Luxury Real Estate News Roundup 08/04

The luxury real estate industry continues to go through changes, although by far the most talked-about subject in the news is either foreclosures and gone-broke real estate moguls – one golf property mogul in particular who is reputedly hiding from his creditors in the Bahamas, or positive spin press releases attempting to talk up the market.

These are a few recent headlines and stories. I will be careful not to quote more than 4 words from any Associated Press news articles after they have now started shutting down bloggers and sending out invoices for $2.50 a word – regardless of whether or not they own the copyright. The feeling amongst the traditional news sources seems to be that blogging is at the heart of their recent financial troubles. Far more sensible to acknowledge that that particular business model is dying a slow death, in no small way due to their part in creating the current financial crisis. Perhaps if they had actually reported the news occasionally instead of promoting a particular agenda, this would not be the case.

Rise and Fall of Real Estate Mogul Bobby Ginn on Golf in America. Bobby Ginn was a real estate mogul who developed numerous resorts and communities during the real estate boom in the 1990’s. His Ginn communities were marketed as the ultimate in upscale golf luxury, and Ginn parlayed his sponsorship of professional golf tournaments – including the Ginn Championship at Hammock Beach, the Ginn Open at Reunion and the Ginn sur Mer Classic at the Conservatory – to lure investors. Now, with unfinished clubhouses and neighborhoods in foreclosure, he is thought to be hiding out in the Bahamas. World Golf

This first one is actually a plug for an upcoming TV show on the Golf Channel, which might make interesting watching.

Foreclosure sale set for luxury homes. Two Town of Hamburg residences that were collectively sold last fall for $6.3 million and were recently the subject of an FBI raid are headed to a court-imposed foreclosure sale. Buffalo business first.

Marketing Madoff’s mansions. Nearly $22 million in Madoff real estate is about to hit the market. The victims of the convicted Ponzi schemer Bernard Madoff are hoping for a big take because they’ll share the proceeds, but whether the luxury properties will fetch as much as estimated is still an open question. CNN

This should be interesting. Where the estimated prices have come from is anyone’s guess, but his French real estate is still sitting untouched. The wheels of justice in France grind particularly slowly – it was only recently that Saddam Hussein’s various toys and real estate were released for sale – effectively devaluing them to the point of almost worthlessness. His property in Cannes was stripped bare by the time it was put up for sale, and basically needs rebuilding from the ground up. Not easy to do in today’s credit market. Like everywhere else, the French Riviera is littered with stalled cranes – except in the public housing sector. A French mayor’s political power is inextricably linked to the head count of his town, so all that is going up at the moment are concrete boxes to house immigrants. A head is a head.

Millionaire Guru resurfaces in Dubai. A self-proclaimed millionaire motivational guru whose Ferrari sportscar was repossessed in New Zealand is now promoting himself as a “mind nutrition expert” in interviews with Middle Eastern media. Last month, he shared the stage with captains of industry in a United Arab Emirates Government-sponsored conference . NZ Herald

What happens in Dubai, doesn’t always stay in Dubai, although from this next news item, I suspect that the move into that other Dubai, Las Vegas, by Dubai world, must, in hindsight, seem like extremely bad timing.

MGM Mirage cuts price of Vegas homes. MGM Mirage, which is building the CityCenter development in Las Vegas in a joint venture with Dubai World, has cut the price of homes at the property and casino project. Las Vegas is one of the worst affected cities of the US property downturn, with prices falling 53 per cent in May since August 2006, according to a home price index released by Standard & Poor’s and Case Shiller in June. The National