Bob Waun

Here is Bob’s guest editorial to our blog from his Second Home 411 blogsite.  I look forward to your comments and feedback.

From Bob Waun: Want the price of something to rise? The formula is simple: increase demand or decrease supply. People want scarce things, things that are scarce are ‘valued’.  So,let’s explore some easy ways to limit the supply of homes:

1. The banking system has already stopped lending to new construction projects, heck, we aren’t even lending to many half finished projects. This has constricted supply of new inventory and will for the foreseeable decade to come. No new building.

2. Municipalities have a wonderful chance to create new park land, consolidate development areas, increase density (walk-ability), land use and conservation, and revamp zoning. Governments should ‘buy up’ strategic property now, as these actions will increase the value later.

3. Creative deconstruction. The US housing stock is on average 45 years old. My opinion is that many homes built before 1970 are actually better made, but this statistic does lead one to wonder if ‘recycling’ much of the housing in our country isn’t warranted?  For every new home that is permitted, maybe one somewhere should be taken apart – much like wetland mitigation.

4. Encourage vacation home ownership. Yes, many of the homes that are vacant today were envisioned to be ’second homes’ (condos). Seeking out foreign citizens to buy these homes as their ‘cottage in America’ using a special Visa and may be an incentive that would sell thousands of condos. Foreign buyers are the best, because each offshore dollar into US real estate balances our trade deficit, pays US property tax burdens and increases their spending in our retail market. The US railroads were built by foreign capital, and the railroads served the growth of our Nation well.

Real estate is the one product that can’t be imported or exported. When some one buys real estate, the US Government (local & federal) is assured that tax payments will be made.  Real estate is also the largest employer in the US. Creating new jobs to ‘recycle housing’, finish partially constructed housing, redesign/configure (green) old housing, or turn existing housing into parkland, green space or ethanol fields is good work for Americans.  All of this increases US government tax receipts without increasing the burden on tax payers.

Any thoughts about Bob’s radical ideas?  CLICK HERE for more information about second home financing options.  Until next time…your East Bay lifestyle detective remains on duty.

Related posts:

1. East Bay Real Estate: Some Housing Recovery Solutions!
2. The Urban Land Institute’s 2010 “Housing In America: The Next Decade”
3. East Bay Real Estate: Top-3 Bay Area Housing Markets!

Ragatz Associates is an international consulting and marketing research firm that serves the worldwide resort industry.  It was founded in the 1974 by Dr. Richard Ragatz which has now conducted over 2,000 studies for resort developments in over 70 countries and across the United States.  The company provides two core services to the resort industry – feasibility analyses for resort projects and market research for the potential resort project.  Ragatz Associates focuses on consumer shared-ownership of the resort industry, which includes fractional interests, private residence clubs, destination clubs, and resort timeshares.

For the past eight years, Dr. Ragatz and his team host the annual conference which further explores the world of fractional ownership of resort properties.  This year’s conference was in San Francisco from March 18^th – 20^th.  The “whos who” of the resort property world were attending.  It was my pleasure to spend time at the conference and even have the opportunity to interview two of the conference presenters – Sherman Potvin, president of Luxury Fractional Guide, and Bob Waun, the CEO of Vacation Finance.  The conference agenda covered all aspects of the evolving world of fractional ownership for those seeking part time second homes around the world. A sample of the conference agenda follows;

• Today’s Affluent Consumer
• The developers’ view of the upcoming trends – from the Brand developers, Private Residence Club, and Independent fractional ownership developers.
• Fractionalizing “One-Off” homes – creating a fractional ownership for one residence.
• The external exchange companies
• Structuring the most proper offering of the fractional ownership product.
• The owners benefits and the required ancillary services.
• Critical legal issues in the fractional ownership industry.
• Financing fractionals in today’s wild financial market place.

For a copy of Dr. Ragatz 2008 report click here.  I believe the cost for those who did not attend the conference is $175. Please contact me if you like more information about what Fractional Ownership is about, or, if you are a developer, how you can maximize your return by creating a fractional ownership structure for your resort projects.  Until next time…

Related posts:

1. Tuscany Fractional Ownership – Castello di Casole! A global real estate opportunity!
2. FIABCI-USA: Jim Walberg Presents At The 2010 Spring Conference
3. Who’s Who In Luxury Real Estate Conference Focused On Global Expansion!