely undiscovered by the rest of the world, the lake has remained an almost forgotten paradise.
(PRWEB) May 17, 2006
"Smith Lake is now seeing tremendous growth", said Angela Treadway owner and co-developer at Emerald Valley Estates. A gorgeous new premiere Smith Lake lakefront development just released. "You cannot find better priced lakefront property anywhere in the country. You can buy one of our lots and build a lake house and still be under $500,000. As a developer I know what is happening on this lake. We are just now on the front end of the boom. Now is the time to invest anywhere on Smith Lake. These prices will not last." continued Treadway.
Additionally, Grandview Resort is another new lakefront development. Angela Treadway consulted on the initial setup, marketing, layout and design of this project and after the first two weeks building one is sold out! This new resort will be a gated community, with one hundred luxury condo units, outdoor water park, large balconies, private marina and a lakeside terrace. From the moment you drive through the gated entrance you will see the stunning views of the clear emerald green waters. "When coming to Grandview plan to relax, unwind and enjoy nature’s beauty" added Treadway.
Smith Lake is a manmade wonder with over 500 miles of shoreline covering more than 21,000 acres. It is one of the deepest lakes in America with water depths of over 200 feet and was recently named the 3rd cleanest Lake in America. It covers portions of three Alabama counties: Cullman, Walker, and Winston.
Smith Lake is an excellent fishing lake drawing fishermen from all over the southeast. Five World Fishing records have been established on Smith Lake and several champion fishing tournaments are held on the lake each year. One of the biggest drawing points about Smith Lake is its location. Located in north western Alabama, Smith Lake is less than 1 hour from Birmingham, Huntsville and Tupelo, 2½ hours from Nashville, 3 hours from Memphis and Atlanta and 1½ hours from Gadsden, Alabama.
Smith Lake is located in a tremendous growth corridor and is in a prime position to continue to experience exponential growth. Based on growth figures this region of the country is expected to grow by 15.8% into 2009.
Press Release Provided by: American Real Estate Design and Myrtle Beach Web Design
# # #
Press Contact: Bryan Pearl Company
Phone: 256-498-0320 Website:
More Information: http://www.prweb.com/releases/2006/5/prweb386868.htm
In north western Alabama is a sleepy little area called Smith Lake. Largely undiscovered by the rest of the world, the lake has remained an almost forgotten paradise.
(PRWEB) May 17, 2006
"Smith Lake is now seeing tremendous growth", said Angela Treadway owner and co-developer at Emerald Valley Estates. A gorgeous new premiere Smith Lake lakefront development just released. "You cannot find better priced lakefront property anywhere in the country. You can buy one of our lots and build a lake house and still be under $500,000. As a developer I know what is happening on this lake. We are just now on the front end of the boom. Now is the time to invest anywhere on Smith Lake. These prices will not last." continued Treadway.
Additionally, Grandview Resort is another new lakefront development. Angela Treadway consulted on the initial setup, marketing, layout and design of this project and after the first two weeks building one is sold out! This new resort will be a gated community, with one hundred luxury condo units, outdoor water park, large balconies, private marina and a lakeside terrace. From the moment you drive through the gated entrance you will see the stunning views of the clear emerald green waters. "When coming to Grandview plan to relax, unwind and enjoy nature’s beauty" added Treadway.
Smith Lake is a manmade wonder with over 500 miles of shoreline covering more than 21,000 acres. It is one of the deepest lakes in America with water depths of over 200 feet and was recently named the 3rd cleanest Lake in America. It covers portions of three Alabama counties: Cullman, Walker, and Winston.
Smith Lake is an excellent fishing lake drawing fishermen from all over the southeast. Five World Fishing records have been established on Smith Lake and several champion fishing tournaments are held on the lake each year. One of the biggest drawing points about Smith Lake is its location. Located in north western Alabama, Smith Lake is less than 1 hour from Birmingham, Huntsville and Tupelo, 2½ hours from Nashville, 3 hours from Memphis and Atlanta and 1½ hours from Gadsden, Alabama.
Smith Lake is located in a tremendous growth corridor and is in a prime position to continue to experience exponential growth. Based on growth figures this region of the country is expected to grow by 15.8% into 2009.
Press Release Provided by: American Real Estate Design and Myrtle Beach Web Design
# # #
Press Contact: Bryan Pearl Company
Phone: 256-498-0320 Website:
More Information: http://www.prweb.com/releases/2006/5/prweb386868.htm
Thursday, May 11, 2006
New Condo-Hotel Owners Association Created
I was reading an article about investing in condo hotels and how profitable/unprofitable it might be. Here are some excerpts from the article and information on the new National Condo-Hotel Assn, called NACHO...
Bankrate.com
Do condo-hotels make good investments?
Thursday May 11, 6:00 am ET
Marilyn Bowden
Hoteliers in resort locations are offering guests a stake in the business by selling individual units as condominiums. Not only is this an opportunity to own a second home in some of the country's favorite playgrounds, promoters say, but owners can look forward to some income when the property's management rents the room out to guests.
Realtor Christian Charre, a senior vice president with Jones Lang LaSalle, markets hotels throughout the Americas and the Caribbean. He says, "Having a professional company renting the room for you the rest of the time, when it would otherwise be empty, can offset some of the expense -- and you still own a piece of the beach."
It sounds like a pretty good deal, but the facts show condo-hotel consumers would be wise to check the closet for financial skeletons before signing on the dotted line. The hotel business can be notoriously unstable -- and if that room doesn't rent out, the buyer won't see any of the income from it.
(Webmaster's note: The majority of the preconstruction condos for sale in Myrtle Beach have on-site rental management...often from older local families that have run the hotels for years before the condo conversion. I think that investment condos in Florida and Las Vegas are dramatically different than the ones we have here....and a big majority of that difference is in price. You can only charge so much for a hotel room...condo or not. Myrtle Beach condos prices are still well under a million dollars for most condo resorts. The prime areas in Florida and Las Vegas are well over a million...)
Where you'll find them
"Condo-hotels are usually upscale, full-service developments in the strongest hotel markets -- either popular vacation destinations or large cities where suburbanites frequent hotels for business or leisure purposes," says Tim Ford, vice president of operations at Lodging Econometrics, one of very few companies tracking the trend.
Some 43 condo-hotel projects containing 7,715 guest rooms are scheduled to open this year in the U.S., Ford says. Another 33 projects totaling 8,271 rooms will open in 2007. Of these, 70 percent will be built new, while 30 percent represent conversions of existing hotels. Nearly half are in Florida. (See Florida Condos Here)
Jerrold Krystoff, principal and CEO of Hospitality Development Group, says InterContinental Resort & Residences will manage Villas at Palazzo del Lago, a condo-hotel his company plans to build near Disney World in Orlando.
"If you look at the new hotel projects coming online," Krystoff says, "most of them are condo. The lenders like it." (Mortgage Companies )
In fact, says Charre, the driving force behind the trend is the preference bankers show to hotel developers who come to them with preconstruction contracts in hand.
"A condo-hotel is a financing mechanism to shift the risk to individual owners," he says.
For the would-be purchaser, one of the most frustrating aspects might be that the developer of a condo-hotel is prohibited by securities law from revealing the kinds of information buyers would most like to know -- such as how many nights they can expect the room to be rented out, what the forecast is on rental rates, and how a property's performance compares with others in its geographic area.
That's a dilemma the newly minted National Association of Condo-hotel Owners, or NACHO, hopes to resolve. The organization serves both buyers and sellers.
"Condo-hotels are in fact the best secondary vacation-home purchase available today," says Dante Alexander, NACHO president and CEO, and a former executive with Starwood Hotels & Resorts.
To help buyers make informed decisions, NACHO plans to publish "categorical ratings that can only be viewed by members," he says. Criteria include:
The National Association of Condo Hotel Owners provides buyers with unprecedented tools for making informed decisions in today's popular real estate segment, the Condo Hotel. Our proprietary Ratings System, our valuable Unit Economics Calculator, and our detailed, full disclosure Property Reports are just a few of the resources available to members that can make all the difference on your next transaction.
Bankrate.com
Do condo-hotels make good investments?
Thursday May 11, 6:00 am ET
Marilyn Bowden
Hoteliers in resort locations are offering guests a stake in the business by selling individual units as condominiums. Not only is this an opportunity to own a second home in some of the country's favorite playgrounds, promoters say, but owners can look forward to some income when the property's management rents the room out to guests.
Realtor Christian Charre, a senior vice president with Jones Lang LaSalle, markets hotels throughout the Americas and the Caribbean. He says, "Having a professional company renting the room for you the rest of the time, when it would otherwise be empty, can offset some of the expense -- and you still own a piece of the beach."
It sounds like a pretty good deal, but the facts show condo-hotel consumers would be wise to check the closet for financial skeletons before signing on the dotted line. The hotel business can be notoriously unstable -- and if that room doesn't rent out, the buyer won't see any of the income from it.
(Webmaster's note: The majority of the preconstruction condos for sale in Myrtle Beach have on-site rental management...often from older local families that have run the hotels for years before the condo conversion. I think that investment condos in Florida and Las Vegas are dramatically different than the ones we have here....and a big majority of that difference is in price. You can only charge so much for a hotel room...condo or not. Myrtle Beach condos prices are still well under a million dollars for most condo resorts. The prime areas in Florida and Las Vegas are well over a million...)
Where you'll find them
"Condo-hotels are usually upscale, full-service developments in the strongest hotel markets -- either popular vacation destinations or large cities where suburbanites frequent hotels for business or leisure purposes," says Tim Ford, vice president of operations at Lodging Econometrics, one of very few companies tracking the trend.
Some 43 condo-hotel projects containing 7,715 guest rooms are scheduled to open this year in the U.S., Ford says. Another 33 projects totaling 8,271 rooms will open in 2007. Of these, 70 percent will be built new, while 30 percent represent conversions of existing hotels. Nearly half are in Florida. (See Florida Condos Here)
Jerrold Krystoff, principal and CEO of Hospitality Development Group, says InterContinental Resort & Residences will manage Villas at Palazzo del Lago, a condo-hotel his company plans to build near Disney World in Orlando.
"If you look at the new hotel projects coming online," Krystoff says, "most of them are condo. The lenders like it." (Mortgage Companies )
In fact, says Charre, the driving force behind the trend is the preference bankers show to hotel developers who come to them with preconstruction contracts in hand.
"A condo-hotel is a financing mechanism to shift the risk to individual owners," he says.
For the would-be purchaser, one of the most frustrating aspects might be that the developer of a condo-hotel is prohibited by securities law from revealing the kinds of information buyers would most like to know -- such as how many nights they can expect the room to be rented out, what the forecast is on rental rates, and how a property's performance compares with others in its geographic area.
That's a dilemma the newly minted National Association of Condo-hotel Owners, or NACHO, hopes to resolve. The organization serves both buyers and sellers.
"Condo-hotels are in fact the best secondary vacation-home purchase available today," says Dante Alexander, NACHO president and CEO, and a former executive with Starwood Hotels & Resorts.
To help buyers make informed decisions, NACHO plans to publish "categorical ratings that can only be viewed by members," he says. Criteria include:
Complex and unit maintenance.
Ability of the development team to complete the project.
Likely profitability of the hotel.
The hotel's long-term competitive sustainability.
Unit economics -- what a buyer can expect to pay in insurance, taxes, homeowner association fees and other costs.
The National Association of Condo Hotel Owners provides buyers with unprecedented tools for making informed decisions in today's popular real estate segment, the Condo Hotel. Our proprietary Ratings System, our valuable Unit Economics Calculator, and our detailed, full disclosure Property Reports are just a few of the resources available to members that can make all the difference on your next transaction.
Tuesday, May 9, 2006
Florida Condo Conversion News
A new article from the South-Florida Sun Sentinel...
Landmark to become hotel-condo
Published May 8, 2006
Robin Friedman
Certain segments of South Florida's housing market may have slowed -- preconstruction condominiums and condo conversions, for example -- but the hotel-condominium craze lives on. Developers here continue to build new hotel-condominium projects as well as convert existing hotels. Now the Royal Palm Resort, an Art Deco landmark hotel on South Beach in Miami, is going hotel-condo.
The Falor Cos., a Chicago-based hospitality firm that is a major player in the repositioning and conversion of traditional hotels to hotel-condominiums, has joined forces with The Mitchell Cos., a Miami-based commercial property company, to convert the Royal Palm Resort.
The two firms, which purchased the resort from Peebles Atlantic Development Corp. in February 2005, plan to invest $17.5 million in the project above the purchase price of $127.5 million to renovate all of the 417 existing hotel rooms, the restaurant, bar and pool area and to add a spa and lounge, said Robert Falor, chief executive officer of The Falor Cos.
The resort is located at 1545 Collins Ave. in Miami Beach. It consists of three buildings ranging in height from three to 17 stories. Of the 417 existing rooms, 130 will be sold as hotel-condominium units ranging in size from 273 to 1,151 square feet. These will be priced from the $400,000s. Also there will be 35 poolside bungalows for sale. These will range from 451 to 466 square feet and will be priced from $600,000. The remaining 252 hotel rooms will be retained by the developer and used as traditional hotel rooms. MORE...
Landmark to become hotel-condo
Published May 8, 2006
Robin Friedman
Certain segments of South Florida's housing market may have slowed -- preconstruction condominiums and condo conversions, for example -- but the hotel-condominium craze lives on. Developers here continue to build new hotel-condominium projects as well as convert existing hotels. Now the Royal Palm Resort, an Art Deco landmark hotel on South Beach in Miami, is going hotel-condo.
The Falor Cos., a Chicago-based hospitality firm that is a major player in the repositioning and conversion of traditional hotels to hotel-condominiums, has joined forces with The Mitchell Cos., a Miami-based commercial property company, to convert the Royal Palm Resort.
The two firms, which purchased the resort from Peebles Atlantic Development Corp. in February 2005, plan to invest $17.5 million in the project above the purchase price of $127.5 million to renovate all of the 417 existing hotel rooms, the restaurant, bar and pool area and to add a spa and lounge, said Robert Falor, chief executive officer of The Falor Cos.
The resort is located at 1545 Collins Ave. in Miami Beach. It consists of three buildings ranging in height from three to 17 stories. Of the 417 existing rooms, 130 will be sold as hotel-condominium units ranging in size from 273 to 1,151 square feet. These will be priced from the $400,000s. Also there will be 35 poolside bungalows for sale. These will range from 451 to 466 square feet and will be priced from $600,000. The remaining 252 hotel rooms will be retained by the developer and used as traditional hotel rooms. MORE...
Saturday, April 22, 2006
Condo Insurance
Here's some figures pertaining to homeowners and condo insurance in Florida with all of the hurricane problems.
Key Facts From Florida's 2004 Nightmare Hurricane Season
The Office of Insurance Regulation is projecting $20.9 billion in insured losses and 1.66 million claims from the 2004 hurricane season.
It is estimated by the Insurance Information Institute that one in every five Florida homes was impacted by a hurricane to some degree last year. State officials note that every public school in Florida has been closed at least one day this year because of a hurricane threat.
"This loss of premium income and capital was distributed among the insurers ($11.3 billion), the reinsurance market ($5.75 billion) and the Florida Hurricane Catastrophe Fund," OIR noted in its hurricane task force report.
Here is a breakdown:
Hurricane Charley 481,372 claims and $8 billion in insured losses;
Hurricane Frances 547,325 claims and $5.1 billion in insured losses;
Hurricane Ivan 213,390 claims and $3.8 billion in insured losses;
Hurricane Jeanne 425,647 claims and $4 billion in losses.
An estimated 2.6 million of Florida's 8.1 million housing units were damaged by the hurricanes, with 35,000 destroyed, 649,000 sustaining major damage and 1,917,000 sustaining minor damage. (University of Florida, Bureau of Economic & Business Research, July 2005 report). Many homeowners did not sustain damage great enough to surpass their hurricane deductible, generally 2 percent of the amount of insurance, or $4,000 on a $200,000 house. This explains 1.7 million claims and 2.6 million housing units damaged.
The Office of Insurance Regulation estimates that Floridians absorbed $1.6 billion in out-of-pocket losses through their hurricane deductibles.
Total losses from the four hurricanes, including uninsured losses, are much greater than the $26 billion accounted through wind insurer payments, policyholder deductibles and National Flood Insurance Program payments. A ballpark guess is $50 billion to $75 billion.
This is taken from the Florida Insurance Council's website.
Key Facts From Florida's 2004 Nightmare Hurricane Season
The Office of Insurance Regulation is projecting $20.9 billion in insured losses and 1.66 million claims from the 2004 hurricane season.
It is estimated by the Insurance Information Institute that one in every five Florida homes was impacted by a hurricane to some degree last year. State officials note that every public school in Florida has been closed at least one day this year because of a hurricane threat.
"This loss of premium income and capital was distributed among the insurers ($11.3 billion), the reinsurance market ($5.75 billion) and the Florida Hurricane Catastrophe Fund," OIR noted in its hurricane task force report.
Here is a breakdown:
Hurricane Charley 481,372 claims and $8 billion in insured losses;
Hurricane Frances 547,325 claims and $5.1 billion in insured losses;
Hurricane Ivan 213,390 claims and $3.8 billion in insured losses;
Hurricane Jeanne 425,647 claims and $4 billion in losses.
An estimated 2.6 million of Florida's 8.1 million housing units were damaged by the hurricanes, with 35,000 destroyed, 649,000 sustaining major damage and 1,917,000 sustaining minor damage. (University of Florida, Bureau of Economic & Business Research, July 2005 report). Many homeowners did not sustain damage great enough to surpass their hurricane deductible, generally 2 percent of the amount of insurance, or $4,000 on a $200,000 house. This explains 1.7 million claims and 2.6 million housing units damaged.
The Office of Insurance Regulation estimates that Floridians absorbed $1.6 billion in out-of-pocket losses through their hurricane deductibles.
Total losses from the four hurricanes, including uninsured losses, are much greater than the $26 billion accounted through wind insurer payments, policyholder deductibles and National Flood Insurance Program payments. A ballpark guess is $50 billion to $75 billion.
This is taken from the Florida Insurance Council's website.
Las Vegas Condos Article
Here's an article about the newest Las Vegas Real Estate opportunities.
Condos & Poker Chips
4/21/2006
By Jim Merritt
Las Vegas, Nevada, is apparently ready to gamble on the growing condo-hotel market trend.
In January, the Las Vegas Sun reported that "the first near-Strip condo-hotels are scheduled to open in the first half of 2006, bringing a new hotel concept to Las Vegas."
The 255-room, $85 million Platinum condo-hotel property is scheduled to be completed this month on East Flamingo Road, according to the Las Vegas Convention and Visitors Authority online construction report.
But a much larger property is on the desert horizon.
The W Las Vegas Hotel, Casino and Residences, reportedly to be the largest W property and the first of the boutique brand with a casino, is currently in the pre-public, pre-construction phase of reservations.
The property is being developed by Edge Star Partners in partnership with Starwood. A Welcome Center is currently under construction to introduce W Las Vegas Residences to the general public.
Demand so far has been "overwhelming," says Maggie Feldman, spokeswoman for W Las Vegas. In addition to a casino, the property will include "destination" dining, nightlife and a Bliss spa.
The W Las Vegas is expected to break ground in early 2007, and open in 2009. It will feature two towers of about 50 stories each with a total of 4,000 units. Prices will start at $650,000 for a studio, and one bedrooms will also be available; owners will have the option of turning their units into part-time hotel accommodations.
"I think the most popular option will be the condo hotel model where the rooms are rented out to hotel guests and the owner shares the revenue that's generated," Feldman said. The revenue split is yet to be determined, she said.
A W spokesman said the brand had its sights set on Vegas for a long time.
"Las Vegas is like no other city in the world and has been on the top of W's development strategy for years," said Ross Klein, President of W Hotels.
Klein said, "The brand is setting the stage for a dramatic entry into one of the world's most important, exciting destinations."
Klein continued, "The W Las Vegas will offer guests extraordinary experiences at every turn through the brand's lifestyle elements - provocative spaces, delightful indulgences and experiential surprises that will be unheard of even by 'Vegas' standards."
Kevin Bagger, research director of the Las Vegas Convention and Visitors Authority, said, "As Las Vegas continues to evolve, the condo hotel product is yet another new facet for Las Vegas lodging as several large projects are planned or under construction. We're excited to see the new condo-hotel properties open, but it's too early to measure their impact on the destination."
Feldman believes that W will settle into a niche in Vegas. Feldman noted, "Currently in Las Vegas, there's a spectrum ranging from the younger more party-oriented hotels… aimed at the young trend setting crowd, and at the other end, luxury hotels … W has skillfully combined those two (markets) as a fashion forward stylish hotel that is still very upscale and luxurious. That's what's missing in Vegas, and that's why the W brand will do so well here."
The January Las Vegas Sun article reported that "a handful (of) condo-hotels have been announced in recent months. Among the properties is a 1,282 unit Trump International Hotel is expected to open early next year.
Jim Merritt is associate editor of Hotel Interactive.
Condos & Poker Chips
4/21/2006
By Jim Merritt
Las Vegas, Nevada, is apparently ready to gamble on the growing condo-hotel market trend.
In January, the Las Vegas Sun reported that "the first near-Strip condo-hotels are scheduled to open in the first half of 2006, bringing a new hotel concept to Las Vegas."
The 255-room, $85 million Platinum condo-hotel property is scheduled to be completed this month on East Flamingo Road, according to the Las Vegas Convention and Visitors Authority online construction report.
But a much larger property is on the desert horizon.
The W Las Vegas Hotel, Casino and Residences, reportedly to be the largest W property and the first of the boutique brand with a casino, is currently in the pre-public, pre-construction phase of reservations.
The property is being developed by Edge Star Partners in partnership with Starwood. A Welcome Center is currently under construction to introduce W Las Vegas Residences to the general public.
Demand so far has been "overwhelming," says Maggie Feldman, spokeswoman for W Las Vegas. In addition to a casino, the property will include "destination" dining, nightlife and a Bliss spa.
The W Las Vegas is expected to break ground in early 2007, and open in 2009. It will feature two towers of about 50 stories each with a total of 4,000 units. Prices will start at $650,000 for a studio, and one bedrooms will also be available; owners will have the option of turning their units into part-time hotel accommodations.
"I think the most popular option will be the condo hotel model where the rooms are rented out to hotel guests and the owner shares the revenue that's generated," Feldman said. The revenue split is yet to be determined, she said.
A W spokesman said the brand had its sights set on Vegas for a long time.
"Las Vegas is like no other city in the world and has been on the top of W's development strategy for years," said Ross Klein, President of W Hotels.
Klein said, "The brand is setting the stage for a dramatic entry into one of the world's most important, exciting destinations."
Klein continued, "The W Las Vegas will offer guests extraordinary experiences at every turn through the brand's lifestyle elements - provocative spaces, delightful indulgences and experiential surprises that will be unheard of even by 'Vegas' standards."
Kevin Bagger, research director of the Las Vegas Convention and Visitors Authority, said, "As Las Vegas continues to evolve, the condo hotel product is yet another new facet for Las Vegas lodging as several large projects are planned or under construction. We're excited to see the new condo-hotel properties open, but it's too early to measure their impact on the destination."
Feldman believes that W will settle into a niche in Vegas. Feldman noted, "Currently in Las Vegas, there's a spectrum ranging from the younger more party-oriented hotels… aimed at the young trend setting crowd, and at the other end, luxury hotels … W has skillfully combined those two (markets) as a fashion forward stylish hotel that is still very upscale and luxurious. That's what's missing in Vegas, and that's why the W brand will do so well here."
The January Las Vegas Sun article reported that "a handful (of) condo-hotels have been announced in recent months. Among the properties is a 1,282 unit Trump International Hotel is expected to open early next year.
Jim Merritt is associate editor of Hotel Interactive.
Sunday, March 12, 2006
Legislators seek looser coastal regulations
Recent news story about The Prince Resort at the Cherry Grove Pier Project...
March 12. 2006 12:45PM
The Associated Press
Critics say legislators trying to help a condominium project add a pool to their beachfront project could undo nearly two decades of regulations intended to limit development and protecting public beach access.
Rep. Dwight Loftis, R-Greenville; Rep. Bill Witherspoon, R-Conway and Rep. Nelson Hardwick, R-Surfside Beach are pushing a bill to allow the project to have an aboveground pool at a 17-story condominium project at the Cherry Grove fishing pier in North Myrtle Beach.
People buying the north myrtle beach condos have been told pools will be part of the project. But the pool would be on the ocean side of a line where building is restricted.
"This may be the only place in Horry County that would ever need this," Hardwick said. "We're just trying to accommodate an old family that is doing a project."
Elizabeth Hagood, chairwoman of the Department of Health and Environmental Control board, says that's the wrong reason to change the law. A House subcommittee is scheduled to debate the legislation Tuesday.
"Clearly, there is no overwhelming public need for this," she said. "This is for special interests."
The state's 1988 beach management act strictly limits what can be built close to the ocean.
South Carolina has learned lessons about building too close to the surf and should not change the 1988 law now, says Bill Eiser, a DHEC coastal regulator.
"It doesn't make sense from a long-term management strategy to allow something to go closer to the beach than what we've been doing," Eiser said.
Those 1988 limits were set after unusually high tides on Jan. 1, 1987, washed out dozens of pools and decks from Myrtle Beach to Charleston and brought millions of dollars in damage. The law was intended to move new development back from the seashore.
Pools that remain from before the change now jut onto the beach at Garden City and elsewhere, forcing governments to spend millions to widen beaches and prevent waves from slamming seawalls and pool decks at high tide.
The change Hardwick and others want could allow more new oceanfront pools and that could block public access at high tide and make erosion worse, critics say.
The push for the change comes as DHEC sees its coastal regulations under attack elsewhere:
- Legislators want DHEC to process permits faster. Loftis says the agency is too slow and is seeking a Legislative Audit Council review of DHEC's permitting process.
- A carefully crafted agreement between real-estate agents and conservationists to protect isolated wetlands by requiring permits to fill them could unravel after legislators questioned it last week.
- The Legislature may reject rules limiting construction of bridges to salt marsh islands, mostly in Charleston and Beaufort counties.
Hagood, a conservationist, is worried about the new pressure from the Legislature as coastal growth continues and development pressures rise.
"We have special interests trying to infiltrate and undermine our coastal zone program," Hagood said. "It is driven by money and greed. It is not driven out of the desire to protect the public interest or our natural resources."
---
Note: Not so. The Prince Resort Myrtle Beach will be the best thing that ever happened to Cherry Grove Beach and will turn the whole section around from the run-down look it's always had. The Cherry Grove Pier is probably the only reason Cherry Grove even has tourists. A pool won't change anything that isn't already there. This is one of the finest North Myrtle Beach condo developments ever designed.
March 12. 2006 12:45PM
The Associated Press
Critics say legislators trying to help a condominium project add a pool to their beachfront project could undo nearly two decades of regulations intended to limit development and protecting public beach access.
Rep. Dwight Loftis, R-Greenville; Rep. Bill Witherspoon, R-Conway and Rep. Nelson Hardwick, R-Surfside Beach are pushing a bill to allow the project to have an aboveground pool at a 17-story condominium project at the Cherry Grove fishing pier in North Myrtle Beach.
People buying the north myrtle beach condos have been told pools will be part of the project. But the pool would be on the ocean side of a line where building is restricted.
"This may be the only place in Horry County that would ever need this," Hardwick said. "We're just trying to accommodate an old family that is doing a project."
Elizabeth Hagood, chairwoman of the Department of Health and Environmental Control board, says that's the wrong reason to change the law. A House subcommittee is scheduled to debate the legislation Tuesday.
"Clearly, there is no overwhelming public need for this," she said. "This is for special interests."
The state's 1988 beach management act strictly limits what can be built close to the ocean.
South Carolina has learned lessons about building too close to the surf and should not change the 1988 law now, says Bill Eiser, a DHEC coastal regulator.
"It doesn't make sense from a long-term management strategy to allow something to go closer to the beach than what we've been doing," Eiser said.
Those 1988 limits were set after unusually high tides on Jan. 1, 1987, washed out dozens of pools and decks from Myrtle Beach to Charleston and brought millions of dollars in damage. The law was intended to move new development back from the seashore.
Pools that remain from before the change now jut onto the beach at Garden City and elsewhere, forcing governments to spend millions to widen beaches and prevent waves from slamming seawalls and pool decks at high tide.
The change Hardwick and others want could allow more new oceanfront pools and that could block public access at high tide and make erosion worse, critics say.
The push for the change comes as DHEC sees its coastal regulations under attack elsewhere:
- Legislators want DHEC to process permits faster. Loftis says the agency is too slow and is seeking a Legislative Audit Council review of DHEC's permitting process.
- A carefully crafted agreement between real-estate agents and conservationists to protect isolated wetlands by requiring permits to fill them could unravel after legislators questioned it last week.
- The Legislature may reject rules limiting construction of bridges to salt marsh islands, mostly in Charleston and Beaufort counties.
Hagood, a conservationist, is worried about the new pressure from the Legislature as coastal growth continues and development pressures rise.
"We have special interests trying to infiltrate and undermine our coastal zone program," Hagood said. "It is driven by money and greed. It is not driven out of the desire to protect the public interest or our natural resources."
---
Note: Not so. The Prince Resort Myrtle Beach will be the best thing that ever happened to Cherry Grove Beach and will turn the whole section around from the run-down look it's always had. The Cherry Grove Pier is probably the only reason Cherry Grove even has tourists. A pool won't change anything that isn't already there. This is one of the finest North Myrtle Beach condo developments ever designed.
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