AOL Real Estate - Blog http://realestate.aol.com/blog AOL Real Estate - Blog http://realestate.aol.com/blog/media/feedlogo.gif AOL Real Estate - Blog http://realestate.aol.com/blog en-us Copyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/New Homes: Comeback for McMansions?http://realestate.aol.com/blog/2010/11/17/are-mcmansions-making-a-comeback/http://realestate.aol.com/blog/2010/11/17/are-mcmansions-making-a-comeback/http://realestate.aol.com/blog/2010/11/17/are-mcmansions-making-a-comeback/#commentsFiled under:

Just when you thought you'd never see an ugly McMansion again -- thanks to the recession and subsequent downsizing by frugal new-home buyers -- some brave souls are predicting that these oversize homes might soon make a comeback.

A recent story in the Orlando Sentinel suggests that McMansions are reappearing in parts of Florida after almost becoming an extinct species. Consider an "affordable" 5,100-square-footer with eight bedrooms or a 3,000-square-foot new home with four bedrooms and a three-car garage, all for around $300,000.

Are trophy homes really becoming hot again?
One Florida builder, Meritage Homes, has turned such a model into a recent bestseller. The difference between its new homes and the McMansions of the early 2000s is a simplified architectual style, more energy-efficient features and a more reasonable price.

And luxury homebuilder Toll Brothers is beginning construction in Florida on Fontana Estates, where new homes of 3,000 to 4,000 square feet will cost $300,000 or more. Again, the plans and price are stripped-down, though these homes still contain four bedrooms, family great rooms and three-car garages.

The definition of a McMansion varies, but it's a derogatory term usually applied to a mass-produced home larger than 3,000 square feet, which also has the attributes of poor or mismatched design and undifferentiated architecture out of sync with the local neighboorhood. We're talking great rooms and excessive use of gabled roofs.

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McMansions boomed in the 1980s and 1990s but took a shellacking once the recession hit and buyers became more frugal and energy conscious, not to mention averse to conspicuous consumption. Some observers say a new surge in McMansion construction is unlikely.

"The idea of a McMansion boom -- I don't see that happening at all right now," says Stephen Melman, director of economic services at the National Associaton of Home Builders.

Even if some new houses are bucking the small-is-better trend, they represent only a tiny niche of the huge home-buying universe. What's more, Melman says, "you wouldn't call these homes McMansions," as they lack garishness, opulence and size beyond need -- the McMansion characteristics.

A survey in August noted that only 9 percent of Americans say that their ideal home size is more than 3,200-square feet, while 55 percent prefer a home between 1,400 and 2,600-square feet.

Builders and architects have been obliging with smaller lots and footprints and more considered interior designs which reflect a pared down lifestyle -- by American standards, that is.

Not surprisingly, the median size of the American home has been shrinking -- to about 2,100-square feet in 2009 from 2,268-square feet in 2006 -- after years of bloating.

Demographics are at work here as well as the down economy. Baby boomers want to downsize once the kids are gone, while first-time buyers usually think small and cheap, and these groups together comprise some 140 million people.

Still, some buyers will always want big. In the future, the McMansion -- or a new version thereof, with energy-efficient appliances and perhaps minus the turrets -- might make a post-recession comeback of sorts, once buyers (especially first-timers ready to move up) feel more confident.

In other words, noted June Fletcher in the Wall Street Journal, they will want a McMansion -- "a home just like the one they grew up in."

Certainly that will have to wait for better times.

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]]>FloridaMcMansionNational Association of Home Buildersoversized homesreal estate marketErnest Beck2010-11-17T12:32:00 00:00Minneapolis' Mushroom House for Salehttp://realestate.aol.com/blog/2010/11/11/minneapoliss-weird-mushroom-house-for-sale/http://realestate.aol.com/blog/2010/11/11/minneapoliss-weird-mushroom-house-for-sale/http://realestate.aol.com/blog/2010/11/11/minneapoliss-weird-mushroom-house-for-sale/#commentsFiled under:

If you ever dreamed of living in a house made of hardened polyurethane insulation foam, now's your chance. A mushroom-shaped, '60s-era structure outside of MInneapolis known as the Ensculptic House has had its price knocked down to $212,000 after listing in September at $237,000.

Constructed in 1969 for around $30,000, the fascinating blob-like residence was designed by architect Winslow Wedin for a client couple who wanted something different and at relatively low cost. It passed through several owners after the couple died, including their daughter who is now selling it.

The 4,080-square foot, two-bedroom, 2.5-bathroom house needs $30,000 to $50,000 to return it to a livable state, as there's no running water or septic system and the copper piping was ripped out over the past few years when it wasn't occupied.

That hasn't stopped a stream of potential buyers from viewing the place, in all its Flintstones-esque weirdness.
"You have to be interested in quirky," says realtor Dayna Murray of Keller Williams Realty in Minneapolis, who is showing the house, which is made of burlap stretched over nylon cables and covered in sprayed-on polyurethane foam. Viewers have suggested turning house into an art studio, an event space or a bed-and-breakfast.

"Another suggested a haunted house," Murray adds.

Who would want to live there?

Ensculptic House does have its charms, although they're not so obvious. An article in Life magazine described the residence, with its amorphous shape and rounded, undulating walls as "an Olympic soufflé or a giant mushroom with portholes." It also said the inside was "light, airy and wondrously unpredictable." (See more photos at the end of this post.)

The house sits on 8.4 acres and has lots of windows and light, and polyurethane makes for good insulation from the harsh weather, so energy bills might be low.

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But of course, you would be living in an architectural curiosity, one of 10 built by Wedin at a time when, he recalls, he was fascinated by exploring "thin-shelled hanging structures and free-form houses."

The hardened foam house concept never caught on, although you could argue that the flowing shapes do resemble some of the futuristic buildings by current star-architect Zaha Hadid.

Wedin, who now lives and practices in Boca Raton, Fla., doesn't know the fate of the other Ensculptic (defined as "environmental sculpture in plastic") houses in Colorado, Florida, Wisconsin and Kansas City.

The fate of the Minneapolis house is also uncertain. It was tough to come up with comparables for a house that looks like a covered spider web, so Murray priced the house at the land's value.

"You buy the land, you get the house," she says, which means the Ensculptic could, sadly, be bulldozed into oblivion and with it an iconic example of experimental architecture.

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]]>ensculpticensculptic houseinsulation foamlife magazineminnesota real estatemushroom housepolyurethanewinslow wedinErnest Beck2010-11-11T12:10:00 00:00Long Island Mansions on Sale: Live Like Gatsbyhttp://realestate.aol.com/blog/2010/10/11/live-like-gatsby-long-island-mansions-on-the-market/http://realestate.aol.com/blog/2010/10/11/live-like-gatsby-long-island-mansions-on-the-market/http://realestate.aol.com/blog/2010/10/11/live-like-gatsby-long-island-mansions-on-the-market/#commentsFiled under: ,

Attention Gatsby wannabes: If you always hankered after a waterfront mansion or storied estate home on Long Island's glitzy North Shore -- the Gold Coast that inspired F. Scott Fitzgerald's "The Great Gatsby" -- it might be time to buy.

A growing number of mega-size homes, in neighborhoods famous for their seclusion, bucolic settings and wealthy residents, are coming on the market in the fall season, at prices that are being described as adjustable.

Like other luxury markets across the country, the North Shore market was hit hard by the downturn, but is now showing some traction, which has led to encouraged sellers putting their homes up for sale -- and being open to bargaining -- while buyers are taking a second look. Not exactly fire sales but, says Jonathan Miller, of Miller Samuel Real Estate Appraisers, "we think you will see more competition and larger discounts coming."

Take Windrift (pictured above and at end), a six-acre waterfront estate in Oyster Bay Harbor with 8,000-square-feet, five bedrooms, six bathrooms, a guest cottage, pool and tennis court. Listed at $8.35 million by Daniel Gale Sotheby's International Realty, it was reportedly discounted from an original listing price of $11 million, according to Newsday, but not confirmed by the Realtor.

Some of the listings indeed lend themselves to Gatsby fantasies.
Consider a waterfront property in Oyster Bay, with an 8,500-square-foot French chateau-style house a with slate roof, for $6.99 million.

One reason for the listings surge is perhaps a generational change. Older owners are selling off their huge homes as they retire, or their estates want to unload them. Meanwhile, new buyers are attracted to the sheer size of these properties, because tighter zoning restrictions curtail construction of uber-sized homes in many areas.

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What's more, many of the older homes come with the "style, craftsmanship and detail work" that you don't get in a contemporary or new build, says Paul Mateyunas, an agent at Daniel Gale. One of his listings is a 20-room French Norman-style home from the 1920s in Muttontown, which comes with a separate teahouse.

Prices have been on a downward slide while sales have increased this year. In the second quarter of 2010, the average North Shore sales price fell 7.7 percent to $843,651 from $941,185 in the same quarter a year ago, and was 3.1 percent lower than the previous quarter. But the number of sales soared 88.3 percent to 533 from 283 a year ago and was up 28.1 percent from the previous quarter, according to Miller Samuel.

So if you want to live in a Fitzgerald novel, head on down the Long island Expressway -- or cruise over to the North Shore on your yacht -- and check out the well-priced offerings.

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]]>estate homesF. Scott FitzgeraldGold Coastgreat gatsbylong island real estateNorth ShorewaterfrontErnest Beck2010-10-11T13:48:00 00:00World's Most Expensive Apartment Sold: Monte Carlo Penthousehttp://realestate.aol.com/blog/2010/09/16/worlds-most-expensive-apartment-sold-monte-carlo-penthouse/http://realestate.aol.com/blog/2010/09/16/worlds-most-expensive-apartment-sold-monte-carlo-penthouse/http://realestate.aol.com/blog/2010/09/16/worlds-most-expensive-apartment-sold-monte-carlo-penthouse/#commentsFiled under: ,

We always knew that Monte Carlo was pricey, but the sale of a six-bedroom penthouse in the pint-size European principality, for a record-breaking $312 million, takes the prize as the world's most expensive apartment. If such a figure is still obtainable, how bad can the real estate slump be?

The pad's buyer, says Luxist, is the U.S.-born Greek billionaire Constantine Alexander-Goulandris, who earns his keep as an advisor to the Saudi royal family and various Middle Eastern oil potentates, so we suspect that he didn't have trouble getting a mortgage. Oh, he's also said to be worth a cool $15 billion and is cozy with Russian mogul Roman Abramovich.

Alexander-Goulandris reportedly has other residences in Paris, London, Antibes, New York and Hawaii. So why add another to the collection?
Well, there are great views in Monte Carlo, the weather is balmy, and you can gamble and schmooze with European royalty and tourists. And it used to be the hangout of various tax exiles, like tennis star Bjorn Borg.

According to The Financial Times, the property -- appropriately named La Belle Epoque -- features all you would expect for the price (see pictures below), from a huge wood-paneled library to a spa and gardens, not to mention three en-suite bedrooms, each with a theater, kitchen, dressing room and two bathrooms. And of course, some pretty glitzy decor, and we mean huge crystal chandeliers and the like, as seen in Architectural Digest.

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The apartment has quite a pedigree. It once belonged to the billionaire banker Edmond Safra, who died in a fire in the place. Nicholas and Christian Candy, London-based real estate developers, bought it from Safra's widow and embarked on a bit of a makeover, reportedly to the tune of $40 million, and then moved in themselves.

The Candy brothers are no stranger to reaching for the top in the uber-luxury market. In August they sold an an apartment in a building in London's Hyde Park for about $220 million, which was until now the most expensive apartment, globally speaking.

How high can prices go for trophy properties? It seems there's a lot of money still sloshing around the world, looking for a a place to park, and a growing number of apartments and homes designed to meet the needs of the super-wealthy in terms of square footage, over-the-top amenities and of course, location. Expect more record breakers as the rich return to real estate, big time.

While you may not have the clams to buy yourself an international jewel, such sales bode well for a recovery for the rest of us.

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]]>monacoMonte Carlomost expensive citiesmost expensive real estateErnest Beck2010-09-16T14:39:00 00:00Big Green Home Busthttp://realestate.aol.com/blog/2010/09/16/big-green-home-bust/http://realestate.aol.com/blog/2010/09/16/big-green-home-bust/http://realestate.aol.com/blog/2010/09/16/big-green-home-bust/#commentsFiled under: ,,

A well-appointed green home outfitted with energy-saving appliances and other eco-friendly features might save money on utility bills and ease your conscience, but it won't always help close a sale in a tough real estate market, a California homeowner has learned.

The warning sign for the green residential market: A house for sale in Costa Mesa that was the first in Orange County to receive a coveted LEED Platinum certification (green building's Good Housekeeping Seal) had its price slashed by half a million.

The seven-bedroom, 4,900-square foot Craftsman-style house is the ultimate green showcase, boasting everything from low-flow faucets to solar panels (see "Home Energy Saving Projects for Every Budget"). But even those hallmarks of sustainable design were no match, it seems, for the cruddy economy and skittish buyers. According to the Orange County Register, the green home's list price recently dropped $500,000, from $2,999,000 to $2,499,999.
The hefty drop underscores the continuing debate about the resale value of green homes. Many have believed that green would command a premium among buyers who aspire to a sustainable lifestyle, but now it appears that green might not be as big a selling point in a market that has gone off the rails.

So how green do prospective buyers want to go?

There's not much hard evidence to go by. Anecdotes suggest that sustainable homes can sometimes sell faster than conventional ones, especially if energy-efficiency is the main marketing theme, according to the National Association of Home Builders. On the other hand, some green condo buildings in urban markets like New York, that were expected to fly off the market in the boom, have had a rough ride.

Green or not, buyers are still constrained by the market's current tight financial conditions, the NAHB says, and even the prospect of lower monthly energy bills "has not gained the attention of the lending community."

One problem is that most people are in the dark about what green building really means, and more importantly, if it's worth paying for. Green can also be confusing: Quick, what's the difference between LED and LEED? (Answer: LED is energy-efficient light emitting diodes, used in lighting and LEED is Leadership in Energy and Environmental Design, the much touted green certification program that includes a checklist of environmental standards).

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Although the price gap between green and standard housing is reportedly closing, buyers aren't always interested in the technical aspects of how and why green will improve their lives, especially if they are agonizing over a big financial commitment. The Costa Mesa home, for example, which sits on a golf course, features dual-flush toilets, an internal gray water system, and drought-tolerant native plants in the garden (see "Landscaping With Low-Maintenance Lawns Saves Money").

Sounds great, but most buyers are more likely to wonder whether they can afford the mortgage.

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]]>California real estateEnergy savingEnergy Savingsgreen designgreen homegreen homesLEEDNAHBOrange Countysustainable designErnest Beck2010-09-16T11:43:00 00:00Reduce Your Carbon Footprint With Carbon Creditshttp://realestate.aol.com/blog/2010/09/01/reduce-your-carbon-footprint-with-carbon-credits/http://realestate.aol.com/blog/2010/09/01/reduce-your-carbon-footprint-with-carbon-credits/http://realestate.aol.com/blog/2010/09/01/reduce-your-carbon-footprint-with-carbon-credits/#comments Sarah Warren considers herself an "unlikely environmentalist": someone who a few years ago would only casually recycle her garbage but who now can tell you her home's carbon footprint. That happened after Warren, a psychologist in Evanston, Ill., realized how environmental degradation poses "a clear threat to the health and well-being of my children," she says. After that, Warren switched from incandescent to compact fluorescent lightbulbs, vigilantly turned off lights, installed a ceiling fan to reduce air-conditioning costs and eventually used a new tool to green her home: buying carbon offsets after measuring the extent of her home's carbon footprint.

A growing number of eco-conscious homeowners are doing the same, as part of an effort to not only help the environment but also reduce energy use and utility bills. Supporters of carbon offsets (also called carbon credits) say that it is an easy way for individuals to make a difference on a small scale in reducing global warming, although some critics argue that offsets don't always accomplish that goal.

Carbon offsets can be confusing, like the heated debate over climate change itself. So here's what you need to know if you are considering joining the offset movement:
All of our homes affect the environment by requiring fuel and electricity for heat and light. In fact, the average American home emits around 20,000 pounds of carbon dioxide (CO2) a year. The first step in buying carbon offsets is to determine your home's carbon footprint by plugging some details--like where you live and your energy costs--into a online carbon calculator, to see where you stand on the eco-scale.

Is your house sucking up too much in the fossil fuel department? There are websites to offer you tips on what to do, from the latest in weather stripping to insulation made of recycled denim. If you take these steps and still need to reduce more, then you can buy a carbon credit.

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Carbon credits are basically a financial instrument aimed at lowering CO2 emissions. When you buy one, it's like making a donation that goes to fund a carbon-reduction project, such as a wind farm or reforestation. In that way your money--in the form of the offset--helps reduce emissions somewhere else to compensate for your own carbon impact, be it from your home or an airplane trip.

Of course, you don't have to change a lightbulb or reduce anything: one can just buy enough credits to ease one's carbon footprint (and guilt). But Pierre Bull, a research analyst at the Natural Resources Defense Council, an environmental advocacy organization, suggests that credits should be part of a broader energy reduction plan. "The best approach is to do as much as you can based on personal behavior and usage and then use offsets as a last resort," he says.


Keep these points in mind as you navigate the new world of carbon offsets:

1. Use a carbon calculator from a well-known and reliable organization or government agency, like the EPA, or one that is based on EPA data, such as Carbonfund.org.

2. Think about what carbon offset project you want to support; probably one that reflects a particular environmental concern or personal interest (they can range from biofuels to dairy farms that reduce methane gas emissions).

3. You can aim for a "carbon neutral" or "carbon zero" home, but experts say smaller reductions will also make a difference.

4. Make sure the projects you select are certified and verified by third-party organizations that monitor standards and results, which should be found on the website.

For her part, Warren bought credits for wind and solar projects from the nonprofit Bonneville Environmental Foundation that cost "a few hundred dollars" to offset carbon emissions from her home as well as other activities, like travel. In so doing, she has helped reduce her home's energy use and utility bill, she says, and also "live in alignment with my values and show my children how to respect the natural world and its limitations."


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]]>carbon calculatorcarbon creditscarbon footprintCarbonCreditsclimate changeDIYenergy efficiencyEPAglobal warminggreen homehome+improvementrenovationErnest Beck2010-09-01T13:44:00 00:00Spa Shower: Luxury in the Bathroomhttp://realestate.aol.com/blog/2010/08/23/luxury-shower-head-your-bathroom-turned-spa/http://realestate.aol.com/blog/2010/08/23/luxury-shower-head-your-bathroom-turned-spa/http://realestate.aol.com/blog/2010/08/23/luxury-shower-head-your-bathroom-turned-spa/#commentsluxury spa shower headWhen David Maher, a financial adviser in Cleveland, bought a raw condo space in a downtown building earlier this year, he decided to install a spa shower to make his new home a special place.

Maher paid attention the details in his master bathroom and upgraded to a Moen-brand luxury shower unit called the ioDIGITAL. The spa-style shower unit comes complete with remote controls, a digital touch pad to pre-program water temperature, and an array of shower heads ranging from a rain shower to four body sprays and a hand-held wand. "I never had these things before and going into a new place I wanted something luxury and high end," Maher, 43, says.

Like a growing number of homeowners, he has replaced a ho-hum shower with a more spa-like one that includes shower heads that can mimic raindrops or a waterfall or pelt the body like a massage. Although such spa shower units represent less than 5 percent of the overall market, they have grown in popularity over the past decade. Why? And should you upgrade to a spa shower?
"People like the idea that they can have a spa at home," explains Lars Christiansen, product development director for Hansgrohe, another luxury plumbing manufacturer. He referes to it as "the wellness factor."

Your old single-nozzle shower head will get you clean, of course, but if you want to go upmarket keep these factors in mind:


1. Think about your spa-style

You can have a waterfall effect that feels like the water is pouring over the side of a stone, like a sheet, or get pummeled as if a Turkish masseuse was giving you the once over. Or you can have any number of types in combination, enabling you to switch while showering.


2. Be prepared to pay extra for having a personal spa

Shopping around for a price you can best afford is definitely advised. Hansgrohe's entry-level luxury line starts at around $1,500 and can go up to $4,000 depending on the models and finish. Moen's ioDIGITAL unit costs about $2,600. Doing some internet searches could find you less-expensive spa shower options.

3. Expert advice/help

Consult a master plumber, the manufacturer and your building's owner, because many of these spa systems require expert installation. It's also wise to have a grasp on the water levels or pressure required for optimal use of your new luxury shower and of what water pressure is actually available to you.


4. Gauge your level of environmental concern

On average, a family of four in the U.S. uses 400 gallons of water a day -- twice that of a European family -- and pays $500 annually in water and sewer bills. Look for the EPA's WaterSense label (like the EnergyStar label) on products that meet Federal low-flow standards.

Still, be aware that there is a continuing debate about luxury shower heads, water-efficiency and sustainability.

A spa shower head won't necessarily increase your water usage, because most products from major manufacturers comply with regulations when the nozzles are measured individually (that is, they emit no more than 2.5 gallons per minute). If you're running a multiple system then your meter might tick higher along with your water bill.

In a new twist, the Department of Energy is trying to enforce a different interpretation of the regulation, saying that the 2.5 gallons threshold should apply to the combined output of a multiple shower head system, rather than each component, which would make some products noncompliant, as they can have dozens of nozzles.

Not everyone weighs such matters when it comes to buying a high-end spa shower head that will make you look forward to jumping out of bed in the morning. "I should think about these things more," concedes Maher, noting that he was reassured that Moen products are currently compliant with the law. "I'm very happy and pleased with all the features."


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]]>bathroomDIYEnergyStarEPAhome+improvementluxuryrenovationshowershowerheadwaterErnest Beck2010-08-23T14:54:00 00:00Most Expensive Home in the U.K. (and Possibly Anywhere) Sells for $220 Millionhttp://realestate.aol.com/blog/2010/08/13/most-expensive-home-in-the-u-k-and-possibly-anywhere-sells-fo/http://realestate.aol.com/blog/2010/08/13/most-expensive-home-in-the-u-k-and-possibly-anywhere-sells-fo/http://realestate.aol.com/blog/2010/08/13/most-expensive-home-in-the-u-k-and-possibly-anywhere-sells-fo/#commentsFiled under: ,,

If real estate brokers in the U.S. are feeling upbeat about a recent run of good sales in the luxury end of the market, then their colleagues in London must be positively giddy over the recent sale of a $220 million penthouse in the city -- the highest-priced residential property ever sold in the U.K., or just about anywhere it appears. Ever.

The mystery buyer, believed to be (take your pick) a Russian oligarch, a Middle Eastern sheik, or a Nigerian oil mogul living it up on rising oil prices, will be the proud owner of a two-story, six-bedroom spread at One Hyde Park, a new development with park views, bulletproof windows, a panic room and, according to the developer's website, "ultimate perfection," when it comes to amenities and decor.

Even compared to some recent eye-popping sales in New York -- recall Mexican uber-billionaire Carlos Slim's $44-million contract for a Fifth Avenue townhouse -- the London price is a whopper, and reflects a return of super-rich buyers looking for trophy homes, brokers there say, while the overall market remains wobbly.

Sounds like a familiar story if you look at real estate on this side of the pond.
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According to The Wall Street Journal, luxury sales in the U.S. are making a comeback from a deep slump in 2009. Sales of homes priced between $2 million and $5 million rose 32 percent in the first quarter of 2010, compared to a year ago, the newspaper quotes CoreLogic as saying.

In Manhattan, there were 402 sales of $2 million or more in the first quarter compared with 311 in the same period in 2005, the peak year for existing-home sales nationwide.

Buyers in that range are feeling more confident, even if they don't own a Nigerian oil company, and are more sure of getting a mortgage. And of course with prices lowered, they see a big upside in buying now.

But it's still a fractured recovery. Despite some flashy sales in coveted neighborhoods around the country, foreclosures are stalking tony enclaves like Lake Forest, Ill., on Chicago's North Shore, and in hedge-fund haven Greenwich, Conn.

Miami-Dade County still has enough homes priced at $2 million or more to last 41 months at the current sales pace, the Journal notes.

And don't forget that more than 1.6 million properties went into foreclosure in the first half of 2010, on top of a record 2.8 million last year.

The high-end buyers are coming back, both here and in the U.K., which is good, but whether that buoys the rest of the market is an open question.


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]]>foreclosureshighest residential saleLondonluxury marketNew Yorkreal estateErnest Beck2010-08-13T13:24:00 00:00In 'Wall Street' Movie, Real Estate Tells a New Storyhttp://realestate.aol.com/blog/2010/08/12/in-wall-street-movie-real-estate-tells-a-new-story/http://realestate.aol.com/blog/2010/08/12/in-wall-street-movie-real-estate-tells-a-new-story/http://realestate.aol.com/blog/2010/08/12/in-wall-street-movie-real-estate-tells-a-new-story/#commentsFiled under:

When Oliver Stone's sequel to his 1987 hit "Wall Street" opens in September, viewers will see some familiar characters and an updated plot of complex financial shenanigans -- as well as a dramatically altered map of New York City real estate.

Where, for example, is Gordon "greed is good" Gekko (played again by Michael Douglas) living these days?

When "Wall Street: Money Never Sleeps" opens, Gekko's 1970s-era Hamptons beach house is gone. (Well, he just gotten out of jail). So he's holed up on the Upper West Side, in the west 60s near Lincoln Center -- in a rented penthouse apartment with, ugh, rented furniture, says the film's production designer Kristi Zea.

As for the young and ambitious trader character, now named Jacob and played by Shia LaBeouf, he splurges bonus money on a 2,500-square converted loft in (where else?) trendy Chelsea, in the West 20s, to be exact.
Recall that in the original, Gekko's protegee Bud Fox (Charlie Sheen) buys the ultimate 1980s trophy apartment -- a glass-walled aerie on the now not-so-hipster Upper East Side.

A new character, Gekko's estranged daughter (an alternative blogger type played by Carrey Mulligan) hangs out in what looks like a cozy West Village apartment (but was actually filmed in a landmark 1827 townhouse built by John Jacob Astor).

Other location secrets reveal much of the plot's back story, and New York's real estate evolution.Gekko's Upper West Side digs have double-height windows and great views, but the interiors are pared down and are "slightly hotel-ish," Zea explains, a reflection of his post-prison status and attempt to reinvent himself. He got the apartment through a hedge fund friend who helped him out.

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LaBeouf's Chelsea pad, with an Empire State Building view, has lots of young Wall Street hot-shot stuff -- wine, workout gear and a big flat-screen TV -- but no faux Etruscan pots wired as lamps, as in the original, which came courtesy of his designer girlfriend.

And Jacob drives a motorcycle, which can be parked next to the apartment via a ramp (implied, but not seen in the film), placing him and his bad boy toys squarely in the present age of luxury condo amenities.

Only Ms. Gekko (who is also Jacob's girlfriend) lives simply but stylishly in an apartment designed to resemble a partitioned parlor floor of a typical brownstone, although in real life the storied townhouse on Charlton Street has 12-foot ceilings, fireplaces, and oak-leaf motifs.

This suggests that she might have gotten some family money but that she has distanced herself from her greedy criminal father. In the constellation of New York real estate, her humble home is not a place where "Wall Street money lives," Zea says.

The comparatively spartan digs of the characters in Stone's new movie suggest that even the fantasy version of New York City's Wall Street milieu has experienced some downsizing.


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]]>Gordon GekkoNew York CityOliver Stonereal estatesequelWall StreetErnest Beck2010-08-12T11:47:00 00:00Vacation Homes Slim Down to Attract Buyershttp://realestate.aol.com/blog/2010/08/11/vacation-homes-slim-down-to-attract-buyers/http://realestate.aol.com/blog/2010/08/11/vacation-homes-slim-down-to-attract-buyers/http://realestate.aol.com/blog/2010/08/11/vacation-homes-slim-down-to-attract-buyers/#commentsFiled under: ,

Fashion mogul Calvin Klein isn't known for skimping on anything -- except for some underwear designs -- so it came as a surprise that he just downsized plans for his soon-to-be-built Hamptons beach house.

He isn't alone in wanting a more humble vacation retreat. While we already know about the great shrinking single-family home for average folks, now comes word that second homes aimed at the most affluent buyers are also slimming down.

A sales slump and bloated inventories are forcing developers to build smaller, less expensive houses, especially in resort communities, the Wall Street Journal reports. From Caribbean islands to ritzy Rocky Mountain retreats, prices are being slashed by as much as 44 percent -- along with, of course, square footage, acreage and some amenities.

It's easy to see why: Vacation home sales peaked at around one million in 2005, but dipped to about half that last year as the overall real estate market tanked. There's been a bit of an uptick this year, but that's coming off of deep lows.

So will smaller, cheaper cottages help kick-start the depressed market for second homes?
The plan might work. Everyone is looking for a real estate bargain these days, even the rich, who probably won't mind sacrificing some square feet for a lower price, which combined with low interest rates makes a beach house or mountain cabin very attractive.

However, because part of the upswing in vacation home sales are due to foreigners with strong currencies moving into the market, they could balk at having to do with less than a Gatsby-like palace for their overseas hideaway.

To be sure, even homes with more modest dimensions won't mean you have to bunk in a scruffy dacha.

At the Pine Creek Sporting Club in Okeechobee, Fla., you would have paid $2 million and up for a home with between 2,500 and 5,000 square feet; today, there's a $600,000 model with between 1,500- and 2,000-square feet for sale, the Journal points out.

Calvin Klein wasn't that dramatic with his Hamptons downsizing, but he did chop three feet off the height and submerged two sides of the guest wing, doing away with the original design for a two-story above-grade structure (and tear down a 55,000-square foot monster to make way for his new place).

A sleeker, slimmer silhouette for second homes is certainly in vogue.

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]]>Calvin KleinHamptonsRocky mountain resortssecond homevacation homeErnest Beck2010-08-11T17:02:00 00:00House Sizes Shrink Along With Consumer Prioritieshttp://realestate.aol.com/blog/2010/08/10/house-sizes-shrink-along-with-consumer-priorities/http://realestate.aol.com/blog/2010/08/10/house-sizes-shrink-along-with-consumer-priorities/http://realestate.aol.com/blog/2010/08/10/house-sizes-shrink-along-with-consumer-priorities/#commentsFiled under: ,

After years of conspicuous consumption when it came to our homes and what we put in them, Americans are rethinking their priorities in the recession-induced Age of Austerity and paring down their possessions and what they spend.

We won't be living in cold-water yurts, of course, but some recent numbers suggest that shifting consumer priorities will have a profound impact not only on the real estate market and homeownership but all the industries associated with housing.

Today we're buying less furniture and washing machines and other durable home items. We're living in smaller houses with less overall square footage. Our remodeling projects are smaller and we like energy-efficient and sustainable products more than, say, a new AC unit that comes in multiple colors.

Are we just being practical (and cheap) in a scary economy, or are Americans finally coming around to the small-is-beautiful mentality?
Some rightly argue that it has to do with a change in perception about real estate and the value of design in relation to real estate and the market. In the boom years, investing in design was aimed at a better return when you sold your home, rather than appreciating the beauty, practicality or function of what you bought.

The calculation was that the outdoor fire pit or gold-plated swan-shaped faucet might not have been to your taste, but could entice a buyer with its allure of luxury -- and add a few grand to the sales price.

But with the real estate market upended by the recession and with values in flux, we're all thinking that maybe there's no need for a Great Room anymore. That has to do with real estate as well as a new way of thinking about our houses and homes.

Some key numbers tell the story.

The National Association of Home Builders says that the average size of a single-family house dropped to a mere 2,438-square feet in 2009, or 100 square feet smaller than in 2007, the last year it increased after a spectacular 30 year run of increases. And more of these are likely to be one story than two, reversing another trend, and with not as many bedrooms or bathrooms.

Furniture sales dipped 11 percent in the first six months of 2010, compared to the first half of pre-recession 2007, according to the Commerce Department.

Even when we pull out of the downturn we're not likely to resume our spendthrift ways, many economists predict. So when we consider real estate in the future, we'll be thinking smaller, even if you're not a baby boomer or empty-nester. And when it's time to buy furniture and fixtures or remodel, well be thinking of making due with what we have, or going for the less costly but practical and environmentally-friendly solution.

It's not just about who will be buying our house when we sell. It's about how we live now.


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]]>age of austerityCommerceDepartmentgreat roomnot so big housessmall homesErnest Beck2010-08-10T12:26:00 00:00Lawn Mowing Takes a Cheap and Tasty Turn -- for Goatshttp://realestate.aol.com/blog/2010/08/05/lawn-mowing-takes-a-cheap-and-tasty-turn-for-goats/http://realestate.aol.com/blog/2010/08/05/lawn-mowing-takes-a-cheap-and-tasty-turn-for-goats/http://realestate.aol.com/blog/2010/08/05/lawn-mowing-takes-a-cheap-and-tasty-turn-for-goats/#commentsFiled under:

Gas-guzzling weed-whackers and toxic chemicals are so yesterday when it comes to eco-conscious lawn and garden care, especially when homeowners can now use goats to do the dirty, dangerous work.

A cottage industry of entrepreneurs is flourishing by renting out goats to home warriors battling weeds, prickly underbrush, and other unwanted vegetation -- including nasty things like poison oak that you wouldn't want to get near yourself.

Don't worry PETA, this won't hurt the goats: They enjoy a diet of nutrient-dense, broadleaf plants and brush. That's the idea behind companies like www.rent-a-goat.com, the Goat Lady and Rent a Ruminant LLC, which bring the animals right to your front door or to your overgrown front acreage, as the case may be, where they forage on stuff you want to get rid of with no chemicals and only a tiny carbon hoofprint. (Sadly, you can't just buy some goats and keep them in the backyard.)

But how cost-effective and environmentally-friendly is goat weed control?
Prices range from $200 a day for a dozen goats to $1,000 for a larger herd of 1,000 or more. So it depends on how big a spread you have and how much underbrush needs to be cleared.

In a cost-benefit analysis at the Vanderbilt Mansion, a national historic site in Hyde Park, N.Y., the goats' $900 annual cost is "two-thirds of what hired manpower would be," thereby saving money on lawn care but perhaps stealing a jobs in the down economy.

As for greening your acres, going with goats will probably keep you and your begonias from contact with all the chemical goop that has been poisoning your neighbor's poodle. And then there's the gas saved from not using fuel-inefficient garden machines.

The $24-billion lawn and garden industry is slowly getting behind the eco-friendly movement with products like organic fertilizers made of alfalfa and kelp meal. While such products are entering the market, it's still only a fraction of the total, with sales of around $460 million in 2008.

So in the meantime you might want to get some cute, furry goats to save your back -- and the environment.


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]]>eco-friendlyenvironmentgardengoatsgreen gardeninggreen landscapinglawnlawnmowersmowers lawnweedsErnest Beck2010-08-05T15:15:00 00:00Long Island Real Estate: Levittown Suburb Abandons Its Affordable Rootshttp://realestate.aol.com/blog/2010/08/03/long-island-seeks-new-affordable-housing-solutions/http://realestate.aol.com/blog/2010/08/03/long-island-seeks-new-affordable-housing-solutions/http://realestate.aol.com/blog/2010/08/03/long-island-seeks-new-affordable-housing-solutions/#commentsFiled under: ,,

You might not notice it while cruising down the Long Island Expressway on the Hampton Jitney, but Long Island, N.Y. -- once the epitome of the suburban dream -- is having something of a midlife crisis as politicians, civic organizations and developers debate how to create more affordable housing.

Yes, the place that brought the world Levittown, the ultimate post-1945 mass suburb with cheap housing, has fallen behind in its ability to offer affordable homes, especially apartments. In fact, only 17 percent of the Island's housing stock is rental (compared to 38 percent in tony Westchester County, N.Y.).

The Island is certainly a place for those in the upper income bracket: Home values, even after the real estate bust, are five times household incomes, making Nassau and Suffolk counties among the 10 least-affordable counties in the U.S.

Who or what is to blame, and how do we move forward?
Some blame housing history and subsequent zoning laws, while others look to balky local governments and civic groups -- and developers more interested in McMansions than affordable houses and apartments. Or perhaps it's a combination of all of the above.

Those who fled New York City for all those ranches and split-levels (like my parents), and peaceful greenery, wanted single-family housing and nothing to do with tenements and renters -- and the local zoning laws still reflect that desire.

"A lot of people blame builders, but the builders were building what the zoning allowed to be built," Matt Whalen, vice president of development for AvalonBay Communities, a builder of high-end apartment complexes on the Island, told the Long Island Press.

One developer, Home Properties Inc., which owns older apartments on the Island, recently stopped pursuing new construction, The Wall Street Journal reported. Besides a scarcity of land, "it takes a long time for approvals," a spokesman said.

The lack of affordable housing has led to many problems for the 2.8 million residents. Long Island is the third most segregated suburban region of the country, according to the U.S. Census Bureau. There has been an exodus of young people and businesses, and difficult choices for baby boomers who want to downsize and stay in their communities, but can't afford to.

It's also an opportunity for builders, planners and designers. A recent Build a Better Burb competition, sponsored by the Long Island Index, received over 200 innovative entries -- including many for affordable and mixed-housing beyond the cookie-cutter single-family ranch.

Let's hope the designers' ideas are seriously considered.


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]]>affordable housingAvalonBayfirst suburbsLevittownLong IslandLongIslandsuburban sprawlsuburbs versus cityErnest Beck2010-08-03T15:29:00 00:00New York City: World's Richest Man Buys Fifth Avenue Landmarkhttp://realestate.aol.com/blog/2010/07/30/mexican-billionaire-carlos-slim-buys-fifth-avenue-mansion-for-4/http://realestate.aol.com/blog/2010/07/30/mexican-billionaire-carlos-slim-buys-fifth-avenue-mansion-for-4/http://realestate.aol.com/blog/2010/07/30/mexican-billionaire-carlos-slim-buys-fifth-avenue-mansion-for-4/#commentsFiled under:

Mexican billionaire Carlos Slim buys Manhattan mansionThe world's richest man, Mexican telecoms mogul Carlos Slim, is expanding his portfolio of New York City properties with the purchase of the landmark Duke-Semans Mansion on Fifth Avenue for $44 million, according to the The Wall Street Journal. It's a price considered something of a discount but still the fourth highest price ever paid for a Manhattan townhouse.

At just under 20,000 square feet, the home on 82nd Street is in spitting distance of the Metropolitan Museum of Art, but is said to be in need of some repair and redecorating. Slim can afford to transform the place from fixer-upper to grand palace as Forbes estimates his net worth at $53.5 billion.

Surprisingly, however, Bloomberg quotes Slim's spokesman as saying that the businessman won't actually live there. The mansion, built in 1901 by tobacco magnate Benjamin Duke, is an investment, like another property he picked up last month: a $140-million office tower, also on Fifth. Slim is buying up bits of New York, including a chunk of The New York Times Co. and retailer Saks Inc.

Even if he doesn't move in and put up his own drapes, Slim is probably buying at a good time, savvy businessman that he is.
After a recessionary slump in the townhouse market, this is the first sale of more than $25 million since the fall of 2008 (if you don't count Madonna's three adjacent houses, which she bought last year for a total of $32.5 million).

The Duke place was put on the market in January for $50 million by owner Tamir Sapir, a former cabdriver turned real estate investor who had bought it in 2006 for $40 million, a city record at the time. Sapir reportedly wanted to unload it because his other investments had come under pressure.

Whatever Slim does with the home -- his main residence is a "modest" six-bedroom home in Mexico City -- if he waits a while he might be able to make some money on a resale. Prices are edging higher in this upper stratosphere of Manhattan real estate. The median price of 77 apartments, sold for $10 million or more in 2009, was $12.8 million. In 2010, 28 units have been sold so far for a median of $13.2 million, Bloomberg quoted Miller Samuel as saying.

Sadly for brokers at Brown Harris Stevens, who had listed the Duke mansion, Samir and Slim reportedly struck a private deal, leaving them out in the cold --- and out of a big fat commission.











































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]]>Carlos Slimduke semans mansionluxury real estatemanhattan real estatemexican billionaireErnest Beck2010-07-30T11:30:00 00:00Home-Renovation Fantasy Books Can Change Your Lifehttp://realestate.aol.com/blog/2010/07/28/home-renovation-fantasy-books-can-change-your-life/http://realestate.aol.com/blog/2010/07/28/home-renovation-fantasy-books-can-change-your-life/http://realestate.aol.com/blog/2010/07/28/home-renovation-fantasy-books-can-change-your-life/#commentsFiled under:

Carol and Hugo Rizzoli and Josh Kilmer-Purcell (pictured at right with his partner Brent Ridge) are not household-name authors, but if you love real estate and home renovations you might be devouring the stories these people are telling in their new books -- the latest of many new publications in what is affectionately known as the house-porn publishing genre.

You know the plot: fantasies that many of us had had about buying an old wreck out in the wilds somewhere and slaving away at remodeling and renovating and along the way gaining insight into our very selves. That is, you get new insulation, a snazzy kitchen backsplash and perhaps a spread in Country Living as well as self-knowledge.

Kind of like "This Old House" meets "Eat Pray Love." Or as Joanne Kaufman put it in The Wall Street Journal, "The take-home message: If you get your house right, you'll also get your life right (or vice versa)."

But does a house makeover always lead to introspection and internal renewal?
We'd like to believe so, judging by the fabulous success of books like Peter Mayle's "A Year in Provence" and the popular "Under the Tuscan Sun" by Frances Mayes. In these cases it's the innocent abroad plot in which the protagonist sets out into unknown territory and, in the process of ripping out walls and dealing with balky Polish laborers, builds a dream house and finds variations of happiness and contentment.

According to Kaufman, such books "hit the sweet spot between our collective passion for real estate and our national belief in the power of re-invention."

The latest crop includes "The House at Royal Oak" by Carol Eron Rizzoli, the story of closing the bookshop that she and her husband Hugo ran in Washington, D.C., and opening an upscale B&B called Royal Oak on Chesapeake Bay; Josh Kilmer-Purcell's "The Bucolic Plague," about his excursion into goat farming with his city-slicker partner; and "The Dirty Life," the upcoming story of Harvard grad Kristin Kimball, a freelance writer who "traded in her life in the city to marry a farmer" and which chronicles year on their sustainable farm.

Sounds like a challenge, as was always portrayed on the old TV show "Green Acres." And one that glosses over the reality that the headaches, agony and angst of a renovation -- haggling with a plumber in hostile territory -- can be soothed with what we gain through these experiences -- love, fulfillment, the perfect relationship, and of course, a book contract.

Still, it's fun to dream (as you turn the pages of these books this summer on the beach) that the rundown shack over there could be transformed into a casual seaside bistro serving locavore delights and fish caught by your friends, the scruffy local fishermen, who also offer old-fashioned wisdom on how to overcome your neuroses.


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]]>bucolic plaguecarol rizzoliFrances Mayeshouse renovationshouse-pornjosh kilmer-purcellpeter maylepublishingrenovationroyal oakErnest Beck2010-07-28T17:36:00 00:00Colorado Luxury Home Sales Climb as Wealthy Bargain-Hunthttp://realestate.aol.com/blog/2010/07/28/colorado-luxury-home-sales-climb-as-wealthy-bargain-hunt/http://realestate.aol.com/blog/2010/07/28/colorado-luxury-home-sales-climb-as-wealthy-bargain-hunt/http://realestate.aol.com/blog/2010/07/28/colorado-luxury-home-sales-climb-as-wealthy-bargain-hunt/#commentsFiled under: ,

Colorado luxury real estate climbing once againAn uptick in sales of high-end mountain real estate in Colorado has prompted a critical question: Are the rich really returning to the real estate market and buying luxury homes? Or are they still hoarding their wealth after getting burned in the crash?

Mixed signals about what the wealthy are doing with their money are everywhere. One day we hear via Scorpio Partners that the rich might have as much as $26 trillion stashed away that they're not giving to banks and wealth managers. Meanwhile, The New York Times reports that a growing number of homeowners with million-dollar-plus mortgages have simply stopped making payments.

On the other hand comes word that high-net-worth buyers are apparently loosening their wallets a bit to purchase homes in swanky Colorado resorts like Vail and Aspen. It's not a bellwether market like Manhattan, or course, but some say the flicker of activity in this micro-market favored by high fliers could be a signal that the end of the Great Recession is near and a real estate rebound is on the way.

It's more like a blip, as high-end buyers cherry-pick discounted properties while the getting is good.
True, there have been some flashy deals out there amid the foreclosure auctions of multimillion-dollar properties in these luxury ski areas.

Last month hedge fund honcho John Paulson bought a $24.5 million ranch and home in Pitkin County (home to Aspen and Snowmass), reports the Colorado Independent. and there were 12 transactions totaling $42 million in Vail in May, with six homes selling for more than $4 million,

Overall, the dollar volume of real estate sales more than doubled in Eagle County (home to Vail and Beaver Creek) in the first five months of 2010 compared to a year ago, the newspaper says, citing figures from the Land Title Guarantee Co.

But despite the encouraging numbers, these sales appear to be selective purchases at knocked-down prices -- OK, discount here might mean taking $5 million off the top -- and reflects the fact that buyers are scooping up properties in a depressed market.

"I don't think personally it's a sign that we've bounced back and now everybody's jumping back in," said broker Led Gardner of Slifer Smith & Frampton Real Estate. Instead, he said, buyers are recognizing "the opportunity being presented." Of course, the Paulson purchase is impressive, but recall that Pitkin County had the record sale of a $47-million ranch back in in 2006.

Seems the rich are just like us after all -- always searching for a bargain.


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]]>Aspencolorado real estateforeclosuresluxury real estatemountain homesreal estate auctionrecessionski resortsVailErnest Beck2010-07-28T11:09:00 00:00Best Landscape Design Optionshttp://realestate.aol.com/blog/2010/07/23/best-landscape-design-options/http://realestate.aol.com/blog/2010/07/23/best-landscape-design-options/http://realestate.aol.com/blog/2010/07/23/best-landscape-design-options/#commentsFiled under:

landscape designEd and Barbara Garahan loved the backyard of their 1960s home in a north Dallas suburb, with its creeks and mature trees. But after 15 years, the deck was deteriorating. And with the kids grown and gone, it was time for a change. "We wanted to make it a visually appealing place, with enough room for family reunions," says Barbara Garahan.

Many homeowners face a similar question: How to transform an outdoor space into an extension of their home, where they can enjoy the great outdoors in style and comfort, and also add to the home's resale value?

Luckily, outdoor designs have become more sophisticated in terms of products and plantings.
While porches, patios and decks are still the main "hardscape" elements of a backyard, "we have gone beyond azaleas," notes Nancy Somerville, chief executive of the American Society of Landscape Architects. "People want a beautifully landscaped space that doubles as an entertainment space," she adds.

Working with landscape architect Marc Funderburk, who helped them create the look they wanted, the Garahan family chose a large open patio area for entertaining, with a covered area fitted with a fireplace and a gas grill. Then they added a plasma screen TV, speakers and special lights. A separate patio space off the master bedroom suite includes an in-ground spa.

But outdoor spaces don't have to be that elaborate. What should you look for when designing the backyard?


Porch, patio or deck?

It depends on the site and grading, and whether you want to be elevated (on a deck) or at ground level (porch and patio), which would provide easier access from the house and perhaps more privacy if shaded by thick trees.


Go green

Consider native plants, recycled materials like granite and wood for the deck, and different types of "permeable pavement" that allow water to flow through, saving water and lowering your utility bill. This also enhances the home's green image when reselling. (Learn more about landscaping with low-maintenance lawns.)


Living big outdoors

Kitchens are popular items, complete with grills, counters and fridges, as well as fire pits and fireplaces, stereos, TVs and heaters. You can throw in a water element - a saltwater pool, fountain, waterfall or grotto - but remember that some buyers regard anything with water to be high maintenance.

Experts agree that a well-designed outdoor space can add to a home's curb appeal and enhance its value. That goes for porches, patios and decks: About 21 percent of prospective buyers want a deck in their new home, and more than one third want a patio or terrace, according to the National Association of Realtors. Overall, good landscaping can "raise the value of your home by 13 percent," says Somerville.

And in the meantime, you can enjoy the outdoor space in any season.

"It's beautiful," Barbara Garahan says of their updated yard. "It's a comfortable place to sit and eat and talk." And if the family ever decides to sell, "I'm sure people will look at it and say, this is great."


Interested in more home improvement tips? AOL Real Estate has other great guides that might help:
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]]>deckDIYhome improvementhome+improvementHomeImprovementlawnpatioporchrenovationyardErnest Beck2010-07-23T11:36:00 00:00Housing Market Setback? Index Shows Less Work for Architectshttp://realestate.aol.com/blog/2010/07/07/architecture-billings-index-sinks/http://realestate.aol.com/blog/2010/07/07/architecture-billings-index-sinks/http://realestate.aol.com/blog/2010/07/07/architecture-billings-index-sinks/#commentsFiled under:

AIA billings downThe wobbly economic recovery is looking a bit wobblier, if you consider the Architecture Billings Index put out by the American Institute of Architects, which reflects not only how much work architects are getting but also suggests the status of construction spending and the overall health of the housing and real estate markets.

After three months of climbing out of a recession-induced hole, the index suddenly sank back in May to 45.8 from 48.4 the previous month, a relapse from what was touted as a sure signs that business was improving for designers, contractors and developers.

"This caught us off guard after a string of good months in the right direction," says Kermit Baker, the AIA's chief economist.
Baker notes that any index number below 50 still indicates an anemic market trying to right itself.

What caused the reversal? Take your pick: the jittery stock market, a less-than-stellar employment rate, the lingering European debt crisis, that oil spill in the Gulf, or Brazil being knocked out of the World Cup.

Well, it could be just about anything that sours anyone's eagerness to invest. So, where do we go from here?

Baker says that for the most part banks and financial institutions remain skittish about loaning money to get projects going, which clogs the pipeline of development that often starts with a call to an architect's office.

Caution reigns supreme when it comes to starting a building, be it a high-end residence, or an office tower, or pouring money into a renovation when commercial rents are in the doldrums.

All true, but let's look on the optimistic side. A deadline for the housing tax credit has been extended and Congress is considering legislation to help lenders and borrowers and free up credit. These moves might lead to at least a stabilization of the market and some risk-taking on the part of developers or anyone else who might want to sign up an architect.

"We're still trying to find the bottom of the market," Baker says, "and hopefully that's not too far away."

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]]>AIAarchitectsBillings Indexconstruction spendingdevelopershome designErnest Beck2010-07-07T14:17:00 00:00India Plans World's Tallest Residential Towerhttp://realestate.aol.com/blog/2010/06/16/tallest-residential-tower-in-the-world-rises-in-india/http://realestate.aol.com/blog/2010/06/16/tallest-residential-tower-in-the-world-rises-in-india/http://realestate.aol.com/blog/2010/06/16/tallest-residential-tower-in-the-world-rises-in-india/#commentsFiled under:

India is emerging as a global economic power, with a rising middle and wealthy class with money to burn, which is good news for Lodha Developers, a Mumbai company about to break ground on the world's tallest residential tower -- and, no doubt, one of the city's priciest real estate offerings.

With 117 stories, the 1,450-foot World One Tower will dwarf the Empire State Building and the Willis Tower in Chicago (née the Sears tower) in the overall skyscraper stakes, and easily rise higher than the Q1 Tower in Australia's Gold Coast City, the current reigning world champion of residential structures.

Of course, the nearly 300 apartments in the $450-million World One Tower won't come cheap. Residences will start at around $1.5 million and top out between $10 and $12 million, according to the developer. That may be chump change by New York City luxury real estate standards, but it definitely ranks high in India's big cities, where property prices have nearly doubled over the past year, Indian Realty News says.

Still, who might be in the market for such high living?
The new class of emerging wealthy Indians, of course. We often think of India as a developing country with a massive impoverished underclass. While this low-income sector still exists, the country is also one of the world's fastest-growing economies. Last year the number of Indians on the Forbes rich list rose to 49 from 24, and two were in the top ten.

These elite few might go for the swanky design by U.S. architects Pei Cobb Fred & Partners and Leslie E. Robertson Associates. The tall tower features 3 and 4-bedroom units, lavish villas with private pools and duplex mansions, all with private balconies and acres of Italian marble floors, as well as a 20,000-square foot spa and views of the city and Arabian Sea.

If you're feeling guilty about living in such a big building, soothe your green guilt: Despite its size, World One is going for LEED Gold with solar energy lighting the common areas and rainwater harvesting.

Before buying, however, consider another big building on the drawing boards -- as well as some engineering issues that might pop up. Just as Mumbai's World One was being celebrated, another developer touted plans to construct an even taller building -- called the Pentominium Tower (who dreams up these names?) in Dubai.

Dubai is already home to the world's tallest structure, the Burj Khalifa, which closed only a month after opening due to electrical problems (but has since reopened).

 

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]]>apartmentsbombayBurj Khalifadubaimumbaiq1real estateresidential towerWorld One TowerErnest Beck2010-06-16T12:30:00 00:00Baltimore Home Auctions Make Luxury Living Affordablehttp://realestate.aol.com/blog/2010/06/15/baltimore-home-auctions-make-luxury-living-affordable/http://realestate.aol.com/blog/2010/06/15/baltimore-home-auctions-make-luxury-living-affordable/http://realestate.aol.com/blog/2010/06/15/baltimore-home-auctions-make-luxury-living-affordable/#commentsFiled under: ,

Baltimore seems like a cool place, the gritty bits from "The Wire" and John Waters movies notwithstanding. And now you can live there in the lap of luxury for a pittance, compared to some high-priced real estate markets like New York and San Francisco.

Because Baltimore's luxury market took a dive in the recession, 11 properties at a newly built development called Pier Homes at HarborView -- described in breathless terms as "the only waterfront community of its kind in the world" (our italics) -- are being auctioned on June 28, with prices starting at up to 75 percent off the last asking price.

That's right: a 3,523-square-foot, 3-bedroom, 2.5-bath home has a minimum bid price of $375,000 -- down from $1.48 million. The bidding for an even bigger place, with 3.5 beds and 2.5 baths, starts at $665,000, instead of the original asking price of $1.9 million.

Quite a bargain for waterfront living that the website claims is "inspired by the homes of Venice." OK, except for the water views, they don't exactly look like Venetian dwellings (although we did spot an Italianate-looking baroque fountain in what appears to be a courtyard). But that's still good value for money ... if you want to live in Baltimore.
Not everyone in Baltimore is happy, however.

Analysts say the auction -- like many being held across the country in deflated housing markets like Las Vegas and Miami -- will "rock the entire high end" of the market (by pressuring other sellers to lower their prices) and make life difficult for those who bought at a higher price.

The auctioneers argue that offering the homes at steep discounts would "break the logjam across the board" in Baltimore's stagnant real estate market, noting that in April only 17 homes priced at $1 million or above sold in the metro area, out of more than 650 on the market.

It could be a good moment for buyers to take the plunge. The decor looks nice, too, especially that big kitchen and sexy glassed-in shower in the bathroom.

So for all you Baltimore fans, grab your paddles and let the bidding begin.

 

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]]>auctionBaltimorebaltimore real estatehigh end real estateluxury marketErnest Beck2010-06-15T13:00:00 00:00