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Cut Rate Condos? International Developers Roll Out Incentives
| Written by Laura Balch 01/09/2008 |
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With the U.S. real estate market in a slowdown, international developers are rolling out incentives to entice hesitant American buyers to invest in their luxury resort real estate properties. These packaged perks and programs are designed to appeal to an increasingly bubble-shy U.S. consumer base and aim to attract the attention of buyers who may be sitting on the real estate sidelines. Incentives range from complimentary educational seminars and getaway-cum-scouting trips, to lease-back options that minimize the financial commitment for those looking to lock in rates on a second home for the future. Here’s a look at three developments in Mexico and St. Maarten, and the programs they’re offering prospective buyers.
Sandy Beach Resorts in Puerto Peñasco, Mexico
Sandy Beach Resorts is a 5,000-acre resort development in Puerto Peñasco, a former fishing village on the northeastern shore of the Sea of Cortez that has more recently become a favorite destination for savvy American travelers. The area seems poised for tourism growth in coming years due to recently added direct flights from Los Angeles and Las Vegas on Aeromexico, a new highway from San Diego that will cut driving time from Southern Calif. in half, and community development in the area including construction of a convention center and costal highway.
In an effort to reach out to potential buyers, Sandy Beach Resorts, where prices on residences range from $210,000 to $5 million, is offering two incentives programs. The first amounts to a complimentary educational seminar where prospective owners are treated to a multi-media presentation about the area and resort, and legal and financial advice on purchasing property in Mexico, over a catered breakfast or lunch. The second, geared towards seminar attendees, is a mini-vacation to the location itself, which includes round trip airfare from Los Angeles, a two-night stay in one of Sandy Beach’s beachfront resort, meals, area tours, and activities like a yacht cruise and parasailing.
Las Palomas Beach & Golf Resort, Puerto Peñasco, Mexico
Las Palomas Beach & Golf Resort, also in Puerto Peñasco, is home to the area’s first 18-hole championship golf course and some 2,000 residences available for full ownership at prices ranging from $340,000–$1.9 million. The resort offers plenty of amenities, including a three-acre infinity pool and several gourmet restaurants, and plans are in the works for an onsite hospital and retail shopping village as well.
Incentives at Las Palomas include discounted rates on stays for potential buyers, non-qualified loans from the developer, flexible payment options on deposits, and closing cost discounts.
Westin St. Maarten Dawn Beach Residences located at Westin St. Maarten Dawn Beach Resort and Spa
The Westin St. Maarten Dawn Beach Resort and Spa is offering full ownership residences at its European-styled beachfront property. The 1,654-square foot Caribbean condominiums, all with three bedrooms and two baths, are fully furnished and feature Westin’s signature Heavenly Bed, with premium mattress set and piles of luxurious linens, balconies, French doors and oversized baths. Resort amenities include gourmet restaurants, a large infinity pool, access to 18-hole golf, fitness facilities and an on-site casino.
The Westin St. Maarten is offering potential buyers a lease-back option, which allows the owner access to the residence for 14 days in season and 14 days off season, and places the unit in the rental pool for the remainder of the year. It requires that the buyer put down a 25 percent deposit and Westin secures the financing for the rest of the purchase price. The resort controls the unit and rents it out to resort guests for $500 to $1,600 per night, depending on the season. The resort is effectively leasing the unit back from the owner, and the income generated can help cover the monthly mortgage. The lease-back option is a good one for those looking to lock in current prices, but not yet ready to use the property frequently enough to offset the cost of ownership.
There are 99 condos available for this program ranging from $650,000 to $1.5 million. The first units, 24 beachfront condos, will be complete later this winter and the remainder are under construction.



From: Peter FelliniThursday, April, 24, 2008 at 12:59 PM
Westin St. Maarten is just way too expensive and hence they are not selling. A better choice not mentioned here is Barbaron Luxurious Residences, also right on the ocean, and from seeing the renderings exquisite design (certainly compared to Westin's ugly military institution style building).